The Gulf Projects Index rose by 2.4 per cent in the week ending 4 November, buoyed by a 7.4 per cent expansion in the UAE, the region’s second-biggest market.

The UAE projects market grew by $55.3bn, its biggest increase since December 2012. Over the week, 38 new schemes worth a total of $34.4bn were launched in the country and projects worth a combined $22.7bn were revived.

Among the new schemes was a $1.2bn innovation hub planned by Dubai Holding, which is due to be constructed in Dubai’s Internet City and Media City districts.

The project will focus on technology, new media, smart education and sciences, according to Dubai Holding. Phase one is due to be delivered in the first quarter of 2017.

Saudi Arabia was the second-biggest gainer over the week, rising 2.1 per cent as several large oil schemes had their budgets revised upwards.

Only two countries saw their projects markets contract over the week. Kuwait’s projects market recorded a decline in value of 1 per cent, while Iraq decreased by 0.4 per cent.

The drop in Iraq comes amid continued fighting between Kurdish soldiers and the jihadist group Islamic State in Iraq and Syria (Isis).

Iraq’s projects market has lost $100.8bn since Isis swept through the country in June, seizing control of Mosul, the second-biggest city. One of the latest schemes to be put on hold is Kut Tourist City, a $1bn development that was due to be built overlooking the Tigris River in the Wasit province.

The project was billed as the first major tourism development in the eastern region of Iraq and was planned to include a five-star hotel with swimming pools and an amusement park.