Saudi contract awards in 2024 beat previous record: Saudi Arabia’s contract awards in 2024 reached USD 146.8 bn, overtaking 2023’s record of USD 118.7 bn, according to Kamco Invest’s GCC Projects Market Update (pdf). The Kingdom accounted for over 53.8% of total GCC project awards throughout 2024, the report says.

On a quarterly basis: In 4Q 2024, Saudi saw a 16.3% q-o-q increase in contracts, totaling USD 40.4 bn while GCC project awards hit USD 74.8 bn, the highest quarterly total in six years.

Power and gas driving growth: The power sector saw the most significant growth in project awards, which more than doubled to USD 55.0 bn in 2024, while the gas sector’s project awards nearly doubled to USD 19.1 bn. In the renewables space, Saudi Arabia secured 25 projects generating 23 GW of electricity. However, the construction sector experienced a 10.6% decline, falling to USD 28.4 bn in total awards.

Saudi Arabia accounted for seven of the 10 largest GCC projects, including the USD 4.7 bn Neom Trojena Valley Cluster Dam project. Other significant contracts last year included the USD 3.7 bn High Voltage Direct Current (HVDC) transmission line project and the USD 3.2 bn first package of Saudi Aramco’s USD 7.7 bn Fadhili Gas Plant expansion, which will increase its processing capacity from 2.5 bn to 4 bn cubic feet per day, alongside the National Housing Company’s USD 3 bn housing project.

The regional angle: The total value of contracts awarded in the GCC reached USD 273.2 bn in 2024, marking a 9.6% increase from USD 249.4 bn in 2023. Growth was primarily driven by projects in Saudi and the UAE, with the power and oil sectors leading the way, recording USD 67 bn and USD 29.7 bn in awards, respectively.

Good tidings ahead: The outlook for contract awards across the GCC in 2025 is promising, the report says, with over USD 120 bn in projects already in the bid evaluation stage.The Saudi construction and power sectors, particularly those involving Neom’s gigaprojects, are expected to drive continued growth.

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