Middle East contracts awarded: June 2017

10 July 2017

Qatar crisis weighs on projects markets

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.

 Middle East quarterly contract awards

Middle East quarterly contract awards

Middle East quarterly contract awards

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.

June contract awards by country
CountryAward ($m)
Bahrain55
Iran98
Iraq445
Kuwait886
Lebanon103
Oman112
Qatar221
Saudi Arabia638
UAE664

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.

Sum of net project value ($m)       
Country ConstructionTransportOilWaterPowerIndustrialGrand Total
Lebanon38  65  103
Saudi Arabia27880280   638
Bahrain 55    55
UAE437160 67  664
Oman112     112
Qatar 221    221
Kuwait 28124 581 886
Iraq     445445
Iran98     98
Grand Total9637973041325814453,222

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.

Contract awards as reported on meedprojects.com
Country ProjectIndustryContract Value ($m)
LebanonBanque Libano-Francaise -New Banque Libano-Francaise HeadquartersConstruction38
Saudi ArabiaMOT - Jeddah Mecca Highway: Phase 3Transport80
BahrainManara Developments - Investment Gateway: Infrastructure Works (Phase 2)Transport30
Saudi ArabiaSaudi Aramco - Offshore Maintain Potential: Upgrade Tanajib PierOil280
UAEDEWA - Construction of GRE Water Pipelines at various locations in DubaiWater67
OmanMajid Al Futtaim - City Centre SoharConstruction94
UAERAK Properties - Al Reem Island: Julfar ResidenceConstruction28
UAETabeer Starwood Holding - Dubai Sports City : 16 Storey Residential BuildingConstruction25
UAEAction Hotel/Private Developer JV - Dubai Healthcare City : Novotel Dubai CreekConstruction40
UAESweid & Sweid - Jumeirah Lake Towers : Hillside ResidenceConstruction40
Saudi ArabiaAnan Real Estate Company - Boss Office TowerConstruction40
OmanTowell Engineering - Proposed Facilities & Office TowerConstruction18
LebanonCDR / MEW - Wardanieh Water Treatment Plant (WTP)Water65
UAEDeira Waterfront Development LLC - Deira Waterfront Development ( Plot 11 )Construction21
UAEEmaar - Dubai Hills Estate - Park Point 2Construction43
UAEAl Sondos Real Estate - JVC : Mixed Use Building (Plot no JVC14BHRA004)Construction40
UAEPrivate Developer - Commercial Building at Al Nahda ( Plot No.140 )Construction18
BahrainMOH - Ramli Housing Project: Infrastructure Works (PQ-CES/02/15)Transport25
UAEMeraas Holdings : Dubai Harbour : Marine WorksTransport120
QatarASHGHAL - LRDP - Doha North: Roads and Infrastructure in North of Al NassriyaTransport83
Saudi ArabiaKing Abdulaziz City for Science & Technology - Information Technology CentreConstruction35
UAETECOM Investments - Dubai Industrial Park : Infrastructure WorksTransport40
KuwaitMEW - Subiya Combined Cycle Gas Turbine : Phase 3 (Tender No: 54-2014/2015)Power581
KuwaitKOC - New Mixing Manifold for Jurassic Light Oil (RFP - 2043225)Oil24
UAEMOID - Nationality & Residence Building (Tender No. 9/2017)Construction36
IraqJabal Bazian Co - Cement PlantIndustrial445
UAEWasl - Al Kifaf Development : Phase 1 (Plot No. 324-117)Construction130
QatarASHGHAL - LRDP - Doha North: Roads & Infra in Al Froosh/Al Kharatiyat (P1)Transport72
IranFereshteh Pasargad Hotel Company - Fereshteh Pasargad Hotel in TehranConstruction98
Saudi ArabiaMOH - Saudi Housing Project: East Riyadh (462 Villas)Construction100
Saudi ArabiaRCJ&Y - Jubail Industrial College: Apartments: Phase 2 (097-C74R)Construction103
KuwaitMPW- South Surra Road Upgrade (RA/257)Transport281
QatarAshghal-LRDP-Doha North:Roads and Infra in Rawdat Egdaim and Ezghawa (P 01)Transport66
UAEJumeirah Golf Estates - Al Andalus : Phase BConstruction16

 

Read previous contract awards.

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