SAUDI ARABIA registered an impressive surge in contract awards during the third quarter of 2013 amounting to a total of SR148.9 billion ($39.7 billion), bringing the total value of contracts for the first three quarters to SR251.6 billion ($67 billion), according to the National Commercial Bank of Jeddah.

In its report NCB Construction Contracts Index for the third quarter of 2013, the bank indicates that if this momentum is maintained, the total value of contracts awarded in 2013 could surpass the kingdom’s all-time high of SR270.3 billion ($72 billion) awarded in 2011.

The construction contracts index reached an all-time high by ending the quarter at 494.09 points.

Approximately SR105.6 billion ($28.16 billion) worth of contracts were awarded in July alone, signifying the highest recorded value of awards for a single month, the report stated. Key contracts were awarded in the transportation and petrochemical sectors, it added.

“This unprecedented achievement was promoted by heavy investments in anchor sectors such as transportation, power and petrochemicals.

“The transportation sector accounted for SR89.5 billion ($23.8 billion) of the overall value of awarded contracts, followed by the power sector and petrochemicals with SR26.6 billion ($7.09 billion) and SR9.6 billion ($2.56 billion), respectively,” the report stated.

The urban development sector accounted for SR6.5 billion ($1.73 billion) followed by the residential real estate sector with SR4.6 billion ($1.22 billion),” the report stated.

The value of contract awarded in August was approximately SR28.8 billion ($7.68 billion), led by the power and residential real estate sectors, while deals worth SR14.5 billion ($3.86 billion) were awarded in September,
primarily by the roads and transportation sectors.

From a geographical perspective, the Riyadh region controlled the largest portion of awarded contracts by value, capturing a 63 per cent share. This was overwhelmingly due to sizeable contracts that were awarded by Arriyadh Development Authority for the development of the Riyadh light rail transit lines. Several mega-projects were awarded in Jazan region, which captured a 14 per cent share. The power, petrochemicals and transportation sectors were the largest contributors.

The petrochemical, residential real estate and power sectors contributed to the Eastern Province’s 10 per cent share of awarded contracts.

Link for the NCB Construction graphs: