The Gulf Projects Index fell 0.5 per cent in the week ending 5 June 2015, the largest fall since 20 February. Only the UAEs project market expanded, with Iraq, Qatar and Iran leading the losses.
Iraq recorded a huge 5 per cent, or $20.5bn, week-on-week drop in the value of its project market, reaching its lowest level since 2013. Major military and infrastructure projects were put on hold, despite Baghdad receiving an $833m loan from the IMF.
Iraq is being forced to prioritise development spending as the fight against Islamic State in Iraq and Syria (Isis) and lower oil prices strain public finances.
|Project name||Project status|
|Iraq||Al-Rasheed military camp development||On hold|
|Iran||South Pars Gas Field: phases 15 & 16||Complete|
|UAE||Fujairah oil terminal||Study|
|UAE||Oil field development project||Study|
|UAE||Tameer Towers (Shams Abu Dhabi Al-Reem Island)||Design|
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Qatars project market lost 1.1 per cent, after several real estate and infrastructure projects were completed. The $3bn expansion of the Idd al-Shargi offshore field has been placed on hold as it is not considered economically feasible at present.
The UAE was the only market to expand over the week, gaining 1 per cent, or $7.7bn, driven by activity in Abu Dhabi. Oil and gas investment, and real estate projects boosted the market by $8.6bn, although the large number of projects completed dampened the impact.
Outside the UAE, new projects did not keep pace with the $5bn in project completions seen during the week, contributing to the $17.5bn contraction in the regions project market.
|Upcoming tender deadlines|
|UAE||Investment Corporation of Dubai||Atlantis Resort||21-Jun|
|Saudi Arabia||Metro Jeddah Company||Obhur Bridge||26-Jul|
|Oman||Oman Power & Water Procurement Company||Sohar 3/Ibri independent power project (IPP)||02-Aug|
|Saudi Arabia||Saudi Electricity Company/Saudi Aramco||Fadhili IPP||31-Aug|
|UAE||Roads & Transport Authority||Route 2020 metro extension||06-Dec|
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The largest projects market, Saudi Arabia, saw only a minor rise of less than 0.1 per cent. The $1bn of new infrastructure schemes announced barely compensated for completions and inactive projects.
Oman recorded a 0.3 per cent fall in the value of its market after $782m of mostly real estate developments were completed.
Iran saw a 0.6 per cent decrease in the value of its project market after major project completions.
$20.5bn Week-on-week contraction in Iraqs projects market
$8.6bn Value of new and revived projects in the emirate of Abu Dhabi
$3bn Estimated value of the on-hold Idd al-Shargi expansion project in Qatar
For further information visit www.meed.com/news/tenders