The GCC projects market has had its worse start to a year for more than a decade in 2017 with awards for the first two months falling sharply and the rolling six-month average reaching a record low.

According to data from regional projects tracker MEED Projects, the value of new work awarded during January and February totalled $11.295bn, down by more than 50 per cent on the total of $23.706bn that was awarded during January and February in 2016. Last year was a record bad year for the GCC projects market with $105bn of awards. There were also $166bn of contracts that were completed, giving a shortfall of $61bn.

The first two months of 2016 was also down considerably on the $41.745bn of contracts that were awarded in January and February of 2015, and the $43.488bn that were awarded during the corresponding period in 2014.

The previous lowest total for work awarded during January and February was in 2012 when there were $16.692bn of contracts awarded.

The market’s rolling six month average is also on a downward trend. In February it fell to $6.5bn of awards a month – the lowest it has been since the end of 2005. The six month rolling average peaked in May 2014 at $19bn when oil prices were still above $100 a-barrel and governments across the GCC were spending heavily on new infrastructure projects.

Since May 2014 the six month rolling average has consistently declined, and with a reduced value of work awarded in January and February that trend is expected to continue during the first half of 2017.

A rolling six month average smooths out large contract awards to give a better indication of a market’s aggregate performance. It also indicates how much would should be mobilising on site in the months immediately following a contract award.

Top 20 contract awards (January and February 2017)