Little change as states remain cautious

11 December 2014

Governments are engaging in more strategic planning to counter the impact of falling oil prices

The Gulf Projects Index recorded a decline of 0.1 per cent in the week ending 9 December, led by losses in Kuwait and Iraq.

Small gains were seen in Oman, Bahrain and the UAE. The impact of lower oil prices, which are now well below $70 a barrel, could be starting to be felt as activity in the countries’ projects market reflects more strategic, cautious planning.

Oman was the only country whose projects market showed significant growth of more than $400m, or 0.7 per cent. The government continues to invest in utilities and transport infrastructure. About 64 new real estate schemes also contributed a total of $368m.

The value of Kuwait’s projects market fell by 0.3 per cent as project delays drag on. This is despite the addition of 17 new real estate projects worth a total of $251m.

Project updates
 Project nameProject status
IranQazvin-Rasht-Astara railwayComplete
IraqDevelopment of Al-Kadhimiya holy shrine areaRevived
OmanAl-Amerat wastewater project: Al-Hajer treatment plantNew project
Saudi ArabiaNylon 6,6 and conversion projectComplete
UAETilal City (Sharjah)New project
For further information visit www.meed.com/meedprojects

The UAE’s projects market stabilised after recording significant losses last week, and gained 0.1 per cent. The real estate, healthcare and hospitality markets remain active in the country.

Saudi Arabia, the largest projects market in the region, flatlined due to delays on major schemes.

Qatar’s projects market fell 0.2 per cent due to stalled oil schemes, despite the award of several billion dollars-worth of transport and infrastructure deals.

Upcoming tender deadlines
 ClientContractSubmission date
KuwaitKuwait Gulf Oil CompanyNuwaiseed port upgradeDec-14
QatarSupreme Committee for Delivery & LegacyAl-Wakrah stadiumDec-14
QatarQatar General Electricity & Water Corporation (Kahramaa)Ras Laffan independent water projectJan-14
UAEDubai Electricity & Water AuthorityHassyan power plantJan-14
UAEDubai Electricity & Water AuthoritySolar innovation centre29-Jan
For further information visit www.meed.com/tenders

Iran recorded a 0.1 per cent contraction as the $400m Qazvin-Rasht-Astara railway project was completed and no major schemes were announced. Clients and contractors are still waiting for sanctions to be lifted before investing in much-needed oil and infrastructure upgrades.

Iraq’s projects market continued to suffer amid the takeover of significant areas of the country by the jihadist group Islamic State in Iraq and Syria, losing 0.7 per cent, mainly in the oil and gas sector.

In numbers

$3bn Loss recorded by Iraq’s projects market

$2.1bn Value of transport and infrastructure awards in Qatar

$368m Value of new real estate projects in Oman

For further information visit www.meed.com/contracts

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