Islamic Republic sees $15.8bn wiped off projects market
The Gulf Projects Index declined by 0.5 per cent in the week ending 5 January, weighed down by Irans projects market, which contracted by 7.5 per cent.
Iran saw $15.8bn wiped off its projects market as two schemes were cancelled and another 11 were put on hold, including the local Bakhtar Petrochemical Companys Andimeshk low-density polyethylene plant.
|Project name||Project status|
|Iran||North Pars gas field development||On hold|
|Iran||Shahriar oil refinery||Cancelled|
|Iran||South Pars gas field development: phase 19 offshore||New project|
|Saudi Arabia||Ras al-Khair aluminium project||Complete|
|UAE||Redevelopment of World Trade Centre: phase 2||Revived|
|For further information visit www.meed.com/meedprojects|
The petrochemicals facility, which was being built in Irans Khuzestan province, saw significant construction work before being put on hold. Officials connected to the project have blamed international sanctions and financial pressures for the delay.
Plans to develop Irans North Pars gas field have also been put on hold as its developer, Pars Oil & Gas Company, focuses on developing the South Pars gas field. North Pars is one of the biggest independent gas fields in the world and is located in the Gulf, 120 kilometres southeast of Bushehr.
|Upcoming tender deadlines|
|UAE||Gulf Related||Al-Maryah Central||Jan-15|
|UAE||Dubai Electricity & Water Authority||Solar innovation centre||Jan-15|
|Qatar||Qatar General Electricity & Water Corporation (Kahramaa)||Ras Laffan independent water project||Feb-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|
The contraction in Irans projects market is the biggest the country has seen in at least five years and comes after a 4.6 per cent decline in the week ending 29 December. Low oil prices are putting extra pressure on Tehrans budget, adding to economic problems caused by sanctions, corruption and mismanagement.
On 4 January, Irans President Hassan Rouhani called for an end to Tehrans isolation. Our political life has shown we cant have sustainable growth while we are isolated, he said. Rouhani also called for Irans economy to be overhauled and for the private sector to play an increased role.
Saudi Arabia, Qatar and Oman also saw declines. The biggest gainer was Kuwait, which added $1.8bn to its market. Iraq and the UAE expanded by 0.6 and 0.1 per cent respectively. Bahrain was flat.
2 Projects cancelled in Iran
11 Projects put on hold in Iran
$15.8bn Value of Irans project market