The COVID-19 pandemic has in most countries caused significant disruption to the Projects, market and Saudi Arabia has been no exception. As the coronavirus took hold and the kingdom went to economic lockdown in the Spring, the government announced a raft of measures including a cut back in Projects, spending as its revenues from oil sales declined sharply.
However, data from the first six months of the year shows that Saudi Arabia has weathered the storm fairly well. At $13.2bn the value of contracts awarded between January and June was just 15% down on the same period in 2019 and actually higher than the same period in 2017 and 2018.
The figures highlight the intent with which the government is development its capital Projects, programme. Schemes like the PIF Projects, are being prioritised backed by proceeds from the sale of shares in Aramco and increased state borrowing. The increasing emergence of PPP Projects, is another sign that Riyadh is exploring different options to finance its 2030 Vision.
Despite this, there is no doubt that 2020 will end up being a very difficult year. This reflected by the revised forecast in which we anticipate a total of $32bn worth of contracts to be awarded for the year as a whole in a best-case basis, down from $48bn awarded in 2019.
It is unclear how quickly the market will recover in 2021 and beyond. Much will depend on the oil price which still lies $20 a barrel lower than it did at the start of the year. If it stays at its current levels, it is difficult to see how the government can maintain spending at historical levels.
Written by MEED, the Middle East market experts within the publisher Group, "Saudi Arabia Projects, H2 2020", is the update to this year’s H1 report. Focused on data, it is aimed at helping companies create strategies for targeting and growing the market.
Reasons to Buy
However, data from the first six months of the year shows that Saudi Arabia has weathered the storm fairly well. At $13.2bn the value of contracts awarded between January and June was just 15% down on the same period in 2019 and actually higher than the same period in 2017 and 2018.
The figures highlight the intent with which the government is development its capital Projects, programme. Schemes like the PIF Projects, are being prioritised backed by proceeds from the sale of shares in Aramco and increased state borrowing. The increasing emergence of PPP Projects, is another sign that Riyadh is exploring different options to finance its 2030 Vision.
Despite this, there is no doubt that 2020 will end up being a very difficult year. This reflected by the revised forecast in which we anticipate a total of $32bn worth of contracts to be awarded for the year as a whole in a best-case basis, down from $48bn awarded in 2019.
It is unclear how quickly the market will recover in 2021 and beyond. Much will depend on the oil price which still lies $20 a barrel lower than it did at the start of the year. If it stays at its current levels, it is difficult to see how the government can maintain spending at historical levels.
Written by MEED, the Middle East market experts within the publisher Group, "Saudi Arabia Projects, H2 2020", is the update to this year’s H1 report. Focused on data, it is aimed at helping companies create strategies for targeting and growing the market.
Reasons to Buy
- Opportunities and challenges in the kingdom’s Projects, market
- Analysis of the pipeline of planned Projects, and contract awards 2020-2022
- Key policies and drivers shaping the outlook for Projects, in Saudi Arabia
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of Projects, in each sector
- Saudi Arabia’s most valuable key Projects, and major project sponsors
Table of Contents
- Preface
- Executive Summary
- Saudi Arabia Country Overview
- Saudi Arabia Projects Market
- Impact of COVID-19 and Latest Forecasts
- Oil and Gas
- Construction
- Transport
- Industrial
- Power and Water
List of Tables
- Top Projects
- Biggest planned and un-awarded projects in Saudi Arabia
- Top Oil and Gas Sector Projects
- Biggest planned and un-awarded Oil and Gas projects in Saudi Arabia Due in Bidding Stage
- Biggest planned and un-awarded Oil and Gas projects in Saudi Arabia at Design, FEED or Study Stage
- Top Construction Sector Projects
- Biggest planned and un-awarded Construction projects in Saudi Arabia Due in Bidding Stage
- Biggest planned and un-awarded Construction projects in Saudi Arabia at Design, FEED or Study Stage
