Saudi construction contracts in Q3 hit $6.7bln, says report

Saudi construction contracts in Q3 hit $6.7bln, says report

Saudi Arabia - The total value of awarded contracts across Saudi Arabia for the third quarter of 2022 reached SR25.2 billion ($6.7 billion) as the construction sector is headlined by a number of Vision Realization Programs relating to tourism and housing along with physical infrastructure developments, according to a report by the US-Saudi Business Council.

Despite a dip in awarded contracts of 6% year-on-year during Q3, the value of awarded contracts thus far is on track to exceed 2021’s performance, stated the Council.

Through the first three quarters, the value of awarded contracts surged to hit SR119.7 billion ($31.9 billion), representing a 67% climb over last year.

The USSBC Contract Awards Index (CAI) retracted to 188.11 points by the end of the third quarter. The CAI dipped below 200 points to finish a quarter for the first time since the third quarter of 2021.

Although the CAI declined, the construction sector continues to operate in an expansionary environment as it remains well above the 100-point threshold that separates expansion from contraction, satted the Council in its report.

The CAI grew by 73.27 points (up 64%) YoY and decreased by 41.88 points (36%) QoQ.

The CAI’s performance during the first three quarters reveals the resurging health of