There were signs of a tentative recovery in the GCC projects markets in the first quarter of this year as the total value of contract awards increased by about 20 per cent, according to data from regional projects tracker MEED Projects.

The total value of awards in the first quarter was $27.6bn, up from $22.2bn in the final quarter of 2016. The first-quarter total for this year is down by about 17 per cent when compared with the first quarter of 2016, when there were $33.5bn of contract awards.

The second quarter of this year will be crucial. If the total value of contract awards can once again increase on a quarterly basis then the market will start to look like it found a bottom at the end of 2016. If it does not then it will be interpreted as still waiting for a recovery.

If the market is recovering, any growth will be tempered by projects that are completed. According to MEED’s Project Activity Monitor (PAM), during the first quarter of this year there were $28.2bn of projects completed, about $600m or 2 per cent more than the value of awards over the same period.

The difference is more encouraging than the spread between awards and completions registered during 2016, when there was a net loss of $61bn as project completions greatly outpaced new awards. There were $105bn of contract awards in the GCC during 2016, while at the same time there were $166bn of contracts that were completed.

The imbalance meant that the market contracted for the first time since contract award and completions data started to be collected by MEED in 2004. The worst performing year previously was 2012, when there was a net gain across the GCC of $14bn. The best ever performing year was 2006, when there was a net gain of $90bn.