Qatar sees 68.5% surge in contracts awarded in Q1

Doha, Qatar: The Gulf Cooperation Council (GCC) project awards increased by 20.3 percent year on year (y o y) during first quarter (Q1) of 2024 to rea...

Doha, Qatar: The Gulf Cooperation Council (GCC) project awards increased by 20.3 percent year-on-year (y-o-y) during first quarter (Q1) of 2024 to reach $45bn as compared to $37.4bn during Q1 2023

The consistent elevated trend in GCC contract awards underlines the entrenched resolve of GCC governments to see through their diversification projects, as well as state funding support, noted a report by Kamco Invest.

The total value of contracts awarded in Qatar increased by 68.5 percent y-o-y to reach $6.1bn during Q1 2024 as compared to $3.6bn in Q1 2023, according to MEED Projects data. The growth in contract awards was primarily due to the jump in value of projects awarded in Qatar’s oil sector during Q1-2024 which represented 80.5 percent of the total contracts awarded in the country during the year.

The total value of oil sector projects awarded jumped from no contracts awarded in Q1 2023 to $4.9bn during Q1 2024 reflecting $6bn EPC contract to increase oil production from Al Shaheen offshore oil field by about 100 tb/d. The project is the third capacity expansion of the Al Shaheen oil field.

The Al Shaheen oil field, which is estimated to have a 300 tb/d production potential has been undergoing capacity expansion works for over six years. Total value of contracts awarded in Qatar’s Construction Sector increased by 347.4 percent to reach $519m against $116m in Q1 2023. Similarly, aggregate value of contracts awarded in the Power Sector improved 49.1 percent to reach $489m during the similar period.