Iran market expansion shores up index

07 August 2014

With a market growth of 3.8 per cent, Iran offers the main support for the Gulf Projects Index

The Gulf Project index saw a moderate expansion over the week ending on 5 August, with support from growth in Iran, Qatar and the UAE helping the index to rise by 0.1 per cent to $3.33 trillion.

Iran recorded the biggest growth, with $8.4bn of new projects added to its market, an increase of 3.8 per cent, after two weeks of declines. New momentum in a scheme to expand the Iran Gas Trunkline was the key factor bolstering Iran’s index.

On 26 July, Iran said it expected the design for section IGAT-9 to be completed in two months.

The pipeline will be 1,800km in length, running from the southern oil town of Assalouyeh to the Turkish border. Although the government is planning new investment in the project, there are doubts about whether the scheme will see rapid progress due to the frequent delays that plague Iran’s oil and gas sector and the opacity of the Iranian projects market.

Project updates
 Project NameProject Status
KuwaitReplacement of WPP in WK and of brackish WPPMain contract bid
IraqPetrochemical ComplexOn hold
IraqBasra Steel Mill Complex RehabilitationOn hold
QatarPearl Qatar: Viva Bahriya VB-20 and VB-21Complete
QatarPipelines: Main-1 Package A & BExecution
For further information visit www.meed.com/meedprojects

Qatar grew by 1.1 per cent for the week, buoyed by the Qatar General Electricity & Water Corporation (Kahramaa) mega reservoirs project. The Water Security Mega Reservoirs scheme is being designed to provide seven days of strategic water storage to shore up the country’s reserve water supplies to protect against any future disruptions in supply.

Iraq’s project market contracted by 1.1 per cent, making it the region’s biggest decline. Iraq has recorded four weeks of consecutive declines as Sunni militants consolidate gains after seizing control of large areas of the country in June.

Upcoming tender deadlines
 ClientContractSubmission date
OmanOman Power & Water Procurement CompanyQurrayat water project08-Sep
Saudi ArabiaMecca MunicipalityMecca Metro: phase 108-Sep
DubaiDubai Electricity and Water AuthorityM station expansion15-Sep
KuwaitMinistry of Electicity and WaterOverhead lines - various locations16-Sep
OmanTransport & Communications MinistryBatinah Expressway: package 822-Sep
For further information visit www.meed.com/tenders

After peaking on 8 July at $516bn Iraq’s market fell by 3.9 per cent, to $496bn on 5 August 2014.

In the week ending on 5 August, a $700m project to overhaul Basra Steel Mill and a $3.2bn scheme to build a new petrochemical facility in Basra were both put on hold due to continued fighting.

Contract awards

Biggest contract $846.2m

Biggest project was awarded by KOC to Larsen & Toubro (India) for engineering, procurement and construction of Gathering Centre 30 in the North Kuwait Operations Zone.

$3.1bn Value of major contract awards

8 Number of contracts awarded

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