Middle East contracts awarded: February 2017

09 March 2017

Sharp decline in value of deals let

The strong increase in the value of contracts awarded in the Middle East in January has been followed by a sharp decline in February. With only $3.6bn of deals inked in the month, the value of awards in the region is down 74 per cent on January’s total. Comparing the figures year-on-year, it marks a 53 per cent drop from February 2016.

February contract awards by country
CountryAward ($m)
Bahrain213
Kuwait783
Lebanon11
Oman481
Qatar406
Saudi Arabia432
UAE1,310

The value of deals signed in February 2017 is the lowest monthly total recorded since January 2014. Only 39 deals were inked during the month, compared with 84 in January 2017.

Net value of projects under execution ($m)
Country Grand Total
UAE1,310
Oman481
Saudi Arabia432
Kuwait783
Qatar406
Lebanon11
Bahrain213
Grand Total3,636

Iran, which saw the highest value of contracts awarded in January, failed to sign a single deal in February, while Egypt, Iraq and Jordan also fell off the list.

The UAE was the most active market signing $1.3bn of contracts, spurred on by its real estate sector. The largest award was a $260m deal for Dubai Lifestyle City, a mixed-use development planned in Dubailand, which had been on hold since the start of the 2008 financial crisis.

Kuwait recorded the second-biggest total, at $783m, an increase on the $589m it awarded in January. Its largest contract was a $242m deal for water management facilities at Gathering Centres 3, 4, 7 and 21 in South Kuwait.

Oman awarded the next-highest value of contracts, at $481m, although this was a significant decrease from the $1.3bn it let in January. Petroleum Development Oman awarded the largest deal, a $375m contract for early production facilities at the Tayseer gas field in the south of the sultanate.

It is interesting to note that Saudi Arabia did not feature among the most active markets in February despite dominating contract award activity in recent months. Saudi Arabia let $432m of deals, the biggest was a $183m contract from Saline Water Conversion Corporation (SWCC) for Singapore’s Hyflux to design and build three desalination plants at Duba, Wajh and Haql.

The desalination projects have faced delays in the procurement and bidding stage, with bids received from contractors in November 2015. These are likely to be the last design and build contracts awarded for major water schemes in the kingdom; SWCC and National Water Company are both planning to tender and develop all future desalination and wastewater projects using the public-private partnership (PPP) model.

The GCC projects market has had its worst start to a year for more than a decade in 2017, according to analysis by MEED’s deputy editor Colin Foreman. Contract awards for the first two months fell sharply and the rolling six-month average reached a record low.

Contract awards as reported on www.meed.com
CountryProjectContractorClientEstimated value ($m)
OmanDevelopment of Oman’s Block 48 concessionOman Oil Company Exploration & ProductionOil & Gas Ministry25.0
JordanBuild, develop and operate a 4.7MW photovoltaic solar plant at the Jordan HospitalYellow Door EnergyJordan Hospitalna
UAEInfrastructure work at the Dubai Expo siteJoint venture of Egypt’s Orascom and Belgium’s BesixExpo 2020 Dubai95
Saudi ArabiaDesign a luxury hotel and serviced apartments at the Jabal Omar Development in MeccaFoster + PartnersJabal Omar Development Companyna
UAEMain construction works for the 1/JBR projectDubai Construction CompanyDubai Propertiesna
BahrainWork on a residential project in the Um al-Hassam areaYousif Al-Zayani Trading & Contracting CompanyAmlak Real Estatena
UAEConstruction of a modular data centre at the Dubai International airportAlecDubai Airports Company and China-based Huawei Technologies12
QatarConstruction of the north-south link of the E Ring RoadDaewoo Engineering & ConstructionPublic Works Authority590
KuwaitBuild facilities for the treatment of liquid sulphur at the Al-Ahmadi refineryGulf Spic General Trading & Contracting CompanyKuwait National Petroleum Company97
UAEInfrastructure design work for Madinat al-Arab projectDar al-HandasahNakheelna
EgyptSupply of 256 metro cars for the third phase of the Cairo Metro Line 3Hyundai RotemNational Authority for Tunnels377.5
EgyptInstall two power transmission substations in Sharm el-Sheikh and HurghadaGerman Electrical Manufacturing CompanyEgyptian Electricity Transmission Company20
BahrainDesign and supervision of Bahrain airport’s air traffic control centreADPIBahrain Airport Companyna
OmanWork on a $39m community mall in Oman - My City Centre SurShapoorji Pallonji InternationalMajid al-Futtaim Propertiesna
EgyptWork on six buildings in Egypt’s proposed ministerial districtHassan Allam ConstructionAdministrative Capital City for Urban Developmentna
QatarBuild the $342.5m stadium at Al-ThumamaJoint venture of the local AlJaber Engineering and Turkey’s Tekfen ConstructionSupreme Committee for Delivery & Legacyna
UAEUpgrade Tripoli Road in the Mirdif area of DubaiLarsen & ToubroRoads & Transport Authority136
TotalThe full value for 39 projects across the Mena region3,636
Data from MEED.com; na=Not available. For more information visit MEED Projects http://www.meedprojects.com/home

