Saudi Arabia captured the top spot in the Gulf Cooperation Council’s projects market, securing $28.1 billion in contract awards. Consequently, this total accounted for over half of all regional activity, making Saudi Arabia the center of GCC project growth. Meanwhile, across the region, overall contract awards fell 27 percent year on year to $54.8 billion in the third quarter. Additionally, nine-month awards dropped 30.5 percent to $154.4 billion.
Furthermore, Kamco Invest highlighted that contract awards will gain momentum in the coming months, driven primarily by Saudi Arabia and the UAE. The report also noted that 2025 awards will remain below 2024’s record figures. Analysts emphasized that Saudi Arabia projects growth is central to the GCC’s construction and infrastructure plans, and therefore, it continues to influence regional activity.
In terms of sector performance, results varied significantly across the region. For instance, six out of eight industries experienced declines in contract awards. Construction fell sharply by 62.4 percent to $11.1 billion, and power decreased 13.3 percent to $17.1 billion. Only the oil and gas sectors managed to post growth. Within Saudi Arabia, power led with $9.8 billion in awards, while construction totaled $5.2 billion. Oil awards reached $3.9 billion, and no chemical sector contracts were reported.
Moreover, notable projects in Saudi Arabia included an $853 million road package for Almabani General Contractors and a $167 million contract for a Pirelli tyre plant in King Abdullah Economic City. Over the first nine months, Saudi contract awards nearly halved to $61.5 billion from the previous year.
The surge in Saudi giga-project contracts by 20 percent illustrates a clear shift from planning to execution, particularly in real estate, tourism, and infrastructure. These developments, in turn, align closely with the Kingdom’s Vision 2030 diversification drive. Kamco observed that although project activity has been slow, Saudi Arabia’s overall economic performance has exceeded expectations.
In contrast, the UAE’s contract awards fell 65.8 percent year on year to $6.7 billion, moving it from the largest GCC projects market to third place. Similarly, nine-month awards fell 18 percent to $59.7 billion. Construction led UAE activity at $5.4 billion, despite a significant decline, while oil and gas projects remained inactive. Major awards included $593 million for Sharjah’s Madar Mall and $300 million for Ras Al-Khaimah’s Erisha Smart Manufacturing Hub.
Meanwhile, Qatar recorded remarkable growth, with contract awards climbing 115.9 percent to $13.6 billion, driven by preparations for the 2030 Asian Games. Oil and gas dominated Qatar’s project allocations, and China Offshore Oil Engineering won roughly $4 billion of contracts for the Bul Hanine offshore field.
Kuwait’s projects market also improved, with third-quarter awards rising 33.8 percent to $4.3 billion. Over nine months, awards reached $7 billion. Key projects included the $4 billion Al Zour North IWPP phases two and three and smaller contracts in oil and public infrastructure.
Looking ahead, analysts expect the fourth quarter to show stronger project awards in Saudi Arabia and the UAE. The GCC’s pre-execution pipeline totals about $1.78 trillion, with construction, transport, and power dominating allocations. Notably, Saudi Arabia leads the pipeline with $887 billion of upcoming projects, while the UAE accounts for $434 billion. Saudi Aramco plans 99 projects over the next three years and currently executes about $50 billion in contracts. Clearly, Saudi Arabia projects growth remains the region’s driving force and a key factor in shaping the GCC’s market dynamics.
