Total contracts awarded in Qatar more than doubled quarter-on-quarter to $3.4bn during the third quarter (Q3) of 2022 with chemicals sector taking the lead, according to Kamco Investment.
The value of contracts awarded in Saudi Arabia was seen declining 78.5% quarter-on-quarter and the UAE by 11.9%, Kamco Invest said in its latest report.
On an annualised basis, total contracts awarded in Qatar fell 5.1% in Q3-2022.
The chemical sector took the lead in terms of value with it accounting for 32.1% ($1.1bn) of the total projects awarded in Qatar during Q3-2022 compared to $250mn value of contracts the sector received during Q3-2021.
This was mainly due to the $1bn project to develop the world’s largest ammonia facility awarded by Qatar Fertiliser Company and QatarEnergy Renewable Solutions to a consortium of Germany’s ThyssenKrupp Uhde and Greece/Lebanon headquartered Consolidated Contractors Company (CCC).
Total projects awarded in the Qatari construction sector sunk 87% to $63mn during Q3-2022 from $485mn during Q3-2021.
The projects market pipeline in the GCC Gulf Cooperation Council) region continues to remain strong with data from MEED Projects showing around $2.5tn worth of projects planned or underway in the region as of mid-October-2022 compared to $2.61tn at the end of June-2022.
The aggregate value of projects in pipeline (pre-execution stage) in the GCC stood at $858bn as of October 12, according to data from MEED Projects.
In terms of countries, Saudi Arabia makes up 44.8% ($384.5bn) of the GCC projects in the pipeline, followed by the UAE with 17.2% ($147.8bn) and Kuwait with 14.7% ($125.8bn).
In terms of sectors, the construction sector accounted for 28.4% or $243.9bn worth of projects in the pre-execution stage in the GCC, followed by transport and power sectors with projects worth $145.6bn and $122bn, respectively.
Total value of the contracts awarded in the GCC declined by 40.8% year-on-year during Q3-2022 to $11.1bn. All the GCC countries, barring Qatar that saw a smaller decline, witnessed a double digit fall in their aggregate Q3-2022 year-on-year value of projects awarded.
The GCC project awards contracted during the Q3-2022 as global economic challenges mounted, the report said, adding “the decline was intensified by high inflation and continuing supply chain problems mainly due to China’s intermittent Covid-19 restrictions as well as the US-EU sanctions on Russia."
In addition, the increase in benchmark rates by global and regional central banks to combat runaway inflation also affected project funding.
The value of contracts awarded in Saudi Arabia was seen declining 78.5% quarter-on-quarter and the UAE by 11.9%, Kamco Invest said in its latest report.
On an annualised basis, total contracts awarded in Qatar fell 5.1% in Q3-2022.
The chemical sector took the lead in terms of value with it accounting for 32.1% ($1.1bn) of the total projects awarded in Qatar during Q3-2022 compared to $250mn value of contracts the sector received during Q3-2021.
This was mainly due to the $1bn project to develop the world’s largest ammonia facility awarded by Qatar Fertiliser Company and QatarEnergy Renewable Solutions to a consortium of Germany’s ThyssenKrupp Uhde and Greece/Lebanon headquartered Consolidated Contractors Company (CCC).
Total projects awarded in the Qatari construction sector sunk 87% to $63mn during Q3-2022 from $485mn during Q3-2021.
The projects market pipeline in the GCC Gulf Cooperation Council) region continues to remain strong with data from MEED Projects showing around $2.5tn worth of projects planned or underway in the region as of mid-October-2022 compared to $2.61tn at the end of June-2022.
The aggregate value of projects in pipeline (pre-execution stage) in the GCC stood at $858bn as of October 12, according to data from MEED Projects.
In terms of countries, Saudi Arabia makes up 44.8% ($384.5bn) of the GCC projects in the pipeline, followed by the UAE with 17.2% ($147.8bn) and Kuwait with 14.7% ($125.8bn).
In terms of sectors, the construction sector accounted for 28.4% or $243.9bn worth of projects in the pre-execution stage in the GCC, followed by transport and power sectors with projects worth $145.6bn and $122bn, respectively.
Total value of the contracts awarded in the GCC declined by 40.8% year-on-year during Q3-2022 to $11.1bn. All the GCC countries, barring Qatar that saw a smaller decline, witnessed a double digit fall in their aggregate Q3-2022 year-on-year value of projects awarded.
The GCC project awards contracted during the Q3-2022 as global economic challenges mounted, the report said, adding “the decline was intensified by high inflation and continuing supply chain problems mainly due to China’s intermittent Covid-19 restrictions as well as the US-EU sanctions on Russia."
In addition, the increase in benchmark rates by global and regional central banks to combat runaway inflation also affected project funding.