Kuwait growth fails to lift Gulf index

04 December 2014

UAE records biggest decline in value of projects market since August

The Gulf Projects Index recorded a decline of 0.5 per cent over the week ending 2 December, driven by a 2.1 per cent contraction in the UAE, the region’s second-largest projects market after Saudi Arabia.

A total of $17.5bn was wiped off the UAE’s projects market over the week, as 27 schemes were completed and others saw significant budget changes. The decline is the country’s biggest market contraction since August.

Project updates this week
 Project nameProject status
KuwaitGathering centre upgrade 14New project
QatarSilver Pearl HotelNew project
Saudi ArabiaKing Abdullah Economic City: Red Sea Village DistrictComplete
UAENCC Harmony Towers (DuBiotech)Revived
UAEShah gas development: sulphur granulation facilitiesComplete
For further information visit www.meed.com/meedprojects

Among the completed projects was a $660m package to build sulphur granulation facilities as part of the $11.2bn Shah gas development. The UAE is targeting production of up to 1 billion cubic feet a day (cf/d) of gas from the field to help boost Abu Dhabi National Oil Company’s output from 4.5 billion cf/d to 6 billion cf/d. Other schemes that were completed included residential and mixed-use construction projects.

Saudi Arabia and Iraq also saw contractions in the value of their projects markets. The Saudi market fell by 0.6 per cent, or $7.5bn. A total of five schemes worth $892m were completed, including social infrastructure, industrial and petrochemicals projects. Two schemes worth a total of $100m were put on hold and projects worth a total of $1.5bn were cancelled.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitKuwait Gulf Oil CompanyNuwaiseed port upgrade18-Dec
QatarSupreme Committee for Delivery & LegacyAl-Wakrah stadium21-Dec
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water project06-Jan
UAEDubai Electricity & Water AuthorityHassyan power plant26-Jan
UAEDubai Electricity & Water AuthoritySolar innovation centre29-Jan
For further information visit www.meed.com/tenders

Iraq recorded a 0.6 per cent decline amid ongoing fighting between the government and the jihadist group Islamic State in Iraq and Syria (Isis). Iraq’s projects market has lost more than 20 per cent of its value since the same period in 2013, mainly due to schemes being put on hold and cancelled in the wake of Isis’ advance in June.

All of the other countries surveyed either stayed flat or saw an expansion in value over the week, with Kuwait leading the gains. The country’s market grew by 3.9 per cent as 15 projects worth a total of $8.4bn were announced.

In numbers

27 Projects completed in the UAE

5 Projects completed in Saudi Arabia

15 New projects announced in Kuwait

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