Iraq and UAE lead Gulf index growth

17 April 2014

Kuwait, Qatar and Iran record largest declines in value

A solid performance by Iraq and the UAE led to the Gulf Projects Index rising by 0.2 per cent to $3.2 trillion for the week up to 15 April.

In the GCC, the UAE saw the strongest growth, as the value of schemes planned or under way increased by 0.7 per cent. A total of 170 new projects were launched during the week, the largest of which was a $490m scheme by the UAE/Australian Habtoor Leighton Group to build staff housing in Dubai.

Kuwait and Qatar had the biggest declines in the GCC, with each country’s index falling by 0.6 per cent. The slump in Kuwait was due to the completion of the $1.2bn Mubarak al-Kabeer Seaport, while the drop in Qatar was largely due to the $2bn Airport City scheme being put on hold. Qatar also saw the completion of the $400m West End Park project.

Saudi Arabia, the largest and fastest-growing projects market in the region, rose 0.1 per cent as the budget of the Jubail polyurethane plant scheme grew by $2.7bn.

Project updates
 Project nameProject status
IraqFarzad B gas field development : offshore packageOn hold
IraqKurdistan independent power projectPrequalification
IraqTaq Taq Dam and hydropower projectDesign
KuwaitMubarak al-Kabeer Seaport: phase 1 – package 2Complete
QatarWest End ParkComplete
For further information visit www.meed.com/meedprojects

Outside the GCC, Iran’s projects market fell 0.6 per cent as a $1bn gas scheme was put on hold and a $350m petrochemicals plant project was completed. Iran is now the worst-performing projects market in the region, as the value of schemes planned or under way in the country is down 16.2 per cent compared with last year.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitPublic Works MinistryKuwait airport terminal24-Apr
TunisiaOffice National de l’AssainissementWastewater treatment plant works29-Apr
Saudi ArabiaFinance MinistryGovernmental Authorities Complex infrastructure04-May
UAETourism Development & Investment CompanyGuggenheim Museum08-May
KuwaitKuwait Oil CompanyProvision of masterplan for installation services18-May
For further information visit www.meed.com/tenders

Iraq’s projects market saw the largest gain across the region, as the value of schemes planned or under way rose by 1 per cent. A total of 13 new projects were launched during the week, the largest of which was a $2bn power plant in Kurdistan. The gains from the new schemes were offset by the $2.4bn reduction in the budget of a project to build degassing stations in the Zubair oil field.

Contract awards

Biggest contract: $4.8bn

Awarded to a consortium of Japan’s JGC Corporation and South Korea’s SK Engineering & Construction and GS Engineering & Construction to expand the Mina al-Ahmadi refinery in Kuwait

$13bn: Value of major contract awards

9: Number of contracts awarded

For further information visit www.meed.com/contracts

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