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Zawya
a day ago
- Business
- Zawya
GCC awarded deals tumble in H1
Projects awarded in the six-nation Gulf Cooperation Council (GCC) in the first half of 2025 tumbled by nearly 39 percent mainly due to a sharp fall in Saudi Arabia, a Kuwaiti-based investment consultancy firm has reported. The value of these contracts dipped to around $86 billion in the first half from nearly $140.5 billion in the first half of last year, Kamco Invest said on Thursday. 'The decline was largely due to the substantial reduction in project activity in Saudi Arabia during the period,' the firm said in a report on awarded contracts in GCC states of Saudi Arabia, Kuwait, Qatar, Bahrain, Oman and the UAE. In the second quarter of this year, the value of such contracts fell by nearly 58 percent to around $28 billion from $68 billion in the second quarter of 2024. 'It was the lowest figure recorded in the past 14 quarters. 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 year-on-year (y-o-y) decline in contract awards during the period,' the report said. It noted that the sharp fall in project activity in the GCC follows two years of record spending, during which the region invested heavily in large-scale oil and gas developments along with a $1 trillion-plus giga projects programme in the Kingdom. Sector-wise, the GCC construction industry recorded a 60.0 percent y-o-y drop, with awards falling to $8.2 billion in the second quarter of this year from around $20.5 billion in the same period of last year. This was followed by the oil sector, which saw a 98.4 percent y-o-y decline to around $70 million from $4.5 billion in the same period, the report said. 'The construction and oil sectors were the primary contributors to the overall decline in GCC project awards during the second quarter of this year.' On a quarterly basis, Saudi Arabia's total contract awards plummeted by 72.5 percent y-o-y to $9.8 billion from $35.5 billion. In contrast, Kuwait recorded a relatively modest 9.8 percent y-o-y decline in aggregate project awards, reaching $1.8 billion against $two billion. The UAE, the second largest Arab economy after Saudi Arabia, posted a 47.0 percent y-o-y drop in contract awards, totaling $14 billion in the second quarter of this year, down from $26.4 billion in the corresponding period of 2024. GCC states, which control over two thirds of the world's proven oil deposits, are the largest spenders in the Arab region, relying heavily on crude export earnings. The six members projected spending this year at around $542 billion compared with nearly $529 billion in 2024, according to the GCC secretariat. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Khaleej Times
3 days ago
- Business
- Khaleej Times
UAE leads GCC project market in Q2 despite dip, outlook remains bright for 2025
The GCC project market is expected to gain renewed momentum in the second half of 2025, led by sustained activities in Saudi Arabia and the UAE. According to the latest data from MEED Projects and Kamco Invest, the UAE emerged as the region's top project market in the second quarter of the year, overtaking Saudi Arabia, despite a year-on-year drop in awarded contracts. The UAE recorded $14 billion worth of contract awards in Q2-2025, down from $26.4 billion in the same period last year — a 47 per cent decline. However, its share of the GCC project market rose to 49.2 per cent from 38.9 per cent in Q2-2024, highlighting the resilience and attractiveness of the UAE's diversified project portfolio. 'The UAE's ability to retain its lead in the region despite a sector-wide slowdown reflects its strategic investment push, policy reforms, and continued focus on economic diversification,' said Mohamed Ali Omar, associate at Kamco Invest. In contrast, Saudi Arabia posted a sharp 72.5 per cent year-on-year drop in Q2 contract awards, reaching $9.8 billion compared to $35.6 billion in Q2-2024. Overall, the GCC recorded a steep 58 per cent drop in Q2 contract awards, with total awards falling to $28.4 billion from $67.7 billion a year earlier — the lowest quarterly figure in 14 quarters. The decline was broad-based, with five of six GCC nations posting lower project awards in the second quarter. The slowdown comes after two years of record spending on mega oil and gas developments and over $1 trillion in gigaprojects. According to Junaid Ansari, head of Investment Strategy and Research at Kamco Invest, 'The slowdown is a cyclical correction after an extended period of robust activity. We expect a revival in the second half as several high-value