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The value of contracts awarded in Saudi Arabia reached SAR 46 billion during the first quarter of 2022, a jump of 140% year-on-year (YoY), according to the data issued from the US-Saudi Business Council.
However, the contracts fell 35% quarter-on-quarter (QoQ), from SAR 70.2 billion.
The Kingdom's macroeconomic scene continued to pick up, against the backdrop of the rebound in oil market, continued diversification, and expected acceleration in capital projects to support the local economy, said the report.
Amid the continued recovery in the construction sector after the pandemic, the Kingdom's economy is underpinned by several key economic factors that will enable it to expand in implementing the strategies of continued diversification.
Value of Contracts in Saudi Arabia Since Q1 2019 |
||
Quarter |
Value (SAR bln) |
YoY Change |
Q1 2019 |
48.9 |
-- |
Q2 |
65.1 |
+33% |
Q3 |
47.8 |
(27%) |
Q4 |
35.3 |
(26%) |
Q1 2020 |
45.2 |
+28% |
Q2 |
11.0 |
(76%) |
Q3 |
7.4 |
(85%) |
Q4 |
16.0 |
(55%) |
Q1 2021 |
19.2 |
(58%) |
Q2 |
25.8 |
+134% |
Q3 |
26.8 |
+262% |
Q4 |
70.2 |
+339% |
Q1 2022 |
46.0 |
+140% |
The oil and gas sector ranked first, with SAR 15.1 billion worth of contracts awarded, followed by real estate with SAR 9.6 billion and energy with SAR 6.9 billion.
The value of awarded contracts in the three previous sectors represents 69% of total value of contracts awarded in Q1 2022.
Value of Contracts Awarded by Sector in Q1 2022 (SAR bln) |
||
Sector |
Value (SAR bln) |
Share |
Oil and Gas |
15.1 |
33% |
Real Estate |
9.6 |
21% |
Energy |
6.9 |
15% |
Other |
14.4 |
31% |
Total |
46.0 |
100% |
The Eastern Province came on top in terms of contracts awarded in Q1 2022, with SAR 20.2 billion, or 44% of total contracts. It was followed by Riyadh with SAR 13.4 billion, or 29% of total contracts, and Makkah with SAR 6.5 billion.
Contracts by Administrative District (SAR bln) |
||
Administrative District |
Value (SAR bln) |
Share |
Eastern Province |
20.2 |
44% |
Riyadh |
13.4 |
29% |
Makkah |
6.5 |
14% |
Other |
5.9 |
13% |
Total |
46.0 |
100% |
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