Gulf index climbs higher in August

23 August 2023

 

The Gulf Projects Index continued to rise in August in its sixth consecutive month of growth. The projects market expanded by 1.8 per cent or $59.1bn to a value of $3,457bn.

The growth was led by the UAE, which experienced both the most substantial percentage and value changes in its projects market, rising by 4.3 per cent or $24.1bn to arrive at a valuation of $617bn. 

The UAE market was bolstered by Dubai’s fresh invitation for firms to express interest in the Dubai Strategic Sewerage Tunnels scheme. Now named the Deep Tunnels Portfolio, the public-private partnership project has a revised budget of $22bn, up from $10bn previously.

Close behind the UAE in value terms was Saudi Arabia, which added $22.3bn in a 1.4 per cent rise to take the value of the project markets to above $1.6tn. The Saudi market was boosted by the announcement of plans for an $8bn mixed-used development in the Neutral Zone that the country shares with Kuwait. 

Elsewhere in the GCC, the Omani projects market grew by 1.6 per cent or $3.2bn; Kuwait’s grew by 0.6 per cent, adding $1bn; while Bahrain’s inched up by 0.1 per cent, increasing $0.1bn in value. Heading in the other direction, Qatar’s market contracted by 0.5 per cent, shedding $0.9bn.

Beyond the GCC

The Iraqi projects market grew by 3.7 per cent or $11.6bn in the largest percentage shift after the UAE and the third-largest value addition after Saudi Arabia and the UAE. The growth was driven by the signing of a $10bn deal to upgrade oil infrastructure across the country.

Iran’s projects market, meanwhile, contracted by 0.8 per cent, shedding $2.1bn in the largest percentage and value decline in the region.

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John Bambridge
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