GCC’s project awards drop 20% YoY in Q2-24

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Mubasher: The GCC saw a notable decline in project awards during the second quarter (Q2) of 2024, with total awards dropping by 19.70% year-on-year (YoY) to $51.70 billion from $64.30 billion in the same period last year.

This downturn was primarily driven by significant reductions in Qatar and the UAE, according to a report by Kamco Invest.

In contrast to the overall trend, Saudi Arabia experienced a 9.90% YoY increase in awarded contracts in Q2-24, reaching $30.60 billion, versus $27.80 billion.

This growth was fuelled by the acceleration of Vision 2030 projects and a substantial boost in gas sector contracts.

Saudi Arabia’s strategic focus on major developments like Neom and a push to increase gas production by 60% by 2030 were key contributors to this positive trend.

The UAE faced a steep 23.60% YoY decline in project awards during Q2-24, amounting to $16.30 billion compared to $21.40 billion in Q2-23.

Qatar experienced a dramatic 98.50% YoY decrease in project awards, falling to $162 million from $10.50 billion in the previous year.

This steep decline significantly impacted the overall performance of the GCC region. It is worth noting that Qatar had an exceptional year in 2023 due to the $10 billion LNG project for the North Field South development.

Contrary to the broader decline, Kuwait’s project awards increased by 33% YoY to $2.30 billion in Q2-24.

This growth was driven by a surge in the construction and transport sectors. Notable projects included the $343 million Kuwait Medical City infrastructure project and the $714 million Shuwaikh Port Expansion project.

Positive Outlook

Looking ahead, the GCC has $3.50 trillion worth of planned or ongoing projects, with Saudi Arabia leading the charge.

Upcoming projects total $1.43 trillion, with the construction and transport sectors dominating future investments.

Oil and gas projects remain crucial, with significant future investments expected to continue shaping the region’s economic landscape.

The GCC project market's future looks dynamic, with varying performances across different countries and sectors.

The region continues to adapt to economic challenges, focusing on strategic investments to drive long-term growth.