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.

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.

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.