Bloomberg reports that Cranes stand beside new high rise buildings under construction in the King Abdullah financial district of Riyadh, Saudi Arabia. According to the latest NCB Construction Index said that the value of awarded contracts in Saudi Arabia during the second quarter reached SAR 74.5 billion. More than SAR 51 billion of the total construction contracts were awarded in the petrochemical and power sectors alone.
During the H1 of 2012, a total of SAR 126.7 billion in contracts was awarded with infrastructure related sectors such as the healthcare, education urban development and roads, contributing SAR 26.5 billion.
Compared to Q2 2011, the value of awarded contracts grew by 46% during Q2 12. The SAR 126.7 billion in awarded contracts during H1 12 significantly grew by while the 6 month figure represented growth of 50%.
The Construction Contracts Index reached 309.12 points at the end of June rising from 254.18 at the start of the Q2. This growth is largely due to the abundance of mega projects over the past 6 months. Where by the government has placed a significant emphasis on the continual development of the kingdom.
It added that the value of contracts in 2012 was set to eclipse that of the previous year. We expect this trend to continue into H2 2012 as the value of awarded contracts is anticipated to further increase during this period. The index tracks construction contracts that have been awarded only. It begins with January 2008 as its base year.