The projects market in Iran fell by 7.2 per cent in the week ending 1 October, despite performing well in recent weeks as several major schemes were revived in anticipation of sanctions being lifted by the first quarter of 2016.

As a result, the drop in Iran’s market was the main contributing factor to the Gulf Projects Index contracting 1 per cent overall during the week. The Islamic Republic was not alone in seeing its projects market fall, however, as a number of other countries also witnessed slowdowns.

In numbers

$1.5bn Value of Saudi Aramco’s completed sulphur recovery unit

7.3 per cent Contraction of Iran’s projects market

3 Number of new projects in Saudi Arabia

Qatar was the second-worst performing market in the week, with a drop of 2.6 per cent in its index. The reduction was mainly due to the $9bn Doha Airport City scheme being put on hold once again with no sign of the project making new progress.

Kuwait’s projects market declined by 0.9 per cent this week. Despite the addition of the $500m Kuwait airport expansion, the cancellation of the $3bn Doha East power and desalination plant brought down the market’s performance.

Project updates this week
  Project name Project status
Iran Golshan Gas and Ferdowsi oil and gas fields development On hold
Kuwait Doha East power and desalination plant Cancelled
Qatar Tertiary hospital on Rumaila Hospital campus Study
Saudi Arabia Sulphur recovery unit Complete
UAE Dubai Industrial City Execution
For further information visit www.meedprojects.com/home

Saudi Arabia’s market contracted again, dropping 0.6 per cent following weak performances in recent weeks. Only $360m-worth of construction projects were added to the kingdom’s index this week and the completion of a major $1.5bn Aramco sulphur recovery unit contributed to the fall.

The UAE’s projects market fell 0.1 per cent. Revived projects, such as Dubai Holding’s industrial city scheme, failed to alleviate the impact of cancelled, delayed and completed projects.

Upcoming tender deadlines
  Client Contract Submission date
UAE Dubai Municipality Jebel Ali sewage treatment plant 18-Oct
Kuwait Kuwait Oil Company Jurassic gas project Ð development of three oil fields 27-Oct
Saudi Arabia Saudi Electricity Company/Saudi Aramco Fadhili independent power project 01-Nov
Kuwait Ministry of Electricity & Water Conversion of Subiya power plant to a combined-cycle facility 03-Nov
UAE Roads & Transport Authority Route 2020 metro extension 06-Dec
For further information visit www.meed.com/news/tenders

Bahrain, on the other hand, witnessed a 0.9 per cent increase in its projects market due to the announcement of several small real estate schemes, as well as the revival of the $300m Kooheji Group’s Bahrain Bay KGH Tower.

Iraq’s index increased by 0.1 per cent, following a 0.5 per cent increase the previous week. Iraq’s increase was again boosted by activity in the Kurdish region, as the rest of the country struggles to press ahead with projects due to security and financing issues.

The revival of a $153m Kempinksi-branded hotel in the Iraqi Kurdistan region was added to Iraq’s index this week.

Stay informed with the latest in the Middle East
Download the MEED app today, available on Apple and Android devices