RIYADH: The value of awarded contracts awarded in Saudi Arabia’s construction sector during the second quarter of this year topped SR82.8 billion ($22 billion), staging a strong comeback compared to the first quarter, said a report.
It marked a rebound from the first quarter, which stood at SR57 billion ($15 billion), registering an increase of 45 per cent, stated Saudi Arabia’s largest lender NCB in its Construction Contracts Index report.
Despite the falling oil prices, and accordingly oil revenues, the awarded contracts in the first half 2015 showed a higher pace than 2014, but was likely to weaken in 2016, it said.
Anchor sectors, led by roads and residential real estate, took the lion’s share (57 per cent) of the total spending which hit SR47.5 billion ($12.6 billion), while the power sector came third with 14 per cent of the value of awarded contracts, stated the report.
According to NCB, the prominent road schemes in the second quarter of this year included the SR23 billion ($6.13 billion) Makkah project awarded by Umm Al Qura for Development & Construction to Dallah Albaraka Group.
The project features a mixed-used infrastructure known as Tareeq Al Mawazee that will focus on widening the main road into Makkah and redeveloping the land on both sides of the highway. The project is expected to be completed by the first quarter of 2025, said the report.
A contract worth SR6.6 billion ($1.75 billion) was also awarded by Umm Al Qura for Development & Construction to Nesma & partners. The infrastructure work involves building roads and general infrastructure for the project. It is expected to be completed by the fourth quarter of 2019.
The NCB report pointed out that additionally, Ministry of Transportation awarded a contract worth SR225 million ($60 million) to Bin Tamy Saudi Pan for Taif, Al Baha and Abha road expansion.
Arriyadh Development Authority awarded three contracts to the tune of SR5.02 billion ($1.3 billion). The first contract was awarded to Yuksel Construction, while the second and third contracts were awarded to Saudi Constructioneers.
These projects include rehabilitation works, and construction of 21 bus rapid transit stations, 2,574 community bus stops and seven pedestrian bridges with all civil, mechanical and electrical works.
The first and third contracts will be completed by the second quarter of 2017, and the second contract is expected to be completed by the fourth quarter of 2016, it stated.
