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Saudi schemes boost GCC projects market

31 July 2023

Commentary
Colin Foreman
Editor

After enduring a sustained period of subdued oil prices and the economic shock of the Covid-19 pandemic, the GCC projects market has regained some of its old swagger, recording its best performance in nearly a decade during the first half of this year.

According to regional projects tracker MEED Projects, there were $83bn of contract awards from 1 January to 30 June, the best total for the first six months of a year since 2015. The $83bn total is also a significant increase on the $47bn of awards recorded in the first half of 2022.

The strong performance during the first half of 2023 should continue for the rest of the year. Extrapolating from the total value of awards this year, the 2023 total could be the best since 2015. That year, there were $170bn of awards, just under the $174bn in 2014.

The strong performance in the first half should continue for the rest of 2023

Saudi Arabia was the most active country for contract awards. During the first six months of the year, there were $42bn of deals signed in the kingdom, the most on record. The previous high was the $28bn awarded during the first half of 2014.

Further growth is expected for the Saudi market as activity continues to ramp up on the kingdom’s five official gigaprojects and other major schemes. The oil and gas sector will also remain a key driver of project activity, with Saudi Aramco investing heavily to maintain operations and develop additional production capacity.

The numbers back up this expectation. According to MEED Projects, there are $48bn of contracts at the bid evaluation stage. These are due to be awarded in the near future and will help the Saudi market reach new highs as its works towards achieving the goals set by Vision 2030.

Read more

> Saudi boom propels GCC market to near decade high
> Saudi Arabia plans $1 trillion capital
> Top 10 plans for Saudi's capital

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Colin Foreman

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