 

Contract awards on www.meedprojects.com
CountryOwner - ProjectIndustryContract value ($m)
UAEEmaar Properties - Dubai Hills Estate: District Cooling Plant (DCP-01)Water35
UAEDubai Science Park - Warehouses Phase 2Industrial25
OmanMuzn Oman Commercial L.L.C - Al Muzn Corp HotelConstruction52
Saudi ArabiaSWCC-AL Khafji New City Feeder Water Transmission SystemWater22
UAEPrivate Developer - Business Bay : Mixed-Use Tower (Plot No.3466809)Construction40
UAEContinental Investment - Dubai Lifestyle City : RukanConstruction260
KuwaitNCCAL - Al Ahmadi Cultural Center(3/2015/2016)Construction119
Saudi ArabiaSaudi Aramco - South Dhahran Apartment Buildings 2c (Package 1&2)Construction108
KuwaitKOC-Water Management at Gathering Centers 3,4,7&21 in South Kuwait (RFP-2042199)Oil242
KuwaitKOC- Upgrading Existing Export Facilities (Tender No: RFQ-2042934)Oil77
KuwaitPAYS - Halls Complex at Al Qadisiya Sports ClubConstruction17
UAESaqr Port Authority - Saqr Port Phase 1 ExpansionTransport50
OmanBP - Khazzan Field Development: Additional Well Pads (Phase II)Transport20
QatarBarwa Real Estate Company - Barwa Village Extension at Al WakrahConstruction15
QatarSupreme Committee for Delivery and Legacy - Al Thumama Stadium (5th Precinct)Construction343
KuwaitPAHW - Wafra Housing Project Expansion : Block 3 Public BuildingsConstruction44
LebanonCDR - Wastewater Networks in Upper Litani BasinWater11
UAEVice Versa Facilities Management - Hotel in Dubai Studio City (Plot No-SC-B-014)Construction30
OmanPDO - Tayseer Early Production FacilityGas375
Saudi ArabiaYANSAB - Yanbu Ethylene Glycol Plant DebottleneckingChemical99
UAEDamac Properties - Akoya Oxygen: Infrastructure Package 2-5Transport32
Saudi ArabiaMOHE - Al Baha University: Preparatory Year BuildingConstruction20
UAEAssent - Steel Fabrication Facility ExpansionIndustrial48
UAEDamac Properties - Akoya Oxygen : SanctnaryConstruction128
BahrainEskan Bank - Dannat Al Lawzi: Residential DevelopmentConstruction50
UAENakheel - Ibn Battuta Avani Hotel (Tender no DMS 145457)Construction27
UAEHassani Trading - IMPZ : Residential Building (Plot: IMPZ K-14)Construction30
OmanMajid Al Futtaim - My City Centre at SurConstruction34
UAEBukhatir Properties International - Sahara Mall West ExpansionConstruction90
BahrainBapco- Enhancement of Fire Protection System In The Refinery and Sitra TanksOil83
Saudi ArabiaSWCC - Desalination Plants for Haql - 3,Duba - 4,Al Wajh - 4Water183
QatarASHGHAL - Roads Surrounding Public Development (Zone 70)Transport48
UAEDamac Properties - Akoya Oxygen : Phase 3Construction109
BahrainBapco - Modernization Programme : Site PreparationTransport80
KuwaitJazeera Airways - Kuwait International Airport : New TerminalTransport46
UAEDamac Properties - Akoya Oxygen : ViridisConstruction140
KuwaitKOC-Water Management at Gathering Centers 6,8,11&19 in SEK Areas (RFP-2042201)Oil238
UAESharjah Municipality - Kalba Sewage Treatment Plant ExpansionWater56
UAEDubai Properties - Jumeirah Beach Residence : 1/JBR (Plot No.392-0552)Construction210

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