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Saudi market returns to growth

23 April 2024

 

The Gulf projects market grew for the 13th straight month in March, rising by 2.4% and adding $93.6bn in value from 15 March to 12 April as the Saudi projects market returned to positive growth. The kingdom added 2.7% or $48bn in value. 

The growth in Saudi projects was driven in part by the launch of the front-end engineering and design of $9.7bn-worth of pumped hydropower storage projects by Enowa, the utility subsidiary of Neom.

The total budget and scope of the Mecca Gate project in Jeddah by the Al Shamiyah Urban Development was also significantly increased.

Beyond the kingdom

The UAE projects market also continued to grow quickly, adding 3.4% or $26bn in value over the same period.

The value addition was led by the ongoing revival of the Al Maktoum International airport expansion and the reactivation of several project packages that had previously been considered on hold. 

Phase one of the airport’s strategic expansion plan now has a total of $16bn-worth of work actively under study or in design, including an estimated $7bn concourse building and $3.5bn new terminal, alongside $2.7bn in sub-structural works.

Elsewhere in the GCC, Oman’s projects markets also grew by 2.3%, adding $5.5bn, while Kuwait’s grew by 2.1%, adding $3.7bn. 

The Qatari and Bahraini projects markets shrank, shedding 0.3% and 3.5%, or $0.8bn and $2.5bn, respectively. 

Outside of the GCC, Iran’s projects market added 4% or $11.5bn in value, driven by the launch into execution of a $16bn pressure-boosting project at the South Pars gas field, while Iraq’s projects market added a marginal 0.5% or $1.8bn in value. 

MEED's April 2024 special report on Saudi Arabia includes:

> GVT & ECONOMY: Saudi Arabia seeks diversification amid regional tensions
> BANKING: Saudi lenders gear up for corporate growth
> UPSTREAM: Aramco spending drawdown to jolt oil projects
> DOWNSTREAM: Master Gas System spending stimulates Saudi downstream sector
> POWER: Riyadh to sustain power spending
> WATER: Growth inevitable for the Saudi water sector
> CONSTRUCTION: Saudi gigaprojects propel construction sector
> TRANSPORT: Saudi Arabia’s transport sector offers prospects

 

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John Bambridge

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