The value of contract awards in the Gulf fell 19% to a $56.1 billion in the first six months of 2017, compared to $69.3 billion a year earlier, according to MEED Projects.
The report, quoted by Reuters, said contract awards are expected to pick up again in the second half of the year.
The impact of low oil prices on government spending was blamed for the slump in the first half.
The exception was Saudi Arabia, where contract awards rose 12% to $15.8 billion, the report said.
Kuwait saw a 46% drop in awards while the value in Bahrain plunged 84%.
The forecast uptick in the second half will however see the total value of contracts awarded in the Gulf stay roughly the same as in 2016, MEED said.