"Rising oil prices and increased government spending is fuelling demand in the GCC’s construction sector, with contractor awards across the region’s markets expected to be worth $249bn in 2018, up 65% from $150.5bn in 2017," the report noted.
The majority of Oman's active projects fall under the oil and gas segment (67%), followed by the UAE, with 44%, Oman (36%), and the KSA, which had the lowest percentage of oil and gas active projects, with only 20% of its active projects falling under that segment, potentially marking the government's efforts to diversify from an oil-dependent economy.
Saudi Arabia has a whopping $1.2trn active projects (including those on hold) across all segments, accounting for just over 31% of the region's construction market.
Oil and gas accounts for 27% of contracts awarded in Q4 2018 and those expected for Q1 2019, with urban building construction predicted to be the most active, with 30% of contracts going to this market segment. In this time period, Saudi Arabia is expected to award $47.5bn in oil and gas contracts, followed by the UAE at $29.6bn, Kuwait ($6.5bn), Oman ($6.4bn) and Bahrain ($4bn).
The oil and gas sector is expected to make up the majority of KSA contract awards for Q4 2018 and Q1 2019 (based on contract worth).
"The oil and gas sector will continue to remain an important and significant part of the economy of each GCC country as it is central to the supply of energy in the coming decades."
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