Saudi Arabia recorded a significant upswing in the value of awarded contracts during the second quarter of 2014 as it reached SR84.9 billion. It marked a strong rebound from the previous quarter, a local bank says in its report.
The National Commercial Bank said in its Construction Contracts Index that the key sectors took hold of the majority of spending, as the power and oil & gas sectors accounted for approximately 60 percent of the value of awarded contracts. Those two sectors have also dominated the value of awarded contracts during the first half of 2014, accounting for 49 percent of contracts. The roads sector garnered a distant third, with 9 percent of the value of awarded contracts during the first half of 2014. Beyond the power and oil & gas sector during Q2,2014, the value of awarded contracts were nearly even across a majority of the remaining sectors.
The concentration of contracts within the oil and gas sector in the Jazan region allowed it to capture 33 percent of the overall share by region. Jazan was the recipient of numerous mega-project contracts as part of Saudi Aramco's development of the Jazan Refinery and Terminal project. The Eastern Province, which had a 15 percent share witnessed a sizeable petrochemical project that was awarded by SABIC. Riyadh had a significant residential real estate contract as part of the Cordoba project. The power sector accounted for numerous contracts throughout the Kingdom and in Makkah and Madinah in particular.
The SR19.6 billion in awarded contract during April was led by the power and oil & gas sectors. Numerous contracts were awarded by the Saudi Electricity Company (SEC) across the Kingdom as part of it strategic plan to increase power generation to further its reach into more households.
Copyright 2014. Arabnews.com