DOHA: The total project awards in Qatar improved 57.9 percent year on year (y-o-y) during the third quarter (Q3) of this year to reach $4.2bn as compared to $2.7bn in the corresponding period in 2023.
Qatar’s aggregate quarterly contract awards recovered from their lowest level in over sixteen quarters during second quarter of 2024 that was at $187m. The gas sector represented the lion’s share (94.6 percent) of the total amount of contracts awarded during Q3-2024. The gas sector recorded 135.3 percent y-o-y increase during Q3-2024 to reach $4bn as compared to $1.7bn, according to GCC projects market update by Kamco Invest.
Apart from the gas sector there were only three other sectors that recorded contract awards during the quarter led by the transport sector ($93m), the oil sector ($90m) and the construction sector ($46m).
The total value of projects that are planned or in pipeline in the GCC stood at $2.7 trillion as of October 10, 2024. Saudi Arabia comprised the lion’s share of ongoing or upcoming GCC projects (55.9 percent or $1.53 trillion) followed by the UAE which has $627.6bn and Oman with estimated ongoing or upcoming projects at $208.9bn, according to MEED Projects.
However, the picture was different in terms of only upcoming projects in the region excluding ongoing contracts. Total GCC projects in the pipeline (upcoming projects) reached $1.43 trillion as of October 10, 2024. Expectedly, Saudi Arabia also dominated the MENA region’s projects in the pipeline representing 53 percent ($763bn) followed by the UAE which comprised 20 percent ($287.1bn).
Total value for upcoming projects for Kuwait reached $108.5bn during October 2024 comprising 7.5 percent of the total GCC upcoming projects. In terms of sector representation, the construction sector comprised the largest sector, 30.9 percent or $444.6bn, of upcoming projects in the GCC followed by the transport sector which comprised 19.7 percent or $283.5bn of upcoming projects in the region.
The report further stated that Q3, 2024 witnessed a jump in the value of projects awarded in only two out of the eight sectors that is the oil and power sectors. Total GCC power sector contracts awarded during the quarter jumped 5.5 times to reach $18.4bn as compared to $3.4bn during Q3, 2023. Moreover, the total value of contracts awarded in the GCC oil sector has reached $5.2bn recording an increase of 86.1 percent.
