Projects awarded in Saudi Arabia hit $8bn in May

The value of projects awarded in Saudi Arabia in May more than doubled from April, the Saudi Contractors Authority (SCA) said in a report.

The value of awarded projects exceeded SAR30 billion ($8 billion) last month, up from SAR12 billion in April. However, the number of projects awarded fell from 23 to 18 during the same period.

Infrastructure led, with 10 awarded projects valued at SAR25 billion. The sector accounted for 55 percent of the number of undertakings. Manufacturing and construction each represented 17 percent, followed by the water and energy sector at 11 percent.

The Makkah region accounted for the largest number of awarded projects, at seven. The Aseer region recorded the largest project value, exceeding SAR18 billion, followed by the Riyadh region at over SAR8 billion.

The SCA estimated that 20 projects would be awarded in June, with roughly 47 percent in the construction sector, and nearly half concentrated in the Eastern Province and Riyadh.

During housing minister Majed Al-Hogail’s visit this month to Shenzhen, China, Saudi Arabia awarded contracts worth SAR1.9 billion to Chinese companies to build houses in Riyadh and Dammam.

The state-owned Saudi Arabia Railways also awarded a contract to expand its freight railway network in the Eastern Province.

Meanwhile, the Public Investment Fund and the Saudi unit of Egypt’s Talaat Moustafa Group agreed to evaluate potential mixed-use real estate developments in the kingdom.

The sovereign wealth fund is spearheading several giga-projects and residential developments in line with Vision 2030, aimed at increasing housing ownership by Saudi citizens to 70 percent.

Further reading:

• Vision 2030 at 10: Progress, priorities and unfinished business
• PIF consolidates China presence with second office
• War upends Saudi real estate push