Total projects awarded in Kuwait during 2022 reached $2.8 billion

Total projects awarded in Kuwait during 2022 reached $2.8 billion

KUWAIT: GCC project awards contracted during 2022 as global economic challenges mounted. The decline of GCC contract awards was affected by high inflation and continuing supply chain problems mainly due to China’s intermittent COVID-19 restrictions which are now lifted. In addition, the increase in benchmark rates by global and regional central banks to combat runaway inflation also impacted project funding in the GCC. The decline in 2022 also reflected limited big-ticket projects outside the Saudi project market. Total value of GCC contracts awarded declined by 18.7 percent y-o-y during 2022 to $93.6 billion as compared to $115.2 billion in awards during 2021.

This was the lowest project awards since 2005, barring the pandemic induced decline in 2020. All GCC countries, barring Saudi Arabia, witnessed a y-o-y 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 (2020) and 2022. Saudi Arabia remained the largest projects market 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