Oil & gas accounts for 60% of contract awards
The performance of Saudi Arabia’s construction sector in the second financial quarter of 2014 is a sign of the sector regaining the “momentum” it has shown over the last few years, as per a quarterly review of contract awards by the National Commercial Bank in the country.
The value of awarded contracts in Saudi Arabia in H1 2014 surpassed the value of those awarded in H1 2013, which stood at $27.3 billion.
According to ‘NCB Construction Contracts Index’ report, the total value of awarded contracts during Q2 2014 reached $22.6 billion, with the power and oil & gas sector accounting for up to 60% of this value.
Numerous contracts were awarded by the Saudi Electricity Company (SEC) across the Kingdom as part of its strategic plan to increase power generation and dissemination in the country. The report added these sectors also accounted for 49% of the value of awarded contracts during the first half of 2014.
The roads sector accounted for 9% of the total value of awarded contracts during the first half of 2014, the NCB report continued.
Big budget projects being planned and constructed in Saudi Arabia include terminal upgrade works at the King Khalid International Airport and Saudi Aramco’s Khurais oilfield expansion project worth $2.9 billion, Saudi Gazette reported.
The NCB report states the total value of awarded contracts through the first half of 2014 was $33.2 billion, and the rise in awarded contracts during Q2 2014 has buoyed the pipeline of upcoming construction projects in the country.
The value of awarded contracts during the rest of 2014 is expected to match these high figures, the NCB report added.