Gulf projects swell for eighth month
24 October 2023
The Gulf Projects Index, which reflects the value of the projects market in the Gulf region, rose by 2 per cent from 15 September to 13 October in its eighth-straight month of growth.
This growth was driven by a $54.5bn, or 3.3 per cent, rise in the value of Saudi Arabia’s projects market as the kingdom rolls out its gigaprojects. The Public Investment Fund notably established Al-Balad Development Company to launch a $5bn project to redevelop Jeddah’s Al-Balad historic waterfront district.
Tallest tower
Jeddah Economic Company, meanwhile, revived the $1.6bn project to build the 1km-high Jeddah Tower. This marked the restart of activity on the $30bn Jeddah Economic City that had been on hold.
Saudi Power Procurement Company also announced that the $3.5bn round six of the kingdom’s National Renewable Energy Programme (NREP) had entered the study phase.
The Omani projects market grew at the second-quickest pace, rising by 2.5 per cent with $4.9bn in value added. This was led by Hydrom commencing the study on its $3bn first phase of a hydrogen fuel transport pipeline. The sultanate’s Housing & Urban Planning Ministry also announced the launch and entry into study of a $1bn Agricultural City project.
The UAE’s market added $14bn, or 2.2 per cent, in value, which included revived plans for the $1.8bn Meydan One Mall.
Iraq and Qatar’s projects markets rose marginally, by 0.6 per cent and 0.3 per cent, or $1.9bn and $0.6bn, in value, respectively.
The Bahraini, Kuwaiti and Iranian projects markets all contracted. Bahrain’s shrank the least, shedding just $0.3bn or 0.4 per cent, while Kuwait and Iran both shed about $2bn in value, or 1.2 per cent and 0.9 per cent, respectively.
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Saudi Arabia’s Boutique Group, backed by the sovereign wealth vehicle Public Investment Fund (PIF), has retendered a contract to convert Tuwaiq Palace in Riyadh into a hotel.
Contractors have been given a deadline of 31 May to submit proposals.
The scheme comprises 40 hotel rooms and suites and 56 one- and two-bedroom villas.
According to regional projects tracker MEED Projects, the contract was first tendered in 2022.
In January of that year, Crown Prince Mohammed Bin Salman launched Boutique Group to manage and convert historic and cultural Saudi palaces into ultra-luxury hotels.
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In 1957, the Red Palace became the headquarters of the Council of Ministers for 30 years, and later served as the main office for the Board of Grievances until 2002.
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