Iran decline cancels out GCC market gains

19 January 2012

GCC records minor growth as Iran index records drop as a result of halted fertiliser project

Contract awards

Biggest contract

$296m Contract awarded to South Korea’s Samsung C&T to build primary infrastructure at Qatar’s Lusail City development

$562m Value of major contract awards

4 Number of contracts awarded

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The Gulf Projects index remained flat for the week up to 17 January as a drop in Iran’s projects sector cancelled out minor gains in the GCC market.

The total value of projects planned or under way in the GCC countries rose by 0.1 per cent to $1.8 trillion, as Qatar, Saudi Arabia and the UAE all recorded a growth of 0.1 per cent in their project indices.

The growth in Qatar’s projects market was due to the launch of three new projects worth a total of $212m. The biggest of these is the $100m Missoni hotel planned for Doha. 

Project updates
 Project NameProject Status
Saudi ArabiaElastomer Plant: Carbon Black PlantEPC Bid
Saudi ArabiaRas Tanura Aromatics ProjectEPC Prequalified
Saudi ArabiaTreated Sewage Water Transmission PipelineConstruction
UAEAl-Marjan: Blu MirageOn Hold
UAEJebel Ali Port Expansion: Terminal 3Design
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Saudi Arabia, the region’s largest projects market, saw the value of its schemes planned or under way rise to $727bn. The growth can be attributed to the addition of 11 new projects worth a total of $1.2bn to its index. These include a $400m housing project in Mecca and a $300m carbon black plant in Ash-Sharqiyah in the Eastern Province.

The UAE also recorded the addition of 11 new schemes to its projects sector. This resulted in the total value of its projects market growing to $579bn.

Upcoming tender deadlines
 ClientContractSubmission date
UAEAl-Hilal BankHeadquarters building22 January 2012
UAEAbu Dhabi Health Services Company (Seha) Al-Ain hospital26 January 2012
OmanTransport & Communications MinistryBatinah Expressway package 306 February 2012
QatarQatar Foundation Southeast car park12 February 2012
UAESorouh Real Estate/Bovise LendleaseAl-Ain Stadium development22 March 2012
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Oman’s projects sector recorded the biggest drop in the GCC, with the value of projects planned or under way in the sultanate falling by 0.2 per cent. The drop can be attributed to a $665m steel plant project being put on hold.

Bahrain was unable to match its strong growth of 13 per cent the previous week. The value of its projects sector fell by 0.1 per cent as a real estate development was completed and no new projects were launched.

Outside the GCC, the value of Iran’s projects market fell by 0.2 per cent to $309bn as a $460m fertiliser plant project was put on hold. Iraq remains the region’s fastest growing projects market, recording 41 per cent year-on-year growth.

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