A recent report by Kamco Invest highlighted the UAE’s exceptional growth in contract awards within the GCC last year.
The total value of awarded projects in the UAE soared to an unprecedented USD 79.5 billion, marking a 2.7-fold increase year-on-year, compared to USD 29.7 billion in 2022. The UAE secured its position as the second-largest projects market in the GCC, expanding its share of total projects from 27.1% in 2022 to 37.9% in 2023, with an impressive $49.8 billion absolute growth in contract awards during the year.[?]
The report attributes this success to the country’s thriving economy and efforts in economic diversification.
The total value of awarded projects in the UAE soared to an unprecedented USD 79.5 billion, marking a 2.7-fold increase year-on-year, compared to USD 29.7 billion in 2022. The UAE secured its position as the second-largest projects market in the GCC, expanding its share of total projects from 27.1% in 2022 to 37.9% in 2023, with an impressive $49.8 billion absolute growth in contract awards during the year.[?]
The report attributes this success to the country’s thriving economy and efforts in economic diversification.
UAE Economy Diversification and Construction Boom
The UAE’s commitment to economic diversification from oil was underscored by its substantial achievements in non-oil sector projects.
The construction sector took the lead, comprising 44.0% of new project awards in 2023, surpassing USD 35.0 billion and breaching the USD 30 billion mark for the first time since the 2008 financial crisis.
Noteworthy among these was the USD 1.2 billion Saadiyat Lagoons project by Aldar Properties, covering 6.2 km² and featuring the development of 1,102 villas across residential, commercial, hospitality, and retail sub-sectors.
Saadiyat Lagoons Design Master Plan | Abu Dhabi, UAE
Source: landworks-studio.com
Source: landworks-studio.com
Overall, the UAE’s robust economic diversification strategy and impressive construction milestones underscore its resilience and growth in the face of global challenges.
In 2023, the gas sector secured the position of the second-largest industry in total contract awards, reaching USD 19.6 billion.[?]
In contrast, the water sector claimed a distant third with USD 5.6 billion in contract awards. A standout project in the gas sector was Adnoc Gas’s USD 1.3 billion initiative involving two pivotal contracts for its sales gas pipeline network across the Emirates. These developments highlight the diverse landscape of contract awards in the UAE, with the gas sector significantly shaping the nation’s economic course.
In 2023, the UAE experienced the awarding of several notable projects, including a significant USD 5.1 billion contract secured by Al-Yah Satellite Communications Company (Yahsat). The contract involves providing satellite capacity and services to the UAE government for 17 years. Yahsat will be responsible for operations, maintenance, and technology management under this substantial agreement.[?]
In 2023, the gas sector secured the position of the second-largest industry in total contract awards, reaching USD 19.6 billion.[?]
In contrast, the water sector claimed a distant third with USD 5.6 billion in contract awards. A standout project in the gas sector was Adnoc Gas’s USD 1.3 billion initiative involving two pivotal contracts for its sales gas pipeline network across the Emirates. These developments highlight the diverse landscape of contract awards in the UAE, with the gas sector significantly shaping the nation’s economic course.
In 2023, the UAE experienced the awarding of several notable projects, including a significant USD 5.1 billion contract secured by Al-Yah Satellite Communications Company (Yahsat). The contract involves providing satellite capacity and services to the UAE government for 17 years. Yahsat will be responsible for operations, maintenance, and technology management under this substantial agreement.[?]
The broader GCC region saw substantial growth, with project awards nearly doubling to USD 209.7 billion in 2023 compared to USD 109.7 billion in 2022.
Kamco anticipates that the 2024 GCC project market will remain robust, aligning with the levels observed in 2023. This projection is supported by the substantial project pipeline and ongoing governmental reforms to diversify the economy from oil dependence. The report highlights these efforts, indicating a tangible impact on the expected real GDP growth for 2024.[?]
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