UAE Overtakes Saudi Arabia in Project Awards as Kingdom Eases Up
(Bloomberg) -- The United Arab Emirates is on track to surpass Saudi Arabia in the value of awarded construction projects this year as the kingdom slows down on some developments and refocuses its priorities.
The UAE has awarded an estimated $31 billion in projects so far in 2025, outpacing Saudi Arabia's $20.6 billion, according to data provided by Middle East intelligence platform MEED. If the UAE maintains its lead through year-end, it will be the first time it comes out ahead since 2018.
The shift comes as the kingdom eases up on projects as it faces funding pressures and also adjusts to market demand and rising costs, MEED said on Wednesday. The Gulf nation is also reprioritizing to focus on events it's hosting, like the 2029 Asian Winter Games and the 2034 FIFA World Cup, MEED added.
The UAE is meanwhile pressing ahead with infrastructure and real estate projects. Still, construction across the Gulf has broadly slowed from previous years due to factors including global economic headwinds. Oil prices, which remain too low to balance many Gulf budgets, may also be contributing, adding pressure to regional finances.
The kingdom has awarded just $4 billion for so-called giga projects in 2025 that are designed to back Crown Prince Mohammed bin Salman's Vision 2030 diversification agenda. That compares with $24 billion last year. Across 2024, the kingdom granted a record $152 billion in construction contracts.
To be sure, the current lead held by the UAE may shift in the second half as Saudi Arabia is expected to grant awards for stadiums related to the 2034 FIFA World Cup.
Saudi Arabia also still holds the strongest pipeline of planned developments, with around $1.6 trillion worth of projects announced but not yet awarded, MEED said.
More stories like this are available on bloomberg.com
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