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GCC Project Awards Surge to $45 Billion Despite Geopolitical Challenges
by
Anna Fischer
Published 26 Apr 2024
The UAE retained its position as the second-largest projects market in the region. Despite challenges, GCC project awards increased by 20.3% year-on-year.
Source: pexels
In the Q1 2024, projects awarded in the UAE slightly decreased by 1.0% year-on-year to USD 11.5 billion. However, across the region, total project values surged to USD 45 billion from USD 37.4 billion in Q1 2023, according to Kamco Invest data.
Saudi Arabia dominated the quarter, accounting for over half of the region's contracts with USD 23.5 billion awarded, reflecting strong non-oil growth. Qatar also saw a significant increase, with contract values jumping by 68.5% to USD 6.1 billion.
The GCC contract awards highlighted a consistent trend towards diversification projects, with growth in the Gas and Oil sectors being notable. Gas sector contracts surged more than 19 times to USD 7.4 billion, while oil sector contracts increased nearly seven times to USD 9.0 billion.
Saudi Arabia dominated the quarter, accounting for over half of the region's contracts with USD 23.5 billion awarded, reflecting strong non-oil growth. Qatar also saw a significant increase, with contract values jumping by 68.5% to USD 6.1 billion.
The GCC contract awards highlighted a consistent trend towards diversification projects, with growth in the Gas and Oil sectors being notable. Gas sector contracts surged more than 19 times to USD 7.4 billion, while oil sector contracts increased nearly seven times to USD 9.0 billion.
The UAE Construction Focus
The non-oil sector in the UAE, which was a major contributor to growth in 2023, is expected to continue its upward trajectory in 2025. The Abu Dhabi Executive Council has greenlit 144 projects worth approximately USD 18 billion across the emirate.[?] Of this, over USD 16 billion will go towards housing schemes and public facilities, with USD 1.9 billion allocated for education and human capital projects.
In the UAE, the construction sector remains dominant, representing 52.2% of total project awards in the quarter, amounting to USD 6.0 billion. This reflects a decline from USD 8.4 billion in Q1-2023.
One standout project awarded during the quarter was the USD 820 million Saadiyat Lagoons development, awarded by Aldar Properties to local contractor Innovo Build.[?] This project involves the construction of approximately 975 villas as part of its third development package.
In the UAE, the construction sector remains dominant, representing 52.2% of total project awards in the quarter, amounting to USD 6.0 billion. This reflects a decline from USD 8.4 billion in Q1-2023.
One standout project awarded during the quarter was the USD 820 million Saadiyat Lagoons development, awarded by Aldar Properties to local contractor Innovo Build.[?] This project involves the construction of approximately 975 villas as part of its third development package.
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