Total Value of Awarded Contracts in Saudi Arabia Reaches $12 Billion in Q1
The total value of awarded contracts across Saudi Arabia for Q1 in 2020 reached $12 billion, with a 28 percent quarter-on-quarter growth despite the repercussions of the coronavirus pandemic, according to a report by the US Saudi Business Council (USSBC).
The awarded contracts included numerous mega-projects across several sectors, with the military sector gaining $4 billion deals followed by oil and gas with $3 billion and petrochemicals ($2.2 billion).
These three sectors accounted for 76 percent of all awarded contracts alone, while the other contributing sectors included water, power, and real estate.
According to the report, it seems that Saudi Aramco is ready to continue awarding giant contracts in the oil and gas sector despite the impact of the COVID-19 on the economy.
Aramco goes ahead with its efforts to expand the Kingdom's capabilities in extracting hydrocarbons to meet local and global demand.
The experts also noted that the government capital spending during the first quarter of 2020 is a strong indicator of the strength of the construction sector.
When compared to the same period in 2019, the value of the contracts is down by 8 percent.
USSBC Member al-Baraa al-Wazir told Asharq Al-Awsat that the Kingdom began easing the measures imposed during the lockdown and opened shopping centers and resumed domestic flights as of the end of May.
Wazir indicated that these measures will lead to the gradual recovery of the economy, expecting Aramco to award a number of contracts in al-Ghawar southern field during the second quarter.
He also predicted that the Saudi National Water Company will award a major project contract in the industrial city of Jubail.