An ordinary day in the GCC
At a time when the luxurious ‘7 bedroom villa’ compound project in Dubai designed by famous architect Carlo Colombo is due for 2016; the ‘Town Square’ featuring over 3,000 townhouses and over 18,000 apartments spanning two new communities is developed by 2017 and the 438 hectares Dubai Expo 2020 site works whose leading CM has just been decided upon and expected to all start shortly, plans to develop a New Industrial City in Saudi eastern province Al Ahsa gets underway in an effort to diversify from its oil bound economy, bad news of China’s Stock Market Black Monday that apparently seem to be good for European Stocks landed on everybody’s mobiles, tablets, laptops screens, monitors, etc., the following is on-going and gathering pace as computed in decreasing contracts value :
- Samsung & Mitsubishi awarded power plant construction in Qatar for $1.8bn
- Salini Impregilo of Italy to build World Cup Al Khor stadium for $844m
- Sacyr of Spain to design & build a special economic zone in Ras Abufontas in Qatar for $466m
- Salini Impregilo got Al Shamal, Qatar infrastructure development for $331m
- Al Ghandi and Consolidated Contractors International wins Emaar’s The Hills for $229m
- Carillion of the UK to build BP Khazzan base in Oman for $124m
- Drake & Scull International wins an MEP construction, operation and maintenance contract in Kuwait for $59m
The Dow Jones Industrial Average fell 1,000 points at the opening Monday, and it has already erased most of its gains for the year, in reaction to China’s economic woes going through its own growing pains and economic fate that is entwined with Europe as well as that of the MENA’s.
U.S. and European entrepreneurs having flocked to China attracted by its cheap manufacturing potential did help in China owning close to $4 trillion of the US’s debt, and turning into the world’s second-largest economy, responsible for roughly 15 percent of global exports.
The MENA countries not to be left behind and in order to, as they say preempt the US recent policy of diverting away from the GCC’s oil supply, have heavily opted for China as a great purveyor of cash. The consequences of yesterday’s convolutions have yet to be assessed, but at this stage, one can only assume that these will perhaps not be very different from those of 2008, notably in Dubai.
The related slowdown in China’s growth will affect demand for oil, reducing prices further. But there is also a separate depressing factor, namely a glut of supply too. America shale oil and gas producers together with Iran promising to step up sales production are driving the price of a barrel of oil to lower than $45 that is today’s for the first time in six years.