KAMCO Invest: $2 Trillion Value of Current GCC Projects in Q3

Kuwait City, Oct 7 (KUNA) -- A report by Kamco Invest forecast improved prospects for the construction projects market in the Gulf Cooperation Council (GCC) countries in both the short and long term, noting that the current value of projects in the Gulf states stands at $2.05 trillion.

In its report on the "GCC Construction Projects Market" released today, the company stated that project award activity in the third quarter of this year declined amid the ongoing repercussions of the regional war. The total value of contracts awarded during this period fell by 37.2 percent year-on-year to reach $44.4 billion, down from $75.6 billion in the same period last year.

It added that although all GCC countries recorded a year-on-year decline in the third quarter, the total value of awarded contracts improved at a moderate pace of 2.5 percent during the first nine months, reaching $204.1 billion compared to $199.1 billion in the same period last year.

The report noted that, in terms of sectoral performance for contract awards, two out of eight sectors—Chemicals and Gas—recorded annual growth in the value of awarded projects during the third quarter of 2026. The value of contracts awarded in the Chemicals sector jumped nearly fivefold to $3.5 billion, compared to $750 million in the same period last year. Furthermore, the value of contracts awarded in the Gas sector rose by 59.9 percent year-on-year to reach $13.5 billion, up from $8.4 billion.

Conversely, the Construction sector, which recorded the highest value of awarded contracts in the region during the third quarter of 2026, saw a year-on-year decline of 44.7 percent in the value of awarded contracts, reaching $14.8 billion.

Regarding projects in Kuwait, the report stated that the total value of awarded contracts declined by 57.3 percent year-on-year in the third quarter to reach $1.9 billion, compared to $4.4 billion in the third quarter of 2025. It highlighted that while the total value of awarded contracts in Kuwait decreased in the third quarter, the decline was less severe, registering a drop of 3.8 percent, reflecting the impact of instability caused by the war in the region.

The report indicated that the Energy sector accounted for more than 58 percent, equivalent to $1.1 billion, of the value of projects awarded in the country during this third quarter, while the Gas sector accounted for 22.7 percent, valued at $424 million. It also noted that the total value of projects awarded in the Construction sector doubled to reach $250 million in the third quarter, compared to $127 million in the third quarter of 2025.

The report clarified that the most prominent contracts awarded in Kuwait during this quarter included a $445 million contract as part of the fourth phase of the gas turbines project with a production capacity of 900 megawatts at the Subiya Power and Desalination Plant, as well as a $379 million contract for the construction of a water separation facility at the Gathering Center and an injection facility at the Gathering Center (GC-30) in northern Kuwait, aimed at increasing the handling capacity for gas, crude oil, and wastewater.

The report stated that among the main active sectors expected to see the implementation of planned but not yet awarded projects is the data center construction sector. The GCC data center projects market is tracking more than 174 major existing and planned projects this year, with a total value exceeding $93 billion. (End) F.N.K / A.M.H