GCC projects fall for a third successive week, with only Bahrain and Kuwait recording positive change
Contract awards 8 December 2010
Biggest contract: $840m
Awarded to the local Boodai Construction Company, Italy’s Rizzani de Eccher, Spain’s OHL and Italy’s Trevi Group for road works in Kuwait
Value of major contract awards: $1.035bn
Number of contracts awarded: 4
The total value of major projects planned or under way in the Gulf on 8 December was $2.86 trillion, a fall of 2 per cent on the previous week, according to the latest Gulf projects index. This is the third successive week that the region’s project market has slipped.
The bulk of the decrease was due to a fall of 2.5 per cent in the total value of projects planned or underway in the GCC, which accounts for about 76 per cent
of the Gulf projects market.
|Project updates 8 December 2010|
|Project Name||Project Status|
|Kuwait||Jamal Abdul Naser Street: Overhead Passages & Drainage||Construction|
|Saudi Arabia||Ras al-Zour to Hafar Al-Batin Water Pipeline||Construction|
|Kuwait||Kuwait Hospital Towers||Prequalification|
|Saudi Arabia||Calcined Petroleum Coke Plant||Construction|
|Oman||Al-Duqm Airport: Package II||Construction|
|For further information visit www.meed.com/meedprojects|
A total of $13.5bn of new projects were launched in the region in the week up to 8 December, but 23 projects worth $66.4bn were put on hold, and 21 projects worth $4.9bn were completed.
The bulk of the slide can be attributed to a 6.95 per cent decrease in the UAE’s project index. The UAE saw 17 projects worth a total of $64bn put on hold. The most notable project to be removed from the index is the $55bn Mohammed bin Rashid Gardens, which MEED Projects now considers to be on hold.
Oman, Qatar and Saudi Arabia all recorded a decline in their project indices.
|Upcoming tender deadlines|
|Oman||The Wave||Kempinski Hotel||18 Dec|
|UAE||Centre of Waste Management – Abu Dhabi||Integrated waste management project||23 Dec|
|UAE||Abu Dhabi Polymers Company (Borouge)||Specialist plastics plant||23 Dec|
|Kuwait||Kuwait University||College of Science and Faculty Club||11 Jan|
|Saudi Arabia||Saudi Electricity Company||Qurayyah independent power project||28 Feb|
|For further information visit www.meed.com/tenders|
However, there was some positive news for the GCC projects market. Bahrain and Kuwait both recorded growth in their project markets of 7.2 per cent and 3.4 per cent respectively. In Kuwait, five new projects worth a combined total of $8.4bn were announced, the largest of which is the Public Works Ministry’s scheme to build eight new hospitals worth a total of $7bn. Bahrain launched two new projects worth a total of $3.5bn.
The overall projects market is still positive when compared with the previous year, with the Gulf market achieving a 6.4 per cent year-on-year increase.
Iraq maintains its position as the region’s fastest growing market by recording a 114 per cent year-on-year increase.
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