- Top Transport Sector Projects
- Biggest planned and un-awarded Transport projects in Saudi Arabia Due in Bidding Stage
- Biggest planned and un-awarded Transport projects in Saudi Arabia at Design, FEED or Study Stage
- Top Industrial Sector Projects
- Biggest planned and un-awarded Industrial projects in Saudi Arabia Due in Bidding Stage
- Biggest planned and un-awarded Industrial projects in Saudi Arabia at Design, FEED or Study Stage
- Top Power and Water Sector Projects
- Biggest planned and un-awarded Power and Water projects in Saudi Arabia Due in Bidding Stage
- Biggest planned and un-awarded Power and Water projects in Saudi Arabia at Design, FEED or Study Stage
List of Figures
- Saudi Arabia country map
- GDP by sector, 2019 (%)
- Saudi Arabia Nominal GDP vs. GDP Growth, 2010-23
- Saudi Arabia budget, 2010-20 (SAR bn)
- Gulf Projects Index Value of all projects in Saudi Arabia ($m)
- Projects market by project status ($m)
- Projects market by sector ($m)
- Biggest clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest contractors in Saudi Arabia by contracts in execution ($m)
- Number of Contracts Awarded 2010-19
- Projects planned but un-awarded by status ($m)
- Projects planned but un-awarded by sector ($m)
- Biggest clients in Saudi Arabia by value of contracts planned ($m)
- COVID-19 cases in the Middle East and North Africa region since 1 March 2020
- Value of contracts awarded in Saudi Arabia in January to June, 2010-20 ($m)
- Value of contract awards by year and sector ($m)
- Saudi Arabia revised contracts award forecast based on COVID-19 impact ($m)
- Value of Oil and Gas contract awards by year ($m)
- Oil and gas projects market by project status ($m)
- Oil and gas projects market by subsector (%)
- Value of Oil and Gas contract awards by year and subsector ($m)
- Biggest Oil and Gas Sector clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest Oil and Gas Sector contractors in Saudi Arabia by contracts in execution ($m)
- Oil and Gas Projects planned but un-awarded by status ($m)
- Oil and Gas Sector Projects planned but un-awarded by subsector ($m)
- Biggest Oil and Gas Sector Future Clients
- Value of Construction contract awards by year ($m)
- Construction projects market by project status ($m)
- Construction projects market by subsector (%)
- Value of Construction contract awards by year and subsector ($m)
- Biggest Construction Sector clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest Construction Sector contractors in Saudi Arabia by contracts in execution ($m)
- Construction Projects planned but un-awarded by status ($m)
- Construction Sector Projects planned but un-awarded by subsector ($m)
- Biggest Construction Sector Future Clients
- Value of Transport contract awards by year ($m)
- Transport projects market by project status ($m)
- Transport projects market by subsector (%)
- Value of Transport contract awards by year and subsector ($m)
- Biggest Transport Sector clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest Transport Sector contractors in Saudi Arabia by contracts in execution ($m)
- Transport Projects planned but un-awarded by status ($m)
- Transport Sector Projects planned but un-awarded by subsector ($m)
- Biggest Transport Sector Future Clients
- Value of Industrial contract awards by year ($m)
- Industrial projects market by project status ($m)
- Industrial projects market by subsector (%)
- Value of Industrial contract awards by year and subsector ($m)
- Biggest Industrial Sector clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest Industrial Sector contractors in Saudi Arabia by contracts in execution ($m)
- Industrial Projects planned but un-awarded by status ($m)
- Industrial Sector Projects planned but un-awarded by subsector ($m)
- Biggest Industrial Sector Future Clients
- Value of Power and Water contract awards by year ($m)
- Power and Water projects market by project status ($m)
- Power and Water projects market by subsector (%)
- Value of Power and Water contract awards by year and subsector ($m)
- Biggest Power and Water Sector clients in Saudi Arabia by value of contracts in execution ($m)
- Biggest Power and Water Sector contractors in Saudi Arabia by contracts in execution ($m)
- Power and Water Projects planned but un-awarded by status ($m)
- Power and Water Sector Projects planned but un-awarded by subsector ($m)
- Biggest Power and Water Sector Future Clients
