Kuwait projects arrest market slide

09 May 2011

Total value of projects planned or under way in the Gulf remains unchanged

Biggest contract

$300m: Awarded to Italy’s Fata for a 160,000 tonne-a-year rolling mill for Oman Aluminum Rolling Company in Sohar

$300m: Value of major contract awards

1: Number of contracts awarded

For further information visit www.meed.com/contracts

The Gulf projects market is starting to show some signs of stabilising as the total value of projects planned or under way in the Gulf remained flat at $2.52 trillion for the week up until 10 May.

The projects index has fallen steadily from $2.63 trillion on 12 January as anti-government protests have swept through the region.

One of the key reasons for the stabilisation of the Gulf index was the lack of movement in the Bahrain market, which has fallen by about $17bn since protests began in early March. The total value of projects in Bahrain remained flat at $63.7bn.

Projects updates
 Project NameProject Status
UAEAl-Reem Island: Onyx TowerOn Hold
UAECreek Towers (Al-Reem Island)On Hold
IranBakhtiyari damConstruction
UAESpecial Security HospitalTender
KuwaitJahra National ParkPlanned
For further information visit www.meed.com/meedprojects

The halt in the decline of Bahrain’s market allowed growth of 0.1 per cent in the GCC projects market. Kuwait’s projects market recorded the largest increase in the Gulf region. The total value of projects planned or under way grew by 0.4 per cent to $157bn. The rise can be attributed to four new construction projects worth a total of $400m announced by the Public Authority of Agriculture Affairs & Fish Resources.

The UAE’s projects market grew by 0.1 per cent as a $100m hospital project in Abu Dhabi and a $190m tunnels project in Dubai were launched.

Qatar was the only market in the GCC to record a decline in its project index. Its projects market shrank by 0.2 per cent as a $450m offshore project was completed and a $60m office building development was the only new project to be announced.

Upcoming tender deadlines
 ClientContractSubmission date
UAEEtihad Rail CompanyCivil engineering work1-Jun
Qatar                  Public Works Authority (Ashghal)Lusail Expressway 23 May
Saudi ArabiaGeneral Authority of Civil AviationMedina Airport5 Jun
KuwaitHealth MinistryAl-Amiri hospital7 Jun
UAEAbu Dhabi Airports CompanyMidfield Terminal10 Jul
For further information visit www.meed.com/tenders

Outside the GCC, Iran’s projects market declined by 0.1 per cent after a $1.2bn gas project was completed. The budget for a dam project was also reduced by $1bn. Iraq’s market remained flat, but maintains its position as the region’s fastest growing projects market, recording a 19 per cent year-on-year increase.

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