Saudi contract awards surge to highest in four years

Author: 
Arab News
ID: 
1568122222562743100
Tue, 2019-09-10 16:31

LONDON: The value of contracts awarded in Saudi Arabia almost
doubled in the second quarter compared to a year earlier, led by
the energy, property and military sectors, according to a report
published on Tuesday.
The contract tally reached SR64.3 billion ($17.2 billion) during
the period — up 32 percent on the previous quarter and an
increase of 92 percent on a year earlier, the US-Saudi Arabian
Business Council (USABC) said in its report.
It represents the highest value of contracts awarded by quarter in
four years with more awards made in the first half of this year
than the whole of 2018.
“This highlights the resurgence in 2019, which is on pace to
match the construction boom witnessed prior to the brief economic
downturn,” USABC said.
The collapse of oil prices in 2014 led to billions of dollars worth
of projects being placed on hold throughout the Gulf, but business
activity in Saudi Arabia, the region’s largest economy has
started to accelerate.
While a majority of the contracts were awarded by the government,
the private sector was an active participant in the real estate
sector in particular, USABC noted.
The oil and gas sector overwhelmingly dominated the contracts
awarded in the period, accounting for almost three-quarter of the
total.
Saudi Aramco continued awarding projects to international
contractors at its Marjan oil field as well as the Tanajib oil
complex in the Eastern Province, the council said.
For the second consecutive quarter, the Eastern Province
contributed the largest share of awarded contracts by region.
The order pipeline for the rest of the year also looks set to
continue the strong momentum, led by Aramco’s Marjan and Berri
field projects as well as the first phase of the Red Sea Tourism
Project.

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Source: FS – All-News-Economy
Saudi contract awards surge to highest in four years