Regional News

Saudi contracts surge to $22bn

September 2011

CONSTRUCTION contracts worth a total of SR84.2 billion ($22.4 billion) were awarded in Saudi Arabia during the first six months of this year, according to the National Commercial Bank (NCB).

The figure marked a 156 per cent increase over to the same period in 2010 where the value was SR33 billion ($8.79 billion).

In its Contraction Contracts Index for the second quarter, the Jeddah-headquartered bank reported that nearly 31 per cent of the value of awarded contracts in the second quarter of 2011 were directed towards infrastructure with the residential real estate and power sectors following at 26 and 23 per cent respectively.

Although the total value of awarded contracts in the second quarter fell compared to the first, Q2’s SR34.5 billion ($9.19 billion) represented a 43-per-cent increase compared to the same period in 2010, where the value was SR24.2 billion ($6.45 billion).

The NCB’s Construction Contracts Index (CCI) jumped to 205.3 points at the end of H1, 2011, compared to H1, 2010’s CCI of 80.36 points.

Geographically, Riyadh took the lion’s share of the value of awarded contracts with a 26 per cent, followed by the Eastern Province with 25 per cent and Makkah and Madinah regions with 16 per cent and 15 per cent, respectively.

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