UAE tops GCC projects market in Q2 2025
A. SREENIVASA REDDY (ABU DHABI) The UAE has emerged as the top-performing projects market in the GCC region during Q2 2025, overtaking Saudi Arabia as the region's leading destination for project awards, according to the latest Kamco Invest report. The UAE's share of total GCC contract awards surged to 49.2% in Q2 2025, up from 38.9% a year earlier, despite a regional downturn in project activity.The total value of project awards in the UAE reached $14 billion during Q2 2025. The country maintained its lead in the region, having already overtaken Saudi Arabia in Q1 2025. For the first half of 2025, total contract awards in the UAE amounted to $44.4 billion, down 12.1% year-on-year — a relatively modest decline compared to the broader regional contraction.'This notable shift reflects the successful implementation of wide-ranging structural reforms and carefully targeted investments aimed at accelerating the country's economic diversification agenda,' the Kamco Invest quarterly report stated.Among sectors, the Gas Sector emerged as the most dominant, accounting for 37.6% of the UAE's total project awards during Q2 2025, with contracts valued at $5.3 billion. Although this marked a decline of $300 million compared to the same period last year, the Gas Sector retained the top spot, followed by the Construction Sector with $4.9 billion and the Transport Sector with $1.7 billion.In terms of growth, the Industrial Sector recorded a year-on-year increase of 35.8% in awarded contracts, while the Chemical Sector rebounded to $150 million in Q2 2025 from zero awards a year earlier.Key developments during the quarter included a $400 million, three-year contract awarded to ADNOC Gas to supply 0.7 million tonnes of LNG to Europe's SEFE (Securing Energy for Europe). ADNOC Gas also announced the final investment decision for the $5 billion Rich Gas Development Scheme. The first tranche, worth $2.8 billion, was awarded to UK-based Wood for the development of the Habshan facility, which is expected to generate $400 million in EPCm revenue for the contractor. The other two tranches, valued at $1.2 billion and $1.1 billion, were awarded to Petrofac for the Das Island liquefaction facility and Kent for the Asab and Bu Hasa facilities, respectively.
Despite the UAE's gains, the overall GCC projects market saw a sharp 58% decline year-on-year in Q2 2025, falling to $28.4 billion—the lowest in 14 quarters. The decline was led by a 72.5% plunge in Saudi Arabia's project awards, which stood at $9.8 billion during the period. For the full first half, total GCC project awards dropped 38.9% to $86 billion, compared to $140.7 billion in H1 2024.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Khaleej Times
22 minutes ago
- Khaleej Times
UAE leads GCC project market in Q2 despite dip, outlook remains bright for 2025
The GCC project market is expected to gain renewed momentum in the second half of 2025, led by sustained activities in Saudi Arabia and the UAE. According to the latest data from MEED Projects and Kamco Invest, the UAE emerged as the region's top project market in the second quarter of the year, overtaking Saudi Arabia, despite a year-on-year drop in awarded contracts. The UAE recorded $14 billion worth of contract awards in Q2-2025, down from $26.4 billion in the same period last year — a 47 per cent decline. However, its share of the GCC project market rose to 49.2 per cent from 38.9 per cent in Q2-2024, highlighting the resilience and attractiveness of the UAE's diversified project portfolio. 'The UAE's ability to retain its lead in the region despite a sector-wide slowdown reflects its strategic investment push, policy reforms, and continued focus on economic diversification,' said Mohamed Ali Omar, associate at Kamco Invest. In contrast, Saudi Arabia posted a sharp 72.5 per cent year-on-year drop in Q2 contract awards, reaching $9.8 billion compared to $35.6 billion in Q2-2024. Overall, the GCC recorded a steep 58 per cent drop in Q2 contract awards, with total awards falling to $28.4 billion from $67.7 billion a year earlier — the lowest quarterly figure in 14 quarters. The decline was broad-based, with five of six GCC nations posting lower project awards in the second quarter. The slowdown comes after two years of record spending on mega oil and gas developments and over $1 trillion in gigaprojects. According to Junaid Ansari, head of Investment Strategy and Research at Kamco Invest, 'The slowdown is a cyclical correction after an extended period of robust activity. We expect a revival in the second half as several high-value projects enter the execution phase.' In terms of first-half 2025 