logo
Construction projects awarded by Gulf states plunge, as Saudi Arabia pulls back spending

Construction projects awarded by Gulf states plunge, as Saudi Arabia pulls back spending

Middle East Eye5 days ago
The Gulf region commissioned its lowest number of construction contracts in more than three years according to data analysed by a regional asset manager, with Saudi Arabia falling the most as it curbs spending on megaprojects.
The Gulf region awarded $28.4bn in contracts in the second quarter of 2025, according to a July brief by KAMCO Investment, a Kuwait-based asset manager.
The overall value of all construction contracts awarded nosedived 58 percent compared to the same quarter last year.
Saudi Arabia led the plunge with contract awards falling 72.5 percent, and the UAE followed at 47 percent. The UAE overtook Saudi Arabia as the most active country in the Gulf region sealing new construction contracts.
"This downturn was primarily driven by a sharp contraction in project awards in Saudi Arabia, accompanied by a similarly weak performance in the UAE, which experienced a significant y-o-y [year-over-year] decline in contract awards during the period," the report said.
New MEE newsletter: Jerusalem Dispatch
Sign up to get the latest insights and analysis on Israel-Palestine, alongside Turkey Unpacked and other MEE newsletters
The slump in commissioned projects comes amid a bevy of reports that suggest Saudi Arabia is curbing its ambitions on grand megaprojects designed to wean the country of its reliance on energy and diversify its economy.
Why Saudi Arabia can spend more money than it makes, even as oil prices drop Read More »
The kingdom has already had to scale back Neom, originally billed as a $1.5 trillion megacity project, which organisers claim will eventually be 33 times the size of New York City and include a 170km straight-line city known as "The Line".
Instead of 1.5 million people living in the city by 2030, Saudi officials now anticipate fewer than 300,000 residents. Meanwhile, only 2.4km of the city will be completed by 2030.
The Line is one part of Saudi Arabia's broader Neom project situated on its northwestern Red Sea coast that includes Red Sea resorts, industrial parks and a ski resort.
Last week, Semafor reported Neom is considering laying off up to 1,000 employees - an estimated 20 percent of its full-time staff. The website reported that Neom was weighing the layoffs as part of a broader overhaul that could also see more than 1,000 employees leave Neom's construction site on the kingdom's northwestern Red Sea coast, and relocate to Riyadh.
The wider Gulf region has been hit by falling oil prices. Brent, the international benchmark, was trading down about one percent on Tuesday at $68.53 per barrel. Oil prices have come down substantaily from their 2022 highs of around $100 per barrel.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

US and China to resume tariff talks in effort to extend truce
US and China to resume tariff talks in effort to extend truce

Gulf Today

time5 hours ago

  • Gulf Today

US and China to resume tariff talks in effort to extend truce

Senior US and Chinese negotiators meet in Stockholm on Monday to tackle longstanding economic disputes at the centre of the countries' trade war, aiming to extend a truce keeping sharply higher tariffs at bay. China is facing an August 12 deadline to reach a durable tariff agreement with President Donald Trump's administration, after Beijing and Washington reached a preliminary deal in June to end weeks of escalating tit-for-tat tariffs. Without an agreement, global supply chains could face renewed turmoil from duties exceeding 100%. The Stockholm talks, led by US Treasury Secretary Scott Bessent and Chinese Vice Premier He Lifeng, take place a day after European Commission President Ursula von der Leyen meets Trump at his golf course in Scotland to try to clinch a deal that would likely see a 15% baseline tariff on most EU goods. Trade analysts on both sides of the Pacific say the discussions in the Swedish capital are unlikely to produce any breakthroughs but could prevent further escalation and help create conditions for Trump and Chinese President Xi Jinping to meet later this year. Previous US-China trade talks in Geneva and London in May and June focused on bringing US and Chinese retaliatory tariffs down from triple-digit levels and restoring the flow of rare earth minerals halted by China and Nvidia H20 AI chips and other goods halted by the United States. So far, the talks have not delved into broader economic issues. They include US complaints that China's state-led, export-driven model is flooding world markets with cheap goods, and Beijing's complaints that US national security export controls on tech goods seek to stunt Chinese growth. 'Stockholm will be the first meaningful round of U.S.-China trade talks,' said Bo Zhengyuan, Shanghai-based partner at China consultancy firm Plenum. Trump has been successful in pressuring some other trading partners, including Japan, Vietnam and the Philippines, into deals accepting higher US tariffs of 15% to 20%. He said there was a 50-50 chance that the US and the 27-member European Union could also reach a framework trade pact, adding that Brussels wanted to 'make a deal very badly'. Two of Trump's top trade officials, Commerce Secretary Howard Lutnick and US Trade Representative Jamieson Greer, will attend the Scotland talks and then travel to Stockholm. Analysts say the U.S.-China negotiations are far more complex and will require more time. China's grip on the global market for rare earth minerals and magnets, used in everything from military hardware to car windshield wiper motors, has proved to be an effective leverage point on US industries. In the background of the talks is speculation about a possible meeting between Trump and Xi in late October. Trump has said he will decide soon whether to visit China in a landmark trip to address trade and security tensions. A new flare-up of tariffs and export controls would likely derail any plans for a meeting with Xi. 'The Stockholm meeting is an opportunity to start laying the groundwork for a Trump visit to China,' said Wendy Cutler, vice president at the Asia Society Policy Institute. Bessent has already said he wants to work out an extension of the August 12 deadline to prevent tariffs snapping back to 145% on the US side and 125% on the Chinese side. Still, China will likely request a reduction of multi-layered US tariffs totaling 55% on most goods and further easing of US high-tech export controls, analysts said. Beijing has argued that such purchases would help reduce the US trade deficit with China, which reached $295.5 billion in 2024. China is currently facing a 20% tariff related to the US fentanyl crisis, a 10% reciprocal tariff, and 25% duties on most industrial goods imposed during Trump's first term. Bessent has also said he would discuss with He the need for China to rebalance its economy away from exports toward domestic consumer demand. The shift would require China to put an end to a protracted property crisis and boost social safety nets to encourage household spending. Michael Froman, a former US trade representative during Barack Obama's administration, said such a shift has been a goal of US policymakers for two decades. 'Can we effectively use tariffs to get China to fundamentally change their economic strategy? That remains to be seen,' said Froman, now president of the Council on Foreign Relations think-tank. Reuters