projects enter the execution phase.' In terms of first-half 2025 performance, UAE contracts totalled $44.4 billion, down 12.1 per cent from $50.6 billion in H1-2024. The largest hit was in the construction sector, which saw a 61.6 per cent drop to $4.9 billion. Yet, the gas sector proved to be a bright spot, with $5.3 billion in awards, accounting for 37.6 per cent of the UAE's Q2 total. Among the standout deals was a $400 million three-year LNG supply agreement between Adnoc Gas and Germany's SEFE. Separately, Adnoc Gas announced a $5 billion investment in its Rich Gas Development Scheme, with the first $2.8 billion tranche awarded to UK-based Wood for the Habshan facility. Petrofac and Kent were also awarded major packages for Das Island and Asab-Bu Hasa facilities, respectively. The industrial and chemical sectors in the UAE also showed signs of growth. The industrial sector saw a 35.8 per cent year-on-year rise in Q2 awards, while the chemical sector rebounded with $150 million in new contracts after no awards in the year-ago quarter. Looking ahead, Saudi Arabia's pipeline includes mega projects such as the $80 billion CARE nuclear power reactor and a $10 billion battery energy storage system. These projects are currently in the bidding or FEED (front-end engineering design) stages and are expected to boost contract activity later in the year. As of mid-2025, the GCC's pre-execution pipeline of contracts is valued at approximately $1.73 trillion. Of this, Saudi Arabia accounts for over 50 per cent at $873.2 billion, followed by the UAE at $417.9 billion, or 24.2 per cent. Kuwait ranks fourth with $114.8 billion, or 6.6 per cent of the regional total. Segment-wise, the pipeline includes $586 billion in the design stage, $625.5 billion in the study phase, $133.9 billion in pre-qualification, $106.3 billion in bidding, $162.6 billion in bid evaluation, and $115.2 billion in FEED.
Al Etihad
3 days ago
- Business
- Al Etihad
UAE tops GCC projects market in Q2 2025
20 July 2025 11:51 A. SREENIVASA REDDY (ABU DHABI) The UAE has emerged as the top-performing projects market in the GCC region during Q2 2025, overtaking Saudi Arabia as the region's leading destination for project awards, according to the latest Kamco Invest report. The UAE's share of total GCC contract awards surged to 49.2% in Q2 2025, up from 38.9% a year earlier, despite a regional downturn in project total value of project awards in the UAE reached $14 billion during Q2 2025. The country maintained its lead in the region, having already overtaken Saudi Arabia in Q1 2025. For the first half of 2025, total contract awards in the UAE amounted to $44.4 billion, down 12.1% year-on-year — a relatively modest decline compared to the broader regional contraction.'This notable shift reflects the successful implementation of wide-ranging structural reforms and carefully targeted investments aimed at accelerating the country's economic diversification agenda,' the Kamco Invest quarterly report sectors, the Gas Sector emerged as the most dominant, accounting for 37.6% of the UAE's total project awards during Q2 2025, with contracts valued at $5.3 billion. Although this marked a decline of $300 million compared to the same period last year, the Gas Sector retained the top spot, followed by the Construction Sector with $4.9 billion and the Transport Sector with $1.7 terms of growth, the Industrial Sector recorded a year-on-year increase of 35.8% in awarded contracts, while the Chemical Sector rebounded to $150 million in Q2 2025 from zero awards a year developments during the quarter included a $400 million, three-year contract awarded to ADNOC Gas to supply 0.7 million tonnes of LNG to Europe's SEFE (Securing Energy for Europe). ADNOC Gas also announced the final investment decision for the $5 billion Rich Gas Development Scheme. The first tranche, worth $2.8 billion, was awarded to UK-based Wood for the development of the Habshan facility, which is expected to generate $400 million in EPCm revenue for the contractor. The other two tranches, valued at $1.2 billion and $1.1 billion, were awarded to Petrofac for the Das Island liquefaction facility and Kent for the Asab and Bu Hasa facilities, respectively. Despite the UAE's gains, the overall GCC projects market saw a sharp 58% decline year-on-year in Q2 2025, falling to $28.4 billion—the lowest in 14 quarters. The decline was led by a 72.5% plunge in Saudi Arabia's project awards, which stood at $9.8 billion during the period. For the full first half, total GCC project awards dropped 38.9% to $86 billion, compared to $140.7 billion in H1 2024.
