Saudi among worst GCC construction markets, data shows

Saudi Arabia was among the worst performing markets in the first half of 2016, with the kingdom awarding $4.5 billion worth of contracts– down from $19.9 billion in the same period last year, Middle East Economic Digest (MEED) reported.

Qatar also saw a sharp decline, awarding $2.1 billion of projects, down from $13.9 billion in H1-2015.

Dubai, meanwhile, has become the most active market in the GCC for construction projects, as Expo 2020 preparations gain momentum and activity remains slow in the rest of the region due to the oil slump.

The emirate accounted for 44 percent of construction and transport contract awards in the GCC in H1 2016, data from MEED projects showed. The total value of awards recorded in the first six months of the year was $13.6 billion, a 56 percent YoY increase. 

Among the biggest projects awarded in Dubai recently was the AED 10.6 billion contract for the Route 2020 metro expansion, given to a consortium comprising of Spain’s Acciona, Turkey’s Gulermak, and France’s Alstom.

The total value of projects awarded in the GCC was $31.3 billion, decreasing 44 percent from the first half of last year and 13 per cent from the second half of 2015.

The less severe decline between H2 2015 and H1 2016 could indicate that the market is stabilizing and the region’s construction sector is adjusting to low oil prices, MEED reported.