Awarded contracts in Saudi at their highest value
Saudi construction sector to benefit from economic diversification
The Saudi construction sector has posted a spike in its value of total awarded contracts, says a report, ‘Construction Contracts Index Fourth Quarter 2013’ by the National Commercial Bank in the country.
With the government looking to diversify the Kingdom’s economy away from the oil sector, the construction sector has witnessed an influx of massive spending, leading to the total value of awarded contracts at an all-time high of almost $78.2 billion.
According to the annual budget released by the country’s Ministry of Finance, capital spending between $13.3 billion and $55.9 billion is expected to be made across the education & manpower, health & social affairs, municipalities, transportation & infrastructure and water, agriculture & manufacturing sectors.
Despite a reduction in overall budgetary capital expenditures from $74.1 billion in 2013 to $63.4 billion in 2014, investment in construction is expected to sustain the growth it has witnessed over the last year.
The Construction Contracts Index (CCI) ended the year at 465.03 points in December after a volatile year, which saw the index dip down to 225.68 points in May all the way up to 494.09 in September, as per a report by local daily Saudi Gazette.
