Middle East contracts awarded: August 2016

04 September 2016

Qatar overtakes UAE while Saudi Arabia falters

August was marked by a noticeable drop in contract awards in the region’s biggest projects market, Saudi Arabia. The kingdom awarded deals worth a total of $518m, compared with $1.8bn in July.

August contract awards by country
CountryAward ($m)
Bahrain979
Egypt62
Kuwait2,424
Oman269
Qatar2,563
Saudi Arabia518
UAE2,532

Despite this, the overall value of contract awards in the region increased in August to $9.4bn, compared with $8.3bn in July, with the number of contracts let rising to 51 from 45 last month. However, August’s contract awards value is still well below the $12bn recorded in June, when Iran, the UAE and Qatar signed multibillion-dollar single deals.

Contract awards as reported on www.meed.com
CountryProjectContractorClientEstimated value ($m)
UAEComplete all infrastructure work for the first two phases of Dubai South residential district by the final quarter of 2017Tristar Engineering and ConstructionDubai South82
BahrainConstruct the 1,792MW fifth captive power plant at its aluminium smelter facilityConsortium of the US’ GE and Turkey’s Gama Power systems Engineering & ConstructionAluminium Bahrainna
Saudi ArabiaDesign of a new five-star hotel in the Samhan district of Ad’DiriyahD’AppoloniaSaudi Commission for Tourism and National Heritagena
UAEExecutive architect and interior designer for 928 metre-plus tall tower at Dubai Creek Harbour developmentRMJMEmaar Propertiesna
UAEConsultancy services for a photovoltaic (PV) solar plant to power the planned Museum of the FutureILF Consulting EngineersDubai Electricity & Water Authorityna
UAEBuild Al-Khail Avenue mall in DubaiDhabi ContractingNakheel400
Saudi ArabiaBuild three residential towers comprising 283 units called Emaar Residences at masterplanned community Jeddah GateArabian Construction CompanyEmaar Middle Eastna
UAEExpand the capacity of the Jebel Ali condensate refinery in DubaiTechnipEmirates National Oil Company1000
EgyptOil and gas drilling and exploration agreements BP, Eni, Total, Edison and Trident PetroleumEgyptian Natural Gas Holding Company (Egas) / Egyptian General Petroleum Corporation (EGPC)na
UAEMain construction work on Park View mixed-use development on Saadiyat Island in Abu DhabiJoint venture of the local Tharwaa and Al-Mansouri 3BBloom Holdingna
UAEOversee the design, engineering and construction supervision of a AED900m ($245m) project in Dubai close to the Deira mall and Deira Islands Night SouqDar al-HandasahNakheel and  Riu Hotels and Resortsna
UAEThree residential towers and one hotel in the Al-Furjan area in DubaiAl-Kaitoob Building ContractingAzizi Developmentsna
UAEProvide and install a major electrical substation to serve the planned Hassyan coal-fired independent power projectSiemensDubai Electricity & Water Authorityna
UAEWork on three towers in the Satwa area of DubaiAli Moosa and Sons HoldingAl-Fattan Properties150
UAEFirst phase of Al-Andalus project in DubaiSumer ContractingJumeirah Golf Estatesna
UAEWork on $150m Hyatt Port Views project in DubaiSobha Engineering & ContractingWasl Asset Management Groupna
Saudi ArabiaVarious projects at Riyadh Techno Valley schemeAl-Bawani, Al-HokairRiyadh Valley Company1,000
EgyptInfrastructure and landscaping work on its Zayed Central Park projectSamcreteMinistry of Housing, Utilities and Urban Communitiesna
UAEInformation and communications technology (ICT) package of the Jewel of the Creek developmentGulf Business MachinesDubai International Real Estate100
UAEBuilding 37-storey The One by Ramada Plaza, a car park and all associated facilitiesChina Railway 18th Bureau Group CompanyThe First Groupna
QatarConstruction of a 34km highway as part of the Al-Khor Expressway projectTekfen ConstructionGovernment2,090
KuwaitBuild aircraft parking and corridors at the Kuwait International AirportAl-Dar (HOT) Engineering & Construction Company (HOTECC)Directorate General for Civil Aviation40.5
OmanBalance of plant for steel mini-mill projectShriram EPCMoon Iron & Steel Company (Misco)230
KuwaitCarry out drilling at oil and gas fieldsBaker Hughes, Anadrill International, Halliburton and Weatherford InternationalKuwait Oil Company1,000
UAEProvide engineering consultancy services for the fourth-phase expansion of Dubai’s Aweer H power stationElectricitie de FranceDubai Electricity & Water Authority6
OmanConstruction of a fishery port in DuqmGalfar Engineering & ContractingSpecial Economic Zone Authority at Duqm (Sezad)158
UAEWork on the construction of 400 apartments and all associated works at the Shams Abu Dhabi scheme on Reem IslandFibrexAldar Properties70
KuwaitConstruction and maintenance of the temporary passenger terminal at Kuwait International airportTeam of Turkey’s Cengiz Insaat Sanayi Ve Ticaret and the local First Kuwaiti General Trading & Contracting CompanyDirectorate-General of Civil Aviation174
UAEUpgrade Concourse C at Dubai International airportAl-Shafar General ContractingDubai Aviation Engineering Projects190
UAEMain enabling works contract for work on Soho Square mixed-use development in Abu DhabiDutch Foundation Company & Concrete RehabilitationBloom Holdingna
UAE15 construction and infrastructure contracts in the capitalSaif Bin Darwish, Mohammed Abdulmohsin al-Kharafi & Sons Company, Nael & Bin Harmal Hydroexport Establishment, Ghantoot Transport & General Contracting, among othersAbu Dhabi General Services Company (Musanada)1,100
OmanWork on the Saih Nihayda condensate processing plant in the north of PDO’s Block 6 concession in central OmanAl-Hassan Engineering CompanyPetroleum Development Oman20
KuwaitSecond phase of Kuwait’s Jurassic gas production programmeSpetco International Petroleum CompanyKuwait Oil Company395
TotalThe full value for 51 projects across the Mena region9,347
Data from MEED.com; na=Not available. For more information visit MEED Projects http://www.meedprojects.com/home

