Saudi Arabia drives decline on Gulf index

01 July 2015

Kingdom’s projects market records biggest fall in value since February

The contraction in Saudi Arabia’s projects market in the week ending 26 June is the country’s 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 region’s 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 region’s 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 kingdom’s projects market.

Project updates this week
 Project nameProject status
BahrainNorthern Dohat tourist resort (Hawar Islands)Study
IraqZurbatiyah housing projectExecution
KuwaitAl-Zour South power and water distillation plant expansion Complete
OmanBatinah coastal road project: phase 1Complete
UAEPolypropylene-5 projectDesign
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 country’s 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
 ClientContractSubmission date
Saudi ArabiaMetro Jeddah CompanyObhur Bridge26-Jul
UAEInvestment Corporation of DubaiAtlantis Resort28-Jul
OmanOman Power & Water Procurement CompanySohar 3/Ibri independent power project (IPP)02-Aug
Saudi ArabiaSaudi Electricity Company/Saudi AramcoFadhili IPP31-Aug
UAERoads & Transport AuthorityRoute 2020 metro extension06-Dec
For further information visit www.meed.com/news/tenders

Kuwait was the region’s third-biggest gainer, expanding by 0.8 per cent. This was driven by Kuwait National Petroleum Company’s (KNPC’s) 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 UAE’s 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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