GCC project contracts value grows two-fold to hit $209bln

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The project awards in GCC almost doubled during 2023 to hit $209.7 billion over the previous year's figure of $109.7 billion, underlining the progress made by governments in the region, according to Kamco Invest, a regional non-banking financial powerhouse based in Kuwait.

This was the highest ever aggregate value in terms of yearly projects awarded in the GCC region which underlines among other things the culmination and significant trajectory of Saudi Arabia’s diversification plans and underscores the determination of the countries in the region to continue to execute their modernizing and economic diversification plans.

In terms of the wider Middle East and North Africa region, total value of contracts awarded during the year surpassed the previous high of $240 billion in 2014 to reach $254 billion in 2023, stated the report.

Growth in GCC contract awards was broad-based during 2023 as all the countries in the GCC witnessed at least double-digit y-o-y growth in their aggregate value of contracts awarded during the year.

Kuwait witnessed the highest percentage growth in the region recording nearly 300% yo-y growth in total value of contracts awarded to reach $8.2 billion up from $2.1 billion in 2022.

According to Kamco Invest, Bahrain remained the smallest project market in the region despite witnessing a 19% gain in its total value of contracts awarded during the year that reached $1.2 billion while Saudi Arabia maintained its top position as the largest projects market in the GCC during 2023.

On the Saudi market, the expert said the total value of annual contracts awarded soared to its highest ever level owing to a 58.6% jump in the total value of projects awarded hitting $94.9 billion against $59.8 billion in 2022.

Saudi Arabia’s y-o-y growth in contract awards was propelled by the country’s Vision 2030 Plan.

Similarly, total contracts awarded in the UAE witnessed a strong surge during the year recording an increase of 167.9% y-o-y to reach 79.5 billion during the year.

Saudi Arabia accounted for 45.2% of the contracts awarded in the GCC region last year, while it, along with UAE and Qatar, jointly represented 92.2%, said the report by Kamco Invest.

The surge in GCC project awards during the year was mainly driven by a jump in the value of projects awarded in the gas and construction sectors, it added.

The GCC gas sector contracts awarded quadrupled during 2023 to reach $42.1 billion as compared to $9.7 billion the year before, according to Kamco Invest.

On the other hand, the total value of contracts awarded in the GCC construction sector increased by 33% to reach $61.2 billion during the year, making the sector the biggest in the region comprising 29.2% of total projects awarded in the region last year.-TradeArabia News Service