The value of awarded contracts in Saudi Arabia during the first quarter of this year increased by 7 per cent to SAR57.3 billion, compared with the same quarter of last year, reveals a report.
The largest contributing sector was the healthcare sector, accounting for 26 per cent (SAR15bn) of the total contracts that have been awarded, according to the report by the National Commercial Bank (NCB).
The report further reveals that the residential property sector comes next, accounting for 22 per cent (SAR12bn) and then the industrial sector, accounting for 10 per cent (SAR6bn).
The NCB report said that the recently issued Construction Contracts Index (CCI) for the first quarter of this year points out that the pace of some construction contracts, which have been awarded in some sectors, slowed down in the first quarter and regained its recovery in other sectors.
The value of awarded contracts during last January jumped to SAR30.4bn, registering the highest monthly value of contracts during the first quarter of this year.
The Riyadh region captured the lion’s share of the value of awarded contracts, due to the contract of the Military Medical City in Riyadh, followed by Jizan, with a huge margin of difference between them and then, the Eastern Province.
The SAR57. 3bn in awarded contracts during the first quarter of 2015 reflects the strength of the construction industry and shows that the kingdom keeps spending close to the previous levels despite the plunging oil prices and, therefore, oil revenues.
Sectors related to both physical and social infrastructure continued to grow during the first quarter of this year; however, there was a reduction in the size of mega projects.