Iran and Iraq bolster Gulf index

06 March 2014

Saudi Arabia only GCC country to record rise in value of projects market

The Gulf Projects Index remained unchanged at $3.2 trillion in the week up to 5 March, as a strong performance by Iran and Iraq offset an overall decline by GCC countries in the index.

Iran posted a strong gain of 1.8 per cent as two new oil projects worth a total of $4bn were launched. Iraq’s projects market also rose by 0.7 per cent as a $3.2bn scheme by the Industry & Minerals Ministry to build a petrochemicals complex at Basra was revived.

Project updates
 Project NameProject Status
IraqNorth Azadegan field development: phase 2Study
QatarRas Laffan common cooling water systemExecution
Saudi Arabia115kV substationsComplete
UAEInter-refinery pipelines: phase 2 (package 2)Complete
UAENFPC: production facilityExecution
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In the GCC, Bahrain saw the biggest fall in the index, with the value of its schemes planned or under way slumping by 5.1 per cent as plans were put on hold for Eskan Bank’s $2.7bn Bandar al-Seef project in the Northshore development in Manama. Bahrain remains the weakest-performing country in the GCC, as the value of its projects market has fallen by 11.6 per cent year-on-year.

The UAE posted the second-biggest drop in the index, with the value of schemes planned or under way falling by 0.7 per cent. The decline was led by the completion of the $1.3bn Ruwais Refinery Expansion Project by state-owned Abu Dhabi Oil Refining Company (Takreer). Another major scheme that was completed in the country was state-owned Dubai Holding’s $1.1bn Bay Square development at the emirate’s Business Bay.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitHigher Council for Planning & DevelopmentOperation and maintenance of government buildingApr-14
EgyptConstruction Authority for Potable Water & WastewaterOperation and management of wastewater treatment plantApr-14
Saudi Arabia Royal Commission for Jubail & YanbuCity centre developmentApr-14
LebanonCouncil for Development & ReconstructionRestoration works at Saida and Baalbek15-Apr
KuwaitPublic Works MinistryKuwait airport terminal24-Apr
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The two other countries in the GCC that posted poor performances were Kuwait, which fell 0.4 per cent as a $1bn oil project was put on hold, and Oman, which dipped 0.2 per cent as four schemes were completed and the budgets of five others were revised down.

Saudi Arabia, the largest projects market in the region, was the only GCC country in the index to end higher, as the value of schemes planned or under way in the kingdom rose 0.1 per cent.

Contract awards

Biggest contract $282m

Awarded to the local Arabtec Construction to build 1,582 townhouses in Dubai for the local Emaar Properties

$535m Value of major contract awards

2 Number of contracts awarded

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