Project awards in the GCC dropped by 19.7pct in Q2-2024, falling to USD 51.7 bln from USD 64.3 bln the previous year, according to Kamco Invest. This decline is primarily due to a significant decrease in project awards in Qatar and a steep fall in UAE contract deals.
In Q2, project awards were evenly distributed, with three GCC countries showing YoY growth and three experiencing declines. The construction sector in the UAE saw a 62.9pct YoY drop, totaling USD 4.4 bln compared to USD 11.7 bln last year. This sector accounted for 47.1pct of the total contracts in Q2-2023 but only 26.6pct in Q2-2024. Additionally, there were no project awards in the chemical sector this quarter, compared to USD 3.6 bln last year.
Despite the overall decline, the UAE maintained its position as the second-largest project market in the GCC, representing 31.6pct of total regional contracts. The UAE’s gas sector saw a significant increase in project awards, rising over 6.5 times YoY to USD 5.6 bln, while the oil sector grew more than five times to USD 4.3 bln.
Saudi Arabia’s project awards increased by 9.9pct YoY to USD 30.6 bln, driven by the acceleration of Neom projects. Kuwait also saw a 33pct increase in project awards, reaching USD 2.3 bln.
Sector-wise, the GCC gas sector experienced a 17.3pct increase in project awards, totaling USD 14 bln. The power and transport sectors each saw project awards reach USD 9.8 bln, growing by 9.7pct and 27.3pct respectively.
The total value of projects planned or in the pipeline in the GCC stands at USD 3.5 trillion as of July 2, with Saudi Arabia holding 54pct (USD 1.87 trillion) and the UAE USD 856.9 bln. Upcoming projects alone amount to USD 1.43 trillion, with Saudi Arabia representing 51.6pct (USD 737.2 bln) and the UAE 20.4pct (USD 291.4 bln).