GCC Project Awards Decline 19.7% in Q2; Qatar and UAE Lead Downturn

UAE, 15 July, 2024 : In Q2 2024, the total project awards across the GCC plummeted by 19.7% to $51.7 billion from $64.3 billion the previous year, largely driven by a sharp downturn in Qatar and a significant decrease in contract deals in the UAE. Kamco Invest reported these figures, highlighting uneven growth across GCC nations during the quarter.

The construction sector in the UAE saw a substantial 62.9% year-on-year decline, totaling $4.4 billion compared to $11.7 billion last year. Despite this, the UAE maintained its position as the second-largest projects market in the GCC, representing 31.6% of total regional contracts awarded.

Saudi Arabia, however, showed resilience with a 9.9% increase in contract awards, reaching $30.6 billion, fueled by projects like Neom as part of its 2030 Vision program.

The IMF's Regional Economic Outlook revised down real GDP growth for all GCC states, citing regional insecurity and ongoing oil production cuts as factors influencing the decrease in project awards.

Qatar recorded a staggering 98.5% year-on-year drop in project awards to $162 million from $10.5 billion, largely impacting overall GCC figures. Conversely, Kuwait saw a 33% increase year-on-year to $2.3 billion in project awards for Q2.

Looking ahead, Kamco Invest noted ongoing or planned GCC projects totaling $3.5 trillion, led by Saudi Arabia with $1.87 trillion, the UAE with $856.9 billion, and Oman with $245.5 billion.

The GCC gas sector showed resilience, with a 17.3% increase in contract awards to $14 billion, while the power and transport sectors also saw growth during the quarter.

Despite challenges, the GCC projects market continues to evolve, with significant investments anticipated in key sectors across the region.

Source : www.zawya.com