The total value of GCC contracts awarded during Q3 2022 year-on-year (y-o-y) reached $11.1 billion, a decline of 40.8 per cent as compared to $18.8 billion in awards during the same period in 2021, according to the latest report by Kamco Invest. All the GCC countries, except for Qatar that saw a smaller decline, witnessed a double-digit fall in their aggregate Q3 2022 y-o-y value of projects awarded.
The decline was intensified by high inflation and continuing supply chain problems mainly due to China's intermittent Covid-19 restrictions as well as the US- EU sanctions on Russia. In addition, the increase in benchmark rates by global and regional central banks to combat runaway inflation also affected project funding.
The UAE overtook Saudi Arabia as the largest projects market in the GCC recording a total of $3.7 billion worth of contracts awarded against $3.5 billion awarded by Saudi Arabia. Qatar ranked 3rd during the quarter with total contract awards at $3.4 billion as compared to $3.6 billion during Q3 2021. Saudi Arabia, UAE and Qatar accounted for a combined 96 per cent of the total value of contracts awarded in the GCC during the quarter.
Total projects awarded in Kuwait declined by 69.1 per cent to $162 million down from $525 million for Q3 2021. The Sultanate of Oman witnessed new projects awards drop 68.1 per cent y-o-y to $154 million. Aggregate value of contracts awarded in Bahrain reached $125 million in Q3-2022 as compared to $659 million during the similar period in 2021. In terms of sector classification, only the chemicals sector witnessed an increase in the value of projects awarded during the quarter recording $540 million y-o-y increase in new contract awards to reach a total of $1.1 billion during Q3-2022.
Total value of contracts awarded during 9M 2022 declined by 26.2 per cent to $53.0 billion, down from $71.7 billion in 9M 2021. Saudi Arabia accounted for more than half of total projects awarded in the GCC for the first nine months of the year. The Kingdom's total value of contracts awarded during 9M 2022 increased by 14.9% per cent to reach $30.3 billion up from $26.3 billion in 9M 2021. The withdrawal of Covid-19-related restrictions and higher oil prices have contributed to the rise in the Kingdom’s projects market during 2022. Comparatively, the UAE’s aggregate value of contracts awarded during the first nine months of the year dipped 5.8 per cent to $12.4 billion against $13.1 billion in 9M 2021.
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