The Kamco Invest report says the value of projects awarded in the Gulf Cooperation Council countries nearly doubled in 2023, reaching $209.8 billion compared to $109.7 billion in 2022.
This significant increase reflects the success of government initiatives in the region, particularly in Saudi Arabia, highlighting the achievements of diversification plans. The total value of contracts awarded in the Middle East and North Africa region surpassed $254 billion in 2023, exceeding the previous figure of $240 billion in 2014.
The report emphasized widespread growth in project contract awards across all Gulf Cooperation Council (GCC) countries in 2023.
Kuwait experienced the highest growth rate, with the total value of contracts awarded growing by nearly 300% to reach $8.2 billion, compared to $2.1 billion in 2022. Bahrain, despite a 19% growth, remained the smallest project market in the region, reaching $1.2 billion. Saudi Arabia maintained its leadership as the largest project market in the Gulf, with contracts worth $94.9 billion, a 58.6% increase from $59.8 billion in the previous year.
In Kuwait, the report highlighted that the total value of annual projects awarded in 2023 reached its highest level in five years, driven by a 300% annual growth rate in the value of contracts. This growth is primarily attributed to investments in infrastructure, aligning with the Kuwait Vision 2035 plan, with a focus on the transportation and energy sectors.
The energy sector saw a significant increase, with the total value of projects awarded surging over 12-fold to $3.0 billion in 2023, compared to $246 million in 2022. The transportation sector followed closely, with projects worth $2.7 billion in 2023, compared to $754 million in the previous year. Together, the energy and transportation sectors represented 68.8% of the total value of projects awarded in Kuwait during the year.
The report anticipates continued growth in the Gulf’s project market in 2024, supported by ongoing projects and government reforms aimed at reducing reliance on oil revenues. Strong economic growth is expected in 2024, rebounding from a weak performance in 2023 due to reduced oil production quotas imposed by OPEC and its allies.
