Saudi contract awards ‘highest since 2015’
01 April 2020
The total value of awarded contracts for the year 2019 in Saudi Arabia surged to hit SR197.1 billion ($52.6 billion), which is the highest since 2015, said the US-Saudi Business Council (USSBC) in its Contract Awards Index for the Fourth Quarter 2019.
The total value of awarded contracts during the fourth quarter hit SR35.3 billion, it stated.
Sector-wise, real estate topped the list with SR12.1 billion worth of awarded contracts, while the oil and gas sector edged down to second from last quarter’s top spot as the value of awarded contracts reached SR7.7 billion, followed by the water sector at third position with SR6.3 billion worth of contract awards, stated the report.
The USSBC Contract Awards Index (CAI), created by the US-Saudi Business Council’s economist Albara’a Alwazir, encompasses construction-related contract awards across all sectors within Saudi Arabia. A CAI reading of 100 points and above indicates an expansion while a sub-100 point reading indicates a possible contraction.
The CAI reached 210.27 points at the end of the fourth quarter. This marks the seventh consecutive month the CAI has remained above the 200 point mark despite a slide during Q3 and Q4. The spike in awarded contracts in June, which led the CAI to reach its highest total of 245.67 points in July aided in the recovery.
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