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
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|
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)|
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||Project||Industry||Contract Value ($m)|
|Lebanon||Banque Libano-Francaise -New Banque Libano-Francaise Headquarters||Construction||38|
|Saudi Arabia||MOT - Jeddah Mecca Highway: Phase 3||Transport||80|
|Bahrain||Manara Developments - Investment Gateway: Infrastructure Works (Phase 2)||Transport||30|
|Saudi Arabia||Saudi Aramco - Offshore Maintain Potential: Upgrade Tanajib Pier||Oil||280|
|UAE||DEWA - Construction of GRE Water Pipelines at various locations in Dubai||Water||67|
|Oman||Majid Al Futtaim - City Centre Sohar||Construction||94|
|UAE||RAK Properties - Al Reem Island: Julfar Residence||Construction||28|
|UAE||Tabeer Starwood Holding - Dubai Sports City : 16 Storey Residential Building||Construction||25|
|UAE||Action Hotel/Private Developer JV - Dubai Healthcare City : Novotel Dubai Creek||Construction||40|
|UAE||Sweid & Sweid - Jumeirah Lake Towers : Hillside Residence||Construction||40|
|Saudi Arabia||Anan Real Estate Company - Boss Office Tower||Construction||40|
|Oman||Towell Engineering - Proposed Facilities & Office Tower||Construction||18|
|Lebanon||CDR / MEW - Wardanieh Water Treatment Plant (WTP)||Water||65|
|UAE||Deira Waterfront Development LLC - Deira Waterfront Development ( Plot 11 )||Construction||21|
|UAE||Emaar - Dubai Hills Estate - Park Point 2||Construction||43|
|UAE||Al Sondos Real Estate - JVC : Mixed Use Building (Plot no JVC14BHRA004)||Construction||40|
|UAE||Private Developer - Commercial Building at Al Nahda ( Plot No.140 )||Construction||18|
|Bahrain||MOH - Ramli Housing Project: Infrastructure Works (PQ-CES/02/15)||Transport||25|
|UAE||Meraas Holdings : Dubai Harbour : Marine Works||Transport||120|
|Qatar||ASHGHAL - LRDP - Doha North: Roads and Infrastructure in North of Al Nassriya||Transport||83|
|Saudi Arabia||King Abdulaziz City for Science & Technology - Information Technology Centre||Construction||35|
|UAE||TECOM Investments - Dubai Industrial Park : Infrastructure Works||Transport||40|
|Kuwait||MEW - Subiya Combined Cycle Gas Turbine : Phase 3 (Tender No: 54-2014/2015)||Power||581|
|Kuwait||KOC - New Mixing Manifold for Jurassic Light Oil (RFP - 2043225)||Oil||24|
|UAE||MOID - Nationality & Residence Building (Tender No. 9/2017)||Construction||36|
|Iraq||Jabal Bazian Co - Cement Plant||Industrial||445|
|UAE||Wasl - Al Kifaf Development : Phase 1 (Plot No. 324-117)||Construction||130|
|Qatar||ASHGHAL - LRDP - Doha North: Roads & Infra in Al Froosh/Al Kharatiyat (P1)||Transport||72|
|Iran||Fereshteh Pasargad Hotel Company - Fereshteh Pasargad Hotel in Tehran||Construction||98|
|Saudi Arabia||MOH - Saudi Housing Project: East Riyadh (462 Villas)||Construction||100|
|Saudi Arabia||RCJ&Y - Jubail Industrial College: Apartments: Phase 2 (097-C74R)||Construction||103|
|Kuwait||MPW- South Surra Road Upgrade (RA/257)||Transport||281|
|Qatar||Ashghal-LRDP-Doha North:Roads and Infra in Rawdat Egdaim and Ezghawa (P 01)||Transport||66|
|UAE||Jumeirah Golf Estates - Al Andalus : Phase B||Construction||16|
Read previous contract awards.
For up-to-date information on the regions largest projects, go to MEED Projects, which tracks trillions of dollars-worth of schemes.
MEED Projects is a subscriber-only service that provides comprehensive, up-to-date and accurate project information. It monitors industry and business development opportunities through market data tailored to your needs.
Be the first to know about new projects; we provide the data so you can win the business. If you would like to see a demo of MEED Projects, or just want to find out more, register your details online or call +971 (0)4 818 0200.
A MEED Subscription...
Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.