Gas Takes Lion's Share of Qatar's Contract Awards in Q3

The total project awards in Qatar improved 57.9 percent year on year (y-o-y) during the third quarter (Q3) of this year to reach US$4.2 billion as compared to US$2.7 billion in the corresponding period in 2023.

Qatar’s aggregate quarterly contract awards recovered from their lowest level in over sixteen quarters during second quarter of 2024 that was at US$187 million. The gas sector represented the lion’s share (94.6 percent) of the total amount of contracts awarded during Q3-2024. The gas sector recorded 135.3 percent y-o-y increase during Q3-2024 to reach US$4 billion as compared to US$1.7 billion, according to GCC projects market update by Kamco Invest.

Apart from the gas sector there were only three other sectors that recorded contract awards during the quarter led by the transport sector (US$93 million), the oil sector (US$90 million) and the construction sector (US$46 million).

The total value of projects that are planned or in pipeline in the GCC stood at US$2.7 trillion as of October 10, 2024. Saudi Arabia comprised the lion’s share of ongoing or upcoming GCC projects (55.9 percent or US$1.53 trillion) followed by the UAE which has US$627.6 billion and Oman with estimated ongoing or upcoming projects at US$208.9 billion, according to MEED Projects.

However, the picture was different in terms of only upcoming projects in the region excluding ongoing contracts. Total GCC projects in the pipeline (upcoming projects) reached US$1.43 trillion as of October 10, 2024. Expectedly, Saudi Arabia also dominated the MENA region’s projects in the pipeline representing 53 percent (US$763 billion) followed by the UAE which comprised 20 percent (US$287.1 billion).

Total value for upcoming projects for Kuwait reached US$108.5 billion during October 2024 comprising 7.5 percent of the total GCC upcoming projects. In terms of sector representation, the construction sector comprised the largest sector, 30.9 percent or US$444.6 billion, of upcoming projects in the GCC followed by the transport sector which comprised 19.7 percent or US$283.5 billion of upcoming projects in the region.

The report further stated that Q3, 2024 witnessed a jump in the value of projects awarded in only two out of the eight sectors that is the oil and power sectors. Total GCC power sector contracts awarded during the quarter jumped 5.5 times to reach US$18.4 billion as compared to US$3.4 billion during Q3, 2023. Moreover, the total value of contracts awarded in the GCC oil sector has reached US$5.2 billion recording an increase of 86.1 percent.