Spending on large projects across the GCC will feel the after-effects of the oil price slump this year, even amid signs of recovery.
Last year was the worst recorded in terms of the value of project contracts awarded across all sectors in the region – construction, transport, oil and gas and power and chemicals, industry and water – according to data compiled by Meed, a business information company.
The value of infrastructure contracts awarded slumped by 44 per cent to US$100 billion compared with the year before, which itself was down at $178bn from a record high of $186bn in 2014.
The sharp drop in oil prices from late 2014 depressed spending across the board, although a rebound in recent months may help reignite project spending.
“With the outlook for oil prices improving, 2017 is set to see some improvement with strong recovery expected in 2018,” said Richard Thompson, executive editor at Meed. “But considerable uncertainty remains,” he added.
Meed is forecasting a rise of between 10 and 20 per cent in GCC contract awards this year, “but it will depend on many factors, such as implementing economic reforms and rolling out attractive [public-private partnership] contracts”, Mr Thompson said.
The worst case scenario for the GCC is for a further decline this year, to $93bn, with the best case a rise to $138bn, according to Meed.
Tracking project contracts is an inexact science, with variable transparency across public and private sector organisations.
The national oil companies in the region have sought to keep their major projects moving along to take advantage of a huge slump in private sector spending globally, which has meant pushing contractors on price and neither side has been keen to divulge project values.
Saudi Aramco, for example, is expected to see a sharp increase in the value of contracts awarded this year, according to Jean-Charles Guilhem, the head of 2B1st Consulting, a company that tracks oil and gas contracts in the region. He expects Aramco’s contract awards to shoot up to about $17bn from below $10bn in each of the last two years, driven particularly by downstream, such as its prospective refineries at Yanbu and East Kalimantan in Indonesia, and an oil-to-chemicals joint venture with Saudi Basic Industries. But he said the pace of contract awards could be highly variable over the next few years depending on the major reforms under way in Saudi Arabia, which include plans to sell a share of Aramco to the public, as well as a backlog of investment decisions.
“In 2017, many companies are in the same situation as Saudi Aramco, facing a mountain of investments they will have to review,” Mr Guilhem said.
The Meed forecast also notes that the value of “project workload” lags the award of contracts, which means, for example, that the construction sector in the UAE – the largest by value of contracts it tracks in the region – will continue to see a slowdown in actual spending.
The UAE, and Dubai in particular, held up better than most of their neighbours and led the GCC with more than $36bn of contracts signed last year, down from $42bn the year before. But even with a pick up this year, Meed forecasts project workload trends will decline by about 23 per cent.
amcauley@thenational.ae
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The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
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The specs
Engine: 3.0-litre 6-cyl turbo
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Transmission: 8-speed auto
Fuel consumption: 8.5L/100km
Price: from Dh285,000
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Profile of Whizkey
Date founded: 04 November 2017
Founders: Abdulaziz AlBlooshi and Harsh Hirani
Based: Dubai, UAE
Number of employees: 10
Sector: AI, software
Cashflow: Dh2.5 Million
Funding stage: Series A
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
The specs
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COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
Europe’s rearming plan
- Suspend strict budget rules to allow member countries to step up defence spending
- Create new "instrument" providing €150 billion of loans to member countries for defence investment
- Use the existing EU budget to direct more funds towards defence-related investment
- Engage the bloc's European Investment Bank to drop limits on lending to defence firms
- Create a savings and investments union to help companies access capital
2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
