Regional index sustains further decline

01 December 2015

Saudi Arabia’s 0.6 per cent fall weighed on other markets

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-1512-Nov-15Change on week (%)25-Nov-14Change on year (%)
Bahrain72,82272,2120.861,98716.5
Kuwait247,247245,8710.6211,10516.47
Oman167,326167,778-0.3154,4788.61
Qatar277,136277,491-0.1287,108-3.35
Saudi Arabia1,003,7801,010,008-0.61,225,910-17.61
UAE850,015851,622-0.2829,1012.72
GCC2,618,3262,624,982-0.32,769,689-5.22
Iran261,789258,5991.2222,82416.06
Iraq351,398351,583-0.1408,664-13.97
Gulf Total3,231,5133,235,164-0.13,401,177-4.88
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 nameProject status
IranQeshm topping plantExecution
IraqAl-Qibla sewage projectMain contract bid
KuwaitCrude pipeline: North Kuwait to Central Mixing ManifoldMain contract bid
QatarZekreet gasoline production facility: phase 3Study
Saudi ArabiaStrategic Storage: phase 1 in Taif and phase 2 in MeccaMain 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
 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 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.

 

 

 

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