The total value of project awards in the GCC region for Q3 surged 86% to hit $41.8 billion compared to $22 billion last year underlining the continued upward trend in the Gulf projects market, according to Kamco Invest, a regional non-banking financial powerhouse with one of the largest AUMs in the region.
This was the third-highest in terms of quarterly values of projects awarded in the last five years.
The robust growth in the total value of projects awarded in the GCC is also a significant indicator of the determination of the GCC countries to reach their economic diversification goal, stated the report.
As a result of the sustained diversification projects in the GCC the general trend of the quarterly projects awarded in the region projects has been moving upwards since 2018.
All countries in the GCC witnessed y-o-y growth in their total value of contracts awarded during Q3-2023 barring Qatar which recorded the only decline in its total value of projects awarded during the period.
Kuwait led the pack in terms of y-o-y percentage growth during the quarter after the total value of contracts jumped more than 13 times to reach $2.3 billion compared to $162 million in the corresponding quarter of 2022.
On the other hand, Bahrain remained the smallest project market in the region despite witnessing a 94.5% jump in its total value of contracts awarded during Q3-2023 that reached $247 million while Saudi Arabia maintained its top position as the largest projects market in the GCC.
The kingdom’s projects more than doubled during Q3 to reach $21.2 billion against $9.3 billion. Similarly, total contract awarded in the UAE jumped 101.7% to reach 15.5 billion during the quarter.
According to Kamco Invest, KSA alone accounted over 50% of the contracts awarded in the GCC region during Q3-2023, while Saudi Arabia, UAE and Qatar combined represented 93% of the overall projects awarded in the GCC.
Saudi Arabia’s growth in contract awards during the quarter was mainly driven by a jump in the value of projects awarded in the gas and water sectors.
Moreover, Saudi Arabia’s y-o-y growth in contract awards was buoyed by the persistent nature in which the country’s Vision 2030 new projects is constantly being unveiled.
Total value of contracts awarded in the Sultanate of Oman increased by 8.4% y-o-y to reach $376 million during Q3-2023 as compared to $347 million in Q3-2022 driven mainly y-o-y growth in the sultanate’s water and gas sectors which reached $200 million and $80 million, respectively.
In terms of regional sector classification, the GCC gas sector witnessed the biggest increase in terms of absolute value of projects awarded during the year recording a total $11.8 billion in Q3 as compared to $811 million last year followed by the water sector which witnessed 178.4% y-o-y growth to reach $7.6 billion in total value of contracts awarded in the quarter.-TradeArabia News Service
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