Qatar overtook the UAE, which had been leading the pack for several months, in contract awards, due mainly to the award of a $2.1bn construction deal for the Al-Khor Expressway project. The country awarded five deals, compared with the UAE’s 21.

The award of the $900m contract for Emirates National Oil Company’s (Enoc’s) Jebel Ali refinery expansion propelled the UAE to second in the contract awards ranking, along with the $408m contract awarded by developer Nakheel for the Al-Khail Avenue mall in Dubai.

Contract awards on www.meedprojects.com
Country NameProject IndustryContract Value ($m)
Saudi ArabiaSaudi Aramco - Re-route Pipelines in Ras Tanura AreaGas450
BahrainGhassan Ahmed Al Sulaiman Development Company - Ikea StoreConstruction53
UAERufi Real Estate - DSC: Rufi Waterfront ResidencyConstruction40
QatarMOI - General Directorate of Borders Passports,Expatriate Affairs HQConstruction225
KuwaitMPW - 6.5 Ring Road (RA / 223)Transport320
UAEADM - Roads & Infrastructure Works: MBZ City: (Z 35 - 2) (Tender no: 40/2015)Transport23
UAEFarglory Group - Al Maryah Island - Sowwah Square: Maryah Plaza : Phase 1Construction100
UAEADPC - Kizad : Quay Wall ExpansionTransport100
UAENakheel - Dragon City: Dragon Mart Furniture Showrooms (Tender No. DMS 14258)Construction32
UAEENOC - Jebel Ali Refinery ExpansionOil900
UAEEmicool - Akoya by Damac: Water Pipeline NetworkWater13
QatarLREDC - Lusail Development: Retails in North Villas and Foxhills North (BP 26)Construction13
KuwaitKOC - Jurassic Non Associated: Phase 2: East Raudhatain field (RFP2031266)Gas380
KuwaitMPW - Main Sanitary Discharge Line from Surra to Reggae : Phase 11 (HS/191)Transport36
BahrainDiyar Al Muharraq - Deerat Al OyounConstruction584
UAEGemini Properties - MBR City : Gemini SplendorConstruction30
QatarSharaka Holdings - Le Mirage PremiumConstruction155
BahrainBahrain Ministry of Electricity & Water - Utilization of Hidd Water TanksPower27
BahrainAluminium Bahrain (ALBA) - Alba Power Station  - Power Distribution PackagePower100
OmanAl Madina Real Estate - Mixed Use DevelopmentConstruction60
UAEMusanada - Zayed City District Infrastructure: North Spine (Package 2)Transport25
UAEMusanada - Infrastructure Works for  New Industrial Area in GhayathiTransport29
KuwaitKISR - Shagaya Regenerated Energy Technologies Plant Utilities (17/2015-2016)Power36
QatarPEO - Expressway Programme: Al Khor ExpresswayTransport2,100
KuwaitDGCA - Aircraft Parking & Corridors(Tender no. 1/2013/2014)Transport41
KuwaitAl Diwan Al Amiri - Kuwait Airport Expansion: Passenger Support BuildingTransport174
KuwaitMPW - Al Ghouse Road From Sabah Al Salem to 7th Ring Road (RA/264)Transport234
OmanSEZAD - Duqm Fisheries Harbour (30/2015)Transport157
Saudi ArabiaMOHE - King Abdulaziz University: College of Sciences for MenConstruction22
UAEMBRH - Makan District: Hatta: 346 VillasConstruction80
UAEMusanada - Roads, Infrastructure & Public Realm for Sector W52 - 2Transport29