performance, UAE contracts totalled $44.4 billion, down 12.1 per cent from $50.6 billion in H1-2024. The largest hit was in the construction sector, which saw a 61.6 per cent drop to $4.9 billion. Yet, the gas sector proved to be a bright spot, with $5.3 billion in awards, accounting for 37.6 per cent of the UAE's Q2 total. Among the standout deals was a $400 million three-year LNG supply agreement between Adnoc Gas and Germany's SEFE. Separately, Adnoc Gas announced a $5 billion investment in its Rich Gas Development Scheme, with the first $2.8 billion tranche awarded to UK-based Wood for the Habshan facility. Petrofac and Kent were also awarded major packages for Das Island and Asab-Bu Hasa facilities, respectively. The industrial and chemical sectors in the UAE also showed signs of growth. The industrial sector saw a 35.8 per cent year-on-year rise in Q2 awards, while the chemical sector rebounded with $150 million in new contracts after no awards in the year-ago quarter. Looking ahead, Saudi Arabia's pipeline includes mega projects such as the $80 billion CARE nuclear power reactor and a $10 billion battery energy storage system. These projects are currently in the bidding or FEED (front-end engineering design) stages and are expected to boost contract activity later in the year. As of mid-2025, the GCC's pre-execution pipeline of contracts is valued at approximately $1.73 trillion. Of this, Saudi Arabia accounts for over 50 per cent at $873.2 billion, followed by the UAE at $417.9 billion, or 24.2 per cent. Kuwait ranks fourth with $114.8 billion, or 6.6 per cent of the regional total. Segment-wise, the pipeline includes $586 billion in the design stage, $625.5 billion in the study phase, $133.9 billion in pre-qualification, $106.3 billion in bidding, $162.6 billion in bid evaluation, and $115.2 billion in FEED.
Al Etihad
an hour ago
- Al Etihad
Binance's Sharia Earn marks a big milestone in Islamic and crypto finance
20 July 2025 14:39 A. SREENIVASA REDDY (ABU DHABI) Binance, the world's largest cryptocurrency exchange by trading volume, has launched Sharia Earn, the world's first Shariah-compliant multi-token staking solution—marking a major milestone in expanding ethical crypto investing for the global Muslim product, now live on the Binance platform, has been certified as fully compliant with Islamic finance principles by Amanie Advisors, a globally recognised Shariah advisory certification, signed by leading Islamic finance scholar Dr. Mohd Daud Bakar, confirms that the structure of Sharia Earn adheres to key tenets of Islamic jurisprudence, including the prohibition of interest (riba), excessive uncertainty (gharar), and involvement in non-halal industries such as alcohol, gambling, and adult content. In a statement published on its website, Binance said the launch underscores its commitment to financial inclusion and innovation aligned with ethical launch marks Binance's first foray into the Islamic finance space, and it comes at a time when interest in halal investing is growing. The Islamic finance sector is estimated to exceed $4 trillion globally, yet much of the Muslim community has remained hesitant to enter the decentralised finance (DeFi) space due to concerns over Shariah Earn operates under a Wakala structure, a Shariah-compliant agency agreement, whereby Binance acts as a representative (wakeel) for users and manages their assets for the purpose of generating halal digital assets and protocols deemed compliant by Shariah scholars are included. Binance noted that all protocols are subject to rigorous screening and ongoing monitoring to ensure continued alignment with Islamic Sharia Earn supports staking in three major crypto assets: Binance Coin (BNB), Ethereum (ETH), and Solana (SOL).Users who stake ETH and SOL will receive tokenised versions—WBETH and BNSOL, respectively—whose values increase over time to reflect the staking rewards generated on-chain. These wrapped tokens can be redeemed at any time for the equivalent underlying BNB staking, users receive daily rewards deposited directly into their spot wallets. Unlike simply purchasing and holding crypto tokens, staking involves locking up these assets on the blockchain to support network operations—such as transaction validation—while earning rewards in generated through Sharia Earn are derived from halal staking activities on blockchain networks. To reflect Islamic finance norms, Binance uses the term 'Rate of Return' (ROR) instead of Annual Percentage Rate (APR) when presenting expected returns, which are benchmarked against market-based staking rates and reviewed by qualified Shariah scholars.'This is more than a product – it's a movement toward a more principled and equitable digital economy that promotes financial freedom for all,' said Richard Teng, CEO of Binance. 