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.

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.

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.

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.