GCC Contract Awards Reach Record High in 2023

Unprecedented Growth in GCC Contract Awards

The Gulf Cooperation Council (GCC) countries have witnessed a historic surge in contract awards in 2023. The total value reached an astounding $222 billion (Dh 814.7 billion), marking an unprecedented high in the region. This growth indicates a robust economic development across the GCC, led primarily by Saudi Arabia and the UAE, with Qatar, Kuwait, Oman, and Bahrain also contributing significantly​​.

Key Contributors: Saudi Arabia and the UAE

In Saudi Arabia, the increase in contract awards was primarily fueled by initiatives aligned with Saudi Vision 2030. This includes major contracts for Giga projects such as the Speed Park within Qiddiya, various residential communities within Roshn, and mega projects like Amaala and preliminary works at New Murabba. The utility sector in Saudi Arabia also played a significant role, securing awards over $13 billion, which aligns with the objectives of Saudi’s National Renewable Energy Programme​​.

In the UAE, the urban sector led the charge with significant awards for groundbreaking projects like the Middle East’s inaugural gaming resort, Wynn Resort in Al Marjan Island, and the ambitious Habtoor Tower, which aims to be the world’s largest residential tower. The UAE’s oil and gas sector closely followed, with awards worth over $17 billion for major projects including the Hail & Ghasha project and the $3.7 billion Ethane recovery plant, crucial to Adnoc’s decarbonization strategy​​.

Conclusion

The record-breaking contract awards in the GCC in 2023 highlight the region’s dynamic economic growth and diversification. Driven by ambitious national visions and strategic investments in various sectors, these countries are paving the way for substantial economic development and sustainable growth in the Middle East. The focus on mega projects, renewable energy, and groundbreaking urban developments reflects the region’s commitment to innovation and progress.