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Sun 31 Jan 2016 05:09 PM

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Energy accounts for 75% of Saudi Q3 2015 contracts

Value of awarded contracts in July slumped to $853.31m, which was the lowest monthly level registered up till September of 2015

Energy accounts for 75% of Saudi Q3 2015 contracts
(Bloomberg Images)

The value of awarded contracts increased modestly in Saudi Arabia during the third quarter of 2015 to $16.23bn and maintained the same level that was recorded in the previous quarter.

The value of awarded contracts in July slumped to $853.31m, which was the lowest monthly level registered up till September of 2015, according to the NCB Construction Contracts Index Third Quarter 2015 released last week.

The report said key sectors suffered from a lack of mega-projects in July, which was the major reason behind the sharp decline.

However, led by the oil and gas, residential, and water sectors, the value of awarded contracts picked up in August and September, recording $6.69bn and $8.69bn, respectively.

The oil & gas sector alone accounted for 75% of Q3 2015 value of awards.

Through the first three quarters of 2015, the value of awarded contracts reached $47.41bn, increasing by 12% from the same period a year ago.

On an annual basis, the value of awarded contracts increased by 78% in Q3 2015 in comparison to $9.11bn that was awarded during Q3 2014. 

On a regional basis, the NCB report said Eastern Province accounted for the largest share, which had 60% of the overall value of awarded contracts.

The Eastern Province was the recipient of numerous mega-project contracts as part of Saudi Aramco’s development of Fadhili gas project worth $6.39bn. 

Riyadh region captured 7% share, and witnessed a sizable power plant being awarded by the Saudi Electricity Company (SEC), amounting to $333.32m.

There are other several projects in the water, industrial, and education sectors that were awarded in the remaining regions.

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