Iran saw the biggest decline in its projects market in the week ending 2 April.

The Islamic Republic saw $1.7bn wiped off the value of its market over the week, a decline of 0.9 per cent. This left Iran’s projects market down by 16.2 per cent year on year.

The talks between Tehran and the P5+1 group of world powers, which includes the five permanent members of the UN Security Council as well as Germany, ended late on 2 April with an agreement to limit Iran’s nuclear programme in exchange for relief from economic sanctions.

The framework deal paves the way for a final agreement to be brokered by 30 June. If sanctions are lifted as planned, many foreign companies will gain access to the Islamic Republic’s projects market for the first time in decades.

Project updates
  Project name Project status
Kuwait West Abdullah al-Mubarak Township: infrastructure Main contract bid
Oman Duqm Frontier Town: phase 2A On hold
Oman Majarat Oman (Galaxy Theme Park) Design
Qatar New schools around Doha and in villages: package 7A Complete
Saudi Arabia King Abdullah Sports City: multi-purpose facilities Complete
For further information visit www.meed.com/meedprojects

Sanctions currently restrict a broad range of sectors including banking, shipping and energy. Analysts say their successful removal over coming years is likely to create a surge in trade with an accompanying economic boom and increase in project activity.

Elsewhere in the Gulf, there were declines for six out of the eight countries tracked by the index, with Bahrain and Iraq the only two countries to see gains.

Upcoming tender deadlines
  Client Contract Submission date
Oman Rural Areas Electricity Company (Raeco) Harweel wind farm 12-Apr
UAE Emaar Properties Boulevard Point 20-Apr
UAE Nakheel  Nad al-Sheba Mosque 26-Apr
UAE Dubai Electricity & Water Authority (Dewa)  Hassyan coal plant 30-Apr
Qatar Qatar General Electricity & Water Corporation (Kahramaa) Ras Laffan independent water project 10-May
For further information visit www.meed.com/tenders

Each saw a modest expansion of 0.1 per cent, while the GCC projects market decreased by 0.2 per cent as a whole.

Saudi Arabia, the index’s biggest projects market, saw a decline of 0.2 per cent, as two schemes were cancelled, worth a total of $305m, and three projects were completed, worth a total of $290m.

Qatar recorded a slump of 0.4 per cent, with $1.1bn wiped off its projects market.

In numbers

$1.7bn Decline in Iran’s projects market

$2bn Slump in Saudi Arabia’s projects market

$1.1bn Decrease in Qatar’s projects market

For further information visit www.meed.com/contracts