Iran records biggest decline

27 March 2014

Kuwait and Iraq top gainers in the Gulf Projects Index

A weak performance by Iran led to the Gulf Projects Index dropping by 0.1 per cent to $3.2 trillion in the week up to 25 March.

In the GCC region, Bahrain and Oman recorded the biggest declines of 0.2 per cent for the week.

The fall in Bahrain’s projects sector was largely due to the completion of the Mina Salman interchange road scheme in Manama. Bahrain is currently the worst-performing market in the Gulf, as the value of its projects sector has declined 15 per cent compared with the same period a year ago.

Project updates
 Project nameProject status
IraqAl-Ratawi natural gas liquids plant: train 2Study
IraqWest Qurna-1 gas gathering system expansionStudy
QatarPlateau maintenance project for onshore facilities Complete
QatarSharq crossing: Cultural City approach and bridgeDesign
QatarSharq crossing: Sharq approach and bridgeDesign
For further information visit www.meed.com/meedprojects

The slump in Oman’s projects market was due mainly to the budgets of eight schemes being reduced by a total of $478m. Despite the drop, Oman remains the third-fastest growing market in the region, as the value of its projects market has increased by 11.1 per cent year-on-year.

The only other country in the GCC to see a decline was the UAE, which recorded a 0.1 per cent drop in its projects sector as the budgets of 24 schemes were revised down by a total of $5.5bn. The budget revisions were largely offset by the launch of 109 projects worth a total of $5.6bn. 

Kuwait was the biggest gainer in the GCC, as the value of projects planned or under way increased by 0.3 per cent. The growth was due to the budgets of four schemes being revised up by a total of $939m.

Upcoming tender deadlines
 ClientContractSubmission date
Saudi Arabia Royal Commission for Jubail & YanbuCity centre development8-Apr
LebanonCouncil for Development & ReconstructionRestoration works at Saida and Baalbek15-Apr
KuwaitPublic Works MinistryKuwait Airport terminal24-Apr
TunisiaOffice National de l’AssainissementWastewater treatment plant works29-Apr
KuwaitKuwait Oil CompanyProvision of masterplan for installation services18-May
For further information visit www.meed.com/tenders

Outside the GCC, Iran recorded the biggest drop in the index, as the value of its projects market declined by 1.8 per cent. The fall was due to the budget of the Iran-Oman pipeline scheme being revised down by $4bn.

In Iraq, 10 new projects worth a total of $3.1bn were launched, which helped push up the value of its projects market by 0.5 per cent. Iraq’s index is up 9 per cent year-on-year.

Contract awards

Biggest contract $1.7bn

Awarded to a joint venture of the UAE/Australian Habtoor Leighton Group and the local AlJaber Engineering for work on the second phase of the New Orbital Highway in Qatar

$4.4bn Value of major contract awards

7 Number of contracts awarded

For further information visit www.meed.com/contracts

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