The GCC political crisis has contributed to monthly contract awards in the region falling to their lowest level since April 2014. The $3.2bn of deals let in June was less than the recent low of $3.6bn seen in February.

The second quarter of 2017 also recorded the lowest value of contracts awarded in a quarter since April 2014, as the market fell back from a strong performance in the first three months of the year, when $43.5bn of contract awards were made.

Kuwait led the region in contract awards in June, with $886m of deals let, while the usual leaders Saudi Arabia and the UAE signed deals worth fractions of the values seen in previous months. The two countries awarded $638m and $664m of contracts respectively. Qatar awarded almost half the value of contracts it let in May.

The biggest deal was inked in Kuwait: a $581m contract awarded by the Ministry of Electricity & Water for the third phase of the Subiya combined-cycle gas turbine project. According to regional projects tracker MEED Projects, the scheme will expand the existing capacity at the site by 750MW.

Iraq was the fourth-largest market by virtue of a single contract: the $445m deal awarded by Jabal Bazian Company to China North Industries Corporation (Norinco) for the construction of a cement plant.

Saudi Arabia, the UAE, Bahrain and Egypt have said diplomatic and trade sanctions against Qatar will continue, after Doha rejected their list of demands. The blockading countries appear poised to implement further sanctions that could force countries and companies to choose between doing business with them or with Qatar. If the crisis stretches on, it could have a serious knock-on effect on projects markets in the region.