Project spending in the GCC

• Project spending across the region is expected to support growth in 2025, and beyond, as countries build on recent progress made in working towards their ambitious development, diversification and net-zero targets.

• The value of contracts awarded across the GCC rose nearly 9% in 2024 to a value of USD 271bn, expanding on the rapid growth of more than 99% y/y recorded in 2023. In addition to the contracts awarded in 2024, there is still a sizeable number of projects for which contracts were awarded in earlier years but where construction activity is ongoing. At the time of writing there is around USD 790bn worth of projects currently in execution across the GCC. Of these projects, the majority (53%) are in Saudi Arabia, with a further 28% taking place in the UAE.

• Saudi Arabia had a record year in 2024 with the value of contracts awarded in the kingdom growing 23% y/y to reach a value of USD 146bn. With a significant number of projects, awarded in earlier years, still being executed there is over USD 421bn worth of projects currently being completed in the Kingdom.

• Saudi Arabia has a further USD 768bn in planning stages, with the construction and power sectors dominating, accounting for 35% and 24% of projects, respectively. In addition, the country has a further USD 700bn worth of projects for which budgets have been allocated but no further detailed planning has been conducted.

• The value of UAE project investment remained robust in 2024, with contracts worth USD 83bn being awarded over the course of the year. This comes on top of the USD 93bn awarded in 2023. There are currently USD 222bn worth of projects underway in the UAE, with a potential further USD 659bn in the pipeline.

• Current and future project spending in the UAE is heavily concentrated in Abu Dhabi and Dubai. There are, however, significant differences in the profile of which sectors these projects are taking place in. In Dubai projects are heavily skewed to construction activity, while in Abu Dhabi the projects are distributed more evenly across sectors. 

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