In its recently released GCC Projects Market Update, KAMCO Invest found that the total value of contracts awarded in the Gulf Cooperation Council (GCC) reached a new high of $273.2 billion in 2024.
KAMCO Invest’s GCC Project Market Update (January 2025) confirmed a new high in GCC contract awards in 2024 that was driven primarily by Saudi Arabia.
“The total value of contracts awarded in the GCC reached a new record in 2024. GCC project awards saw a 9.6% y-o-y increase in 2024, reaching USD 273.2 Bn, compared to USD 249.4 Bn in 2023. This growth in contract awards was primarily driven by the exceptional increase in project awards in Saudi Arabia, coupled with strong performance from the UAE despite recording a y-o-y dip in the value of contract awards.”
“The Power and Oil sectors led the growth of project awards in the GCC during 2024, recording USD 67.0 Bn and USD 29.7 Bn in contract awards, respectively.”
“Within the renewable energy sector, Saudi Arabia has signed contracts for 25 renewable energy projects, distributed across various regions that are collectively generating approximately 23 gigawatts of electricity during 2024. The growth in projects in the renewable space is attributed to the determination to fulfill the Vision 2030 goals that aim to achieve optimal energy mix for electricity generation in the Kingdom.”
“On the other hand, the GCC Construction sector remained the largest sector with USD 75.4 Bn in contract awards during 2024.”
According to the update, growth was broad-based with three of the six GCC countries achieving double-digit y-o-y growth in the total value of contracts awarded, while four out of the six saw y-o-y increases in the value of projects awarded in 2024. Kuwait led with a 50.7% y-o-y growth in the total value of contracts awarded, reaching $9.5 Bn, up from $6.3 Bn in 2023.
Seven out of the ten largest valued projects awarded in the GCC during 2024 were in Saudi Arabia. The NEOM Trojena Valley Cluster Dam project was the largest contract awarded in the Kingdom and the third largest in the GCC during 2024. The project which is estimated to be worth $4.7 Bn was awarded and commissioned to Webuild to construct three dams to develop a freshwater lake for a ski resort in the Trojena mountain destination.
With regard to Saudi Arabia, total yearly contracts awarded reached the highest ever mark for the second consecutive year at $146.8 Bn compared to $118.7 in 2023. Saudi Arabia accounted for 53.8% of total GCC projects awarded during the year.
“Power sector overtook the Construction sector as the largest sector in terms of value of projects awarded during the year. Total value of projects awarded in the Saudi Power sector more than doubled during 2024 reaching USD 55.0 Bn in 2024 against USD 25.0 Bn in 2023. Similarly, total value of contract awards in the Kingdom’s Gas sector nearly doubled during 2024 reaching USD 19.1 Bn as compared to USD 9.9 Bn in 2023. On the other hand, project awards in the Kingdom’s Construction sector dipped 10.6% y-o-y during 2024 to reach USD 28.4 Bn against USD 31.8 Bn in 2023. The National Housing Company’s USD 3 Bn project to construct 2000 homes was the largest project awarded in the Construction sector during the year. “
The update concludes that the, “outlook for the GCC project market for 2025 is expected to remain strong. Following a record-breaking year for project market awards, the region is poised for another year of significant contract awards. There are a lot of positive factors in the GCC that are expected to support the project market activity in 2025. These includes a thriving economic activity, government’s resolve to execute projects before the deadlines, a supportive and strong banking sector, expected fall in interest rates, stability in regional geopolitical scenario, elevated oil prices and supportive government policies for private sector participation.”
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