Gulf construction awards tumble 37% as war hits regional projects
Project awards across the Gulf fell 37.2% year-on-year to $47.4 billion, with Oman seeing a 96.6% drop, according to Kamco Invest.
The latest quarter saw a sharp decline in construction activity throughout the Gulf, with total project awards slipping to $47.4 billion, a 37.2% reduction from the previous year. Every nation recorded double-digit falls, and Oman almost halted new contracts, experiencing a 96.6% plunge. Only the gas and chemicals sectors posted growth, driven by continued spending from ADNOC and Aramco.
Around $2.05 trillion of projects remain in the pipeline, half of which are slated for Saudi Arabia, though their future is uncertain. NEOM has postponed work on The Line until after 2030 and faces a $16 billion cancellation cost, while Saudi Arabia also delayed a stadium promised for the 2034 men’s World Cup.
Why it matters
The plunge signals widening economic strain in the Gulf, affecting jobs, investment flows, and future infrastructure plans.
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