Total contract awards in Saudi Arabia more than halved in 2025 to USD 84.3 bn — the lowest level in three years — as the Kingdom ceded its position as the GCC’s largest projects market to the UAE. Saudi’s share of total regional awards fell 12.8 percentage points y-o-y to 39.5%, according to Kamco Invest’s GCC Projects Market Update (pdf).

Behind the dip: The contraction was broad-based, with award values declining across all eight tracked sectors. The downturn was driven by a 68% y-o-y drop in 4Q 2025 and a cooling of gigaproject awards, which totaled USD 8.5 bn in the first nine months of the year compared to nearly USD 30 bn in 2024.

The sector breakdown: Power remained Saudi Arabia’s largest sector by value, yet awards dropped 53% y-o-y to USD 25.1 bn. The construction sector saw a 44.4% decline to USD 22.2 bn, while the chemical sector didn’t see any new awards during the year.

Zooming out

Contract awards in the GCC overall fell 32% y-o-y. Across the Gulf, total project awards dropped to USD 213.4 bn, down from USD 314 bn in 2024, led by Saudi’s decline. Kuwait saw a 16.2% uptick, and Qatar logged a more modest 4.0% increase, while Oman’s awards dropped 51.0%, and Bahrain recorded a 54.9% downturn. Contract awards in 4Q 2025 were at a 13-year low for quarterly results, as all GCC nations saw a decline.

Subdued oil prices averaging USD 63.1 / bbl weighed on GCC spending, despite Opec+ phasing out its production cuts.

This downturn follows two years of record-breaking capex, suggesting the region is digesting a massive portfolio of existing projects valued in excess of USD 1 tn.

Looking ahead

GCC project activity is expected to rebound, supported by stabilizing oil prices, ongoing diversification drives from non-oil activity, economic expansion across the GCC, and USD 1.9 tn worth of projects in the pre-execution pipeline, according to Kamco Invest. Recovery may be moderated if crude prices remain subdued, but overall regional momentum is forecast to improve.

The Kingdom is also expected to see a return of momentum on the back of a USD 949.9 bn pre-execution pipeline, which accounts for around half of all planned projects in the GCC. Construction remains the primary focus for future activity, with USD 360.8 bn worth of upcoming projects, followed by power (USD 199.4 bn) and transport (USD 150.8 bn).

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