KuwaitMPW - Sheikh Jaber Al Ahmed Al Sabah Road Improvement (RA/256)Transport311
UAEDubai RTA : Dubai Metro - Upgrading Rolling Stock And SystemTransport160
OmanPDO - Lekhwair Combined Cycle Power PlantPower52
KuwaitMPW-Northern Regional Road from 6th Ring to Intersection No.82 (RA/259)Transport494
QatarAl Khaliji Bank - Al Khaliji Headquarters (Plot No.Marina-Mix40)Construction70
EgyptENR - ENRRP : Signal Upgrade for Cairo - Banha LineTransport22
UAERadar DWC - Dubai South : Aloft Hotel (Plot No. AC4-42)Construction30
BahrainMOH - East Hidd Housing Project : 507 Villas (A2 & A3)Construction54
EgyptEETC -220kV Al Zafarana Substation (73/2015/2016)Power40
UAEADM - Roads & Infrastructure Works: MBZ City (Z 35 - 1)(Tender no: 39/2015)Transport28
UAEDAEP - Dubai International Airport : Refurbishment & Upgrade  of Concourse CTransport190
BahrainMOH - East Hidd Housing Project : Infrastructure Package  (Phase 1)Transport161
Saudi ArabiaMiahona - Water Treatment Plant at King Khalid International Airport (KKIA)Water46
UAEBloom Properties - Park ViewConstruction135
UAESunflower FZE - Business Bay : Indigo InterContinental HotelConstruction60
KuwaitKOC - Construction of Flowlines for GC - 29, 30 & 31 (RFP-2019958)Gas177
KuwaitMPW - 7th Ring Road (Tender No - RA/240)Transport221
UAEEmaar Properties - Springs Retail Center (Plot No.3946998)Construction50
UAEAldar - Shams MeeraConstruction70
UAENakheel - Jumeirah Village Triangle : Al Khail AvenueConstruction408

Kuwait followed the UAE in the value of contracts awards, with a total of $2.4bn of deals awarded. The largest contract signed was for a $494m project on the Northern Regional Road. Kuwait has launched numerous road projects in the past year to address traffic congestion, particularly in Kuwait City, and to facilitate the smoother flow of passengers and goods by road across the country.

Meanwhile, the marked slowdown in contract awards in Saudi Arabia is a sign of the kingdom’s determination to reform its economy and reduce capital expenditure in response to low oil prices. The government has also realised that moving back to the private developer model for power schemes is the right choice to make.

However, Saudi Arabia is forecast to lead the market in terms of contract awards for the rest of this year, followed by the UAE, Qatar and Kuwait.

Net value of projects under execution ($m)
Country NameGrand Total
UAE2,532
Oman269
Saudi Arabia518
Qatar2,563
Egypt62
Kuwait2,424
Bahrain979

Sum of Net Project Value ($m)Industry       
Country nameWaterGasOilChemicalTransportConstructionPowerGrand Total
UAE13 900 5841,035 2,532
Oman    1576052269
Saudi Arabia46450   22 518
Qatar    2,100463 2,563
Egypt    22 4062
Kuwait 557  1,831 362,424
Bahrain    161691127979
Grand Total591,007900 4,8552,2712559,347

 

 

Read previous contract awards.

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