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 regions second-largest projects market after Saudi Arabia.
A total of $17.5bn was wiped off the UAEs projects market over the week, as 27 schemes were completed and others saw significant budget changes. The decline is the countrys biggest market contraction since August.
|Project updates this week|
|Project name||Project status|
|Kuwait||Gathering centre upgrade 14||New project|
|Qatar||Silver Pearl Hotel||New project|
|Saudi Arabia||King Abdullah Economic City: Red Sea Village District||Complete|
|UAE||NCC Harmony Towers (DuBiotech)||Revived|
|UAE||Shah gas development: sulphur granulation facilities||Complete|
|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 Companys 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|
|Kuwait||Kuwait Gulf Oil Company||Nuwaiseed port upgrade||18-Dec|
|Qatar||Supreme Committee for Delivery & Legacy||Al-Wakrah stadium||21-Dec|
|Qatar||Qatar General Electricity & Water Corporation (Kahramaa)||Ras Laffan independent water project||06-Jan|
|UAE||Dubai Electricity & Water Authority||Hassyan power plant||26-Jan|
|UAE||Dubai Electricity & Water Authority||Solar innovation centre||29-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). Iraqs 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 countrys market grew by 3.9 per cent as 15 projects worth a total of $8.4bn were announced.
27 Projects completed in the UAE
5 Projects completed in Saudi Arabia
15 New projects announced in Kuwait
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.