GCC Project Market Soars to New Heights, with Saudi Arabia Leading the Charge
According to the latest data from Kamco Invest Research, while the overall GCC contract market has been on an upward trajectory, the variation in contract values across regions reveals distinct trends. Saudi Arabia and the UAE stand out as the primary architects of this growth, particularly in the power and oil industries. In 2024, Saudi Arabia awarded projects worth $40.4 billion, marking a 16.3% rise from 2023, thus consolidating its dominance within the regional market.
Among the contributing sectors, power and oil projects accounted for $67 billion and $29.7 billion in contract value, respectively, becoming the bedrock of this market expansion. Saudi Arabia's unwavering commitment to the energy sector—particularly its investments in oil and gas exploration and extraction—continues to propel the nation toward steady economic growth. Similarly, the UAE maintained a robust contract award figure in 2024, driven by its expansive energy and infrastructure projects, though a slight decline in quarterly data reflected some delays in the execution of certain projects.
While Saudi Arabia and the UAE dominate, Kuwait and Qatar have also delivered impressive results in 2024. Kuwait awarded projects totaling $4 billion, reflecting an extraordinary 237.4% year-on-year increase. This surge highlights Kuwait's persistent investments in infrastructure and energy projects, especially within the oil and gas sectors.
Qatar's market, while showing a more modest growth of 4.5%, reaching $18.9 billion in contract value, saw striking progress in its oil industry. The value of projects in Qatar's oil sector skyrocketed nearly eightfold from $809 million in 2023 to $6.3 billion in 2024, signaling a significant leap in the country's energy investments. Additionally, Qatar's power sector experienced dramatic growth, with contract awards soaring by 7.5 times, from $448 million in 2023 to $3.4 billion in 2024.
However, Qatar's natural gas sector witnessed a decline, with a 49.5% drop to $6 billion, largely due to project delays and market adjustments.
Looking at quarterly data, the fourth quarter of 2024 stood out with exceptional performance. The total contract value for Q4 reached $74.8 billion, the highest in six years. Saudi Arabia's contract awards surged by 16.3% to $40.4 billion, underscoring the country's growing influence in the global energy and infrastructure markets. Despite a 37.4% decline in the UAE's quarterly contract value, the growth from Qatar and Kuwait provided a stabilizing force for the overall market.
The Q4 growth not only bolstered the overall increase for 2024 but also set a solid foundation for continued expansion in 2025.
Looking ahead, the GCC project market remains poised for continued growth. According to MEED Projects, 2025 will see ongoing activity in the project market, with more than $120 billion worth of projects entering the bidding phase and expected to be awarded in the coming months. By the end of 2024, the total value of contracts in the pre-execution phase amounted to approximately $1.5 trillion, with Saudi Arabia holding a dominant share.
MEED Projects' analysis indicates that several large-scale projects are expected to be awarded within the next 6-12 months, suggesting that 2025 could match or even surpass 2024's contract award figures. Thus, the project pipelines in Saudi Arabia, the UAE, and other GCC nations will continue to drive the region's economic momentum.
In Saudi Arabia, approximately $770.5 billion in projects are in the pre-execution phase, with 35.3% in the design phase and 8% currently in the bidding stage. These projects span energy, infrastructure, and public service sectors, all critical to the nation's long-term economic development.
Other countries like the UAE, Oman, and Kuwait also boast impressive project pipelines—$322.5 billion, $165 billion, and $121.1 billion, respectively—laying a firm foundation for GCC-wide market growth.
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