Gulf Projects Index down from peak as Saudi Arabia contracts by 2 per cent
The Gulf Projects Index has fallen 0.5 per cent in the week ending 18 September, down $17bn from its peak of $3470bn.
This is due to a 2 per cent week-on-week fall in the value of Saudi Arabias projects market, the regions largest. The $24.5bn fall came as Riyadh reviews its project spending and considers cutting non-essential projects and scaling back spending on others.
In numbers
$24.5bn week-on-week contraction in Saudi Arabias projects market
3.9 per cent Saudi Arabia project market year-on-year growth
$5bn budget for new Kipco real estate project in Kuwait
The kingdoms year-on-year growth rate has slipped to 3.9 per cent, down from double figures earlier in 2015. A sharper slowdown is now expected for 2016 and 2017, according to regional projects tracker MEED Projects.
The bright spot is in the utilities sector, where a $3bn integrated solar combined-cycle power plant is planned in Taiba.
| Project updates this week | ||
|---|---|---|
| Project name | Project status | |
| Bahrain | Al-Areen masterplan | Execution |
| Kuwait | Daiya mixed-use real estate project | Study |
| Oman | Oman National Railway: segment 4A Haima-Amal | Prequalification |
| Saudi Arabia | Safaniyah Field ppgradation: phase 2 | Execution |
| Saudi Arabia | Taiba integrated solar combined-cycle power plant | Main contract bid |
| For further information visit www.meedprojects.com/home | ||
Kuwait saw its projects market expand by 2.1 per cent, or $5.1bn. The main driver for the increase was the announcement of a $5bn real estate development by Kuwait Projects Company.
Bahrain grew 1.3 per cent as a result of private real estate projects, while Iran saw a 0.6 per cent rise in the value of its projects market as it plans out its post-sanctions investment programme.
| Upcoming tender deadlines | |||
|---|---|---|---|
| Client | Contract | Submission date | |
| UAE | Dubai Electricity & Water Authority | Hassyan 400kV substation | 30-Sep |
| Qatar | Kahramaa | Phase 13 transmission and distribution programme | 01-Oct |
| UAE | Dubai Municipality | Jebel Ali sewage treatment plant | 18-Oct |
| Saudi Arabia | Saudi Electricity Company/Saudi Aramco | Fadhili independent power project | 01-Nov |
| UAE | Roads & Transport Authority | Route 2020 metro extension | 06-Dec |
| For further information visit www.meed.com/news/tenders | |||
Qatars market grew 0.2 per cent due to continued investment in the transport sector. However, year-on-year growth remains the lowest in the GCC, at 2.6 per cent, as World Cup infrastructure and leisure schemes get under way, and post-tournament plans remain unclear.
In the UAE, the projects market held steady despite $3bn in new schemes, mainly in the real estate sector. Project completions and inactive schemes cancelled out the gains, although the market is still up 13.9 per cent year-on-year.
Iraqs index fell another 0.1 per cent on delayed housing projects as Baghdad struggles to cover its budget deficit.
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