Gulf index sees increase, while GCC index records decline
The Gulf Projects Index rose by 0.6 per cent in the week ending 26 February, with Iraq in particular growing by an impressive 4.9 per cent.
The total value of schemes in the GCC stands at $2.7 trillion, an increase of $900bn on the same period five years ago, when the total value was $1.8 trillion. Despite the gains, the GCC projects market is down 2.5 per cent year-on-year.
In numbers
$2.7 trillion Total value of projects on the Gulf index
4.9% Growth in value of Iraqs projects market
2.5% Decline in value of GCC projects index
The UAE and Kuwait all saw contractions in value. The UAEs $2bn Dubai South Commercial City scheme remains inactive. The on-hold Satah al-Razboot (Sarb) package 3, valued at $600m, and the inactive extension of the College of Medicine & Health Science in Al-Ain, valued at $50m, both contributed to the UAEs decline.
| Projects planned or under way, 26 February 2016 | |||||
|---|---|---|---|---|---|
| Country | 26-Feb-16 | 19-Feb-16 | % change on week | 27-Feb-15 | % change on year |
| Bahrain | 72,969 | 73,005 | 0.0 | 65,538 | 11.4 |
| Kuwait | 255,084 | 255,258 | -0.1 | 230,071 | 10.9 |
| Oman | 169,834 | 169,282 | 0.3 | 159,265 | 6.3 |
| Qatar | 284,107 | 283,472 | 0.2 | 281,906 | 0.6 |
| Saudi Arabia | 1,015,870 | 1,012,644 | 0.3 | 1,179,277 | -14.1 |
| UAE | 850,786 | 852,738 | -0.2 | 797,272 | 7.0 |
| GCC | 2,648,650 | 2,646,399 | 0.1 | 2,713,329 | -2.5 |
| Iran | 263,661 | 263,341 | 0.1 | 189,609 | 38.9 |
| Iraq | 375,315 | 357,918 | 4.9 | 413,864 | -13.5 |
| Gulf Total | 3,287,626 | 3,267,658 | 0.6 | 3,316,802 | -1.5 |
| For further information visit www.meed.com/projects/gulf-projects-index | |||||
Bahrains decrease was a result of the inactivity of Manamas $100m Dragon City Mall development, as well as a $20m water desalination plant.
A total of $258m-worth of projects was cancelled in Saudi Arabia, with the shelving of the $200m Mecca Area Crisis & Disaster Management Centre contributing a large part of this sum. The cancellation of a $58m interchange improvement programme in Jubail contributed the rest.
In Qatar, the Public Works Authority (Ashghal) cancelled a $35m university scheme in Doha.
| Project updates this week | ||
|---|---|---|
| Country | Project name | Status |
| Bahrain | Diyar al-Muharraq: urban development | Budget change |
| Iraq | Iraq strategic crude oil export pipeline: Haditha-Aqaba pipeline | Revived |
| Oman | Dibba-Lima-Khasab road | New project |
| Saudi Arabia | Mecca Area Crisis & Disaster Management Centre | Cancelled |
| UAE | Dubai South: commercial city | Inactive |
| For further information visit http://www.meedprojects.com/home | ||
There are a total of $6.6bn of projects on hold across the region, with Iraq contributing the most to that number. The war-torn country has $4.5bn of schemes on hold.
Despite that, Iraq was also responsible for the greatest number of revived projects last week, with $22.1bn of schemes brought back online. The largest of these were the Haditha-Aqaba pipeline, valued at $10bn, the Basra-Haditha pipeline, valued at $8bn, and the Imam Hussein International airport in Karbala, valued at $2.5bn.
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