MEED magazine predicted that the country’s major projects in progress and currently in the pre-implementation phase may move at a slow pace during the next three months due to the government’s resignation. Al Rai reported that the magazine mentioned the government’s resignation less than four months after its formation had dampened hopes that 2023 could witness a recovery in project sector activity.
The magazine also noted that the past year’s political instability had a negative impact on the country’s ability to approve major infrastructure projects, adding to the resignation of the sixth government in three years, it is likely that little or no progress on major projects will follow in the coming months. It also pointed out that the uncertainty about the future of senior leadership in the government will urge companies to hesitate to make important decisions necessary to complete large tenders and award contracts.
On the other hand, projects whose budgets have already been approved may possibly see some progress along with smaller deals such as those related to maintenance contracts. As for important projects that would change the future prospects of the country, provide job opportunities and promote economic diversification, obstruction is expected. In addition, the recent resignation of the government coincided with the country’s lowest project activity, and may negatively affect its economy in the near future.
Furthermore, the low level of project activity prompted many large companies that won major projects during the past decade to reduce their presence in the country and focus on other Gulf countries. Meanwhile, the magazine saw that the government’s resignation would also affect the confidence of international contractors.