The value of the top 100 projects in the Middle East rose 3.9 per cent to $297.6bn in the first quarter of 2015, its highest level since it was launched in 2012.

The index tracks the value of the 100 largest contracts in the region, from the point of the main contract award until completion.

While project awards are expected to slow down this year, due to tightening budgets on the back of the oil price halving since last summer, that impact is yet to be felt by the index.

This year, essential projects are expected to still move ahead, particularly those associated with events such as Expo 2020 in Dubai and the 2022 World Cup in Qatar. It is possible that the value of the index will drop later in the year as work under way reaches completion, and is replaced by projects with a lower value.

Evidence that the index is lagging behind the market can be seen in MEED’s Gulf Projects Index, which tracks the value of contract awards and planned projects. There has been a marked reduction in value this year.

MEED’s recent overview of awards in the construction and transport sector highlighted a similar trend. MEED saw that in the first four months of 2015, the value of contract awards in the sector fell to their second-lowest level since 2008.

Saudi Arabia continues to dominate the projects market, with about $104bn-worth of contracts in the top 100, followed by Iran with $71.6bn-worth. However, due to sanctions, it is unclear how many projects are moving ahead after the main contract award.

By industry, transport continues to be the biggest sector in the top 100, due to the value of the metro schemes in Riyadh and Doha, along with the Haramain high-speed rail. The value of transport projects is expected to rise with the main contract for the Mecca metro due for award in the coming months.