The value of contracts awarded in Saudi Arabia during the first half of this year surged to SR124.6 billion ($33.2 billion), up 21 per cent over SR102.7 billion during the same period last year, according to a report.
The kingdom recorded a significant upswing in the value of awarded contracts during the second quarter, as it reached SR84.9 billion with the power and oil and gas sector accounting for 60 per cent of the total contracts, reported the Arab News, citing a local bank study.
It marked a strong rebound from the previous quarter, it added.
The resurgence of awarded contracts during the second quarter has put the pipeline of upcoming construction projects back on track, the National Commercial Bank (NCB) said in its Construction Contracts Index.
Power and energy sectors dominated the value of awarded contracts during the first half, accounting for 49 per cent of contracts, while the roads sector garnered a distant third, with nine per cent.
Beyond the power and oil and gas sector, the value of awarded contracts during the second quarter were nearly even across a majority of the remaining sectors, the report added.
The concentration of contracts within the oil and gas sector in the Jazan region of Saudi Arabia allowed it to capture 33 per cent of the overall share by region. Jazan was the recipient of numerous mega-project contracts as part of Saudi Aramco's development of the Jazan Refinery and Terminal project, said the report.
The Eastern Province, which had a 15 per cent share, witnessed a sizeable petrochemical project that was awarded by Sabic.
Riyadh had a significant residential real estate contract as part of the Cordoba project, while the power sector accounted for numerous contracts throughout the kingdom and in Makkah and Madinah in particular, it added.
Saudi Electricity Company (SEC) was a dominant player awarding several contracts across the kingdom as part of it strategic plan to increase power generation.
Alfanar was the largest recipient of contracts that were awarded to it by SEC as it won seven contracts worth about SR3.2 billion of the total SR5.7 billion, said the report.
The Saudi firms pumped about SR1.1 billion on road contracts in the first half, it added.
The residential real estate sector had three contracts worth SR1.5 billion that was awarded by the Ministry of Housing in April. The largest contract was awarded to Bin Jarallah Establishment for the development of infrastructure works in Khamis Mushait as part of the Saudi Housing Project.