Saudi Arabia project announcements double in Q1 2022

17

The project market in the kingdom expands by 9% YoY in Q1 2022

Key Highlights

  • The utilities and the oil & gas sector in Saudi Arabia registered 31% and 7% YoY growth respectively in Q1 2022

  • The UAE and Qatar contributed two-third of projects delivered in the GCC in Q1

  • BNC’s GCC Project Index dropped by 2.4 % YoY

The GCC construction market is estimated at USD 1.6 trillion, with over 21,000 active projects at the end of Q1 2022, as per the 31st edition of the BNC Projects Journal,  titled, “Cancel the Crises” which is based on BNC intelligence, the largest project intelligence database in the Middle East and Africa.

As per BNC Projects Journal, Saudi Arabia doubled their new scheme announcements in Q1 2022 and contributed 56% towards total project announcements in the GCC. Driven by the mega industrial facility by Foxconn, the Saudi Arabia industrial sector grew by 29% YoY and drove the GCC Industrial sector to register 11% YoY expansion. The kingdom also registered 9% YoY expansion in terms of the overall project market supported by the major expansion in the utilities and the oil & gas sector. This led the GCC utilities sector to record 16% YoY growth. Meanwhile the GCC’s urban construction sector shrunk by 5% YoY.

“The overall story of construction is not as good as one would expect with giga projects splashed across the media and seemingly on the horizon but nor is it as bad as crisis storylines would have you believe.” stated Mr. Avin Gidwani, CEO of Industry Networks.

BNC’s GCC Master Index dropped by 2.4% YoY in Q1 2022, which is driven by the 9.9% drop in the GCC Urban Index. The UAE Master index recorded a drop by 4.8% YoY which was balanced by the 4.9% YoY growth in the Saudi Arabia Master Index. The Saudi Arabia Energy Index has posted growth for four quarters in a row with a 18.2% YoY expansion in Q1 2022.

“We have a covid-gap of around 24 months in the project development cycle and you’ll experience this painful delay depending on which stage you play at in the cycle of construction. The good news is that the region’s new project cycle appears to be kicking in again and high oil prices will fuel it to go quicker.” added Mr. Avin Gidwani.

About BNC

BNC is the flagship construction intelligence and business automation service created by Industry Networks FZC.

BNC was launched in 2003 to create a digital network that connects businesses within the construction industry in creative new ways to increase transparency and efficiency. BNC offers a state-of-the-art project-sales CRM system pre-integrated with the largest and most frequently updated project database in the Middle East & Africa.  BNC’s services are used by thousands of construction professionals across the world everyday.

With over 30,000 live construction projects estimated at US$ 11.2 trillion, BNC’s coverage spans 72 countries and 5 sectors including urban construction, oil & gas, transportation, utilities, and industrial. BNC publishes a quarterly construction report called the BNC Projects Journal and the BNC Bulletin, a daily construction newsletter received by over 50,000 professionals.