Saudi Arabia led the GCC’s projects market in the third quarter of 2025 with $28.1 billion in contract awards, a new report showed.
According to Kamco Invest, this represented 51.3 per cent of total GCC awards – just over half of regional activity.
Across the region, total GCC contract awards fell 27pc year on year to $54.8bn in the third quarter, with nine-month awards down 30.5pc to $154.4bn.
In its report, Kamco stated: “Contract awards are expected to gain momentum in the fourth quarter of the year, driven primarily by recoveries in Saudi Arabia and the UAE.”
It added: “However, despite a strong project pipeline, overall project awards in 2025 in the GCC are expected to decline and fall short of the 2024 record contract awards.”
Sectorally, six of the GCC’s eight industries recorded year-on-year declines in the third quarter. Construction dropped 62.4pc to $11.1bn and power decreased 13.3pc to $17.1bn, while gas and oil were the only sectors to post growth.
Within Saudi Arabia, power led with $9.8bn in awards, compared with $17.1bn a year earlier, while construction totalled $5.2bn; there were no chemical sector awards and oil stood at $3.9bn.
Notable awards included an $853 million road package for Almabani General Contractors and a $167m contract for a Pirelli tyre plant in King Abdullah Economic City. Over the first nine months, awards nearly halved to $61.5bn from $116.6bn.
Saudi Arabia’s lead comes as contracts awarded under its giga-projects surged 20pc in 2025 to $196bn, according to Knight Frank.
The report said the increase reflects a clear shift from planning to execution across major developments, particularly in real estate, tourism, and infrastructure, signalling steady progress in the kingdom’s Vision 2030 diversification drive.
In the UAE, third-quarter awards fell 65.8pc year on year to $6.7bn, moving the country from the GCC’s largest projects market in the second quarter to third place in the third quarter.
Over the first nine months, awards declined 18.0pc to $59.7bn. Construction led with $5.4bn despite a 56.2pc slide, and there were no oil and gas awards in the quarter.
Major announcements included a $593m contract for Sharjah’s Madar Mall and a $300m award for the Erisha Smart Manufacturing Hub in Ras Al Khaimah.
Qatar was a bright spot, with contract awards jumping 115.9pc year on year to $13.6bn in the third quarter and rising 27.6pc to $20.5bn over the first nine months, supported by preparations for the 2030 Asian Games.
Oil and gas led sector allocations, and China Offshore Oil Engineering won roughly $4bn of contracts for the Bul Hanine offshore field.
Kuwait’s market improved, with third-quarter awards up 33.8pc year on year to $4.3bn and first-nine-months awards up 25.3pc to $7bn.
The quarter was dominated by the $4bn Al Zour North IWPP phases two and three, alongside an $84mn upstream oil contract and a $65m public-buildings package in Al Mutlaa Residential City.
Looking ahead, Kamco expects awards to gain momentum in the fourth quarter on recoveries in Saudi Arabia and the UAE, although full-year 2025 awards are still seen finishing below 2024’s record.
The GCC’s pre-execution pipeline totals about $1.78 trillion, led by construction with $624.2bn, transport with $300bn and power with $294.2bn.
Saudi Arabia accounts for roughly $887bn of upcoming projects and the UAE $434bn; Saudi Aramco plans 99 projects over the next three years and currently has about $50bn of engineering, procurement, and construction contracts under execution.
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