Qatar Sees 4.5% Surge In Contracts Awarded In 2024

DOHA: Qatar witnessed a significant surge in value of projects in oil sector reaching $6.3bn in last year showing a huge increase when compared to 2023. The oil sector accounted for 33.5% of the total contracts awarded in the country during the year, noted a report by Kamco Invest.

The total value of contracts awarded in Qatar witnessed a moderate increase of 4.5% year-on-year, reaching $18.9bn in 2024 compared to $18.1bn in 2023, according to data from MEED Projects.

This growth in contract awards was primarily attributed to a significant rise in the value of projects within Qatar's oil sector, which recorded an almost eightfold increase to reach $6.3bn in 2024, up from $809m in 2023.

Conversely, Qatar's gas sector, typically the largest in terms of project value, witnessed a 49.5% year-on-year decline, falling to $6bn in 2024 compared to$11.8bn in 2023. Meanwhile, the power sector saw a substantial surge, with the total value of contracts awarded increasing 7.5 times to $3.4bn, up from $448m in 2023.

This represented the second largest absolute growth in project value within the country. Qatar also witnessed several major project awards during the year, with two of the largest contracts making into the top 20 projects in the GCC region.

These included the $4bn QatarEnergy LNG - North Field Production Sustainability: Phase 2 project and the $2.1bn NOC - Al Shaheen Oil Field Development: Ruya Development: EPC-11. The Ruya Development contract is a subcontract of the significant North Oil Company expansion project at the Al-Shaheen offshore oil field.

Qatar's North Oil Company has awarded $6bn worth of EPC contracts for a project aimed at increasing oil production by approximately 100,000 barrels per day from the Al-Shaheen Oil Field, the report noted.

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 $273.2bn, compared to $249.4bn in 2023.

The outlook for 2025 remains bright for the GCC projects market with more than $120bn worth of projects already in the bid evaluation stage, that would mostly translate into awards.

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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