Delayed megaprojects and a drop in energy sector spending led to a collapse in contract awards in Saudi Arabia last year, contributing to a sharp region-wide fall, according to preliminary data from MEED. The total value of contracts in the Gulf fell almost a third compared to 2024, to $213 billion. Deals in Saudi Arabia halved from a record $164 billion in 2024 to $84.5 billion, and the UAE recorded a 15% drop to $87.7 billion.
Even so, the Gulf is in the middle of a building boom: Massive real estate and infrastructure developments from Dubai to Mecca, and energy projects in Kuwait and Qatar contributed to overall project spending that was the third-highest annual total on record. Looking ahead, some $400 billion in contracts are in the pipeline in the coming months, according to MEED.