‎Saudi Arabia awards contracts worth SAR 25.2 bln in Q3 2022: US Saudi Business Council

‎Saudi Arabia awards contracts worth SAR 25.2 bln in Q3 2022: US Saudi Business Council

The value of contracts awarded in the Kingdom during the third quarter of 2022 decreased by 6% year-on-year (YoY) to SAR 25.2 billion, according to a report issued by the US Saudi Business Council.

Contracts witnessed a decrease of 48% compared to Q2 2022, during which they amounted to SAR 48.6 billion.

The report also stated that despite the decline during Q3, the value of contracts awarded so far is moving in the right direction to exceed the performance of 2021, as the value of contracts awarded during the first three quarters of 2022 amounted to about SAR 119.7 billion, which constituted an increase of 67% compared to the same period in 2021.

The Kingdom's improved macroeconomic outlook, supported by oil revenue coupled with ongoing non-oil sector initiatives, helped drive project contract awards, the report noted.

The council also pointed out that the construction sector continues to operate in an expansionary environment, as the performance of the contract award index during the first three quarters of 2022 reveals the recovery of the sector. The value of construction projects under implementation recorded a tremendous increase, while the gradual decline in the costs of building materials along with the increase in demand for cement helped to