USSABC: Saudi Arabia contracts grow 164% Y-o-Y to $12.7bn in Q3'19
US-Saudi Arabian Business Council says contracts worth $43.1bn were awarded in the first three quarters of 2019 in the kingdom
Saudi Arabia witnessed contracts worth $12.7bn (SAR47.8bn) being awarded in Q3 2019, with the value having surged 164% year-on-year compared to Q3 2018, as construction activities continued to grow during the period, according to US-Saudi Arabian Business Council’s (USSABC) Contract Awards Index for third quarter of 2019.
According to the report, The USSABC’s Contract Awards Index reached 236 points. The value of contracts in the first three quarters of 2019 spiked by 117%, which is equivalent to $23.3bn (SAR87.2bn) compared to the same period in 2018. The total value of awarded contracts in the first three quarters of 2019 reached $43.1bn (SAR161.8bn).
However, the value of awarded contracts dropped in Q3 2019 compared to Q2 by $4.6bn (SAR17.4bn), marking a 27% retraction rate.
The most number of contracts were awarded in Saudi Arabia oil and gas sector, accounting to 34% of the total contract awards in Q3 2019 valued at $4.4bn (SAR16.4bn), followed by the kingdom’s real estate sector with 25% worth $3.2bn (SAR12.1bn), industrial sector with 20% reaching $2.6bn (SAR9.6bn), and urban development, water, transportation, and power accounted for 15% of the total value of contracts.
Saudi Arabia’s Eastern Province recorded the highest number of contract awards with 64%, followed by Riyadh with 17%, and Makkah with 7%.
Saudi Aramco contracts in the oil and gas, industrial, and water sectors dominated the Eastern Province. Riyadh outperformed Makkah for the first time in 2019, with major contracts in urban development, power, and real estate, while Makkah won the largest contracts in real estate, power, and transportation sectors