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Value of Saudi construction contracts jump 35% to $51.3bn: report

RIYADH: Saudi Arabia’s creation quarter saw the cost of provided contracts increase to SR192.4 billion ($fifty one.Three billion) in 2022 — a 35 percentage upward thrust on the previous 12 months, a main industry frame has revealed.

According to the USA-Saudi Business Council, agreement values at some stage in the fourth zone of 2022 reached SR71.5 million, accounting for 37 percent of the full contracts offered remaining yr.

The USSBC said the overall offers struck among October and December were the very best because the first area of 2015, whilst settlement values touched SR88.1 billion.

“The surge in settlement awards keeps unabated on the returned of a developing financial system that became fueled with the aid of full-size oil revenues and the acceleration of giga-tasks following the COVID-19 slowdown,” said Albara’a Alwazir, director of financial studies on the USSBC.

The USSBC’s Contract Awards Index, a proprietary tracker of Saudi Arabia’s construction pipeline, stayed at about the 2 hundred-point mark in 11 out of one year of 2022, overcoming a slowdown seen at some point of the second one 1/2 of 2021.

The index advanced 28 percent in the fourth quarter of 2022 compared to the sooner three months, in what turned into also an annual growth rate of 16 percent.

Moreover, the index touched 257.07 factors in October, 256.Eighty factors in November and 242.Seventy one factors in December remaining yr.

Real property topped the sectoral list because it secured SR38.Nine billion from 33 contracts inside the fourth area of 2022, cementing its position as the highest-grossing market in 2022.

The upsurge changed into fueled by the residential actual estate marketplace, which grew by SR25.Three billion within the fourth quarter of 2022 in comparison to the previous three months. On an annual foundation, the marketplace grew with the aid of SR27.6 billion.

Likewise, the energy area rebounded between October and December final year, with 20 contracts really worth SR16.4 billion.

The resurgence changed into mainly attributed to ACWA Power’s Shuaibah 2 sun photovoltaic strength plant challenge, which emerged as the largest agreement award within the quarter in 2022.

The cost of contracts presented inside the strength industry were the very best on a quarterly basis due to the fact the second area of 2014, while the world garnered SR16.6 billion.

On the clients’ the front, NEOM changed into the most active awarder of contracts as it endured to develop its transportation network, including tunneling, dredging and earthworks.

The record further disclosed that Red Sea Global and Qiddiya Investment Co. Also chipped in several substantial contracts during the region.

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