The value of construction contracts awarded in Saudi Arabia reached $12.3 billion in the first quarter of 2022
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Riyadh, The Gulf Observer: The value of construction contracts awarded in Saudi Arabia reached SR46 billion ($12.3 billion) in the first quarter of 2022, signaling a robust start to the year, according to a US Saudi Business Council index which tracks spending in the sector.
The USSBC Contract Awards Index grew to 212.31 points in the first three months of the year, meaning the Kingdom’s construction activity is expected to rise in the coming period.
Saudi Arabia bounced back strongly after the sharp drop of 2020, when the value of awarded contracts had plummeted to SR80 billion.
It was then revived to SR142 billion in 2021, and has been accelerating since.
According to the report, this quarter’s CAI data indicated four months above 200 points, and 12 whole months above the 100 point threshold.
Between 2021 and 2022, the CAI saw a 130 percent rise year on year, signaling a 120 point increase in that period.
The Kingdom was able to foster that growth due to a resilient oil market, a growing number of capital developments, and the implementation of an array of distinct strategies.
“The growth of the Kingdom’s economy, which witnessed sizeable increases to GDP (gross domestic product) due to global oil market dynamics and steady strengthening of its non-oil GDP, will keep the construction sector active” said Albara’a Alwazir, director of economic research at the US-Saudi Business Council.
The leading sector in awarded contracts yet again was oil and gas, totaling SR15.1 billion worth of contracts in the first quarter of this year, accounting for a third of the aggregate amount.
