The Gulf Cooperation Council (GCC) countries have hit a new milestone in 2023, with contract awards soaring to an unprecedented $222 billion (Dh 815 billion). This historic surge has been led primarily by Saudi Arabia and the UAE, closely followed by Qatar, Kuwait, Oman, and Bahrain. The data, released by BNC, underscores a significant shift in the region’s economic landscape.
The urban sector stands out as the primary recipient of these contracts, overshadowing other sectors like oil and gas and utilities. Saudi Arabia’s remarkable rise in contract awards is closely tied to its ambitious Saudi Vision 2030. Major initiatives within this vision, such as the Speed Park at Qiddiya, residential projects in Roshn, and colossal undertakings like Amaala and New Murabba, have been key drivers. The utility sector in Saudi Arabia also saw significant movement, with over $13 billion in contracts awarded, aligning with the National Renewable Energy Programme’s objectives.
In the UAE, the urban sector leads with groundbreaking projects. Noteworthy among these is the Middle East’s first gaming resort, Wynn Resort at Al Marjan Island, and the ambitious Habtoor Tower, which aims to become the world’s largest residential tower. The UAE’s oil and gas sector isn’t far behind, with substantial projects like the Hail & Ghasha project and the $3.7 billion Ethane recovery plant, a crucial part of Adnoc’s decarbonisation strategy.
Qatar stands out within the GCC, outside of Saudi Arabia and the UAE, with contract awards exceeding $22 billion. A significant portion of these awards is allocated to oil and gas projects, including the substantial $10.2 billion North Field South Expansion project, which involves the addition of two new LNG trains.
Kuwait’s contract awards total $17.21 billion, with the oil and gas sector making up about 60% of this value. Oman’s most significant contract award was in the industrial sector, with the $3 billion Integrated Green Steel Complex in Duqm.
This surge in contract awards across the GCC reflects a robust economic growth trajectory and a diversification of investments across various sectors. The focus on projects in urban development, renewable energy, and major industrial initiatives signals a strategic shift in the region’s developmental priorities, setting the stage for dynamic economic expansion in the coming years.
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