Gulf projects index swells by 3.5 per cent
22 March 2023
The Gulf Projects Index grew by 3.5 per cent in the five weeks from 10 February to 17 March, rising by $109bn to a value of $3.22tn. The gains reversed the previous month’s $70bn loss.
Saudi Arabia’s projects market led the rise, growing by 7.5 per cent, or $103.4bn, over the period. The broader GCC projects markets grew by 4.8 per cent, or $121.7bn, to a value of $2.65tn, while the other Gulf markets, Iran and Iraq, declined and weighed on the overall growth.
The Saudi market’s steep rise was driven by the launch of the $50bn New Murabba project to redevelop Riyadh’s downtown. Plans were also announced by the US Army Corps of Engineers to develop a $10-15bn new military headquarters and joint command in the country on behalf of the Military of Defence.
Bahrain’s projects market saw the strongest percentage growth, at 8.9 per cent – an increase of $6bn. This was driven by the launch of a $4bn carbon capture and storage project by Nogaholding.
The UAE projects market also grew by 4.3 per cent, or $22.7bn, over the period. Key developments included the launch of the $3.2bn Dubai International Financial Centre expansion 2.0 and the restart of the $1.8bn Adnoc Masaken project to develop staff accommodation.
Waning markets
The sharpest decline within the GCC came from Kuwait’s projects market, which fell by 3.6 per cent, or $6.4bn. Qatar’s projects market dropped by 2.4 per cent, or $4.4bn. Oman’s projects market held steady at 0.2 per cent growth.
Across the Gulf, the declines were led by Iran, which shed 3.9 per cent, or $11.6bn, largely due to the stalling of the Iran gas trunkline project. Iraq’s projects market shed a marginal 0.4 per cent, or $1.1bn, in value.
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
The second, TF-15-C2, will deliver stormwater links along Umm Suqeim Road to serve the Al-Barsha and Al-Quoz communities.
The third project, TF-13-C1, focuses on developing a drainage system for the Al-Marmum area.
Several engineering, procurement and construction (EPC) contracts have been awarded under the Tasreef initiative, which aims to expand Dubai’s rainwater drainage capacity by 700% by 2033
In January, local firm DeTech Contracting won the main contract to construct a stormwater drainage system in Jebel Ali.
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READ THE FEBRUARY 2026 MEED BUSINESS REVIEW – click here to view PDFSpending on oil and gas production surges; Doha’s efforts support extraordinary growth in 2026; Water sector regains momentum in 2025.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
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DP3 assets: covering 146 residential villas, 590 three-bedroom townhouses, 356 four-bedroom townhouses, a mall and other associated works.
Bids due on 23 February.
DP4 assets: DP4 includes 54 villas, a clubhouse and other associated infrastructure.
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DP7 assets: 120 five-bedroom villas, 230 seven-bedroom villas, 284 branded residential units and other infrastructural works.
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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The scope of the contract covers the construction of residential units, commercial facilities and a 70-key hotel.
In September, MEED reported that Modon Holding had tendered contracts for the infrastructure works for the first phase of the Ras El-Hekma project.
As part of the first phase, Modon plans to develop more than 50 million square metres (sq m), including hotels and a marina.
Ras El-Hekma is on a spur of land on Egypt’s northern Mediterranean coastline, about 240 kilometres west of Alexandria.
Last year, Abu Dhabi-based holding company ADQ appointed Modon Holding as the master developer for the Ras El-Hekma project.
According to an official statement, Modon will act as the master developer for the entire development, which will cover more than 170 million sq m.
Modon Holding will develop the first phase of the project, which will cover 50 million sq m.
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In September 2024, Modon signed several memorandums of understanding (MoUs) with local and international firms to join the development. It signed a framework agreement with Orascom Construction to serve as the primary contractor for the project’s first phase.
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The signing ceremony was held at the Aqaba Special Economic Zone Authority headquarters in Aqaba on 5 February.
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Chinese firm wins Ceer automotive supplier park deal
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