Muscat – The total value of contracts awarded in the GCC countries reached a new record in 2024. GCC project awards saw a 9.6% year-on-year increase, totalling $273.2bn, compared to $249.4bn in 2023, according to a research report from Kamco Investment.

This growth in contract awards was primarily driven by an exceptional increase in project awards in Saudi Arabia, coupled with strong performance from the UAE, despite a year-on-year dip in the value of contract awards in the latter.

The power and oil sectors led the growth in project awards in the GCC during 2024, with $67bn and $29.7bn in contract awards, respectively. Within the renewable energy sector, Saudi Arabia signed contracts for 25 renewable energy projects, spread across various regions, which are collectively generating approximately 23 gigawatts of electricity in 2024.

Meanwhile, the GCC construction sector remained the largest sector, with $75.4bn in contract awards during 2024.

Growth in GCC contract awards was broad-based in 2024, with three of the six GCC countries experiencing at least double-digit year-on-year growth in the total value of contracts awarded, while four out of the six countries saw year-on-year increases in the value of projects awarded during the year.

According to Kamco Investment, the outlook for 2025 remains positive for the GCC projects market, with more than $120bn worth of projects already in the bid evaluation stage, which would likely translate into awards, according to MEED Projects. The near-term forecast also remains positive for the region, primarily driven by Saudi Arabia’s construction and power sectors, mainly related to the NEOM giga projects.

‘There are many positive factors in the GCC expected to support project market activity in 2025. These include thriving economic activity, governments’ resolve to execute projects before deadlines, a supportive and strong banking sector, expected falls in interest rates, stability in the regional geopolitical scenario, elevated oil prices, and supportive government policies for private sector participation,’ Kamco Investment said.