Kuwait records strong performance

20 February 2014

Oman and Saudi Arabia only other projects markets to see growth in value

An increase in budget for Kuwait’s long-planned project to upgrade the country’s refineries underpinned another week of strong growth for the Gulf Projects Index, which rose by 0.2 per cent to $3.2 trillion in the seven days up to 18 February.

Kuwait recorded the biggest increase in the index, as the value of schemes planned or under way rose by about $4bn or 1.9 per cent.

Project updates this week
 Project NameProject Status
KuwaitAl-Zour South power plant upgradeComplete
OmanSalalah port: bulk liquid storage facilityPrequalification
QatarMesaieed power plant (Facility D)Main contract bid
QatarMesaieed water plant (Facility D)Main contract bid
UAEEmirates Park Towers: JW Marriott MarquisComplete
For further information visit www.meed.com/meedprojects

The growth was largely driven by a total increase of nearly $8bn in the budgets for Kuwait National Petroleum Company’s Clean Fuels Project and phase 1 of Wafra Joint Operations’ oil project in the Divided Zone between Kuwait and Saudi Arabia.

Oman posted the second-biggest increase in the index, with the value of schemes planned or under way in the sultanate rising by about $400m, a 0.3 per cent hike. This was driven by the launch of a $200m project to build a liquid bulk storage facility at the Port of Salalah. 

Saudi Arabia, the region’s largest projects market, was the only other country in the index to see an improvement, as the value of its projects sector rose by 0.1 per cent – about $850m. The kingdom is the GCC’s fastest-growing market, with the value of schemes planned or under way up 36.9 per cent over the past 12 months. 

Upcoming tender deadlines
 ClientContractSubmission date
Lebanon Council for Development & ReconstructionWastewater treatment plant6 Mar
OmanTransport & Communications MinistryRoad dualisation works10 Mar
KuwaitHigher Council for Planning & DevelopmentOperation and maintenance of government building1 Apr
Lebanon Council for Development & ReconstructionRestoration works at Saida and Baalbek15 Apr
KuwaitPublic Works MinistryKuwait airport terminal24 Apr
For further information visit www.meed.com/tenders

Bahrain’s projects index fell 0.5 per cent as three schemes worth a total of $350m were placed on hold or were cancelled.

Outside the GCC, both Iran and Iraq ended the week unchanged, although both markets are on very different trajectories. Iran’s struggling projects sector has shrunk 19.3 per cent year-on-year. By contrast, Iraq continues to be the fastest-growing country in the index, as the value of schemes planned or under way in the country has risen by 84.2 per cent, compared with the same period last year.

Contract awards this week

Biggest contract $190m

Awarded to the local Al-Qabdah Building Contracting to build a 106-storey residential tower in Dubai Marina

$190m Value of major contract awards

1 Number of contracts awarded

 

 

 

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