How Saudi Arabia became the Gulf’s busiest projects market

Saudi Arabia emerged as the Gulf Cooperation Council’s largest projects market in the second quarter of 2026, recording the only increase in contract awards across the region as neighboring countries saw declines amid economic uncertainty linked to the Iran conflict.

According to the latest report from Kamco Invest, the kingdom awarded contracts worth $30 billion during the three months ending in June, up 160.4% from the previous quarter.

On an annual basis, project awards rose 53.6%, reflecting continued investment momentum driven by Vision 2030 initiatives.

Separate data from S&P Global also pointed to sustained strength in Saudi Arabia’s construction sector. The latest Al Rajhi Capital Saudi Construction Index showed construction activity expanded at its fastest pace of the year in June, supported by a rebound in new orders and growth across residential, non-residential, and infrastructure projects.

The Construction Index rose to 56.3 in June from 51.2 in May, marking the second consecutive month above the 50-point threshold that signals expansion.

“Saudi Arabia was the only country in the GCC to record an increase in total project awards on both a quarter-on-quarter and year-on-year basis,” Kamco Invest said.

The report attributed the growth primarily to the construction sector, where contract awards surged 184.4% year on year to $14.2 billion from $5 billion in the second quarter of 2025. The gas sector also posted significant gains, with awards increasing to $4.4 billion from $800 million over the same period.

Earlier this month, the Saudi Contractors Authority reported that 25 projects worth a combined $7.84 billion were awarded in June.

Across the GCC, the total value of project awards fell 25.4% quarter on quarter to $59.4 billion from $79.6 billion in the previous quarter.

Qatar recorded the steepest decline, with project awards dropping to $931 million from $9.3 billion in the first quarter.

In the United Arab Emirates, total project awards declined 5.4% year on year to $20.5 billion and 56.6% from the previous quarter.

Kuwait recorded year-on-year growth of 49.1%, with project awards reaching $2 billion, although awards declined 65.4% quarter on quarter.

Oman posted the second-strongest annual increase after Saudi Arabia, with project awards rising 341.7% year on year to $5.9 billion, while edging down 0.2% from the previous quarter.

Looking ahead, Kamco Invest said recent efforts to de-escalate regional tensions have improved the outlook for the GCC projects market over both the short and long term.

Citing data from MEED, the report estimated the GCC’s future project pipeline at $2.05 trillion. Saudi Arabia accounts for more than half of the planned developments, while the UAE represents 26.1% of the total.