Khaleej Times
15-07-2025
- Business
- Khaleej Times
UAE bourses outperform GCC peers in H1 net foreign inflows
Foreign investors ramped up their participation in Gulf stock markets in the second quarter of 2025, with the UAE emerging as one of the most attractive destinations. According to Kamco Invest, net foreign inflows into UAE bourses reached $1.33 billion in Abu Dhabi and $462 million in Dubai, reinforcing investor confidence in the country's resilient macroeconomic fundamentals and regulatory environment. Across the GCC, foreign investors were net buyers for the sixth consecutive quarter, recording net purchases worth $4.2 billion in Q2-2025, up from $2.8 billion in Q1-2025. Cumulatively, in the first half of 2025, net foreign buying in GCC markets stood at $7.0 billion — an impressive 39.8 per cent increase year-on-year from $5.0 billion in H1-2024. The UAE outperformed the region in terms of foreign inflows during the first six months, attracting a total of $4.5 billion, followed by Saudi Arabia ($1.6 billion) and Kuwait ($1.4 billion). The consistent inflow of foreign capital into UAE markets reflects the country's deepening capital market sophistication, IPO momentum, and economic diversification strategies — particularly in the non-oil sectors. Abu Dhabi, in particular, remained a magnet for cross-border capital, driven by strategic listings, economic stability, and expanding regional influence through sovereign funds. The emirate also recorded the highest net buying by GCC investors at $48.4 million in Q2, followed by Dubai at $23 million, underlining intra-regional investor interest. In contrast, Oman and Bahrain saw persistent outflows. Oman recorded net foreign sales of $29.6 million in Q2-2025 after a sharper outflow of $459.2 million in the previous quarter. Bahrain also posted net foreign selling of $27.9 million. Collectively, foreign investors remained net sellers in Qatar, Oman, and Bahrain in the first half of 2025, to the tune of $580.7 million — partially offsetting broader regional buying. The buoyancy in UAE equity markets comes despite mixed global signals, including uncertainty around US trade policy. Investors are closely watching the impact of new tariffs announced by the U.S. government, including a 30 per cent duty on imports from Mexico and the European Union and a 35 per cent tariff on Canadian goods, all taking effect on August 1, 2025. Yet, despite such external pressures, five of the seven GCC exchanges posted gains in Q2-2025, underscoring selective investor optimism. The UAE's performance was further bolstered by robust trading volumes. Dubai's volume surged by 21 per cent to 16.3 billion shares in Q2 from 13.4 billion in Q1. Abu Dhabi also saw value traded rise to $22.5 billion in Q2, up from $20.3 billion in Q1, increasing its share of total GCC market activity to 14.9 per cent. Overall trading volume across GCC exchanges climbed 9.1 per cent year-on-year to 94.73 billion shares in Q2-2025, with Qatar leading the way with a 39.4 per cent quarterly increase. Saudi Arabia and Bahrain, however, saw declines of 5 per cent and 61.5 per cent, respectively. Despite this, Saudi Arabia remained dominant in terms of individual stock activity. Six Saudi-listed companies were among the top 10 most traded stocks in the GCC, led by Al-Rajhi Bank ($5.8 billion), Saudi Aramco ($5.1 billion), and International Holdings Co. ($4.0 billion). Other notable names included Adnoc Gas, Emaar Properties, and Kuwait Finance House. Foreign investor interest in the Saudi market remains high, though Q2 saw a moderation in inflows. Foreign purchases totalled 7.3 billion Saudi riyals in H1-2025, down 37 per cent from 11.5 billion riyals in the same period last year. Local institutional investors in Saudi Arabia were net sellers in Q2, offloading 13.3 billion riyals worth of shares, offset somewhat by retail investors who were net buyers of 8.2 billion riyals. GCC investors (excluding Bahrain) recorded net sell trades worth $50.5 million in Q2-2025, a significant drop from $482.3 million in Q1. Kuwait, Qatar, and Oman reported net sales, while the UAE and Saudi Arabia saw marginal net buys by GCC investors. Total value traded across GCC markets declined slightly to $151.8 billion in Q2-2025 from $157.5 billion in Q1. Despite the overall dip, market depth and foreign participation — particularly in the UAE — remained strong, bolstered by continued IPO activity, investor-friendly reforms, and sectoral diversification.
