A drop in the value of Iran’s projects market contributed to the Gulf project’s index falling by 0.2 per cent to $2.5 trillion for the week up to 29 November.

Iran’s projects index fell by 2.8 per cent to $305bn due to a combination of factors. Two gas treatment plant projects worth a total of $1.9bn were put on hold and a $700m hydropower project was completed. The drop in Iran’s projects sector was also caused by a $6bn reduction in the budget of a gas project on Kish Island.

Iraq, the region’s fastest-growing market, remained flat this week as several new power projects were launched, but the budgets of two existing projects were reduced.

Despite the overall drop in the projects index, the GCC market recorded a 0.2 per cent rise in value to $1.8 trillion. Qatar recorded the largest growth, with the value of its projects sector rising by 1.1 per cent to $216bn. The main contributors to the growth were the launch of three new construction projects, worth an estimated total of $210m, and a $2bn rise in the estimated budget of a sewerage scheme in Doha.

Saudi Arabia, Oman and Kuwait all recorded growths in their projects markets of 0.3 per cent. Saudi Arabia, the region’s largest projects market, grew to $661bn as 10 new projects worth $1.4bn were added to its index. Two industrial projects worth an estimated total of $1.5bn were revived.

Oman’s projects market increased in value to $116bn as three new projects worth a total of $392m were added to its index. The biggest of these was a $300m gas processing project at the Saih Rawl field in central Oman.

Bahrain’s projects market, which has been hit hard by the civil unrest in 2011, grew by 0.2 per cent as the Housing Ministry launched a new $400m phase of its housing programme.