GCC year-on-year contraction of 2.2 per cent continues, while Gulfs total annual fall lies at 0.7 per cent
The Gulf Projects Index contracted by 0.1 per cent in the week ending 29 April. The market slowdown was mostly caused by a 3.3 per cent decline in the UAE, where $2.4bn-worth of schemes were cancelled or put on hold.
22 Number of projects cancelled or put on hold in Gulf region
$2.7bn Value ofproject cancelled in Qatar
$1bn Value of mixed-use project in Abu Dhabi on hold
The $1bn Renaissance City in Aby Dhabi planned by Italys Stile Italiano Real Estate Company (Sirei) has been put on hold as the company continues to search for finance for the scheme. Sirei is a group of Italian architects and builders that has come up with plans to construct an entire Italian renaissance-style city in the UAE capital.
|Projects planned or under way, 29 April 2016|
|Country||29-Apr-16||22-Apr-16||% change on week||24-Apr-15||% change on year|
|For further information visit www.meed.com/projects/gulf-projects-index|
Qatars projects market decreased by 1.1 per cent as the $2.7bn Qatar Cultural and Sports Hub (QCSH) scheme being developed by the Public Works Authority (Ashghal) was cancelled. It is unclear why the project was shelved, although it is understood to be part of Dohas strategy to prioritise key schemes related to the 2022 Fifa World Cup.
The biggest gainer of the week was Saudi Arabia, which a witnessed a 2.9 per cent increase. This was mainly due to the addition of a major $3.2bn mixed-use development called Al-Noor City by the local Middle East Development.
Outside the GCC, Iran saw an uptick of 0.7 per cent, while Iraq contracted by 0.2 per cent.
|Project updates this week|
|Oman||Khazaen Logistics Hub||Main contract bid|
|Qatar||Bul Hanine Field Redevelopment Project: phase 1||Execution|
|Saudi Arabia||Al-Noor City in Bahrah||Study|
|Saudi Arabia||Arabiyah-Hasbah Development: Hasbah sour gas field expansion||Execution|
|Saudi Arabia||Pumped hydro energy storage project at Wadi Baysh Dam||Study|
|For further information visit http://www.meedprojects.com/home|
There were 22 schemes put on hold or cancelled this week across the region, as budget constraints continue to have an impact on projects markets across all sectors.
The GCC indexs year-on-year change remains negative as a slowdown in schemes caused by changing economic dynamics perpetuates a decline that is currently sitting at 2.2 per cent.
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.