KUWAIT CITY, Jan 22: According to the Kamco Invest report, the value of projects awarded in the Gulf countries nearly doubled in 2023, reaching $209.8 billion compared to $109.7 billion in 2022, reports Al-Seyassah daily.

This substantial increase reflects the success of government efforts in the region and marks the highest annual total for project awards in the Gulf.

The report underscores the achievements of Saudi Arabia in implementing diversification plans and signals the commitment of regional countries to ongoing economic development initiatives.

In the broader Middle East and North Africa region, the total value of contracts awarded in 2023 exceeded $254 billion, surpassing the previous figure of $240 billion recorded in 2014.

The report highlights widespread growth in awarding project contracts across the GCC countries in 2023. Kuwait experienced the highest growth rate, with the total value of contracts reaching $8.2 billion -- a nearly 300% increase from $2.1 billion in 2022. Bahrain, although showing a 19% growth in the total value of contracts to $1.2 billion, remained the smallest project market in the region. Saudi Arabia maintained its leadership as the largest project market in the Gulf, with a 58.6% increase in the value of awarded contracts, reaching $94.9 billion compared to $59.8 billion.

Kuwait witnessed its highest levels of annual project awards in five years, reaching $8.2 billion in 2023, primarily driven by significant investments in infrastructure projects aligned with the Kuwait Vision 2035 plan.

The communications and energy sectors played a pivotal role in this growth. The energy sector saw a more than 12-fold increase in project awards, reaching $3.0 billion in 2023 compared to $246 million in 2022 while the communications sector followed with a total value of projects awarded at $2.7 billion, up from $754 million in 2022.

Together, these two sectors accounted for 68.8% of the total value of projects awarded in Kuwait during the year. Notably, the energy sector saw the awarding of 20 projects in Kuwait during 2023.

The report anticipates that the Gulf's project market will maintain its momentum in 2024, with strong projects in the pipeline and ongoing government reforms aimed at reducing dependence on oil revenues. The region is expected to experience stronger economic growth in 2024 after a period of weakness in 2023 due to reduced oil production quotas imposed by OPEC and its allies.