Iran puts in strong performance

05 June 2014

Saudi Arabia, UAE and Bahrain only other countries to record growth in value

The Gulf Projects Index rose 0.4 per cent in the week up to 3 June, led by growth in Iran, Saudi Arabia and the UAE.

Iran was the biggest gainer of the week, as the value of schemes planned or under way grew by 3.1 per cent. The increase was due to the revival of $2bn-worth of projects by National Iranian South Oil Company to build gas and natural gas liquids plants in the country. 

Saudi Arabia, the region’s largest projects market, grew by 0.6 per cent, driven by the launch of the first major package on the Finance Ministry’s planned $2.4bn Governmental Authorities Complex in Riyadh. The ministry plans to develop the infrastructure of the complex and then hand over plots of land to ministries to develop headquarters and other associated facilities.

Project updates
 Project nameProject status
IraqHousing project in Dhi QarCancelled
KuwaitNew Palace of JusticeOn hold
Saudi ArabiaGovernment Authorities Complex in RiyadhMain contract bid
Saudi ArabiaJizan power plant: water intake facilityExecution
UAEDana Island: Shahrukh Khan BoulevardRevived
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The projects market in the kingdom was also boosted by the $2.6bn upward revision in the expected cost of the scheme to expand Riyadh’s King Khaled International Airport.

The UAE saw the third-largest gain in the region, as its projects index rose 0.3 per cent, due mainly to the launch of eight new projects worth a total of $432m. 

Upcoming tender deadlines
 ClientContractSubmission date
Saudi ArabiaHealth MinistryKing Khaled Medical CityJun-14
EgyptGeneral Authority for New Urban SocietiesProvision of public utilities for social housing projectJun-14
QatarPublic Works Authority (Ashghal)Design, build and operation of Musaimeer pumping station30-Jun
OmanRegional Municipalities, Environment & Water ResourcesDesign, construction supervision of a flood protection scheme08-Jul
EgyptNew & Renewable Energy AuthorityDesign, manufacture and construction of 120MW wind farm20-Jul
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Oman posted the biggest drop in the index, as the value of schemes planned or under way fell by 0.5 per cent. This was largely due to the removal of the $500m project by Dubai-based Drydocks World to build the Water Discus Hotel.

Kuwait posted the second-largest decline of 0.4 per cent, as the Ministry of Public Works put on hold a $580m scheme to build the New Palace of Justice. Despite the decrease, Kuwait’s projects market has enjoyed a strong year to date and is now the second-fastest growing market in the Gulf region, with the value of its projects index up 16.8 per cent year-on-year.

Contract awards

Biggest contract $550m

Awarded to China Harbour Engineering Arabia for engineering, procurement and construction work on Saudi Aramco’s Jizan gasification project in Saudi Arabia

$949m Value of major contract awards

5 Number of contracts awarded

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