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 $3.6bn of deals inked in the month, the value of awards in the region is down 74 per cent on Januarys total. Comparing the figures year-on-year, it marks a 53 per cent drop from February 2016.
February contract awards by country | |
---|---|
Country | Award ($m) |
Bahrain | 213 |
Kuwait | 783 |
Lebanon | 11 |
Oman | 481 |
Qatar | 406 |
Saudi Arabia | 432 |
UAE | 1,310 |
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 |
UAE | 1,310 |
Oman | 481 |
Saudi Arabia | 432 |
Kuwait | 783 |
Qatar | 406 |
Lebanon | 11 |
Bahrain | 213 |
Grand Total | 3,636 |
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 $183m contract from Saline Water Conversion Corporation (SWCC) for Singapores Hyflux to design and build three desalination plants at Duba, Wajh and Haql.
The desalination projects have faced delays in the procurement and bidding stage, with bids received from contractors in November 2015. These are likely to be the last design and build contracts awarded for major water schemes in the kingdom; SWCC and National Water Company are both planning to tender and develop all future desalination and wastewater projects using the public-private partnership (PPP) model.
The GCC projects market has had its worst start to a year for more than a decade in 2017, according to analysis by MEEDs deputy editor Colin Foreman. Contract awards for the first two months fell sharply and the rolling six-month average reached a record low.
Contract awards as reported on www.meed.com | ||||
---|---|---|---|---|
Country | Project | Contractor | Client | Estimated value ($m) |
Oman | Development of Omans Block 48 concession | Oman Oil Company Exploration & Production | Oil & Gas Ministry | 25.0 |
Jordan | Build, develop and operate a 4.7MW photovoltaic solar plant at the Jordan Hospital | Yellow Door Energy | Jordan Hospital | na |
UAE | Infrastructure work at the Dubai Expo site | Joint venture of Egypts Orascom and Belgiums Besix | Expo 2020 Dubai | 95 |
Saudi Arabia | Design a luxury hotel and serviced apartments at the Jabal Omar Development in Mecca | Foster + Partners | Jabal Omar Development Company | na |
UAE | Main construction works for the 1/JBR project | Dubai Construction Company | Dubai Properties | na |
Bahrain | Work on a residential project in the Um al-Hassam area | Yousif Al-Zayani Trading & Contracting Company | Amlak Real Estate | na |
UAE | Construction of a modular data centre at the Dubai International airport | Alec | Dubai Airports Company and China-based Huawei Technologies | 12 |
Qatar | Construction of the north-south link of the E Ring Road | Daewoo Engineering & Construction | Public Works Authority | 590 |
Kuwait | Build facilities for the treatment of liquid sulphur at the Al-Ahmadi refinery | Gulf Spic General Trading & Contracting Company | Kuwait National Petroleum Company | 97 |
UAE | Infrastructure design work for Madinat al-Arab project | Dar al-Handasah | Nakheel | na |
Egypt | Supply of 256 metro cars for the third phase of the Cairo Metro Line 3 | Hyundai Rotem | National Authority for Tunnels | 377.5 |
Egypt | Install two power transmission substations in Sharm el-Sheikh and Hurghada | German Electrical Manufacturing Company | Egyptian Electricity Transmission Company | 20 |
Bahrain | Design and supervision of Bahrain airports air traffic control centre | ADPI | Bahrain Airport Company | na |
Oman | Work on a $39m community mall in Oman - My City Centre Sur | Shapoorji Pallonji International | Majid al-Futtaim Properties | na |
Egypt | Work on six buildings in Egypts proposed ministerial district | Hassan Allam Construction | Administrative Capital City for Urban Development | na |
Qatar | Build the $342.5m stadium at Al-Thumama | Joint venture of the local AlJaber Engineering and Turkeys Tekfen Construction | Supreme Committee for Delivery & Legacy | na |
