GCC total project value exceeds $61bn in Q1-26 amid slowdown due to regional conditions – Kamco Invest

Mubasher: The projects market across the GCC experienced a slowdown in the first quarter (Q1) of 2026 in line with the regional instability, Kamco Invest said in its latest market update report.

The total value of contracts awarded across the Gulf region declined by 9.7% to $61.2 billion in January-March 2026, compared to $67.8 billion in Q1-25, based on data collected by MEED Projects.

Kamco Invest elaborated that this contraction was driven largely by a substantial downturn in contract awards within Saudi Arabia and the UAE, which represent the two largest project markets in the region.

On the other hand, Kuwait, Oman, and Qatar witnessed growth in project awards in Q1-26.

The number of contract awards in the GCC decreased to just 25 in March 2026 after reaching 84 in January and 80 in February 2026, with the corresponding value of contract awards similarly dropping from $20.5 billion and $26 billion in January and February 2026, respectively, to only $11.8 billion in March.

The report stated: “The war has already impacted many aspects of life and business in the GCC countries, including supply chain delays resulting from shipping disruptions in the Strait of Hormuz, as well as the creation of negative sentiment in some of the region's key industries, such as real estate and tourism.”

Kamco Invest noted: “Moreover, energy exports serve as the primary revenue generators for the GCC countries; consequently, any disruption in the production and export of oil and gas will have a significant negative impact on the ability of GCC countries to fund projects.”

It concluded: “Already, the closure of the Strait of Hormuz and attacks on energy infrastructure have resulted in sharp increases in oil prices and the cessation of production in several hydrocarbon-producing complexes.”

Projects Outlook

Looking ahead, GCC project activity is expected to witness sluggish momentum in 2026, weighed down by the destabilizing repercussions of the US-Iran conflict for the region as well as for the global economy.

Kamco Invest noted that in the latest Regional Economic Outlook report by the IMF the projected GDP growth for the global economy was revised down by 230 basis points (bps) to 2.0% for 2026, and by 260 bps for the MENA real GDP to 1.1%.

In context, the IMF downgraded all real GDP projections for GCC countries with Qatar witnessing the highest downgrade in 2026.

The apparently expected economic growth slowdown for the MENA and GCC countries is expected to have an adverse impact on the funding of contract awards during 2026.

On the other hand, economic activity for 2027 is expected to witness moderate growth during the upcoming year, and hence a bounce-back in contract awards is projected for 2027.

Source: Mubasher Source: {{details.article.source}}