Kingdoms projects market records biggest fall in value since February
The contraction in Saudi Arabias projects market in the week ending 26 June is the countrys biggest decline since February, and helped drive a 0.3 per cent fall across the Gulf Projects Index as a whole.
Saudi Arabia has the regions largest projects market, with the value of all active schemes coming in at $1.2 trillion, $364bn more than the value of all ongoing projects in the UAE, the regions second-biggest market.
A total of six construction and transport schemes were put on hold in Saudi Arabia over the week, removing billions of dollars from the kingdoms projects market.
|Project updates this week|
|Project name||Project status|
|Bahrain||Northern Dohat tourist resort (Hawar Islands)||Study|
|Iraq||Zurbatiyah housing project||Execution|
|Kuwait||Al-Zour South power and water distillation plant expansion||Complete|
|Oman||Batinah coastal road project: phase 1||Complete|
|For further information visit www.meedprojects.com/home|
Elsewhere in the region, Iraq saw a decline in its market as it continued its struggle to contain the jihadist group Islamic State in Iraq and Syria (Isis). The countrys projects market fell by 0.2 per cent as five schemes were put on hold. The contraction leaves it down 24 per cent compared with the same period last year.
All other nations on the Gulf Projects Index saw expansions over the week, with Iran leading the gains ahead of the deadline for a nuclear deal on 30 June. Its rise of 1.9 per cent was the result of progress made on several energy and petrochemicals schemes.
|Upcoming tender deadlines|
|Saudi Arabia||Metro Jeddah Company||Obhur Bridge||26-Jul|
|UAE||Investment Corporation of Dubai||Atlantis Resort||28-Jul|
|Oman||Oman Power & Water Procurement Company||Sohar 3/Ibri independent power project (IPP)||02-Aug|
|Saudi Arabia||Saudi Electricity Company/Saudi Aramco||Fadhili IPP||31-Aug|
|UAE||Roads & Transport Authority||Route 2020 metro extension||06-Dec|
|For further information visit www.meed.com/news/tenders|
Kuwait was the regions third-biggest gainer, expanding by 0.8 per cent. This was driven by Kuwait National Petroleum Companys (KNPCs) approval for a budget extension for the Al-Zour New Refinery Project.
An additional KD800m ($2.6bn) was approved for the scheme, according to Mohammed Ghazi al-Mutairi, CEO of KNPC.
The UAEs projects market stayed flat at $830bn, as eight schemes put on hold were offset by the announcement of 20 new projects worth $5.3bn.
In numbers this week
6 Number of projects put on hold in Saudi Arabia
5 Number of projects put on hold in Iraq
8 Number of projects put on hold in the UAE
For further information visit www.meed.com/projects/contract-awards
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