Projects worth more than $2 trillion have been announced or are under construction in the Gulf Arab countries, the Middle East Economic Digest (MEED) publication said.

The economies of Saudi Arabia, UAE, Qatar, and three other oil producing countries (Kuwait, Bahrain and Oman) are growing rapidly thanks to a five-fold rise in crude oil prices since 2002. These states are investing their oil revenue windfalls to develop their infrastructure and power. MEED, which tracks project announcements in the construction, industry, oil and gas, petrochemicals, power, and water and waste sectors, said the total estimate costs of projects in the Gulf now exceed $2 trillion, a 40% increase compared with a year earlier.

The project boom took place “despite fears that rising construction costs would lead to a significant slowdown in the number of new projects being launched”, MEED said in a statement. Only about a quarter of the projects are now under construction, it added.

The UAE accounts for 37% of total Gulf projects, MEED added.

al-Aswaq, Saudi Arabia, April 1, 2008