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Surge in gas projects helps Qatar maintain positive momentum in contracts awarded in GCC in 2025: Kamco Invest
- Two-fold surge in gas projects helps Qatar maintain positive momentum in contracts awarded in GCC in 2025 amidst declining trend in GCC: Kamco Invest
A substantial two-fold surge in the value of projects in gas sector led Qatar register a 4% year-on-year increase in total value of contracts awarded in 2025, defying the overall trend in the Gulf Co-operation Council (GCC), which otherwise saw a 32% plunge, according to Kamco Invest, a regional economic think-tank.
The total value of contracts awarded in Qatar registered a moderate year-on-year increase of 4%, attaining $23.1bn in 2025 against $22.2bn in 2024, Kamco said, quoting data from MEED Projects.
"This expansion in contract awards was principally driven by a substantial surge in the value of projects within Qatar’s gas sector, which recorded a two-fold increase to reach $12.3bn in 2025, up from $6bn in 2024," the report said.
The gas sector constituted 53.2% of the total contracts awarded in the country during the year. One of the significant gas contracts awarded in Qatar during 2025, particularly in the fourth quarter, was the $4bn EPCI (engineering, procurement, construction and installation) contract for the second phase of the North Field Production Sustainability (NFPS) project by QatarEnergy LNG.
This contract was awarded to a consortium of contractors comprising Saipem (the Italian contractor) and China Offshore Oil Engineering.
Conversely, Qatar’s oil sector, conventionally the largest in terms of project value, experienced a 6.4% year-on-year decline, receding to $6bn in 2025 from $6.5bn in 2024.
Meanwhile, the power sector encountered a substantial contraction, with the total value of contracts awarded decreasing by 11.8% year-on-year to $2.6bn compared to $2.9bn in 2024. The power sector received the third-highest value of contract awards in Qatar during 2025.
Among the notable projects awarded in Qatar during 2025, especially in the fourth quarter, were the $305mn contracts by Qatar’s Public Works Authority (Ashghal) for the construction of roads and infrastructure networks in the Izghawa and Al Themaid areas northwest of Doha.
The project scope encompasses the construction of carriageways, footpaths, parking areas, kerb lines, traffic signs and road markings, pedestrian guard rails, fencing, traffic signals, street lighting, landscaping, and irrigation systems.
Nevertheless, the total value of contracts awarded across the GCC declined by 32% year-on-year in 2025, reaching $213.4bn compared to $314bn in 2024, driven largely by a substantial downturn in contract awards within Saudi Arabia and the UAE, the two largest projects markets in the region.
"In contrast, only Kuwait and Qatar recorded growth in project awards during the year, while the four remaining member states experienced declines," Kamco Invest said.
Reasoning for the lull in GCC projects market, the report said subdued oil prices throughout 2025, averaging $63.1 per barrel down from $74.5 in 2024 impacted overall project development, despite the rescinding of Opec+ production cuts.
This sharp decline follows two consecutive years of record capital expenditure, during which the region channelled significant investment into large-scale hydrocarbon initiatives and a portfolio of giga projects valued in excess of $1tn.
The contraction during the final quarter was broad-based across the region. All of the six GCC nations witnessed declines, with five recording double-digit year-on-year decreases in total awarded contract value during Q4-2025.
"Looking forward, the GCC project activity is anticipated to regain momentum in 2026, supported by stabilising cyclical oil price movements and sustained expansion within the non-oil economic sector, although the pace of recovery may be tempered if crude prices remain subdued," Kamco said.