Chinese construction companies have made a strong start to the year in the Middle East with a range of major contractor awards across various sectors.

According to regional projects tracker MEED Projects, Chinese contractors won nearly $2bn of work during the first two weeks of 2024. The most active market was Algeria, where China Railway Construction Corporation (CRCC) and local contractor Cosider Travaux Publics won a contract to build a 575-kilometre (km) railway line.

Chinese companies also won a series of contracts with Sonelgaz Energie Renouvelables, a subsidiary of Algeria’s state-owned utility, to deliver solar photovoltaic (PV) plants.

Another major deal in the Maghreb was secured by Sichuan Road & Bridge in Tunisia to construct a 2.1km viaduct linking Tunis and Bizerte. The Equipment, Housing & Land Planning Ministry awarded the $197.5m contract.

In the GCC, the most high-profile award was the contract to build the Jeddah Central stadium project in Saudi Arabia, which was won by Beijing-headquartered China Railway Construction Corporation (CRCC) with local contractor Sama Construction for Trading & Contracting.

Chinese contractors also won work on real estate projects in Oman and the UAE. China Nuclear Industry 22nd Construction Company secured a $168m contract from Damac to construct villas in Dubai. China Communications Construction Company won a contract to complete marine works for the Yiti Sustainable City project in Oman.

The awards in the Middle East come as the outlook for construction in China is dampened by a downturn in its domestic residential sector. According to GlobalData, China’s construction industry is estimated to have expanded by 6.5 per cent in real terms in 2023.

If real estate remains challenged in China, the Middle East will continue to be a priority for Chinese contractors.

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