MEED magazine has reported a robust 88% annual growth in project contract awards in the Gulf countries for 2023, totaling over $205 billion. This surge in project activity marks a new record for project awards in the Gulf Cooperation Council (GCC) countries, surpassing the previous year’s total by 88%. The data, provided by MEED Projects, a regional project activity monitoring platform, highlights the remarkable nature of this wave of awards over the past 12 months.
The significant increase in project awards in 2023 also represents an 18% growth over the previous record set in 2014, when project awards reached $173 billion. This surge in activity is particularly noteworthy considering the differences in market conditions between 2014 and 2023. In 2014, project awards were influenced by the higher price of Brent crude, which reached $100 per barrel, in contrast to the current level of around $80 per barrel.
MEED magazine emphasizes that the average annual project awards from 2014 to 2023 stood at approximately $130 billion. The record total awards in 2023 exceeded this average by 58%. This demonstrates the exceptional growth and increased investment in the Gulf region’s project markets.
The surge in project activity in 2023 was primarily driven by exceptional levels of contract awards in Saudi Arabia and the United Arab Emirates. Saudi Arabia’s project market saw contracts valued at $92 billion, aligning with the goals of Vision 2030, which involve substantial investments in energy infrastructure. The United Arab Emirates witnessed a rebound in construction activity and renewed investments in hydrocarbon exploration, resulting in contract awards valued at $78 billion.
Qatar ranked third in terms of project market activity, securing significant gas contracts valued at $19 billion. Kuwait followed as the fourth most active market with contracts worth $8.2 billion. Oman and Bahrain also secured notable project awards, with contracts valued at $6.6 billion and $1.2 billion, respectively.
At the broader Middle East and North Africa (MENA) level, MEED Projects highlights that the past 12 months have been a record-breaking period for project activity. The GCC markets, in particular, have seen contractors secure $254 billion in project awards in 2023, surpassing the previous record of $240 billion set in 2014.
The surge in project contract awards in the Gulf countries for 2023 reflects the region’s commitment to infrastructure development and economic growth. These investments not only contribute to the region’s economic diversification but also create employment opportunities and drive innovation. The GCC countries continue to position themselves as attractive destinations for international investors and project contractors, offering a range of exciting opportunities across various sectors.
As the Gulf region continues to thrive, it is crucial for investors and contractors to stay updated on the latest project developments and opportunities. MEED magazine and MEED Projects play a vital role in providing reliable and comprehensive information, enabling stakeholders to make informed decisions and capitalize on the growing project markets in the Gulf countries.
Source: TimesKuwait
