Kuwait growth supports Gulf market

17 December 2011

An increase in Kuwait’s projects sector offsets a fall in the UAE and Saudi Arabia

Contract awards this week

Biggest contract: $528m

Contract awarded by Iraq’s Electricity Ministry to France’s Alstom to build a 728MW power plant at Al-Mansuriyah in Diyala governorate in eastern Iraq.

$732.5m: Value of major contract awards

3: Number of contracts awarded

For further information visit www.meed.com/contracts

A 2.2 per cent increase in Kuwait’s projects market ensured the Gulf projects index recorded a modest rise of 0.1 per cent for the week up to 13 December.

The total value of projects planned or under way in the Gulf rose to $2.5 trillion, in spite of the region’s two largest projects markets, Saudi Arabia and the UAE, recording a drop in value.

Kuwait’s projects sector grew to $181.7bn as six new projects worth a total of $1.5bn were added to its index and the budget of its new airport terminal was increased. The biggest of the new projects added to its index was an estimated $1bn Central Gas Utilisation Project scheme for Kuwait Oil Company at Wafra.

Oman recorded the second-largest growth in the GCC, with the value of its projects sector rising by 0.3 per cent to $115.6bn. The increase can be attributed to the upward revision of the budget for a gas processing plant in Musandam.

Saudi Arabia and the UAE, the Gulf’s two biggest projects markets, did not fare so well, recording a drop in the value of their markets of 0.1 per cent and 0.6 per cent respectively. The fall in the Saudi projects market can be attributed to the completion of five projects worth a total of $852m.

The value of the UAE’s index fell to $595.5bn, as seven projects worth a combined $1.6bn were completed and five projects worth $1.5bn in total were put on hold.

Outside the GCC, Iran’s projects market grew by 0.3 per cent to $308.2bn as two oil and gas projects worth a total of $1.6bn were added to its index. The biggest of these was an estimated $1.4bn liquefied natural gas complex for National Iranian Oil Company.

Iraq’s projects index remained flat at $308.2bn, but the state retains its position as the region’s fastest-growing projects market, recording a 42 per cent year-on-year increase.

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