Saudi projects cause index to dip

07 June 2011

Fall-off in total value of projects planned or under way in the kingdom behind drop

Contract awards

Biggest contract: $1.5bn

Awarded to US-based Hill International for work on a project to build 100,000 homes in Iraq

$1.9bn: Value of major contract awards

3: Number of contracts awarded

For further information visit www.meed.com/contracts

A drop in the value of the Saudi market caused the Gulf projects index to fall by 0.1 per cent to $2.58 trillion for the week up to 7 June.

The GCC projects market, which accounts for about 72 per cent of the total Gulf projects market, shrank 0.2 per cent. The main reason for the decrease was a 0.4 per cent fall in the total value of projects planned or under way in Saudi Arabia, the region’s largest projects market.

The 20 new projects worth a total of $1.2bn added to the Saudi index were not able to compensate for the value of projects put on hold or completed. A $1bn mixed-use real-estate development in Mecca was put on hold. Two packages, worth a total of $2.5bn, on the Princess Noura University, and three power projects worth $325m were completed.

Upcoming tender deadlines
 ClientContractSubmission date
QatarPublic Works Authority (Ashghal)Lusail Expressway 27 June
KuwaitKuwait Oil Company  Soil remediation28-Jun
Saudi ArabiaInterior MinistryMedical complexes28 June 
KuwaitHealth MinistryAl-Amiri hospital10 July
UAEAbu Dhabi Airports CompanyMidfield Terminal10 July
For further information visit www.meed.com/tenders

The ongoing political instability in Manama continues to affect Bahrain’s projects market, as the value of projects planned or under way dropped 0.2 per cent. Bahrain’s projects market has declined from $80.6bn at the start of March to $61.3bn as a result of the political unrest.

The UAE’s project market retreated 0.2 per cent as three construction projects worth $510m were completed and a $500m oil and gas project was put on hold.

The only GCC market to have recorded significant growth was Oman. The sultanate’s projects market increased by 0.8 per cent as three projects worth $1.4bn were announced and two stalled projects worth $210 were revived.

Project updates 
 Project NameProject Status
Saudi ArabiaPrincess Noura bint Abdulrahman University for WomenComplete
QatarRas Laffan Glycol Regeneration ProjectPlanned
UAEHassyan IPPEPC Bid
IranMethanol plantsConstruction
QatarQatar National MuseumEPC Bid
For further information visit www.meed.com/meedprojects

Outside the GCC, Iran’s project index dropped 0.1 per cent as the budget on a methanol project was reduced. Iraq, which saw the highest growth last week, recorded 0.1 per cent growth. Iraq maintains its position as the region’s fastest-growing market, with a 36.5 per cent year-on-year increase.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.

Get Notifications