Project awards within GCC region see uptick of 20.3 percent YoY in Q1
Date
5/23/2024 9:01:34 AM
(MENAFN) During the first quarter of 2024, project awards within the Gulf Cooperation Council (GCC) region experienced a notable uptick of 20.3 percent year-on-year, reaching a substantial total of USD45 billion, compared to USD37.4 billion recorded during the same period in 2023. This consistent upward trajectory in GCC contract awards underscores the unwavering commitment of GCC governments to advance their diversification projects, further buoyed by robust state funding, as highlighted in a report by Kamco Invest.
Specifically, Qatar emerged as a standout performer, with the total value of contracts awarded surging by 68.5 percent year-on-year to USD6.1 billion in the first quarter of 2024, compared to USD3.6 billion in the corresponding period of 2023, based on data from MEED Projects. The substantial growth in contract awards in Qatar was predominantly fueled by a significant increase in the value of projects awarded within the oil sector, which accounted for 80.5 percent of the country's total contracts awarded during the year.
This surge in the oil sector projects was primarily attributed to a notable development—the awarding of contracts totaling USD4.9 billion in the first quarter of 2024, in contrast to no contracts awarded during the same period in 2023. Notably, a significant portion of this increase stemmed from a substantial USD6 billion engineering, procurement, and construction (EPC) contract aimed at augmenting oil production from the Al Shaheen offshore oil field by approximately 100 thousand barrels per day (tb/d). This project marks the third phase of capacity expansion for the Al Shaheen oil field, which boasts a production potential of 300 tb/d and has been undergoing expansion efforts for over six years.
Moreover, the construction sector in Qatar saw a remarkable surge, with the total value of contracts awarded experiencing a staggering increase of 347.4 percent, reaching USD519 million in the first quarter of 2024, compared to USD116 million in the same period of 2023. Similarly, the power sector witnessed a notable uptick, with the aggregate value of contracts awarded improving by 49.1 percent to reach USD489 million during the comparable period.
The growth in GCC contract awards during the first quarter of 2024 was not limited to Qatar alone. In fact, three out of the six countries in the GCC region registered year-on-year growth in project awards, with prominent markets like Saudi Arabia and Qatar leading the way, while the remaining three countries experienced declines. Furthermore, the gas and oil sectors witnessed a significant surge in the value of projects awarded, signaling a promising start to the year for the GCC region's project landscape.
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