US-Saudi Business Council says SAR 70.2 bln contracts awarded in Q4 2021

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The value of contracts awarded in Saudi Arabia reached SAR 70.2 billion during the fourth quarter of 2021, soaring 339% year-on-year (YoY) and 162% quarter-on-quarter (QoQ), according to the data issued from the US-Saudi Business Council. 

This is the highest value of contracts awarded in one quarter in nearly six years, bringing the total value of contracts awarded in 2021 to SAR 142 billion ($38 billion), up 78% compared with 2020.

This is also the second-highest annual value of contracts awarded since 2015.

According to the report, the construction sector continued its recovery in 2021 on the back of economic recovery following COVID-19 pandemic, as the macroeconomic fundamentals witnessed a remarkable improvement.

The oil and gas sector came first in terms of the value of contracts awarded in Q4 2021 with SAR 34.9 billion, followed by the energy sector with SAR 12.1 billion, then the real estate sector with SAR 7.6 billion.

The value of contracts awarded in the three sectors represents 78% of the total value of Q4 2021 contracts, as follows:

The Eastern Province came first in terms of the value of contracts awarded in the fourth quarter with SAR 37.6 billion, or 54% of the total value. It witnessed the awarding of 25 contracts in Q4 2021, most of which were in the oil and gas sector.

Riyadh ranked second with 21 contracts worth SAR 10 billion, or 14% of the total value of contracts awarded in Q4 2021. Tabuk followed with 11 contracts worth SAR 9.3 billion in the water and industrial sectors, as follows: