Kuwaiti projects market hits $215 billion amid marginal decline

According to MEED, the Gulf Projects Index also saw a minor decline of 0.04% ($1.5 billion) during the same period, marking the end of a six-month growth streak.

Despite modest growth in several major project markets, an 8.7% contraction in Qatar’s market, amounting to a $21.2 billion loss, offset overall gains.

Meanwhile, Saudi Arabia, the UAE, and Iraq, which are the region’s three largest markets, continued their upward trend, collectively adding $20.5 billion in value.

Saudi Arabia’s project market grew by 0.4% to $8.4 billion, driven primarily by the launch of a $5 billion events investment fund aimed at developing entertainment and sports facilities across the Kingdom in three phases.

The Iraqi project market expanded by 1.9%, adding $6.9 billion that was fueled by the revival plans to connect Baghdad, to the country’s proposed high-speed railway network. German transport consultancy firm, Planung Transport Werker, was appointed to conduct study and design services for the $2 billion project.

The Iraqi Ministry of Education launched the first phase of a $1.2 billion school development program under a public-private partnership model, further contributing to the growth of the country’s project market.

The UAE’s project market grew by 0.6%, adding $5.2 billion, driven by ADNOC Offshore’s $2 billion tender for the development of the SARB offshore oil field after completing preliminary engineering and design.

Project market valuations in Oman, Kuwait, Bahrain, and Iran remained stable, with fluctuations staying below 1% or $1 billion.

February Contracts

Additionally, Kuwait secured $616 million in contracts in February, with the largest being a $425 million deal awarded by the Ministry of Public Works, to China State Construction Engineering Corporation, for the second phase of the Mubarak Al-Kabeer Port project.

MEED magazine reported that the project includes expanding Mubarak Al-Kabeer Port to accommodate 2.7 million twenty-foot equivalent units (TEUs) annually and constructing eight container berths. A third phase is also planned to further enhance the port’s capacity.

In February, the Middle East and North Africa region recorded $12.3 billion in project contracts, marking the weakest month for project deals since July 2022, when only $9.1 billion worth of projects were awarded. This figure is also significantly below the 12-month average of $30 billion in awarded contracts.

Project values awarded in March, will need to reach the 12-month average of $30 billion to ensure that the total for the first quarter of 2025 aligns with recent project market performance.

For the first quarter of 2025 to align with recent project market trends, project values awarded in March must return to the 12-month average of $30 billion.

Project values awarded in March will need to align with previous monthly averages to ensure the first quarter of 2025 remains consistent with recent project market performance.

Shaqaya Substation offers Extended for Several Weeks

The Ministry of Electricity and Renewable Energy has granted bidders additional time to prepare their proposals for a contract to supply and install a 400 kV Overhead Transmission Line connecting a substation in Shagaya to a substation in Subiya.

Through the Central Agency for Public Tenders, the ministry extended the bid submission deadline from March 25 to April 15, following multiple extensions since the request for proposals was issued in October last year.

The planned transmission network will link the Shagaya solar power converter station to the Subiya power plant, also known as SWPS-2, enhancing Kuwait’s power transmission infrastructure. The bid bond for the contract has been set at KWD 450,000 ($1.46 million).

Source: Al Qabas