The United Arab Emirates' construction sector has been hardest hit by the downturn in the Gulf Arab region, with more than 500 projects on hold or cancelled, said a Dubai-based research firm on Wednesday.

With a total value of around $900 billion, 1,372 building projects are under construction or in bidding across the commercial, hospitality, residential and retail sectors in the UAE, and 566 projects have either been shelved or postponed,  Proleads said said in a report.

Neighbouring Saudi Arabia has total projects worth more than $387 billion across the four sectors, with 442 in construction or bidding, and 106 cancelled or on hold, the report said.

In Kuwait, with total projects worth more than $114 billion, 90 are in construction or bidding and 18 cancelled or on hold.

Qatar has seven projects shelved or on hold and 124 are in construction or in bidding out of total projects worth more than $42 billion.

With total projects worth more than $38 billion in Oman, 95 are in construction or bidding with eight on hold. There are no cancellations, Proleads said.

Bahrain's total projects are valued at more than $36 billion with 148 in construction or bidding and 54 cancelled or on hold.

Proleads said in July over 400 projects worth more than $300 billion had been placed on hold or cancelled in the UAE.-Reuters