The UAE is once again the Gulf’s largest projects market with $639bn of schemes planned or under way, after a substantial drop in the value of the Saudi projects market. The slide has resulted in the Gulf projects index falling by 3.1 per cent for the week up to 28 June.

The total value of projects planned or under way in the Saudi Arabia fell by almost 10 per cent as three projects were cancelled and six megaprojects were put on hold. One of the projects to be cancelled was the estimated $3bn Umm al-Qura Economic City in Mecca. Two projects worth a total of $1.3bn planned for the Energy Service City in Dammam were also cancelled.

The $30bn Tabuk Economic City and the $25bn Ras al-Zour Resource City, two of the six planned economic cities that have been in the pipeline since 2006, were two of the megaprojects to be put on hold.

It was not just the Saudi market that fell in value in the last week in June, the UAE was the only GCC state to not decline.

Kuwait recorded a loss of 2.9 per cent as two megaprojects worth a total of $9bn were put on hold. The $6bn Bubiyan island and the $3bn tourism development on Failaka island were removed from the index as both plans were shelved. The total value of projects planned or under way in Qatar fell by 0.8 per cent as four projects worth a total of $2.1bn were completed. No new projects were announced.

Outside the GCC, Iran’s project index fell by 3.7 per cent as a $5bn oil and gas project was completed and two energy projects worth a total of $6.6bn were cancelled.

Iraq’s projects market fared better, as a $3.1bn diesel power project and two sanitation schemes worth $140m were launched, resulting in its index growing by 0.8 per cent. Iraq remains the region’s strongest growing market, with a 36 per cent year-on-year increase.