GCC project contracts value plunges 40.8% in Q3, says report

GCC project contracts value plunges 40.8% in Q3, says report

GCC project awards contracted during the third quarter of the year as global economic challenges mounted with its total value falling by 40.8% to $11.1 billion from last year's figures of $18.8 billion, according to Kamco Invest, a regional non-banking financial powerhouse with one of the largest AUMs in the region.

This decline was intensified by high inflation and continuing supply chain problems mainly due to China’s intermittent Covid-19 restrictions as well as the USEU sanctions on Russia. In addition, the increase in benchmark rates by global and regional central banks to combat runaway inflation also affected project funding stated the Kuwaiti group in its review.

All the GCC countries, barring Qatar that saw a smaller decline, witnessed a double digit fall in their aggregate Q3-2022 y-o-y value of projects awarded, it added.

Kamco Invest pointed out that the UAE overtook Saudi Arabia as the largest projects market in the GCC during this quarter, recording a total of $3.7 billion contracts against Saudi Arabia's $3.5 billion. Qatar ranked 3rd during the quarter with total contract awards at $3.4 billion.

Saudi Arabia, UAE and Qatar accounted for a combined 96% of the total value of contracts awarded in the GCC during the quarter, it added.

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