$1.9 billion in awarded projects in Kuwait during the third quarter

A report issued by KAMCO Invest, titled “GCC Project Market 2026,” stated that the total value of awarded contracts in Gulf countries declined by 37.2% year-on-year to reach $47.4 billion, compared to $75.6 billion in the third quarter of 2026. The report added that although all Gulf countries recorded a year-on-year decline during the third quarter of 2026, the total value of awarded contracts in the GCC improved at a moderate pace of 2.5% during the first nine months of 2026, reaching $204.1 billion, compared to $199.1 billion during the same period in 2025.

All Gulf countries recorded double-digit year-on-year declines during this quarter. Oman recorded the largest drop in awarded contract values, falling by 96.6% to $76 million. In contrast, Saudi Arabia recorded the highest value of awarded contracts among Gulf countries, at $24.4 billion, followed by the UAE at $15.6 billion, and then Qatar at $5.2 billion during the same period.

On a quarter-on-quarter basis, the value of awarded contracts in Gulf countries also declined, albeit at a relatively lower rate of 19.2%. Meanwhile, Qatar and Bahrain recorded quarter-on-quarter growth of 76.1% and 4.3%, respectively.

The slowdown in the pace of contract awards across Gulf countries is primarily attributed to the repercussions of ongoing regional geopolitical tensions, including disruptions to energy exports and trade routes in the region, as well as damage and attacks on energy infrastructure. The decline in contract award activity in Gulf countries is also linked to the expected and currently observable slowdown in the GCC economies during 2026.

According to the Institute of Chartered Accountants in England and Wales (ICAEW) and Oxford Economics, the GCC economies are expected to contract by 6.4% in 2026 before resuming growth by 5.8% in 2027, due to the repercussions of conflicts in the region. The Gulf energy sector is also expected to contract by 26.9% in 2026 before recording growth of 25.9% in 2027. Disruptions to energy exports in the region will directly affect the ability of Gulf countries to finance and award planned contracts during 2026. The Saudi economy, the largest contract market in the region, is expected to see its GDP contract by 4.6% in 2026, while the UAE economy is expected to contract by 1.5% during the same period.

In Kuwait, the total value of awarded projects during the third quarter of 2026 declined by 57.3% year-on-year to reach $1.9 billion, compared to $4.4 billion in the third quarter of 2025, according to data from MEED. Similarly, on a quarter-on-quarter basis, the total value of awarded contracts in Kuwait during the third quarter of 2026 declined, albeit at a less severe pace, recording a drop of 3.8%, reflecting the impact of instability caused by the war in the region.

The energy sector accounted for more than 58%, equivalent to $1.1 billion, of the value of awarded projects in Kuwait during this quarter, while the gas sector accounted for 22.7% ($424 million) of the value of awarded projects during the same period.

At the same time, the total value of awarded projects in the construction sector nearly doubled to reach $250 million in the third quarter of 2026, compared to $127 million in the third quarter of 2025.

Among the most prominent contracts awarded in Kuwait during this quarter was a $445 million contract for the fourth phase of the gas turbines project, with a production capacity of 900 megawatts at the Sulaibikhat power generation and desalination plant, awarded by the Ministry of Electricity, Water, and Renewable Energy.

The project is expected to add 900 megawatts to the country’s electricity generation capacity through combined-cycle gas turbine units integrated with the existing power generation and desalination plant.

The project is also expected to include the supply, installation, operation, and maintenance of gas turbines, steam turbines, and heat recovery steam generators. Among other notable projects awarded in Kuwait during this quarter was a $379 million contract for the construction of a water separation facility at the GC-25 gathering center and an injection facility at the GC-30 gathering center in northern Kuwait, aimed at increasing the handling capacity for gas, crude oil, and wastewater.

The project includes, among other components, the installation of three-phase wet separators with a capacity of 150,000 barrels per day, a low-pressure gas separation vessel with a capacity of 53 million standard cubic feet per day, and a wastewater balancing tank with a capacity of 240,000 barrels of water per day, equipped with a high-capacity transfer pump.