UAE | Upgrade Tripoli Road in the Mirdif area of Dubai | Larsen & Toubro | Roads & Transport Authority | 136 |
Total | The full value for 39 projects across the Mena region | 3,636 | ||
Data from MEED.com; na=Not available. For more information visit MEED Projects http://www.meedprojects.com/home |
Contract awards on www.meedprojects.com | |||
---|---|---|---|
Country | Owner - Project | Industry | Contract value ($m) |
UAE | Emaar Properties - Dubai Hills Estate: District Cooling Plant (DCP-01) | Water | 35 |
UAE | Dubai Science Park - Warehouses Phase 2 | Industrial | 25 |
Oman | Muzn Oman Commercial L.L.C - Al Muzn Corp Hotel | Construction | 52 |
Saudi Arabia | SWCC-AL Khafji New City Feeder Water Transmission System | Water | 22 |
UAE | Private Developer - Business Bay : Mixed-Use Tower (Plot No.3466809) | Construction | 40 |
UAE | Continental Investment - Dubai Lifestyle City : Rukan | Construction | 260 |
Kuwait | NCCAL - Al Ahmadi Cultural Center(3/2015/2016) | Construction | 119 |
Saudi Arabia | Saudi Aramco - South Dhahran Apartment Buildings 2c (Package 1&2) | Construction | 108 |
Kuwait | KOC-Water Management at Gathering Centers 3,4,7&21 in South Kuwait (RFP-2042199) | Oil | 242 |
Kuwait | KOC- Upgrading Existing Export Facilities (Tender No: RFQ-2042934) | Oil | 77 |
Kuwait | PAYS - Halls Complex at Al Qadisiya Sports Club | Construction | 17 |
UAE | Saqr Port Authority - Saqr Port Phase 1 Expansion | Transport | 50 |
Oman | BP - Khazzan Field Development: Additional Well Pads (Phase II) | Transport | 20 |
Qatar | Barwa Real Estate Company - Barwa Village Extension at Al Wakrah | Construction | 15 |
Qatar | Supreme Committee for Delivery and Legacy - Al Thumama Stadium (5th Precinct) | Construction | 343 |
Kuwait | PAHW - Wafra Housing Project Expansion : Block 3 Public Buildings | Construction | 44 |
Lebanon | CDR - Wastewater Networks in Upper Litani Basin | Water | 11 |
UAE | Vice Versa Facilities Management - Hotel in Dubai Studio City (Plot No-SC-B-014) | Construction | 30 |
Oman | PDO - Tayseer Early Production Facility | Gas | 375 |
Saudi Arabia | YANSAB - Yanbu Ethylene Glycol Plant Debottlenecking | Chemical | 99 |
UAE | Damac Properties - Akoya Oxygen: Infrastructure Package 2-5 | Transport | 32 |
Saudi Arabia | MOHE - Al Baha University: Preparatory Year Building | Construction | 20 |
UAE | Assent - Steel Fabrication Facility Expansion | Industrial | 48 |
UAE | Damac Properties - Akoya Oxygen : Sanctnary | Construction | 128 |
Bahrain | Eskan Bank - Dannat Al Lawzi: Residential Development | Construction | 50 |
UAE | Nakheel - Ibn Battuta Avani Hotel (Tender no DMS 145457) | Construction | 27 |
UAE | Hassani Trading - IMPZ : Residential Building (Plot: IMPZ K-14) | Construction | 30 |
Oman | Majid Al Futtaim - My City Centre at Sur | Construction | 34 |
UAE | Bukhatir Properties International - Sahara Mall West Expansion | Construction | 90 |
Bahrain | Bapco- Enhancement of Fire Protection System In The Refinery and Sitra Tanks | Oil | 83 |
Saudi Arabia | SWCC - Desalination Plants for Haql - 3,Duba - 4,Al Wajh - 4 | Water | 183 |
Qatar | ASHGHAL - Roads Surrounding Public Development (Zone 70) | Transport | 48 |
UAE | Damac Properties - Akoya Oxygen : Phase 3 | Construction | 109 |
Bahrain | Bapco - Modernization Programme : Site Preparation | Transport | 80 |
Kuwait | Jazeera Airways - Kuwait International Airport : New Terminal | Transport | 46 |
UAE | Damac Properties - Akoya Oxygen : Viridis | Construction | 140 |
Kuwait | KOC-Water Management at Gathering Centers 6,8,11&19 in SEK Areas (RFP-2042201) | Oil | 238 |
UAE | Sharjah Municipality - Kalba Sewage Treatment Plant Expansion | Water | 56 |
UAE | Dubai Properties - Jumeirah Beach Residence : 1/JBR (Plot No.392-0552) | Construction | 210 |
GCC Projects Forecast 2017 Report
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