THE total value of contracts awarded across the GCC plummeted by 58 per cent in the second quarter of 2025 to a 14-quarter low, according to a report by Kamco Invest.
Contract awards in the six-member bloc fell to $28.4 billion in Q2 2025, down from $67.7bn in the same period last year. Five of the six GCC nations recorded a year-on-year decline in project awards.
The sharp downturn follows two years of record spending on large-scale oil and gas developments and multi-billion dollar ‘GIGA projects’ in Saudi Arabia.
Saudi Arabia and the UAE, the two largest markets, were the main drivers of the decline. Saudi Arabia’s contract awards plunged by 72.5pc to $9.8bn in the quarter, while the UAE saw a 47pc drop to $14bn. Kuwait posted a more modest 9.8pc decline. Qatar was the only country to see an increase in contract awards for the quarter.
The construction and oil sectors were the biggest contributors to the slump, with awards dropping by 60pc and 98.4pc respectively. The chemicals sector was the only industry to register a year-on-year increase.
Despite the weak first-half performance, the outlook for the remainder of 2025 remains positive, with a rebound expected in the second half of the year. Saudi Arabia is projected to lead the recovery, with an upcoming pipeline of pre-execution projects worth an estimated $873.2bn. The UAE follows with $417.9bn in planned projects.
The largest planned project in Saudi Arabia is the $80bn CARE nuclear power reactor project, which is currently in the bidding stage.
avinash@gdnmedia.bh
&uuid=(email))