The UAE’s shrinking construction market continues to be the biggest drag on the region’s projects industry, as the total value of major projects planned or under way in the Gulf fell for the twelfth consecutive week.

The total value of major projects in the Gulf declined by 0.2 per cent in the week to 9 February to $2.5 trillion, according to MEED’s latest Gulf Projects Index. 

The UAE’s projects market fell by 0.8 per cent as three projects worth a total of $1.3bn were put on hold and two projects worth $4.4bn were completed. The completed projects were the first phase of Bani Yas Investment & Development Company’s $598m Bawabat al-Sharq development and the $3.8m Red Line of the Dubai Metro.

Kuwait was the only other GCC country to witness a fall in the value of its projects market, as it recorded a 0.3 per cent decline. This was due to the completion of mud-logging projects worth $417m in its oil and gas sector.

Saudi Arabia continues to cement its new position as the region’s biggest projects market, as it recorded 0.2 per cent growth. The kingdom saw the launch of seven new projects this week worth a total $1.45bn. This included the $500m Future Industrial City and a $480m Butanol project. The state also saw the revival of the $533m Mecca to Taif tunnel project.

Qatar also recorded 0.2 per cent growth, as Barwa Real Estate Company launched its $549m Baraha Motor City development.

Outside the GCC, both Iran and Iraq recorded a fall in the value of projects under way. Iraq’s projects market declined by 0.2 per cent as two thermal power plants and a transmission project were put on hold. Despite the dip, Iraq maintains its position as the region’s fastest-growing market as it recorded a 69.5 per cent year-on-year increase.