Saudi Arabia awarded SAR 118.8 B contracts in Q1 2024: US-Saudi Business Council

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The value of contracts awarded in Saudi Arabia rose 77% year-on-year (YoY) to SAR 118.8 billion in Q1 2024, according to a report from the US-Saudi Business Council.

 

Quarterly, contract values surged by 110% to SAR 56.5 billion.

 

This value represents the second highest since Q3 2015, when it reached SAR 147.1 billion.

 

Saudi Arabia’s oil and gas sector, led by Saudi Aramco, reported the highest rise. In addition, mega projects within the Saudi Vision 2030, such as the NEOM project and the Red Sea development, contributed significantly to this growth.

 

Value of Contracts since Q1 2020

Period

Value (SAR bln)

Change (%)

Q1 2020

45.2

+28%

Q2 2020

11.0

(76%)

Q3 2020

7.4

(85%)

Q4 2020

16.0

(55%)

Q1 2021

19.2

(58%)

Q2 2021

25.8

+134%

Q3 2021

26.8

+262%

Q4 2021

70.2

+339%

Q1 2022

46.0

+140%

Q2 2022

48.6

+88%

Q3 2022

25.2

(6%)

Q4 2022

71.5

+2%

Q1 2023

67.0

+46%

Q2 2023

60.0

+23%

Q3 2023

88.0

+249%

Q4 2023

56.5

(21%)

Q1 2024

118.8

+77%
 

The oil and gas sector recorded 19 contracts worth SAR 51.2 billion in Q1 2024, versus SAR 42 billion last year, representing the highest quarterly rate.

 

The report indicated that the real estate sector awarded 105 contracts worth SAR 24.4 billion. Of this, commercial real estate contracts totaled SAR 11.3 billion, hospitality sector real estate contracts amounted to SAR 4.8 billion, residential real estate contracts reached SAR 3.2 billion, and mixed-use real estate contracts were valued at SAR 1.4 billion.

 

The water sector concluded 14 deals worth SAR 24 billion.

 

In 2023, the water sector constituted 80% of the total value of awarded contracts, due to the rising number of mega projects, including developing dams, desalination plants, and expanding the water network and wastewater canals.

 

The following table shows the value of contracts awarded by sector during the first quarter of 2024:

 

Contracts by Sector in Q1 2024

Sector

Value (SAR bln)

Share (%)

Oil & Gas

51.2

43%

Real Estate

24.4

21%

Water

24.0

20%

Other

19.2

16%

Total

118.8

100 %

 

The Eastern Region led in the value of contracts awarded during the first quarter, totaling nearly SAR 53.1 billion, which constitutes 45% of the total contracts.

 

Tabuk followed with SAR 24.9 billion, or 21% of the total value of contracts, as NEOM awarded seven contracts worth SAR 24 billion, and the Red Sea International Co. (RSI) awarded three contracts worth SAR 671 million.

 

Makkah ranked third with SAR 16.7 billion. This includes a SAR 5 billion contract awarded in the industrial sector for the establishment of the Ceer factory for manufacturing electric vehicles, as detailed in the following table:

 

Contracts by Region in Q1 2024

Region

Value (SAR bln)

Share (%)

Eastern Province

53.1

45%

Tabuk

24.9

21%

Makkah

16.7

14%

Others

24.1

20%

Total

118.8

100 %

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