Saudi Arabia: Construction Deals Value Plummets to $2 Billion in Q3

Saudi Arabia: Construction Deals Value Plummets to $2 Billion in Q3

Saudi Arabia said the total value of awarded contracts for the third quarter fell to SR7.4 billion ($2 billion) as Covid-19 related strains on government and private sector entities persist, leading to a slowdown in the construction sector.

The total value of awarded contracts through the first three quarters of 2020 reached SR63.6 billion ($17 billion), stated US-Saudi Business Council (USSBC) in its Q3 Contract Awards Index.

The index fell to 105.26 points by the end of the third quarter steadily declining through the quarter as the slowdown in the construction sector continued. 

A majority of the awarded contracts were in transportation, power, and real estate which accounted for approximately 59% of the total value of contracts awarded. 

Water, urban development, and petrochemicals accounted for 32% of the total value while oil & gas accounted for only 7% of the total, the lowest on record. 2% were awarded in other sectors.

Sector-wise, the lion's share of the awarded contracts (SR1.7 billion) came from transportation industry followed by power sector with SR1.6 billion contracts and the real estate sector with SR1.1 billion deals, stated the USSBC Index.

Among the regions, the Eastern Province accounted for nearly a third of the value of awarded contracts (32%) in Q3,