A poor performance by Iran for the second straight week led to the Gulf Projects Index dropping by 0.1 per cent to $3.2 trillion in the week up to 1 April.

In the GCC, Saudi Arabia recorded the largest fall of 0.4 per cent, mainly due to the revision of budgets for two large industrial schemes. Despite the decline, the kingdom is the fastest-growing projects market in the region, with the value of its index up 18.5 per cent year-on-year.

A total of 14 new schemes were launched in Saudi Arabia this week, the largest of which was the $1bn Governmental Authorities Complex in Riyadh. Another major project to be launched in the kingdom was a $800m hotel and commercial complex in Mecca. 

The UAE projects market recorded the largest growth in the region, as the value of its index rose 0.8 per cent. A total of 104 schemes were launched in the country last week, the largest of which was a $1bn villa project in Fujairah. In addition, the construction of the $3.5bn Ajman International airport was revived.

Oman’s projects market also achieved strong growth, with the value of schemes planned or under way increasing 0.7 per cent. Three new projects were launched in the sultanate, including a $1bn chemicals production plant in Duqm.

Outside the GCC, Iran posted the biggest decline as its projects market dropped 1.9 per cent. This was due to a major gas scheme being put on hold. Iran’s projects sector is now down 15.2 per cent year-on-year.

Iraq’s projects market posted a slight gain of 0.1 per cent, as Russian energy firm Lukoil launched a $800m scheme. The company is studying the feasibility of producing petrochemicals at the West Qurna-2 oil field in the south of Iraq.