Value of Saudi construction contracts falls 39% in Q1

The total value of construction contracts awarded in Saudi Arabia fell 39 percent quarter-on-quarter in Q1-2016 to SAR 27.9 billion, National Commercial Bank’s (NCB) latest Construction Contracts Index showed.

January recorded the highest contract value during the first quarter, which stood at SAR 14.7 billion. March came second with SAR 9.99 billion.

 The value of construction deals hit a seven-month low of SAR 3.2 billion in February, while Oil and gas contracts accounted for 47 percent, or SAR 13.13 billion, of the total value of contracts in Q1.

Hotels accounted for 21 percent, or SAR 5.87 billion of the total value, followed by residential real estate at 16 percent.

Saudi Arabia’s Eastern Province claimed the largest share of the contracts during the first three months of this year, with 51 percent of the total value. Awarded contracts included mega projects within the oil and gas, power and real estate sectors.

Awarded for projects in Madinah made up 13 percent of total contracts, which were granted to privately-held firms for the hotel developments.