Qatar Sees 68.5% Surge In Contracts Awarded In Q1
Date
5/24/2024 10:39:16 AM
(MENAFN- The Peninsula) Deepak John |The Peninsula
Doha, Qatar: The Gulf Cooperation Council (GCC) project awards increased by 20.3 percent year-on-year (y-o-y) during first quarter (Q1) of 2024 to reach $45bn as compared to $37.4bn during Q1 2023
The consistent elevated trend in GCC contract awards underlines the entrenched resolve of GCC governments to see through their diversification projects, as well as state funding support, noted a report by Kamco Invest.
The total value of contracts awarded in Qatar increased by 68.5 percent y-o-y to reach $6.1bn during Q1 2024 as compared to $3.6bn in Q1 2023, according to MEED Projects data. The growth in contract awards was primarily due to the jump in value of projects awarded in Qatar's oil sector during Q1-2024 which represented 80.5 percent of the total contracts awarded in the country during the year.
The total value of oil sector projects awarded jumped from no contracts awarded in Q1 2023 to $4.9bn during Q1 2024 reflecting $6bn EPC contract to increase oil production from Al Shaheen offshore oil field by about 100 tb/d. The project is the third capacity expansion of the Al Shaheen oil field.
The Al Shaheen oil field, which is estimated to have a 300 tb/d production potential has been undergoing capacity expansion works for over six years. Total value of contracts awarded in Qatar's Construction Sector increased by 347.4 percent to reach $519m against $116m in Q1 2023. Similarly, aggregate value of contracts awarded in the Power Sector improved 49.1 percent to reach $489m during the similar period.
The growth in GCC contract awards was evenly distributed during Q1 2024 as three out of the six countries in the GCC recorded y-o-y growth in their project's awards, including two of the largest projects markets in the region, Saudi Arabia and Qatar, while the remaining three countries witnessed declines.
In terms of sectors, Q1 2024 witnessed a jump in the value of projects awarded in the gas and oil sectors.
Total GCC gas sector contracts awarded during the quarter jumped more than 19 times to reach $7.4bn as compared to $382m during Q1-2023. On the other hand, the total value of contracts awarded in the GCC oil sector increased nearly seven times to reach $9bn during the similar period, making the sector the biggest contributor in terms of absolute growth in value of contracts awarded in the GCC region during the quarter.
MENAFN24052024000063011010ID1108254140
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.