The Gulf Project Index’s negative growth trajectory continued during the week ending on 27 November, with a decline of 0.1 per cent compared with the previous week.

In numbers

$2.4bn Value of projects put on hold in the UAE

21 Number of new projects announced in Saudi Arabia

$2bn Value of new projects in Iran

Saudi Arabia shed 0.6 per cent off its index value, equivalent to a decline of $6.6bn on its $1 trillion projects market. The kingdom’s decline weighed on the rest of GCC states’ projects markets, which together registered a 0.3 per cent drop during the week.

The overall performance of the regional projects market index would have been worse without a major gain of 1.2 per cent made by Iran’s projects market.

Projects planned or under way 27 November 2015 ($m)
  27-Nov-15 12-Nov-15 Change on week (%) 25-Nov-14 Change on year (%)
Bahrain 72,822 72,212 0.8 61,987 16.5
Kuwait 247,247 245,871 0.6 211,105 16.47
Oman 167,326 167,778 -0.3 154,478 8.61
Qatar 277,136 277,491 -0.1 287,108 -3.35
Saudi Arabia 1,003,780 1,010,008 -0.6 1,225,910 -17.61
UAE 850,015 851,622 -0.2 829,101 2.72
GCC 2,618,326 2,624,982 -0.3 2,769,689 -5.22
Iran 261,789 258,599 1.2 222,824 16.06
Iraq 351,398 351,583 -0.1 408,664 -13.97
Gulf Total 3,231,513 3,235,164 -0.1 3,401,177 -4.88
For further information visit www.meed.com/projects/gulf-projects-index

Iran’s gains were primarily due to $2bn-worth of new oil projects: the Qeshm topping plant in Hormozgan; and the Farzanegan Gas Condensate Refinery in Bushehr.

Besides Iran, projects markets in Kuwait and Bahrain gained 0.6 and 0.8 per cent on the weekly index, respectively.

Project updates this week
  Project name Project status
Iran Qeshm topping plant Execution
Iraq Al-Qibla sewage project Main contract bid
Kuwait Crude pipeline: North Kuwait to Central Mixing Manifold Main contract bid
Qatar Zekreet gasoline production facility: phase 3 Study
Saudi Arabia Strategic Storage: phase 1 in Taif and phase 2 in Mecca Main contract bid
For further information visit www.meedprojects.com/home

New projects worth $1.4bn appeared on Kuwait projects market. These include two hospitals, with combined budgets estimated at $900m, an oil pipeline, a separators facility for the Kuwait Oil Company, and a commercial tower.

Bahrain’s gains relied mainly on three new projects, with a combined estimated budget worth $320m, and an upward adjustment of $310m for a mixed-use project at the Bahrain Financial Harbour.

The projects markets in Qatar and UAE fell by 0.1 per cent and 0.2 per cent, respectively.

Upcoming tender deadlines
  Client Contract Submission date
UAE National Real Estate Company Reem Mall 13-Dec
Saudi Arabia Saudi Electricity Company Taiba power plant 30-Dec
Qatar Supreme Committee for Delivery & Legacy Rayyan stadium 10-Jan
UAE Roads & Transport Authority Route 2020 metro extension 10-Jan
UAE Sharjah Electricity & Water Authority Hamriyah power plant expansion 07-Feb
For further information visit www.meed.com/news/tenders

Budget revisions across 45 projects in the UAE netted a decline equivalent to $893m, which further compounded the change in status to on hold of six projects that have a combined estimated budget of $2.4bn. The $2bn Bab integrated facilities expansion of Abu Dhabi Company for Offshore Oil Operations (Adco) was the largest project in the UAE that has been put on hold.

The completion of $7.6bn-worth of projects triggered the decline in Saudi Arabia’s projects index value during the week, regardless of the addition of 21 new projects, which budget value is estimated to total only $1.5bn. The kingdom’s index value is also nearly 18 per cent lower year-on-year.