Project awards significantly up in Saudi Arabia in Q2

Wednesday, 11 September 2019 13:56:00 (GMT+3)   |   Istanbul
       

Saudi Arabia witnessed a 32 percent increase in the project contract awards in the second quarter compared to the previous one and by as much as 82 percent higher on the year-to-year basis, amounting to SAR 64.3 billion ($17.2 billion). The pipeline includes sizeable projects in various sectors with oil and gas, real estate and military sectors taking up to 87 percent of the total amount, according to the local media. Most investments were awarded by the government, specifically in the strategic segments, while the private sector was particularly active in the real estate.

The positive trend in the project market development provides optimism for the construction industry and, consequently, the steel demand overall. Construction sector contribution to the GDP has increased by 1.26 percent in the first quarter. In addition, there is a number of sizeable investments, including housing and tourism sectors’ developments, which are expected to contribute to the project awards and eventually to the steel demand. “Saudi market is finally moving with big investments ahead. Though it will take time [for the projects] to enter the actual consumption stage, the development itself is positive for the steel industry,” a local producer told SteelOrbis.


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