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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)
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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.

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More Indian-flagged LPG Ships Exit the Gulf

FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
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More Indian-flagged LPG Ships Exit the Gulf

FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo
FILE PHOTO: A map showing the Strait of Hormuz and a 3D printed oil pipeline are seen in this illustration taken March 23, 2026. REUTERS/Dado Ruvic/Illustration/File Photo/File Photo

Two more Indian-flagged liquefied petroleum gas tankers, Green Asha and Green Sanvi, have exited the Gulf carrying the fuel for the South Asian nation, according to ship tracking data on LSEG and Kpler.

A third vessel, Jag Vikram, is still in the west of the Strait of Hormuz, the data showed. The US-Israeli war against Iran has all but ⁠halted shipping through the ⁠strait, but Iran says "non-hostile vessels" may transit the waterway if they coordinate with Iranian authorities.

Green Asha and Green Sanvi have crossed the Gulf area and are in the eastern Strait of Hormuz, ⁠the data showed, taking the total number of Indian-flagged LPG carriers that have traversed the Strait to eight. India is gradually moving its stranded LPG cargoes out from the strait, with Shivalik, Nanda Devi, Pine Gas, Jag Vasant, BW Elm and BW Tyr already reaching India.

India, the world's second-largest LPG importer, is battling its worst gas ⁠crisis ⁠in decades, with the government cutting supplies for industries to shield households from any shortage of cooking gas.

The country consumed 33.15 million metric tons of LPG, or cooking gas, last year, with imports accounting for about 60% of demand. About 90% of those imports came from the Middle East. India is also loading LPG onto its empty vessels stranded in the Gulf.

Business

IEA Hails Saudi Arabia’s ‘Rapid Response’ to Strait of Hormuz Crisis

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
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IEA Hails Saudi Arabia’s ‘Rapid Response’ to Strait of Hormuz Crisis

This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)
This photograph shows the entrance to the International Energy Agency (IEA) headquarters in Paris on March 11, 2026. (AFP)

Countries must resist the urge to hoard oil and fuel during the energy crisis triggered by the US-Israeli war on Iran, head of the International Energy Agency Fatih Birol warned on Sunday, with supplies expected to dwindle further if the Strait of Hormuz remains closed.

Birol praised Saudi Arabia for its rapid response to the crisis, after it rerouted over two-thirds of its oil exports through a pipeline to the Red Sea, bypassing the strait.

“I urge all countries not to impose bans or restrictions on exports,” Birol told the Financial Times. “It is the worst time when you look at the global oil markets. Their trade partners, their allies and their neighbors will suffer as a result.”

While he was careful not to name China directly, Birol’s comments appear to be aimed at Beijing.

China is the only major country to have banned the export of petrol, diesel and jet fuel in response to the five-week-old war, although India has imposed extra duties on exports.

Birol said “major countries in Asia who hold major refineries” should rethink any ban.

“If those countries continue to restrict or totally ban exports, the impact on the Asian markets will be dramatic.”

His plea for countries to avoid bans may also be pointed at the US, where rumors of a potential ban on refined fuel exports are circulating as gasoline prices pass $4 a gallon and California faces the threat of jet fuel shortages.

While the US supported a G7 call for no export bans, its energy secretary Chris Wright has so far only ruled out a ban on crude oil exports.

Birol said some countries are already hoarding energy, undermining the impact of the IEA’s move to release 400 million barrels of crude and fuel from emergency reserves in an effort to stabilize markets during the current conflict.

“Unfortunately, we see that some countries are adding to their existing stocks during our coordinated oil stock release,” he said. “They are stocking up. This is not helpful. In my view this is a time for all countries to prove they are a responsible member of the international community.”

Saudi response

Birol praised Saudi Arabia for its rapid response to the crisis, after it rerouted over two-thirds of its oil exports through a pipeline to the Red Sea, bypassing the strait.

He said he had been reassured by the “highest authorities in Saudi Arabia” that this key pipeline is “well protected.”

Birol, who as head of the IEA has been at the heart of discussions over how to respond to the crisis, warned that “in April, we will lose twice the amount of crude oil and [refined] products we lost in March” if the Hormuz Strait does not reopen to shipping.

In normal times, one-fifth of the world’s oil and liquefied natural gas flows through the waterway, which has been all but closed by Iranian threats to fire upon shipping.

“We are following all the key energy assets in the region on a daily or hourly basis,” he said, referring to oil and gas fields, pipelines, refineries and LNG terminals. “Currently there are 72 energy assets damaged and one-third are severely or very severely damaged,” he added.

Birol also said the current crisis would redraw the world’s energy system, as did previous crises in the 1970s and the one triggered by Russia’s full-scale invasion of Ukraine in 2022.

He predicted that the current crisis would trigger another nuclear revival, a boom in electric vehicles and a push for more renewables, as well as prompting some countries to burn more coal. But he said the gas industry, which had presented itself as a reliable supplier, would have to “work hard to regain its reputation” after two energy shocks in four years.

Business

JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
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JMMC Holds 65th Meeting via Videoconference, Discusses Energy Security and Market Stability

General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah
General view of Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah

The Joint Ministerial Monitoring Committee (JMMC), comprising Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Nigeria, Algeria and Venezuela holds its 65th Meeting via videoconference.

The JMMC reviewed current market conditions and emphasized the essential role of the Declaration of Cooperation (DoC) in supporting the stability of global energy markets, according to SPA.

In this context, the committee highlighted the critical importance of safeguarding international maritime routes to ensure the uninterrupted flow of energy.

It also expressed concern regarding attacks on energy infrastructure, noting that restoring damaged energy assets to full capacity is both costly and takes a long time, thereby affecting overall supply availability.

Accordingly, the committee stressed that any actions undermining energy supply security, whether through attacks on infrastructure or disruption of international maritime routes, increase market volatility and weaken the collective efforts under the DoC to support market stability for the benefit of producers, consumers, and the global economy.

In this regard, the committee commended the DoC countries that took the initiative to ensure the continued availability of supplies, particularly through the use of alternative export routes, which have contributed to reducing market volatility.

The JMMC will continue to closely monitor market conditions and retains the authority to convene additional meetings or request an OPEC and non-OPEC Ministerial Meeting, as established at the 38th ONOMM held on December 5 2024.

The next meeting of the JMMC (66th) is scheduled for June 7, 2026.