Iraq and UAE weigh on projects index

03 July 2014

Index slips as projects reach completion or stall in some countries, while Bahrain’s market leads growth 

The Gulf Projects Index declined by 0.4 per cent in the week up to 1 July giving up gains from the previous week due to declines in the UAE, Iraq and Saudi Arabia.

The UAE saw the biggest decline in the value of its projects sector, falling by 0.9 per cent as $8.9bn in projects were completed and new initiatives failed to close the gap.

Iraq recorded the second-largest contraction in the region, with its projects market declining by $5.6bn. The 1.1 per cent drop occurred after 12 projects worth $5.7bn were put on hold.

Project updates
 Project nameProject status
BahrainNorth Bahrain new townsExecution
QatarLight rail transitExecution
QatarLusail City tram systemExecution
UAEAjman airport logistics and commercial complexDesign
UAEClub Vista MareExecution
For further information visit www.meed.com/meedprojects

The freeze on projects took place amid increasing chaos as Islamic State in Iraq and Syria (Isis) militants became entrenched in the country, attacking oil infrastructure and declaring a new caliphate on territory that bridges Iraq’s border with Syria.

Saudi Arabia also saw declines in its index, with only two new projects announced over the period. Its market dropped by $4.4bn finishing the period at $1.1 trillion.

The Saudi projects market remains 21.5 per cent higher than it was at the same point last year.

Bahrain recorded the strongest growth during the week, with its market up 1.4 per cent.

Upcoming tender deadlines
 ClientContractSubmission date
OmanRegional Municipalities, Environment & Water ResourcesDesign, construction supervision of a flood protection schemeJul-14
EgyptNew & Renewable Energy AuthorityDesign, manufacture and construction of 120MW wind farmJul-14
Saudi ArabiaSaudi AramcoKhurais expansion05-Aug
Saudi ArabiaHealth MinistryKing Faisal Medical City11-Aug
Saudi ArabiaMecca MunicipalityMecca Metro: phase 108-Sep
For further information visit www.meed.com/tenders

Qatar recorded the second-strongest growth, with its index increasing $1.8bn. Qatar Railways Company awarded contracts for a tram system at Lusail, which is due to host the opening and closing games of the 2022 Fifa World Cup football tournament.

The tram contracts were among 59 new initiatives worth $3.4bn that supported Qatar’s projects market over the week.

Iran’s projects market rose just 0.3 per cent, with gains of nearly $615m taking it to $230bn. It has declined 7.6 per cent since the same period last year when it stood at $249bn.

Contract awards

Biggest contract $236m

Awarded to India’s Punj Lloyd by Kuwait National Petroleum Company for the overhaul and expansion of Ahmadi Depot

$236m Value of major contract awards

1 Number of contracts awarded

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