The value of awarded contracts witnessed a strong resurgence thus far in 2019 as it reached SAR48.9 billion. This impressive performance highlights the focus by both the government and private sector in reclaiming the positive trend prior to the precipitous decline in oil revenues. Declining oil revenues served as a major inflection point and was a contributing factor in the reduction of mega-project awards in the Kingdom. However, improved oil prices coupled with a focus by the government to spend heavily on its capital expenditures aided in the turnaround. The SAR48.9 billion in awarded contracts contained significant mega-projects across numerous sectors. Most notably was the oil & gas, water, and transportation sectors, which accounted for approximately 67 percent of all awarded contracts during Q1’19. Other contributing sectors included the military, real estate, and power sectors. The heavy expenditures in these sectors fall in line with the 2019 budget whereby the government has made a concerted effort to provide sustainable infrastructure capabilities along with enhancing the services available to its citizens. As depicted in the below chart, the value of awarded contracts in 2019 is off to a fast start compared to recent years.
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