UAE projects market falls behind region

30 September 2010

Real-estate collapse continues to restrict UAE growth, while infrastructure projects spur the region

Contract awards September 29 2010

Biggest contract: $990m

Contract awarded to Russia’s Technologies, Investments, Services, Energy (Tise) to complete two electricity transmission packages in Libya

$1.587bn: Value of major contract awards

5: Number of contracts awarded

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The total value of major projects planned or under way in the Gulf stood at $2.937 trillion on 29 September, according to MEED’s Gulf Projects Index, which tracks the region’s major projects market. 

The figure shows flat growth in the market over the previous seven days, despite significant changes within several national markets.  

The total value of major projects in the six GCC markets, which account for about 78 per cent of regional activity, fell marginally to $2.29 trillion on 29 September, a fall of 0.2 per cent over the week.

Bahrain witnessed the highest growth, with the value of projects touching $78.49bn, up 3.3 per cent on the week. Growth was driven by two expansion schemes on the Addur independent & water power project (IWPP) – the $1.1bn Addur 3 IWPP and $1.2bn Addur IPP Phase IV. Progress on Qatar General Electricity & Water Corporation’s (Kahramaa) Facility D IWPP pushed growth up by 0.5 per cent in the country, taking the total value of projects to $251.4bn.

Projects updates 29 September 2010
 Project nameProject status
IraqAl-Khayrat power plantTender
Oman220 kV Sohar power grid station & installation of overhead linesConstruction
QatarAsia TowersDesign
IranPersian Gulf BridgeTender
UAEKhalifa City: Gems American AcademyConstruction
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Meanwhile, the UAE recorded a week-on-week fall of 0.9 per cent. The dip was the result of projects being completed or placed on hold during the week. Abu Dhabi’s Mubadala Development Company placed on hold its $3bn MGM Grand project in Abu Dhabi. In Dubai, Germany’s Kleindienst Group’s placed on hold its $850m Heart of Europe project on The World development.

The UAE market also saw completion of projects such the $1.6bn Umm Shaif Gas Injection Facilities project in Abu Dhabi.

The slump in value shows the UAE is yet to shake off the impact of the crisis, which has stunted growth in its projects market to just 2.2 per cent over the past 12 months. This compares to annual growth in the GCC of 7.6 per cent and a 13.9 per cent increase in the wider Gulf market. 

Upcoming tender deadlines September 2010
 ClientContractSubmission Date
QatarQatar Foundation for Education, Science and Social Development College of Media and Communications40,454
Kuwait Kuwait Oil CompanyAhmadi Hospital40,463
OmanOman Power & Water CompanySur independent power plant40,469
Saudi ArabiaSaudi AramcoShaybah co-generation plant 40,504
UAECentre of Waste Management - Abu DhabiIntegrated waste management project40,535
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