The total value of awarded contracts for Q3 2020 in Saudi Arabia retreated by 85% year-on-year (YoY) to SAR 7.4 billion, according to data issued by the US-Saudi Business Council (USSBC).
On a quarterly basis, the awarded contracts in Q3 2019 witnessed a decline of 33%, when compared to awarded contracts of SAR 11.0 billion in Q2 2020.
The report indicated that the total value of awarded contracts decreased on the continuing negative effects of the COVID-19 pandemic on government and the private sector.
The construction sector is still suffering from the pandemic effects, as project owners and contractors face constant difficulties.
In addition, adjusted budget expenditures and measures to correct the financial situation in the public and private sectors affected the contracts that were awarded during Q3 2020.
|
Total value of awarded contracts in Saudi Arabia |
||
|
Quarter |
Value (SAR bln) |
Variation (%) |
|
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%) |
Sector wise, transportation topped the list with awarded contracts worth SAR 1.7 billion. It was followed by electricity with SAR 1.6 billion, and real estate with SAR 1.1 billion.
The above-mentioned three sectors represented 59% of the total value of awarded contracts during Q3 2020.
|
Total value of awarded contracts by Sector |
||
|
Sector |
Value (SAR bln) |
Stake (%) |
|
Transportation |
1.7 |
23 % |
|
Electricity |
1.6 |
21 % |
|
Real Estate |
1.1 |
15 % |
|
Water |
1.0 |
13 % |
|
Urban Development |
0.7 |
10 % |
|
Petrochemicals |
0.7 |
9 % |
|
Oil and Gas |
0.5 |
7 % |
|
Others |
0.1 |
2 % |
|
Total |
7.4 |
100 % |
Region wise, the Eastern Province dominated the awarded contracts in Q3 2020, hitting SAR 2.3 billion or 32% of the total.
Makkah and Tabuk came in second and third position regionally with 20% and 19% share of the total awarded contracts, respectively.
The USSBC Contract Awards Index (CAI) is an original report created to provide a sense of direction on construction activities that will transfer to the execution phase over the next 6 to 18 months in Saudi Arabia.
|
Total value of awarded contracts by Region |
||
|
Sector |
Value (SAR bln) |
Stake (%) |
|
The Eastern Province |
2.3 |
32% |
|
Makkah |
1.5 |
20% |
|
Tabuk |
1.4 |
19% |
|
Riyadh |
1.0 |
13% |
|
Madinah |
0.3 |
4% |
|
Others |
0.9 |
12% |
|
Total |
7.4 |
100% |
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