Transport infrastructure contract awards slip in 2017

28 November 2017
An estimated $10bn-worth of mostly road projects are still due to be awarded before the end of the year

The value of transport infrastructure contracts awarded in Middle East and North Africa (Mena) between January and November reached $18.9bn, which is equivalent to 51 per cent of the value of contracts awarded in the full year 2016.

According to historical data generated by regional projects tracker MEED Projects, 2017 will have the lowest value of contract awards since 2005, unless clients award over the next five weeks some of the remaining $10.1bn-worth of contracts, mainly roads, that are meant to be awarded during the year.

The value of transport infrastructure awards significantly declined in every GCC country, with the exception of Saudi Arabia. Bahrain shed the most at 78 per cent, followed by Kuwait (73 per cent), UAE (59 per cent), Oman (51 per cent), and Qatar (45 per cent).

The increase in contract awards value in Saudi Arabia is due to the virtual lack of awards in 2016 as a result of the nationwide review of the kingdom’s major infrastructure projects. This year, however, the kingdom has awarded major schemes, mostly comprising the construction of new or upgrade of existing airport terminals.

The value of contracts awarded in the North African countries of Tunisia, Algeria and Morocco also collectively declined by 95 per cent.

Transport infrastructure includes roads, airports, ports and mainline and urban railway networks.

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