GCC Project Contracts Surge to $30bln In Q1

Saudi Arabia retains its position as the largest market for projects in the Arab Gulf (Asharq Al-Awsat)
Saudi Arabia retains its position as the largest market for projects in the Arab Gulf (Asharq Al-Awsat)
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GCC Project Contracts Surge to $30bln In Q1

Saudi Arabia retains its position as the largest market for projects in the Arab Gulf (Asharq Al-Awsat)
Saudi Arabia retains its position as the largest market for projects in the Arab Gulf (Asharq Al-Awsat)

The GCC project awards expanded during the first three months of the year despite global economic challenges such as the financial sector turmoil, elevated inflation, and the ongoing Ukraine-Russia conflict, according to the Kuwait-based Kamco Invest.

The total value of GCC contracts awarded increased by 54.7% y-o-y during Q1 to $29.9 billion as compared to $19.3 billion last year.

This was the second highest quarterly project awards since the start of 2022, stated the report.

All GCC project markets witnessed y-o-y project awards growth during Q1-2023 except for Bahrain which remains the smallest project market in the region, said the report by Kamco Invest.

Saudi Arabia remained the largest projects market in the GCC during Q1-2023, it stated, adding the kingdom's project awards recorded 17.9% growth during the quarter to reach $13.3 billion over $11.3 billion last year.

According to the report, Saudi Arabia, UAE and Qatar jointly represented 84.1% of the overall projects in the GCC.

On the UAE scenario, Kamco Invest said the project awards more than doubled to reach $10 billion during the quarter while Kuwait’s contract awards reached $1.8 billion compared to $407 million last year recording the highest percentage y-o-y contract awards increase in the region during the quarter.

In terms of sector classification, the chemical sector witnessed the biggest increase in the value of projects awarded during the year, recording $4.7 billion y-o-y increase in new contract awards to hit $5.7 billion during Q1, it added.

Kamco Invest pointed out that the growth in the GCC project awards during this quarter has been partly fueled by the determination of the GCC countries to diversify their economies away from hydrocarbons.

GCC member states have backed and invested in projects in the industrial sector such as aluminum, steel, and other industrial equipment manufacturing projects, stated the report.

For instance, Saudi Arabia plans to invest $453.2 billion in its National Industrial Development & Logistics Program by 2030.



Oil Prices Ease as Traders Assess US Tariffs and OPEC+ Output Boost

A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
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Oil Prices Ease as Traders Assess US Tariffs and OPEC+ Output Boost

A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo
A drone view shows a portion of the crude oil tank farm in Midland, Texas, US June 11, 2025. REUTERS/Eli Hartman/File Photo

Oil prices retreated on Tuesday, having climbed almost 2% in the previous session, as investors assessed the latest developments on US tariffs and a higher than expected increase to OPEC+ output for August.

Brent crude futures fell 12 cents, or about 0.2%, to $69.46 a barrel by 1043 GMT. US West Texas Intermediate crude lost 25 cents, or about 0.4%, to $67.68.

US President Donald Trump began telling trade partners on Monday that sharply higher US tariffs will start on August 1, though he later said that deadline was not 100% firm.

Trump's tariffs have raised uncertainty across the market and concerns that they could have a negative effect on the global economy and oil demand.

While prices seem to be pressured by OPEC+ unwinding its voluntary output cuts, tightness in middle distillates and Houthi attacks on cargo ships are supporting the market, said Rystad analyst Janiv Shah.

On Saturday the OPEC+ group comprising the Organization of the Petroleum Exporting Countries and its allies agreed to raise production by 548,000 barrels per day (bpd) in August, exceeding the 411,000 bpd increases in the previous three months.

Investors were bullish heading into the peak summer demand period in the United States, however, with data from the US Commodity Futures Trading Commission on Monday showing money managers raised their net-long futures and options positions in crude oil contracts in the week to July 1.

Once oil demand declines seasonally, the increase in OPEC+ exports will hit the market, raising downside risks to prices, HSBC analysts said in a note.

Analysts at Commerzbank expect the price of Brent to fall to $65 a barrel on the emerging oversupply in the autumn months.

The decision by OPEC+ removes nearly all of the 2.2 million bpd of voluntary cuts made by the group since 2023.

The producer group is set to approve an increase of about 550,000 bpd for September when it meets on August 3, according sources told Reuters, which would unwind all of the cuts.