The Gulf Projects Index inched upwards by 0.4 per cent in the week ending 29 January. The market was boosted by increases in Saudi Arabia and Iran, where the markets gained 0.9 per cent and 0.7 per cent respectively.
Saudi Arabias improved index followed the signing of a deal for a major $8.8bn mixed-use development in Riyadh. Qatars SST Holdings, owned by Sheikh Sultan bin Suhaim al-Thani, plans to develop a megaproject that includes international hotels, luxurious apartments and retail areas on a 1.4 million-square-metre area of the capital.
|Value of projects planned or under way, 29 January 2016|
|Country||29-Jan-16||22-Jan-16||% change on week||30-Jan-15||% change on year|
|For further information visit www.meed.com/projects/gulf-projects-index|
The Iranian market, which continues to enjoy a positive trajectory following the lifting of sanctions, saw its projects market increase off the back of $1.3bn-worth of healthcare schemes. At the end of January, MEED reported that Italys Pessina Costruzioni had signed an initial agreement to build five hospitals in Iran.
60 New projects added to the Gulf index
$2.1bn Value of projects completed or on hold in the UAE
17.8% Year-on-year decline in Saudi Arabias market
The Milan-based company signed a memorandum of understanding (MoU) with Irans Ministry of Health & Medical Education for the development of five hospitals with a total of 1,000 beds across the country. On his Europe tour, President Hassan Rouhani also managed to ink $45bn-worth of deals.
|Project updates this week|
|Iran||Tehran Hospital (1,000 beds)||Study|
|Kuwait||Regional Road South Part project: central section||Design|
|Kuwait||Jahra Court Complex||Complete|
|Saudi Arabia||Commercial development in Riyadh||Study|
|UAE||Habshan natural gas liquids recovery||Design|
|For further information visit http://www.meedprojects.com/home|
The UAE market witnessed a slight contraction of 0.1 per cent, following $2.1bn-worth of schemes either completed or put on hold. Only $38bn of projects were added to the market this week; an $18m residential tower in Abu Dhabi and a $20m hotel at Cultural Village in Dubai.
There were no changes in the Qatari and Omani markets, as the anticipated slowdown in the regions projects market continues.
Overall, there were 60 new schemes and 33 completed projects in the Gulf index. Iran continues to enjoy positive growth, as its market maintains a 32.6 per cent year-on-year increase. Saudi Arabia, on the other hand, is struggling, with a 17.8 per cent year-on-year fall; the regions biggest economy is slowing down amid declining hydrocarbons prices.