The GCC region has also seen the highest quarterly project awards value in over five years.
The Gulf Cooperation Council (GCC) project awards has witnessed a surge of 86% in the second quarter (Q2) of 2023, reaching $49.7 billion, up from $26.7 billion during Q2, 2022.
This upswing underscores the commitment of the GCC countries to execute and attain their diversification targets, according to a report by Kamco Invest.
The data, collected by MEED Projects, emphasised that the total value of contracts awarded in Qatar increased 8.3 times year on year (y-o-y) to reach $10.4 billion in 2023, compared to $1.1 billion in the second quarter of 2022.
This considerable growth in contract awards was attributed to the performance of Qatar’s gas sector, which accounted for nearly 97% of the total value of projects awarded during the quarter.
Specifically, the total values of gas sector projects awarded skyrocketed nearly 16 times to $10 billion during Q2 2023, up from $600 million in Q2, 2022.
The report also noted a steep rise in the total value of projects awarded in Qatar, primarily due to a single mega-project awarded by QatarEnergy.
A staggering $10 billion EPC (engineering, procurement, and construction) contract for the North Field South (NFS) megaproject has been granted to a joint venture of Technip Energies and Consolidated Contractors Company (CCC).
Qatar’s NFS project, the second phase expansion of Qatar’s North Field, stands as the world’s largest single non-associated gas field.
It encompasses two LNG mega trains with a combined capacity of 16 million tonnes per annum.
The extensive EPC contract includes the building of two LNG trains, each with an estimated capacity of 8 million, and the construction of carbon capture and sequestration facilities.
The report further highlighted that this strong rise in total value of project awards in the GCC is a significant indication of the robust health of the economies within the GCC region.
This was the highest quarterly project awards value seen in over five years, with Saudi Arabia alone accounting for over 49.1% of the contracts awarded during Q2, 2023. Together, Saudi Arabia, UAE, and Qatar represented a substantial 94.4% of the overall projects in the GCC.
According to MEED Projects’ expectations, total GCC contracts that are in tender or most likely to be awarded this year are set to exceed $110 billion in 2023.
Led by Saudi Arabia, Qatar, and UAE project markets, each of which is poised to witness significant growth this year, the future also appears promising for Kuwait and Oman, with both countries expected to observe sharper increases in the value of contract awards during 2023.