Saudi Arabia leads market growth

30 October 2011

The rest of the Gulf projects market remains flat in early November ahead of Eid holidays

Contract awards

Biggest contract: $676m

$913m: Value of major contract awards

4: Number of contracts awarded

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Contract awarded to the UK’s Invensys Rail Dimetronic to supply signalling for phase two of the Haramain high-speed railway in Saudi Arabia

Growth in Saudi Arabia’s projects market contributed to the Gulf  Projects index increasing in value by 0.6 per cent to $2.5 trillion for the week up to 1 November.

The rest of the market remained fairly flat as five of the eight Gulf states recorded less than 0.1 per cent growth.

Saudi Arabia’s projects market grew by 2.2 per cent to $647bn as 10 new schemes worth a total of $4.4bn were added to its projects index. The largest of these was an estimated $2.6bn steel plant development in Jizan Economic City. The planned $1.2bn King Fahad Specialist Hospital in Dammam also provided a significant boost to the kingdom’s projects sector.

Kuwait and Qatar were the only other GCC states to record any significant growth in the value of their projects markets. The total value of schemes planned or under way in Kuwait increased by 0.1 per cent to $168bn. The main reason for the growth was the addition of three projects worth a total of $250m to its index.

Qatar’s projects index recorded minor growth as two projects worth an estimated $298m were added to its projects sector.

Project updates
 Project NameProject Status
Saudi ArabiaJizan Economic City: Steel Plant (Phase II)Planned
OmanSohar Steel Complex Expansion (Phase II)Construction
IraqChamchamal Smelter & Steel PlantConstruction
QatarFox Hills Housing Complex in LusailTender
QatarBaraha Motor CityStudy
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Outside the GCC, Iraq’s projects sector continued its impressive growth as the value of projects planned or under way increased by 0.1 per cent to $353bn. The growth was led by the addition of a $200m hotel project in Irbil and a $100m oil pipeline project.

Iraq maintains its position as the region’s fastest growing market, recording a 52 per cent year-on-year increase.

The Gulf market still appears to be feeling the effects of the political unrest that has swept through the wider region as the index recorded a 12.5 per cent year-on-year fall. The GCC market, which accounts for about 73 per cent of the total Gulf market, recorded a 21 per cent year-on-year fall.

Upcoming tender deadlines
 ClientContractSubmission date
UAEBright StartFour Seasons hotel6 Nov
UAEAbu Dhabi Airports Company Midfield terminal   13 Nov
KuwaitDirectorate General of Civil AviationNew runway13 Nov
UAEAbu Dhabi Health Services Company (Seha) Al-Ain hospital17 Nov
Oman Oman Tourism Development Company (Omran)Muscat Convention Centre infrastructure28 Nov
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