Saudi Arabia awards SR192.4 billion Contracts in 2022

Saudi Arabia awards SR192.4 billion Contracts in 2022

Source: U.S.-Saudi Business Council (USSBC)

The construction sector continued its ascension during 2022 as the value of awarded contracts returned to pre-pandemic levels. The value of awarded contracts during Q4’22 surged to SAR71.5 billion ($19.1 billion), accounting for 37 percent of this year’s awards, according to a report by the U.S.-Saudi Business Council. This marks the highest value of awarded contracts in a quarter in nearly seven years when the value reached SAR88.1 billion ($23.6 billion) in the first quarter of 2015. The remarkable growth during Q4’22 brings the total value of awarded contracts in 2022 to SAR192.4 billion ($51.3 billion), reflecting a 35 percent increase over 2021.

USSBC’s Contract Awards Index Performance Through Q4 2022

The USSBC Contract Awards Index (CAI) climbed to 241.71 points at the end of the fourth quarter. The CAI ended the year above the 200-point mark in 11 out of the 12 months in 2022 following its recovery during the second half of 2021. The CAI grew by 52.92 points or 28 percent QoQ while also growing by 32.66 points or 16 percent YoY. The resurgence in awarded contracts on the back of numerous giga-projects fueled the surge following the pandemic induced slow down that hampered the