Gulf projects market continues upward climb

22 January 2024

The Gulf projects market has grown for the 10th straight period, rising by 1.3 per cent from 14 December to 12 January – building on a record 21.4 per cent cumulative expansion in value over the course of 2023, which also witnessed the GCC market’s collective value break the $3tn mark.

Over the four-week period, $49.1bn-worth of projects were recorded across the Gulf region, with the activity concentrated in the projects markets of Saudi Arabia, the UAE and Oman within the GCC, accompanied by supportive growth in the projects markets of both the Iran and Iraq.

Top performers

The Saudi projects market added the most value, growing by $16.5bn or 0.9 per cent, led by the revival of activity on phase two of Pilgrim City in Medina under the Public Investment Fund subsidiary Rua al-Madinah Holding.

Progress also got under way on the planned $533m Heart of Mount Uhud resort project in Medina after Al-Mqr Development, the investment arm of the Medina municipality, signed a memorandum of understanding (MoU) with Alameriah for Investment and Malaysian Generations Builder for the project’s development.

Saudi petrochemicals firm Sipchem and the National Industrialisation Company also awarded a $500m ethylene cracker expansion project to South Korean contractor SGC eTEC Engineering & Construction.

The UAE projects market meanwhile added $11.8bn or 1.7 per cent in value, led by the resumption of progress on the design of the $3.6bn West Terminal as part of the Al-Maktoum International airport expansion. Ras al-Khaimah’s Utico also signed a $500m MoU with the Dubai-based Yellow Door Energy to provide solar power for a pumping station in Umm al-Quwain.

The Omani project market expanded by the most in the Gulf in percentage terms, growing by 3.9 per cent or $8.4bn in value. The activity in the sultanate was led by the launch of an estimated $3.5bn, 3GW integrated solar and wind energy and storage project in Duqm by Vulcan Green Energy, a subsidiary of Jindal Steel, and Oman’s OQ Alternative.

Iran’s projects market then expanded by 3.4 per cent or $9.1bn, while Iraq’s projects market grew by 1.8 per cent or $5.9bn and the Bahrain projects market inched up by 0.1 per cent or $0.1bn.

The Qatari projects market edged downwards by 0.2 per cent or $0.4bn, while the Kuwaiti market witnessed the greatest percentage and value declines – at 1.3 per cent and $2.3bn, respectively.

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John Bambridge
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