Saudi contract awards slide in Q1 to $10.58bn
Riyadh, April 20, 2014
The value of contracts awarded in Saudi Arabia during the first quarter of this year fell 19 per cent to SR39.7 billion ($10.58 billion), compared to SR49.1 billion during the same period last year, a report said.
The numerous amounts of mega-projects that were witnessed throughout 2013 were absent during the Q1 of 2014, the Saudi Gazette report said.
While the power sector received the highest share of the contracts with 25 percent, it was the roads and urban development sectors that significantly contributed to the overall value by capturing 16 percent and 12 percent shares, respectively. The healthcare and mixed-use real estate sectors contributed 9 percent and 8 percent, the report said.
The value of awarded contracts is expected to be bolstered as many mega-projects are currently in the tendering phase, and will account for a significant share of awarded contracts throughout the year, the report added.
The Construction Contracts Index (CCI) dropped significantly to end the quarter at 198.67 points, reflecting a 31 percent decline compared to Q1 of 2013, it said.
A majority of the awarded contracts were in the three main regions of Eastern Province, Riyadh and Makkah as they accounted for 29pc, 26pc and 21pc of contract values.