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.

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.

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.