Saudi contract awards up 50% in 2012

The total value of contracts issued in Saudi Arabia’s construction sector grew during the second quarter of 2012 to $19.9bn, according to National Commercial Bank.

Contract award values strengthened as the quarter progressed, with $3.8bn worth of deals signed in May, $7.4bn in June and $8.6bn in June. The total value of contracts awarded in the first six months of the year reached $33.8bn, according to the bank’s latest Construction Contracts Index.

The bank said that the bulk of this was “largely as a result of mega-projects being awarded within the petrochemical and power sectors”.

This accounted for more than half ($17.9bn) of contracts awarded during the first six months.

However, infrastructure-related projects including schools, hospitals, urban development and roads, contributed almost $7.1bn.

@constructionweekonline, Aug 13, 2012