The Gulf Projects Index dropped by 0.5 per cent in the week ending 26 January, due to declines in the UAE, Iraq and Iran.

Iran saw 2.8 per cent, or $5.6bn, wiped off its projects market, to reach its lowest level since 2008. Delays on the Iran-Pakistan pipeline, worth several billion dollars, were partly to blame, but sanctions continue to cast a shadow over the rest of the country’s oil and gas sector.

However, Iran’s $4bn investment in Oman boosted the sultanate’s projects market, with an iron smelter in Duqm the first scheme to be announced. Oman’s projects market expanded 1.7 per cent, the biggest gain in the region for the week. The sultanate’s market is currently at its highest level ever.

Project updates 
  Project name Project status
Bahrain Marina development: phase 1 Study
Iraq Khurmala-Fish Khabur gas pipeline Study
Qatar North Node passenger terminal complex Complete
UAE Doha Road 132/11kV substation Complete
UAE Dubai Falcon jet fuel pipeline: phase 1 Complete
For further information visit www.meed.com/meedprojects

The 1.6 per cent contraction in the UAE’s projects market was driven by a slowdown in oil and gas investment, which in turn dampened the real estate sector. However, the market is still up by 14 per cent year-on-year.

Saudi Arabia, the region’s largest projects market, had a quiet week following the death of King Abdullah bin Abdulaziz al-Saud. However, investments in education, as well as gas pipeline tenders worth a total of more than $1.5bn, prevented the market from posting negative figures.

Public investments in housing and infrastructure in Qatar and Kuwait drove gains of 0.3 per cent in both countries.

Bahrain had a strong week, as 29 new real estate projects worth a total of more than $500m helped boost the market by 0.7 per cent.

Upcoming tender deadlines
  Client Contract Submission date
UAE Dubai Electricity & Water Authority Solar innovation centre Jan-15
Qatar Qatar General Electricity & Water Corporation (Kahramaa) Ras Laffan independent water project Feb-15
UAE Nakheel Palm Gateway Mar-15
Oman Public Authority for Water & Electricity Wadi Dayqah treatment plant Mar-15
UAE Dubai Electricity & Water Authority Hassyan power plant 26-Mar
For further information visit www.meed.com/tenders

Iraq recorded yet another contraction in its projects market, of 0.9 per cent. The continuing struggle with the jihadist group Islamic State in Iraq and Syria means many infrastructure schemes cannot go ahead in the country.

Contract awards

Biggest contract $4.2bn

Lower Fars heavy oil development project in Kuwait awarded to the UK’s Petrofac

$5.5bn Value of major contract awards

12 Number of contracts awarded

For further information visit www.meed.com/contracts