GCC project awards plunged during 2022, reaching second lowest since 2005: report

GCC project awards plunged during 2022, reaching second lowest since 2005: report

RIYADH: Faced with mounting global economic challenges, Gulf Cooperation Council region project awards plunged during 2022, with the total value of contracts handed out dropping 18.7 percent to $93.6 billion from $115.2 billion the previous year, according to Kamco Invest. This was the lowest project awards amount since 2005, barring the pandemic-induced decline in 2020, the regional non-banking financial powerhouse based in Kuwait stated in its report. The decline of GCC contract awards was affected by high inflation and continuing supply chain problems, , it added. The drop in 2022 also reflected limited big-ticket projects outside the Saudi project market. All GCC countries, barring Saudi Arabia, witnessed a year-on-year decline in their aggregate 2022 value of projects awarded. In addition, total value of project awards was above the $100-billion mark every year for the last decade with the exception of the pandemic year and 2022, it stated. in the GCC during 2022 recording a total of $54.2 billion worth of contracts awarded as compared to $53.9 billion in 2021. The UAE ranked second recording total contract awards of $19.2 billion versus $25.9 billion during 2021, Kamco Invest said in its report. Saudi Arabia, the UAE and Qatar accounted for a