Since 2008, the GCC projects market has been distorted by several real-estate megaprojects that are officially ongoing, but in reality have been brought to a halt by the credit crunch.

In order to reflect the true picture, MEED has this week adjusted its methodology for the Gulf Projects Index to more accurately capture the value of projects under way.

This one-off adjustment has led to a dip in the index, particularly in markets with high exposure to mega real-estate developments.

As a result, on 19 January the Gulf Projects Index was $2.57 trillion, a fall of 2.3 per cent on the previous week. The reason for the bulk of the decrease was due to a 3.1 per cent fall in the total value of projects planned or under way in the GCC, which accounts for about 74 per cent of the Gulf projects market.

The UAE’s projects index was most affected by the change in the methodology, with the total value of major projects planned or under way declining by 8.2 per cent. The UAE also recorded the launch of seven new projects worth a total of $1.1bn.

The rest of the region’s projects markets remained relatively flat. In Saudi Arabia, 18 new projects worth a total of $11.4bn were launched. Three new projects worth $235m were launched in Kuwait, which included an estimated $100m office tower project for Kuwait Oil Company in the capital. In Oman, a new $100m road project joined the index.

As a result of the changes in methodology for megaprojects, the overall projects index is down by 7.5 per cent on the same period last year, with the GCC projects market recording a 15.9 per cent year-on-year fall. Iraq maintains its position as the region’s strongest growing market with a 74.5 per cent year-on-year increase.