Kuwait leads Gulf projects market growth

01 March 2012

Emirate ranks as the Gulf’s fastest-growing projects market so far this year

Biggest contract

$330m: The UK’s Petrofac was awarded a $330m engineering procurement and construction contract for a central processing facility at Iraq’s Badra oil field.

$335m: Value of major contract awards

2: Number of contracts awarded

For further information visit www.meed.com/contracts

Strong growth in Kuwait’s projects market contributed to a 1 per cent increase in the Gulf Projects Index for the week up to 28 February.

The total value of Kuwait’s projects sector grew by 5.8 per cent to $188.6bn, as budgets were increased on the Al-Zour South Power Plant expansion scheme and the Finance Ministry’s Ministries Complex. The launch of another three projects worth $400m in total also contributed to the market rise.

The increase helped Kuwait retain its position as the fastest-growing market of 2012 to date, recording a 25 per cent year-on-year rise.

Project updates
 Project NameProject Status
IranElectrical transmission linesStudy
QatarSolar power complexOn Hold
Saudi ArabiaKing Abdullah Economic City: Rabigh airportCancelled
Saudi ArabiaTiran Strait Causeway (Saudi Egypt)Study
UAEPipelines: Lot A and BComplete
For further information visit www.meed.com/meedprojects

Saudi Arabia, the Gulf’s biggest projects market, recorded growth of 1.2 per cent. The budget increase on Maaden’s Al-Khabra phosphate mine scheme and the launch of three new projects worth $436m contributed to the rise.

The total value of projects planned or under way in the UAE rose by 0.4 per cent to $549.4bn. The main contributor to the growth was the addition of the estimated $3.5bn Mohammad bin-Rashid al-Maktoum Solar Power Plant scheme in Dubai to the index. The outlook for the UAE’s construction sector continues to improve with two projects in Abu Dhabi worth $554m recently revived.

Upcoming tender deadlines
 ClientContractSubmission date
QatarMsheireb PropertiesMsheireb phase 219-Mar
UAESorouh Real Estate/Bovis Lend LeaseAl-Ain stadium development22-Mar
Saudi ArabiaAl-RayadahTadawul tower25-Mar
UAEDP WorldJebel Ali port terminal26-Mar
OmanTransport & Communications MinistryBatinah Expressway package 416-Apr
For further information visit www.meed.com/tenders

The worst-performing market in the Gulf was Qatar, which recorded a 0.6 per cent drop in its projects market. The main reasons for the decline were a $1bn solar power project being put on hold and two infrastructure projects worth a total of $642m reaching completion.

Outside the GCC, the projects market in both Iran and Iraq increased in value, both recording growth of 0.3 per cent. The main factor behind the rise in Iran’s market was the launch of a new $718m transmission line project. In terms of new projects launched, Iraq was the Gulf’s most active, with 27 projects worth a total of $1.6bn.

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