Riyadh – Mubasher: The total value of contracts awarded in Saudi Arabia during the first quarter (Q1) of 2026 amounted to $11 billion, representing a substantial decline when compared to $22.5 billion awarded in Q1-25, according to Kamco Invest’s market update report.
Contract awards declined across four of the eight sectors within Saud Arabia's projects market over the January-March 2026 period, with the downturn led by the construction sector, which saw a 64.4% drop in contract awards to $3.4 billion in Q1-26 from $9.5 billion in Q1-25.
This was followed by the water sector, which went from $5.1 billion worth of projects awarded in Q1-25 to $729 million in contracts awarded in Q1-26.
Furthermore, gas and power sectors recorded significant drops in contracts awarded in Q1-26, recording $16 million and $148 million, respectively, in contract value.
On the other hand, the chemical sector reported the largest absolute increase in contract awards during Q1-26, changing from zero contracts awarded in Q1-25 to $2.5 billion in project awards during Q1-26.
Only around $800 million worth of projects were awarded in Saudi Arabia’s ever-important oil sector in Q1-26, Kamco Invest cited data collected by MEED Projects.
The fall in Saudi Arabia's contract awards in Q1-26 follows a slowdown in project awards in 2025, which was mainly attributed to reduced activity in Saudi giga-project awards during that year.
Biggest Project Market in MENA
Moreover, this quarter's slowdown witnessed an additional drag added by the ongoing disruption and instability in the region due to the US-Iran war. Overall, there is $735.1 billion worth of projects under execution in Saudi Arabia, making it the largest project market in the MENA region.
Furthermore, the valuation of the upcoming pipeline projects in the Saudi market reaches $999.3 billion as of April 2026, of which 38% is earmarked for the construction sector, 20% is marked for the power sector, and 17% for the transport sector.
Some of the major and notable contracts awarded in Saudi Arabia during Q1-26 include the $850 million contract that King Salman Park Foundation signed with a consortium led by Retal Urban Development Company.
The contract entails the development of an integrated urban district comprising more than 600 residential units, 140 hotel keys, 50,000 square meters of Grade A office space, and several retail and food and beverage offerings.
Another major project awarded in the Kingdom during Q1-26 is the $500 million project awarded by Saudi Arabian Oil Company (Aramco) to Italian contractor Saipem for the engineering, procurement, construction, and installation (EPCI) of structures at the Safaniya offshore oil and gas field development.
It is worth noting that the projects market across the GCC overall experienced a slowdown in Q1-26 in line with the regional instability.
