Kuwait leads Gulf index fall

10 March 2015

Kuwait and Bahrain record significant declines, with few positive notes

The Gulf Projects Index declined by 0.2 per cent due to sharp contractions in the Kuwaiti and Bahraini markets in the week ending 5 March. Only Oman and Iran saw growth as lower oil prices and instability dampen markets.

In numbers this week

$5.65bn Contraction in Kuwait’s project market

$22bn Bahrain’s planned project spend

10 million square metres Size of Nshama Town Square project

For further information visit www.meed.com/contracts

Kuwait recorded a fall of 2.5 per cent in the value of its projects market, or $5.65bn, as two projects worth a combined $7.6bn were put on hold and seven projects saw changes to their budgets.

Bahrain’s projects market fell by 1.8 per cent, or $1.2bn, as progress slows on major projects. Despite the fall in oil prices, Manama announced $22bn would be spent on new projects.

Project updates this week
Project nameProject status
IranSouth Pars gas field development: phases 22-24New project
UAESAS oil field development projectComplete
QatarExpressway programmeBudget change
Saudi ArabiaKing Abdullah Economic CityBudget change
OmanKhazzan and Makarem fieldsBudget change
For further information visit www.meed.com/meedprojects

Qatar saw a contraction of 0.5 per cent, mainly due to the completion of several Ras Laffan projects. Meanwhile, transport infrastructure projects such as the $21bn Doha Metro, the $7.4bn New Doha Port, the first 146-kilometre phase of the $2.5bn rail project and $14.6bn of roads and drainage schemes are moving ahead.

The only country to record a noticeable increase in the value of its projects market was Oman, which posted a 0.4 per cent gain. It was driven by real estate projects and ongoing infrastructure investments, set to total $8bn in 2015.

Upcoming tender deadlines
 ClientContractSubmission date
OmanPublic Authority for Water & ElectricityWadi Dayqah treatment plant16-Mar
UAEDubai Electricity & Water AuthorityHassyan power plant26-Mar
UAENakheelAl-Furjan community centre05-Apr
OmanRaecoHarweel wind farm12-Apr
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water project10-May
For further information visit www.meed.com/tenders

The region’s largest projects market, Saudi Arabia, held steady at nearly $1,200bn. The massive redevelopments of Mecca, Medina and Jeddah saw the most activity, as well as continuing investment in electricity transmission.

The UAE’s steady figures belie an active week in the real estate market, with the announcement of the new 10 million-square-metre Town Square project by Nshama.

Iran recorded a rare gain on its projects market, of 0.2 per cent, as it strategises its oil and gas investment in the hope a nuclear deal will be agreed and sanctions lifted.

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