Arab News, Wednesday, Sep 11, 2019 | Muharram 12, 1441
Saudi contract awards surge to highest in four years
Saudi Arabia: The value of
contracts awarded in Saudi Arabia almost doubled in the second quarter compared
to a year earlier, led by the energy, property and military sectors, according
to a report published on Tuesday.
The contract tally reached SR64.3 billion ($17.2 billion) during the period — up
32 percent on the previous quarter and an increase of 92 percent on a year
earlier, the US-Saudi Arabian Business Council (USABC) said in its report.
It represents the highest value of contracts awarded by quarter in four years
with more awards made in the first half of this year than the whole of 2018.
“This highlights the resurgence in 2019, which is on pace to match the
construction boom witnessed prior to the brief economic downturn,” USABC said.
The collapse of oil prices in 2014 led to billions of dollars worth of projects
being placed on hold throughout the Gulf, but business activity in Saudi Arabia,
the region’s largest economy has started to accelerate.
While a majority of the contracts were awarded by the government, the private
sector was an active participant in the real estate sector in particular, USABC
The oil and gas sector overwhelmingly dominated the contracts awarded in the
period, accounting for almost three-quarters of the total.
Saudi Aramco continued awarding projects to international contractors at its
Marjan oil field as well as the Tanajib oil complex in the Eastern Province, the
For the second consecutive quarter, the Eastern Province contributed the largest
share of awarded contracts by region.
The order pipeline for the rest of the year also looks set to continue the
strong momentum, led by Aramco’s Marjan and Berri field projects as well as the
first phase of the Red Sea Tourism Project.