The UAE led declines on the Gulf Projects Index in the week ending 20 February, as its market saw a contraction of 3 per cent, dropping in value by $25.2bn.

The decrease in the UAE’s projects market came as 13 schemes were completed and another six were put on hold.

The UAE is the index’s second-biggest market, with a total value of $804bn. Even after its latest decline, it remains 11.9 per cent larger than it was a year ago.

Iran saw the second-biggest fall in value, contracting by 2.1 per cent as it continues to suffer from sanctions and talks with the US over its nuclear plans continue in Geneva.

Iran saw two projects completed over the period worth a total of $3bn, while another scheme was put on hold, worth $1.7bn. Iran’s projects market has declined by 15.8 per cent year-on-year. The high-level nuclear negotiations with the US resumed on 23 February, with both sides trying to meet a deadline set for 31 March.

A deal between the two nations would lead to relief from sanctions for Iran and would likely provide a significant boost to the country’s projects market.

The significant contractions in Iran and the UAE meant the Gulf index ended the week 0.7 per cent lower than it started, with a total of $23.6bn knocked off its value.

Aside from the UAE and Iran, all other nations saw modest gains. Qatar saw the largest expansion, recording growth of 0.8 per cent as it added $2.3bn to its projects market.

The index’s two smallest markets, Bahrain and Oman, both saw increases of 0.4 per cent. The two markets saw four and five new schemes announced over the week respectively.