Contract awards

Biggest contract: $7.25bn

Awarded to South Korea’s Hanwha Engineering & Construction to build a new town near the Iraqi capital of Baghdad

$8.9bn: Value of major contract awards

7: Number of contracts awarded

The announcement of $8.4bn-worth of new projects in Iraq caused the Gulf Projects Index to grow by 0.2 per cent to $2.58 trillion for the week up to 31 May.

The launch of an estimated $7.3bn real-estate development in Baghdad and plans by UK/Dutch Shell Group to build a $1bn Energy City contributed to the 1.9 per cent growth in Iraq’s projects market.

While Iraq’s performance resulted in an overall gain for the region’s projects sector, there was little growth for the rest of the Gulf’s markets.

Project updates
  Project Name Project Status
Saudi Arabia Princess Nora bint Abdulrahman University: Package I Complete
Iraq New Town in Baghdad Construction
UAE Abu Dhabi Microchip Factory Construction
Saudi Arabia Al-Manafie Towers Design
Saudi Arabia PP12 Combined Cycle Power Plant Tender
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The GCC market, which accounts for about 72 per cent of the total Gulf market, recorded a 0.1 per cent fall in the total value of projects. The main reason for this was a fall in the index of Saudi Arabia, the region’s largest projects market.

The kingdom recorded a drop of 0.5 per cent in the total value of projects planned or under way.  The main reason was the completion of two contracts at Princess Noura University, worth a total of $6bn, and a $7bn rail project being put on hold. It was not all bad news for the Saudi market, as 30 new projects worth $8.8bn were announced.

Qatar recorded the biggest increase in the GCC. Its projects market grew by 0.3 per cent as the budget for a Qatar Steel Company project in Mesaieed was increased to $1bn. Kuwait’s projects index recorded an increase of 0.1 per cent as two new power projects worth a total of $180m were added to the MEED projects database.

Upcoming tender deadlines
  Client Contract Submission date
Saudi Arabia General Authority of Civil Aviation Medina Airport 5 June
Qatar Public Works Authority (Ashghal) Lusail Expressway  27 June
Saudi Arabia Interior Ministry Medical complexes 28 June 
Kuwait Health Ministry Al-Amiri hospital 10 July
UAE Abu Dhabi Airports Company Midfield Terminal 10 July
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Iraq maintains its position as the region’s fastest growing market, with a 37.3 per cent year-on-year increase.

The political instability in the region has resulted in the overall Gulf projects market recording a drop of 12 per cent when compared with one year ago.