Political turmoil and newly completed or stalled projects contribute to Gulf market’s continued slide
Contract awards
Biggest contract: $440M
Awarded to Doha Cables for the supply of 42,000 tonnes of copper cables in the next two years to Qatar General Electric and Water Corporation (Kahramaa)
$654m: Value of major contract awards
7: Number of contracts awarded
For further information visit www.meed.com/contracts
The total value of projects planned or under way in the Gulf region fell by 0.3 per cent for the week leading up to 13 April.
The political unrest continues to impact on the projects market. The value of projects completed or put on hold this week surpassed the value of new projects announced. Sixteen projects worth a total $5.2bn were completed or put on hold, compared with the 18 new projects totalling $2.3bn announced.
The drop in the Gulf’s projects sector resulted from the 0.4 per cent decline in the GCC market, which accounts for about 73 per cent of the regional projects market.
Kuwait’s market fell by 1.7 per cent as the estimated $3.1bn Al-Zour North Power and Desalination Plant was removed from the index. The financing of the project is being restructured and will now be tendered as a separate independent water and power project.
| Project updates | ||
|---|---|---|
| Project Name | Project Status | |
| Iraq | Iraq water injection facility | Design |
| Iraq | Najebia power plant | Tender |
| Bahrain | Bahrain Financial Harbour: Villamar | On Hold |
| Saudi Arabia | King Abdullah Economic City: Power plant | On Hold |
| UAE | Umm al-Lulu field development: full field development | Prequalified |
| For further information visit www.meed.com/meedprojects | ||
The political turmoil in Bahrain continues to affect its projects market. The total value of projects in Bahrain dropped by 0.5 per cent as a $380m real-estate development was put on hold.
Oman, also affected by protests, recorded a 0.4 per cent decrease in the value of projects planned or under way. The cancellation of a $234m sugary refinery complex and completion of a $125m road project contributed to this.
Saudi Arabia’s index also saw a fall of 0.4 per cent. This can partly be explained by a $2bn power plant project at King Abdullah Economic City being put on hold.
| Upcoming tender deadlines | |||
|---|---|---|---|
| Client | Contract | Submission date | |
| Saudi Arabia | Ministry of Higher Education | Arar University Hospital | 30 Apr |
| Kuwait | Kuwait University | College of Science and Faculty Club | 26 Apr |
| Saudi Arabia | General Authority of Civil Aviation | Medina Airport | 2 May |
| UAE | Etihad Rail Company | Civil engineering work | 4 May |
| UAE | Abu Dhabi Airport Company | Midfield Terminal | 10 Jul |
| For further information visit www.meed.com/tenders | |||
Year-on-year, the Gulf index is down by 10.3 per cent. The GCC index is down by 17.5 per cent, driven by falls of 43.5 per cent in Kuwait and 33.6 per cent in UAE projects markets.
Iraq remains the region’s strongest growing market, recording a 55 per cent year-on-year increase.
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