UAE's Calidus concludes successful participation at IDEF 2025 in Istanbul
UAE's Calidus concludes successful participation at IDEF 2025 in Istanbul

Al Etihad

time8 hours ago

  • Al Etihad

UAE's Calidus concludes successful participation at IDEF 2025 in Istanbul

27 July 2025 20:02 ISTANBUL (WAM)UAE-based Calidus Holding Group has concluded its successful participation in the 17th edition of the International Defence Industry Fair (IDEF 2025), held at the Istanbul Expo Centre from July 22 to 27, as part of the UAE National Pavilion, supervised by Tawazun Council for Defence Enablement (Tawazun).The Calidus stand witnessed strong engagement from senior officials, military leaders, and official delegations from around the world, who praised the advanced capabilities of the UAE's defence industry and commended Calidus products for their reliability, precision, and competitiveness on regional and global the exhibition, Calidus signed several agreements and memorandums of understanding, including an MoU with Türkiye's Presidency of Defence Industries (SSB) to support supply chain collaboration and industrial localisation programmes, as well as an MoU with CTech to explore joint satellite communications and data link projects for military Director and CEO of Calidus Holding Group, Dr. Khalifa Murad Al Blooshi, stated that the participation significantly boosted the company's international presence and showcased the technological innovations of the UAE's defence sector, particularly in AI-driven and next-generation defence solutions, all designed and manufactured exhibited a range of advanced solutions, including the MATV armoured combat support vehicle integrated with the Al Hedaa missile launcher, six variants of the Al Hedaa system, models of the B-250 light attack and B-250T advanced trainer aircraft, a mock-up of the CLS military vehicle production facility, and cutting-edge electro-optical and infrared company also presented its locally manufactured military chassis, built for high-load and extreme-condition performance. The company emphasised that its IDEF 2025 participation aligns with its broader vision to strengthen the UAE's role as a key player in the global defence landscape through technology localisation, strategic autonomy, and regional and international market expansion.

Jazeera Airways unveils mega sale: 100,000 seats from Just KD 14
Jazeera Airways unveils mega sale: 100,000 seats from Just KD 14

Zawya

time11 hours ago

  • Zawya

Jazeera Airways unveils mega sale: 100,000 seats from Just KD 14

Kuwait – Jazeera Airways today announced a significant Mega Sale, offering customers an impressive 100,000 seats at highly competitive fares. One-way flights will be available starting from just KD 14. This initiative underscores Jazeera Airways' ongoing commitment to providing accessible and affordable travel options across its extensive network. Paul Carroll, Chief Commercial Officer, Jazeera Airways, commented: 'We are incredibly excited to launch this Mega Sale, designed specifically to broaden travel opportunities and enhance convenience for even more of our customers. By making 100,000 seats available at such remarkable fares, we are actively making the dream of a getaway or an important trip a more attractive and achievable reality." This limited-time sale runs from July 27 to 31, and is valid for travel between August 1 and September 30, 2025. With a wide range of destinations across the Middle East, Asia, and Europe, Jazeera Airways invites travelers to take advantage of these exceptional fares and enjoy a seamless travel experience with Kuwait's leading low-cost carrier. Bookings can be made conveniently via the official Jazeera Airways website, or through the Jazeera Airways mobile application. About Jazeera Airways Founded in 2004, Jazeera Airways is a leading low-cost carrier based in Kuwait, serving over 5 million passengers across a network of more than 60 destinations in the Middle East, Central and South Asia, Africa, and Europe. Dedicated to offering affordable, high-quality air travel, Jazeera Airways caters to business, leisure, religious, and weekend travellers, all while maintaining the highest standards of safety and customer service. Jazeera Airways currently operates a modern and efficient fleet of 24 Airbus A320ceo and A320neo aircraft, enabling it to optimize fuel efficiency and reduce environmental impact. 26 new aircraft from its orderbook, 18 A320neos and 8 A321neos are expected to arrive 2027 onwards. The only publicly traded airline on the Kuwait Stock Exchange (Boursa Kuwait), Jazeera Airways was recognized as a Fortune 500 Arabia company and named "Great Place to Work" in 2023. A trailblazer in the aviation sector, Jazeera Airways has introduced several digital initiatives to its customer experience and is one of the first to design, build, and operate its own terminal, Jazeera Terminal 5 (T5), at the Kuwait International Airport.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store