The value of the Gulf projects index fell by 0.6 per cent to $2.52 trillion for the week leading up to 4 May, as the current political turmoil continues to impact on the Gulf projects sector.

The GCC projects market, which accounts for about 73 per cent of the total Gulf market, dropped by 0.9 per cent.

The biggest drop was recorded in Bahrain, where the continuing political uncertainty has resulted in the kingdom’s projects market falling by 4.4 per cent. The cancellation of a $2.5bn refinery project was the main contributor to the slide.

Oman, also affected by protests in recent months, saw its projects market decline by 1.4 per cent as budgets on a number of mega-projects were revised and lowered. But it was not just countries affected by protests that saw their project markets decline.

The total value of projects in the UAE fell by 1.6 per cent as a number of megaprojects were downsized. Saudi Arabia, the region’s biggest projects market, recorded a drop of 0.9 per cent after a $1.2bn poly-silicon plant was put on hold.

Kuwait and Qatar were the only two GCC countries to record a growth in their projects markets. Kuwait achieved a 0.7 per cent increase, while the total value of projects planned or under way in Qatar rose by almost 1 per cent.

Outside the GCC, Iran’s project market recorded the highest growth in the region. Its index recorded an increase of 2.6 per cent as two new oil and gas projects worth $1bn were announced.

Iraq’s projects index slipped by 1.9 per cent as a $5bn petrochemicals project was cancelled.

However, despite the drop Iraq maintains its position as the region’s fastest growing projects market, recording a 20 per cent year-on-year increase.