01 September 2024

The total value of awarded contracts in Saudi Arabia for the first quarter soared to SR119 billion ($32 billion), recording a 79 per cent growth over last year, while on a quarter-on-quarter basis, the value of contracts grew by 35 per cent, according to a report by the US-Saudi Business Council (USSBC).

Sector-wise, the oil and gas sector dominated the scene walking away with the lion’s share of contracts worth SR51.2 billion ($13.7 billion) followed by real estate which climbed to the second spot with awarded contracts worth SR24.4 billion ($6.5 billion) and the water sector at the third spot with SR24 billion ($6.4 billion) contracts.

The USSBC Contract Awards Index ascended to 415.89 points as the sector witnessed a surge in contract values, which has elevated the CAI above the 200-point mark for 18 consecutive months. European, Indian and Chinese contractors bagged the majority project awards, while local contractors contributed to smaller projects.

The USSBC report stated that the real estate sector gained a significant share of contract awards, worth SR24.4 billion ($6.5 billion) or 21 per cent of the total Q1 2024 figures.

This comes following a strong 2023, where the sector saw $22.3 billion in awarded contracts, the second highest on record.

Giving a breakup on the real estate sector, the USSBC said residential real estate clinched deals worth $853 million followed by hospitality projects with $1.3 billion contracts and mixed-use developments with $371 million.Of these, commercial real estate dominated the list with $4 billion, accounting for 61 per cent of the market, for 40 projects.

The largest of these was for the construction of a stadium in Jeddah Central District, awarded by Jeddah Central Development company  to a oint venture of Sama Construction for Contracting and China’s CRCC for $1.1 billion. 

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