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Muscat: Whole undertaking awards within the GCC witnessed a drop in the course of the second quarter of 2024 primarily because of the unprecedented droop of undertaking awards in Qatar coupled with steep fall in awards within the UAE.
Combination Gulf Cooperation Council (GCC) undertaking awards declined by 19.7 % to $51.7 billion in the course of the second quarter of 2024 as in comparison with $64.3 billion in the course of the second quarter of 2023. GCC contract awards had been evenly distributed throughout Q2-2024 as three out of the six international locations within the GCC registered year-on-year (y-o-y) development of their undertaking awards whereas the remaining three markets witnessed y-o-y declines in the course of the quarter.
Regardless of persevering with decrease oil output, contracts awarded by Saudi Arabia throughout Q2-2024 recorded a 9.9 % improve to succeed in $30.6 billion as in comparison with $27.8 billion throughout Q2-2023. One of many predominant drivers of undertaking exercise development within the Kingdom in the course of the quarter is the acceleration of Neom tasks because the Kingdom maintains its concentrate on delivering the 2030 Imaginative and prescient programme on time. In its newest Regional Financial Outlook, the IMF has revised down actual GDP development of all of the six GCC member states citing regional insecurity and persevering with oil manufacturing cuts. On the again of this financial surroundings, it’s comprehensible that GCC contracts awarded within the area retreated y-o-y in the course of the quarter.
Whole contracts awarded within the UAE declined by 23.6 % y-o-y throughout Q2-2024 to succeed in $16.3 billion as in comparison with $21.4 billion throughout Q2-2023. Then again, mixture tasks awarded in Qatar dropped 98.5 % y-o-y throughout Q2-2024 to succeed in $162 million as in comparison with $10.5 billion in Q2-2023. This steep fall of Qatari contracts awarded has dragged down the mixture development of GCC contracts awarded throughout Q2-2024. It’s noteworthy to underline that Qatar has had one in every of its finest years in 2023 when it comes to worth of contracts awarded because of the $10 billion LNG undertaking awarded to develop the North Subject South. Combination tasks awarded in Kuwait jumped 33 % y-o-y to succeed in $2.3 billion up from $1.7 billion in Q2-2023.
By way of sectors, Q2-2024 witnessed a leap within the worth of tasks awarded within the Fuel, Energy and Transport sectors. Whole GCC Fuel Sector contracts awarded in the course of the quarter jumped 17.3 % to succeed in $14.0 billion as in comparison with $12 billion throughout Q2-2023. Furthermore, the overall worth of contracts awarded within the GCC Energy and GCC Transport sectors reached $9.8 billion every recording a development of 9.7 % and 27.3 % respectively.
GCC tasks market outlook
In accordance with MEED Tasks, the overall worth of tasks which are deliberate or in pipeline within the GCC stood at $3.5 trillion as of two, July, 2024. Saudi Arabia comprised the lion’s share of ongoing or upcoming GCC tasks (54 % or USD 1.87 trillion) adopted by the UAE which has $856.9 billion and Oman with estimated ongoing or upcoming tasks at $245.5 billion. Nevertheless, the image was totally different when it comes to solely upcoming tasks within the area excluding ongoing contracts. Whole GCC tasks within the pipeline (upcoming tasks) reached $1.43 trillion as of two July, 2024. Expectedly, Saudi Arabia additionally dominated the Mena area’s tasks within the pipeline representing 51.6 % ($737.2 million) adopted by the UAE which comprised 20.4 % ($291.4 million)
Whole worth for upcoming tasks for Kuwait reached $112.4 million throughout July-2024 comprising 7.9 % of the overall GCC upcoming tasks. By way of sector illustration, the Building Sector comprised the biggest sector, 29.8 % or $426.4 billion, of upcoming tasks within the GCC adopted by the Transport Sector which comprised 20.8 % or $297.9 billion of upcoming tasks within the area.
Future oil and fuel tasks are anticipated to play a big position within the GCC and MENA areas’ future contract awards.
In accordance with MEED Tasks, at the moment there are over $408 billion price of deliberate and an awarded oil and fuel tasks within the Mena area of which Saudi Arabia includes almost 19 % ($77 billion) adopted by the UAE at 16.5 % ($67.4 billion) and Qatar at 8.7 % ($35.3 billion). Two of the highest ten largest by worth of upcoming oil and fuel tasks within the Mena area had been within the UAE; specifically the Higher Zakum full subject growth undertaking valued at $16 billion and the Higher Zakum full subject growth : UZ1000 growth undertaking valued at $6.6 billion.
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