UAE project awards hit $10b in Q1as diversification drive picks up steam

UAE project awards hit $10b in Q1as diversification drive picks up steam

Saudi Arabia, the UAE, and Qatar jointly accounted for 84.1% of GCC projects

The UAE is the second-largest projects market in the GCC. - KT file

Published: Fri 28 Apr 2023, 2:22 PM Last updated: Fri 28 Apr 2023, 2:46 PM

Project awards in the UAE more than doubled in the first quarter of 2023 to reach $10 billion, underscoring the fast-track economic diversification drive undertaken by the nation and the brightening prospects of the oil and non-oil sectors.

The UAE is the second-largest projects market in the GCC as Saudi Arabia topped the region during the first quarter. The UAE, which has 11 initiatives as part of its industrial strategy “Operation 300bn” covering various sectors, is currently on track to boost its industrial sector’s contribution to the GDP to Dh300 billion by 2031 from Dh133 billion at present.

Saudi project awards recorded 17.9 per cent growth during the quarter to reach $13.3 billion compared to $11.3 billion last year, according to Kamco Invest data released on Thursday.

Saudi Arabia’s growth in contracts during the quarter was mainly fuelled by Saudi Aramco’s bumper profits during FY-2022, which ballooned to $161.1 billion. Aramco’s capex is expected to grow 20 per cent during 2023 as the energy giant