Kamco: Qatar likely to double its project growth for 2021

Kamco: Qatar likely to double its project growth for 2021

According to the Kamco group, the State of Qatar is likely to receive projects worth 31bn$ this year alone, as the first quarter witnessed a 13bn$ in the middle eastern region for gas expansion projects. 

Kamco stated: "the growth came mainly on the back of a quarter-on-quarter increase in project awards in Qatar and Kuwait, while the rest of the GCC countries reported declines." 

The Gulf region witnessed a gradual increase in the first quarter for the projects awarding double of 26.3bn $ against the final quarter of last year.

After constant decrease during the past few months, the projects in the region showed a very “healthy” recovery during the first quarter of this year.

Among the $26.3bn projects awarded in the region during the first quarter of this year, the gas industry witnessed as much as $17.83bn or 68% of the total, followed by construction sector with $3.18bn or 12%, power industry with $1.61bn or 6%, transport sectors with $1.57bn or 6%, water sector with $1.28bn or 5%, oil industry with $0.61bn or 2%, and industrial sectors with $0.22bn or 1%. 

The report mentioned that as compared to the first quarter of 2020, Qatar was the only country reported a steady increase in the project awards that however showed a minimal fall at the aggregate GCC level at 3.5%.

The report said: "The higher number for Qatar mainly reflects the $13bn award for the Qatargas – LNG (liquefied natural gas) processing trains project.”

The Kamco report said the value of projects planned and under execution in the GCC has remained around the $1.7tn mark since 2017. 

As the contract awards is expected to reach five-year high this year, it said with year-to-date awards at $33.1bn, "the full year is expected to be promising in terms of project market activity in the GCC."

According to MEED projects, $114bn worth contracts are also likely to be awarded this year that is said to be triple the size of last year’s contract awards and double the awards in 2019

Kamco highlighted that, "The significant increase is expected to come from pending projects from last year as well as an accelerated of diversification efforts in the GCC," 
According to the MEED projects, among the total 2.4tn $, construction accounts for the bulk of the GCC project pipeline were met at 65% or 1.5tn$. 
Kamco added that the need to enhance non-oil industries is apparent in the project pipeline for all the gulf countries. 

During the study phase, it was also found that the project worth 1.7tn $ was underway following the stage of 408bn $ worth project in the region.