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.

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.

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.