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GCC Project Contracts Value Almost Doubles To Record $210 Billion In 2023

Project contracts value in the Gulf Cooperation Council (GCC) region surged nearly two-fold in 2023 to $209.7 billion, compared to the previous year’s figure of $109.7 billion, a report by Kuwait-based Kamco Invest showed Tuesday.

Project awards

The value of GCC project awards in 2023, which marks the highest-ever annual figure in the region’s history, coincides with the significant progress of Saudi Arabia’s diversification plans and aligns with the commitment of all GCC countries to their modernizing and diversifying their economies,Kamco Invest said.

Every GCC country saw double-digit year-over-year growth in the aggregate value of awarded contracts last year, according to the report.

Among all GCC countries, Kuwait recorded the highest annual growth rate in project awards during 2023, with its total value nearly tripling to $8.2 billion, compared to $2.1 billion in 2022, data from the report showed.

The total value of contracts awarded in Saudi Arabia reached a record high in 2023, driven by a significant 58.6% year-on-year surge from $59.8 billion to $94.9 billion.

Similarly, the UAE’s total value of awarded contracts reached $79.5 billion last year, up a whopping 167.9% compared to the previous year.

Sector-wise figures

The upsurge in GCC project awards was primarily fueled by a substantial rise in project values within the gas and construction sectors.

The value of awarded contracts in the GCC gas sector increased fourfold in 2023, reaching $42.1 billion, compared to the previous year’s figure of $9.7 billion, according to Kamco Invest.

On the other hand, the GCC construction sector’s total value of awarded contracts grew by 33% to reach $61.2 billion. This established the sector as the largest in the region, encompassing 29.2% of all project awards during the year.

GCC IPOs

Last week, a report from the Kuwait Financial Centre (Markaz) showed that total proceeds from initial public offerings (IPOs) in the GCC region plunged by 55% year-on-year to $10.1 billion in 2023, compared to $22.7 billion in the previous year.

As many as 45 IPOs were floated in 2023, compared to 46 share offerings in the previous year, the report said.

The UAE led the region in terms of proceeds by raising $5.5 billion from seven IPOs, constituting 54% of the proceeds from IPOs. However, the raised capital represented a 55% year-on-year fall, Markaz said.

Proceeds of the Saudi bourse were $3.5 billion last year, with 35 offerings recording the highest number of IPOs in the GCC region and 35% of total GCC IPO proceeds.

The Muscat bourse had two share offerings, with total proceeds of $973 million, constituting 10% of total GCC IPO proceeds, while Qatar had only one IPO that raised $193 million and constituted just 2% of the total proceeds in 2023.

Big number

The combined value of contracts awarded across the Middle East and North Africa (MENA) region exceeded $254 billion in 2023, surpassing the previous record of $240 billion set in 2014, according to Kamco Invest.

Source: forbesmiddleeast

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