Giga Projects: Saudi Arabia Awarded SAR 118.8 Billion Contracts In Q1 2024

The value of contracts awarded in Saudi Arabia rose 77% year-on-year (YoY) to SAR 118.8 billion in Q1 2024, according to a report from the US-Saudi Business Council. Quarterly, contract values surged by 110% to SAR 56.5 billion. This value represents the second highest since Q3 2015, when it reached SAR 147.1 billion.

Saudi Arabia’s oil and gas sector, led by Saudi Aramco, reported the highest rise. In addition, mega projects within the Saudi Vision 2030, such as the NEOM project and the Red Sea development, contributed significantly to this growth. The oil and gas sector recorded 19 contracts worth SAR 51.2 billion in Q1 2024, versus SAR 42 billion last year, representing the highest quarterly rate.

The report indicated that the real estate sector awarded 105 contracts worth SAR 24.4 billion. Of this, commercial real estate contracts totaled SAR 11.3 billion, hospitality sector real estate contracts amounted to SAR 4.8 billion, residential real estate contracts reached SAR 3.2 billion, and mixed-use real estate contracts were valued at SAR 1.4 billion.

The water sector concluded 14 deals worth SAR 24 billion. In 2023, the water sector constituted 80% of the total value of awarded contracts, due to the rising number of mega projects, including developing dams, desalination plants, and expanding the water network and wastewater canals.

The Eastern Region led in the value of contracts awarded during the first quarter, totaling nearly SAR 53.1 billion, which constitutes 45% of the total contracts. Tabuk followed with SAR 24.9 billion, or 21% of the total value of contracts, as NEOM awarded seven contracts worth SAR 24 billion, and the Red Sea International Co. (RSI) awarded three contracts worth SAR 671 million.

Makkah ranked third with SAR 16.7 billion. This includes a SAR 5 billion contract awarded in the industrial sector for the establishment of the Ceer factory for manufacturing electric vehicles.