Qatar and Kuwait boost Gulf index

26 May 2015

Saudi Arabia records sole decline in regional projects market

The Gulf Projects Index rose by 0.2 per cent in the week ending 22 May, lifted by expansions in Qatar and Kuwait, while other countries showed little movement.

Qatar recorded the largest change in its projects market, with a 1.7 per cent, or $5.2bn, increase. This was due to some progress on the $5bn Sharq Crossing scheme, as well as smaller infrastructure and real estate projects.

Project updates
 Project nameProject status
IraqMiddle Euphrates International airportRevived
QatarSharq CrossingRevived
Saudi ArabiaAl-Mashaaer Monorail: North lineOn hold
Saudi ArabiaITCC: Wahat al-Aamal mixed-use developmentComplete
Saudi ArabiaShams al-Riyadh mixed-use developmentOn hold
For further information visit www.meedprojects.com/home

Kuwait’s projects market rose by 1.4 per cent, or $3.3bn. This was due to tenders being issued for a 100-square-kilometre housing programme and a construction contract for the $6bn expansion of Kuwait International airport. The revival of several projects in its $22bn public-private partnership programme promises a more active future for Kuwait.

Saudi Arabia, on the other hand, was the only projects market to contract, falling by 0.4 per cent. Several infrastructure schemes were put on hold, while some real estate developments were completed.

Oman saw a 0.3 per cent rise in the value of its projects market, with its $15bn rail scheme moving ahead. Several new projects in Duqm, including a sebacic acid plant and the $500m Duqm Beach Resort, also boosted the market.

Upcoming tender deadlines
 ClientContractSubmission date
UAEAldar PropertiesResidential villas: Zone K07-Jun
UAEInvestment Corporation of DubaiAtlantis Resort21-Jun
Saudi ArabiaMetro Jeddah CompanyObhur Bridge26-Jul
OmanOman Power & Water Procurement CompanySohar 3/Ibri independent power project (IPP)02-Aug
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili IPP31-Aug
For further information visit www.meed.com/news/tenders

The UAE saw its market grow by just 0.1 per cent. Although it added several real estate and infrastructure schemes, and Expo 2020 plans are taking shape with bids in for the $1bn infrastructure package, they barely compensated for the value of completed projects. Real estate investors are also starting to grow concerned about supply and demand balances.

Iraq recorded a 0.3 per cent rise, despite the fall of the Ramadi province to the jihadist group Islamic State in Iraq and Syria. The government is reviving schemes in the areas it still controls.

In numbers

$5.2bn Growth in Qatar’s projects market

$7.4bn Investment required for Dubai Expo 2020

20.8% Year-on-year contraction in Iraq’s projects market

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