The UAE racked up the most project contracts in the GCC in 1Q 2025, with USD 26.1 bn worth of contract awards, up 11.7% y-o-y, according to Kamco Invest ’s GCC Projects Market Update report (pdf). This came against a backdrop of a 26.8% y-o-y decline in overall GCC project activity.

The UAE accounted for 49.9% of all awarded GCC contracts in the quarter, up from 32.7% in the same quarter last year. The power sector spearheaded the growth with a 215.2% jump y-o-y to reach USD 7.9 bn. While construction awards dipped by 52% y-o-y to USD 6.1 bn, they still accounted for almost a quarter of contracts. The chemicals sectors gained significant momentum, surging to USD 1.7 bn from USD 218 mn the same period last year.

Driving growth: Economic diversification projects, targeted investment strategies, and structural reforms helped the country bring in a plethora of contracts, the report said, highlighting Abu Dhabi’s USD 10 bn tourism push and Adnoc Gas’ USD 13 bn five-year expansion plan. Robust non-oil sectors were also cited as helping keep momentum strong.

Regionally, the GCC project market contracted despite UAE and Kuwaiti momentum, with a drop in power and construction awards for Saudi Arabia, Qatar, and Bahrain pulling down the regional figure to USD 52.4 bn, its lowest in eight quarters. KSA’s 1Q total fell by 49.9% y-o-y to USD 17 bn, despite its power sector remaining a bright spot with over USD 90 bn worth of projects in the pipeline.

Looking ahead, the regional pipeline remains strong, with USD 1.5 tn in pre-execution projects across the GCC set to be awarded within the year. Over half of these are in Saudi Arabia, while the UAE has a USD 312.3 bn contract pipeline.

On the downside, lower oil prices may weigh on project financing in the second half of the year, despite diversified sector strategies, oil’s exemption from tariffs, and relatively limited trade exposure to the US.

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