Index up 10.6 per cent on last year

15 May 2014

Kuwait now the second-fastest growing market in the region after Saudi Arabia

Strong growth in Kuwait’s projects market contributed to the value of the Gulf Projects Index increasing by 0.3 per cent to $3.3 trillion for the week up to 13 May.

No countries posted a decline for the week in the index, which is up 10.6 per cent compared with the same period a year ago.

The value of schemes planned or under way in Kuwait rose by 3.1 per cent to $214bn. The main reason for the growth was the revival of Petrochemical Industries Company’s $7bn olefins 3 petrochemicals project. The location of the scheme has yet to be decided.

Kuwait’s projects market has enjoyed a strong year to date and is now the second-fastest growing market in the region, with the value of its projects index up 13.9 per cent year-on-year.

Bahrain, the region’s smallest projects market, recorded a 0.5 per cent rise, largely due to the revival of Kuwait Commercial Markets Complex Company’s $220m new shopping complex that will replace the Isa Town Market.

Project updates 
 Project nameProject status
UAERuwais Refinery Expansion Project: package 3Complete
QatarNew medical city and trauma mass casualty hospitalStudy
UAEAbu Dhabi airport: mid-field terminal complex roadsExecution
IranEsfahan refinery upgradeExecution
Saudi ArabiaRas al-Khair-Riyadh water transmission pipelineComplete
For further information visit www.meed.com/meedprojects

The value of projects planned or under way in Saudi Arabia, the region’s biggest market, grew by 0.2 per cent. The increase was partly due to the launch of a $2.5bn tourism project to develop the Al-Rayis area in the Medina region. The kingdom is the Gulf’s fastest-growing projects market, up 18.6 per cent on the same period in 2013.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitKuwait Oil CompanyProvision of masterplan for installation services18 May
UAENakheelJebel Ali Village Club20 May
UAETourism Development & Investment CompanyGuggenheim Museum5 Jun
Saudi ArabiaHealth MinistryKing Khaled Medical City18 Jun
EgyptNew & Renewable Energy AuthorityDesign, manufacture and construction of 120MW wind farm20 Jul
For further information visit www.meed.com/tenders

Outside the GCC, the value of Iran’s projects market increased by 0.4 per cent to reach $218bn. The growth was due to the revival of five packages worth a total of $2.4bn on the upgrade of the Esfahan refinery. Despite the rise, Iran remains the worst-performing market in the Gulf region, down 13.6 per cent year-on-year. Iraq’s projects market remained flat at $529bn.

Contract awards

Biggest contract $3bn

Awarded to Italy’s Saipem for two packages at Saudi Aramco’s integrated gasification combined-cycle power project at Jizan Economic City

$3.1bn Value of major contract awards

3 Number of contracts awarded

For further information visit www.meed.com/contracts

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