Regional index hits year low

26 November 2015

Iran and Bahrain gain while the rest slip

The regional index slipped into its lowest value during the course of the year on the week ending 20 November. All countries save for Iran and Bahrain registered a negative performance on the index, which hit just under $3.24 trillion.

In numbers

$24bn Value of projects put on hold in Saudi Arabia

22 Number of new projects announced in the UAE

$7.7bn Total value Iran’s projects market gained on the Gulf Projects Index

Saudi Arabia’s market declined the most, with a 2.6 per cent drop over the previous week. The status of $24bn-worth of projects – mostly mixed-use – in the kingdom was changed to on-hold due to absence of any recent developments. These include the Khozam Development in Jeddah, which had an estimated budget of $12.3bn, Al-Shoula’s Riyadh Ajmakan ($5.9bn) and the Al-Diriyah Festival City ($2.7bn), also of Riyadh, and the $2bn The Kaaki Development in Mecca.

Projects planned or under way 20 November 2015 ($m)
 20-Nov-1512-Nov-15Change on week (%)18-Nov-14Change on year (%)
Saudi Arabia1,010,0081,036,487-2.61,228,113-15.6
Gulf Total3,235,1643,279,700-1.43,382,364-3
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The estimated budget for the Ruwais area development project in Jeddah was also downgraded by $10bn, from an original estimate of about $13.8bn, while the $1.2bn Al-Jubail Polysilicon plant was cancelled.

At $1.01 trillion, the kingdom’s projects market accounted for 38.5 per cent of the GCC total and 31 per cent of the Gulf Projects Index total. It did not help that only four new projects, which together have an estimated budget of $2.3bn, were added into the kingdom’s index during the week.

An upward adjustment to the estimated budgets for the Bushehr nuclear plants (2 and 3) caused a $7.7bn, or 3.1 per cent, uptick to Iran’s projects market index value.

Project updates this week
 Project NameProject Status
IraqAbi al-Khasib housing complex in BasraExecution
IraqSwara Tika full-field developmentNew project
Saudi Arabia380kV King Abdulaziz International airport BSP and UGCComplete
Saudi ArabiaKhozam development in JeddahOn hold
Saudi ArabiaThe Avenues RiyadhNew project
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UAE added 22 new projects with a combined budget estimated at $4bn, led by the north district and eastern extension district of the Meydan Horizon project. However, the UAE still shed  0.4 per cent on the index due to $1.8bn of projects being put on hold, $280m being completed, and about $5.3bn-worth of project being affected by downward budget adjustments.

Qatar’s projects market fared worse than the UAE by falling 0.9 per cent. No new projects were added during the week, the planned $1.5bn phase 2 of Oryx’s gas-to-liquids (GTL) plant was put on hold, and $145m-worth of projects were completed.

Upcoming tender deadlines
 ClientContractSubmission date
UAENational Real Estate CompanyReem Mall13-Dec
Saudi ArabiaSaudi Electricity CompanyTaiba power plant30-Dec
QatarSupreme Committee for Delivery & LegacyRayyan stadium10-Jan
UAERoads & Transport AuthorityRoute 2020 metro extension10-Jan
UAESharjah Electricity & Water AuthorityHamriyah power plant expansion07-Feb
For further information visit

Bahrain’s positive performance follows the introduction of four new projects in the industrial, construction and power sectors with a combined estimated budget of $268m.

The best performing week for the index so far came two months earlier on 15 September when the index value climbed to close to $3.47 trillion.


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