Arab News
15-07-2025
- Business
- Arab News
Foreign investors buy $4.2bn GCC stocks in Q2, up 50%: Kamco Invest
RIYADH: Foreign investors sharply increased their exposure to Gulf stock markets in the second quarter of 2025, with net inflows surging 50 percent compared to the previous three months to reach $4.2 billion. According to the latest analysis done by Kamco Invest, a Kuwait-based non-banking firm, this momentum extended the streak of net foreign inflows into Gulf Cooperation Council equities to six consecutive quarters, with total net purchases in the first half of 2025 rising 39.8 percent year on year to $7 billion. The surge comes as GCC equity markets continue to attract global capital, buoyed by strong corporate earnings and ongoing economic reforms. In the first quarter alone, 11 initial public offerings raised $1.6 billion — up 33 percent from a year earlier — driven largely by Saudi Arabia, which accounted for 69 percent of total proceeds, according to a PwC Middle East analysis published in May. In its GCC Trading Activity Quarterly Report, Kamco said: 'Foreign investors, including institutional and retail investors, were net buyers on GCC stock markets during Q2 2025 with net buying at $4.2 billion as compared to $2.8 billion in net buying during Q1 2025.' Saudi Arabia led the region with $1.4 billion in net foreign buying, a major jump from $252.3 million in the previous quarter, highlighting growing investor confidence in the Kingdom's market liberalization efforts. The increased appetite of foreign buyers in the Saudi exchange underscores the progress of the country's economic diversification efforts, as the Kingdom continues to strengthen its capital market and reduce its reliance on crude revenues. In May, Saudi Arabia's Capital Market Authority revealed in its annual report that net foreign investments in the Kingdom's stock market rose to SR218 billion ($58.1 billion) in 2024, marking a 10.1 percent increase compared to the previous year. The Kamco report noted that the UAE saw $1.33 billion in net inflows into the Abu Dhabi Securities Exchange in the second quarter, while Kuwait saw $696.5 million, Dubai $462 million, and Qatar $333.6 million. In contrast, Oman and Bahrain recorded net foreign outflows of $29.6 million and $27.9 million, respectively. 'The 1H 2025 data of trading activity on GCC exchanges indicated that net buying at the aggregate level, although the trend differed at the country level due to net sales during Q1 2025 for some of the exchanges,' said Kamco Invest. In terms of first-half performance, the UAE attracted the highest foreign inflows at $4.6 billion, followed by Saudi Arabia with $1.6 billion and Kuwait at $1.4 billion. In a landmark regulatory shift, Saudi Arabia's Capital Market Authority recently announced that citizens and residents of GCC countries will be allowed to invest directly in Tadawul, the Kingdom's main stock exchange. This move is part of a broader effort to modernize Saudi Arabia's capital markets and enhance foreign investor participation. It aligns with the Kingdom's ambitious Vision 2030 strategy, which aims to diversify the economy, boost market liquidity, and strengthen its financial standing in the Gulf region. In its latest report, Kamco noted that exchanges in Kuwait, Abu Dhabi, and Qatar witnessed consistent foreign buying throughout the three months of the second quarter. In contrast, Saudi Arabia saw net foreign selling in April, followed by net buying in the subsequent two months. Oman was the only exchange in the GCC region to record net foreign selling in each of the three months of the quarter. 'Some of the key factors that affected the flow of foreign money in the region included regional market trends, initial public offerings, geopolitical issues, economic health of the individual countries and crude oil prices,' added Kamco. Market performance GCC equity markets delivered a mixed performance in the second quarter, with five of the seven regional exchanges posting gains, reinforcing a broadly optimistic investor outlook. Aggregate share trading volume across the region reached 94.73 billion shares in the quarter, up 9.1 percent from the first quarter. Qatar led the increase with 12.5 billion shares traded — up 39.4 percent — followed by Dubai with 16.3 billion shares, a 21 percent increase. In contrast, trading volumes in Saudi Arabia and Bahrain declined by 5 percent and 61.5 percent, respectively, during the same period. The total value of shares traded in the second quarter reached $151.8 billion, representing a marginal decline of 3.75 percent compared to the first quarter. Saudi Arabia, Kuwait, and Bahrain recorded declines in trading value, while the rest of the GCC markets saw gains during the period. The analysis revealed that Abu Dhabi posted the largest increase in value traded, reaching $22.5 billion in the second quarter, up from $20.3 billion in the first three months of the year. Trading activity on Saudi Arabia's stock exchange stood at $89 billion in the second quarter, down from $95.7 billion in the previous quarter. Top 10 GCC stocks The Kamco analysis showed that six Saudi listed stocks ranked among the top 10 most traded GCC equities by trading value in the second quarter of 2025. The combined trading value of the top 10 stocks across the region reached $34.7 billion, accounting for 36.6 percent of the total value traded during the quarter. Al-Rajhi Bank led the list with $5.8 billion in trading value, followed by energy giant Saudi Aramco at $5.1 billion, International Holdings Co. at $4 billion, ADNOC Gas at $3.4 billion, and stc at $3.1 billion. Saudi National Bank saw trading activity of $3 billion, followed by Emaar Properties at $2.9 billion and Alinma Bank at $2.8 billion. Kuwait Finance House recorded $2.5 billion in trades, while Umm Al Qura for Development and Construction Co., also known as Masar, saw $2.1 billion.
