GCC project awards reach highest yearly mark at $210bn in 2023

The total value of projects awarded in the GCC countries surged to the highest yearly figure of $209.8bn in 2023, almost doubling compared to the $109.7bn recorded during the previous year, according to a new report released by Kuwaitbased Kamco Investment.

'This growth in project awards mainly underlines, among other things, the culmination and significant trajectory of Saudi Arabia’s diversification plans and underscores the determination of the GCC countries to continue executing their modernising and economic diversification plans,' the report said.

Growth in GCC contract awards was broad-based during 2023, as all the countries in the GCC witnessed at least doubledigit year-on-year growth in their aggregate value of contracts awarded during 2023.

Kuwait witnessed the highest percentage growth in the region, recording nearly 300% year-onyear growth in the total value of contracts awarded to reach $8.2bn, up from $2.1bn in 2022. Bahrain remained the smallest project market in the region, despite witnessing a 19% gain in its total value of contracts awarded during the year, reaching $1.2bn, while Saudi Arabia maintained its top position as the largest projects market in the GCC during 2023.

Total annual contracts awarded in Saudi Arabia reached their highest-ever level after the kingdom’s total value of projects awarded jumped 58.6% to reach $94.9bn in 2023, against $59.8bn in 2022. Saudi Arabia’s year-on-year growth in contract awards was propelled by the country’s Vision 2030 Plan.

Saudi Arabia comprised 45.2% of the contracts awarded in the GCC region during 2023, while Saudi Arabia, UAE, and Qatar combined represented 92.2%.

Similarly, total contracts awarded in the UAE witnessed a strong surge during the year, recording an increase of 167.9% year-on-year to reach $79.5bn during the year, the report noted.

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. The GCC gas sector contracts awarded quadrupled during 2023 to reach $42.1bn, compared to $9.7bn during 2022.

On the other hand, the total value of contracts awarded in the GCC construction sector increased by 33% to reach $61.2bn during 2023, making the sector the biggest in the region, comprising 29.2% of total projects awarded in the region during 2023.

Kamco Investment expects the GCC project market to be at par with 2023 levels, given the strong pipeline as well as the reforms being formulated by the governments in the region to move the economy away from dependence on oil revenues.

According to MEED Projects, as mentioned in Kamco Investment's report, Saudi Arabia leads in the GCC with $107.2bn in expected contract awards this year, followed by the UAE and Kuwait with expected awards at $51.5bn and $19.8bn, respectively.

According to MEED Projects, there are more than $105bn contracts in bid evaluation phase in the GCC and a further $130bn contracts in tender or pre-qualification stage