Iran slide pushes projects index down

28 November 2011

Iran’s projects market records significant drop as other major markets make small gains

Contract awards

Biggest contract:$17bn

Contract awarded to a consortium led by UK/Dutch Shell Group to capture and utilise natural gas currently flared from southern oil fields in Iraq

$17bn: Value of major contract awards

1: Number of contracts awarded

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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.

Project updates 
 Project NameProject Status
Saudi ArabiaSewer line from Alslouli Valley to plant In MeccaTender
IranBid Boland gas treatment: storage tanks and pipelineOn Hold
Saudi ArabiaPolysilicon plantDesign
UAEThe Royal Amwaj Resort & SpaComplete
UAEDubai World Central: Aviation CityTender
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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.

Upcoming tender deadlines
 ClientContractSubmission date
OmanTransport & Communications Ministry Railway design   05-Dec
UAEEtihad RailPhase two (three contracts)12-13 Dec
KuwaitDirectorate General of Civil AviationNew runway13-Dec
UAEAbu Dhabi Health Services Company (Seha) Al-Ain hospital15-Dec
Saudi Arabia Saline Water Conversion CorporationYanbu power lines24-Dec
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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.

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