Increasing instability causes Iraq projects market to contract by $13bn
The Gulf Projects Index edged lower by 0.09 per cent in the week up to 22 July, as disruptions caused by the war in Iraq weighed on the regions projects market.
Iraqs projects market contracted by $13bn, losing 2.7 per cent of its value, as schemes were put on hold or cancelled due to increasing instability as the Islamic State in Iraq and Syria consolidated gains after seizing vast swathes of the country last month.
Among the projects put on hold in Iraq over the week was the $4bn scheme to boost production at the Bai Hassan oil field. The field was seized by Kurdish peshmerga forces, and employees of the state-run North Oil Company were ejected on 11 July. A natural gas condensate pipeline that was due to be built at the Akkas oil field in the Al-Anbar province was also put on hold due to the unrest.
|Project name||Project status|
|Iraq||Akkas oil field development||On hold|
|Iraq||Bai Hassan oil field development||On hold|
|Iraq||German City in Nasiriyah||Cancelled|
|Saudi Arabia||Mixed-Use development in Medina||Main contract bid|
|Saudi Arabia||Mixed-use development in Medina (Pilgrim City)||Main contract bid|
|For further information visit www.meed.com/meedprojects|
Offsetting the decline in Iraqs projects market, Qatar, Saudi Arabia and the UAE all recorded gains, expanding by a combined $12.3bn.
Qatars projects index saw the biggest growth, with an increase of 1.3 per cent. The gains were driven by the launch of several new schemes including projects connected to Qatar General Electricity & Water Corporations (Kahramaa) transmission system expansion programme.
Saudi Arabias projects market climbed by 0.5 per cent as a number of new housing schemes were announced. The UAE saw a similar rate of growth, expanding 0.4 per cent.
|Upcoming tender deadlines|
|Kuwait||Kuwait National Petroleum Company||Pressure systems||Aug-14|
|Saudi Arabia||Health Ministry||King Faisal Medical City||Aug-14|
|Oman||Oman Power & Water Procurement Company||Qurrayat water project||Sep-14|
|Saudi Arabia||Mecca Municipality||Mecca Metro: phase 1||Sep-14|
|Oman||Transport & Communications Ministry||Batinah Expressway: package 8||22-Sep|
|For further information visit www.meed.com/tenders|
Irans project market declined for a third week, sinking by 0.3 per cent to $227.2bn. The countrys index has lost $3.2bn since 1 July.
The regions three smallest markets did not see much in the way of growth over the week. Oman dropped by 1.1 per cent, falling to $144.1bn, while Bahrain remained unchanged and Kuwait saw a rise of 0.3 per cent.
Biggest contract $50m
Awarded to US-based CB&I for the expansion of the Sohar refinery in northern Oman
$50m Value of major contract awards
1 Number of contracts awarded
For further information visit www.meed.com/contracts
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