Iran growth props up Gulf projects index

26 July 2011

Strong performance from Iran compensates for decline in the value of GCC schemes

Biggest contract

$60m: Awarded to US firm CB&I by Saudi Arabian Mining Company (Maaden) to build a tank farm at its $10.8bn integrated aluminium complex in Ras al-Zour

$60m: Value of major contract awards

1: Number of contracts awarded

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Strong growth in Iran’s projects market resulted in the Gulf projects index rising by 0.2 per cent to $2.4 trillion for the week up until 26 July. 

The 5 per cent growth in Iran’s projects market counteracted the 0.7 per cent decline in the GCC projects market, which accounts for about 74 per cent of the total Gulf market.

Project updates
 Project NameProject Status
KuwaitSubiya Causeway: Doha LinkTender
IranIran to Syria Gas PipelinePlanned
OmanDuqm IWPPStudy
Saudi ArabiaJeddah Lamar DevelopmentConstruction
Saudi ArabiaQasr KhuzamOn Hold
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The increase in Iran’s projects market can be attributed to four new projects worth a total of $14.5bn being added to its index. The largest of these is the estimated $10bn Iran to Syria gas pipeline project. A new $4bn fertiliser complex project also contributed to Iran’s growth during the week.

An increase in the budget of the Karbala refinery project resulted in the value of Iraq’s projects market increasing by 1 per cent to $336.3bn.

Iraq is still the region’s fastest growing construction market, recording a 49 per cent year-on-year increase.

The fall in the value of the GCC projects index can be explained by drops of 1.3 per cent and 1.6 per cent in Saudi Arabia and the UAE respectively.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitKuwait Oil Company  Soil remediation2 August
Saudi ArabiaInterior MinistryMedical complexes7 August 
QatarPublic Works Authority (Ashghal)Lusail Expressway 8 August
KuwaitHealth MinistryAl-Amiri hospital9 August
UAEAbu Dhabi Airports CompanyMidfield Terminal11 September
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Despite the addition of 68 new projects to the Saudi index, the value of the kingdom’s projects market fell to $611.9bn as four projects worth a total of $13.8bn were put on hold.

The largest of the projects to be put on hold was the estimated $13.3bn Qasr Khuzam real-estate project in Mecca.

The UAE’s projects market dropped to $621.8bn as three projects were completed and two projects were put on hold. Oman recorded a 2.2 per cent increase in the value of its index. Two schemes worth $590m were added to its projects market and a $2bn IPP power and water scheme was revived.

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