'With this product we're empowering the Muslim community and Shariah-focused investors to participate in one of the most exciting financial revolutions of our time.'Samer Mardini, Chief Investment Officer at a family office in Dubai, welcomed the initiative. 'It is a great and much needed innovation that finally gives Muslim investors a meaningful way to engage with the crypto space without compromising their beliefs,' he said. 'The adoption of the Wakāla (agency) structure is consistent with classical Islamic financial principles, offering a framework that facilitates halal participation in crypto-based returns.'Mardini added that while the present certification is a strong step forward, 'further endorsement from standard-setting bodies such as the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) would add significant weight and global credibility.' He noted that AAOIFI's widely recognised standards would enhance institutional confidence and help standardise Shariah-compliant crypto this sentiment, Irina Heaver, Dubai-based crypto lawyer and founder of said: 'Muslims have hesitated to enter crypto or DeFi space due to faith-related uncertainty. Binance's Sharia Earn product—backed by respected Islamic scholars—is a brilliant move that shows respect for local values while opening access to DeFi in a compliant, inclusive way.'Heaver also underlined the strategic significance of the launch for the UAE's ambitions: 'Binance, headquartered in Dubai, understands this deeply—both culturally and commercially. By launching Sharia Earn, they didn't just seize a market opportunity—they aligned with the UAE's broader vision. It's a smart, strategic move that supports ethical finance, financial inclusion, and cements Dubai's position as a global Islamic fintech hub.'According to Binance, the product is initially available in over 35 countries, including key Islamic finance markets such as the UAE, Saudi Arabia, Egypt, Pakistan, Indonesia, Turkey, and several Central and South Asian nations. The exchange also confirmed plans to extend availability to additional jurisdictions in the near said the introduction of Sharia Earn is part of a broader effort to build an inclusive, values-based digital finance ecosystem that empowers users of all faiths. 'Every component—from reward generation to asset selection—has been carefully tailored to remain compliant with Islamic principles,' the company stated.'Whether driven by faith or a desire for ethical crypto growth, Sharia Earn provides a trusted and transparent gateway into digital finance.' (Disclaimer: The article does not constitute financial advice. Readers should consult a licensed professional before making investment decisions) Source: Aletihad - Abu Dhabi
Khaleej Times
an hour ago
- Khaleej Times
Foreign investors are warming to London's unloved stocks
Britain's stock market finally appears to be reversing years of underperformance against the rest of Europe, as a UK/U.S. trade deal, lighter regulation and cheap stocks deliver juicy returns that are starting to attract foreign investors. The FTSE 100 has gained nearly 10% this year to hit record highs this week, beating the STOXX 600, which is up 7.5%. On a year-to-date basis, London's blue-chip index has performed better than its European counterpart for the last six weeks, its longest such stretch since late 2022, when a weak pound beefed up revenues for the export-focused FTSE. This week, the financial regulator said it will roll out new rules to boost Britain's capital markets, while Chancellor Rachel Reeves told the financial industry to paint a less negative picture of UK stocks for would-be retail investors, as she seeks new ways to revive a stagnating economy. For foreign investors, the blue-chip index is already looking appealing given sterling's rally this year, while asset managers say the narrative around the UK is shifting. "We are seeing signs of big asset allocators coming back to the UK," Justin Onuekwusi, chief investment officer at St. James's Place. "I am talking about non-UK endowments, pension funds, asset owners, wealth managers who were all very underweight the UK post-Brexit," he said. In dollar terms, the FTSE-100 is up nearly 18% so far this year, set for the biggest dollar-denominated returns since 2009, compared with a 6% year-to-date gain in the SP 500, which has also hit record highs. The pound, up 7% this year against the dollar as investors turn away from U.S. assets in response to heightened U.S. policy uncertainty under U.S. President Donald Trump, acts as a headwind for FTSE constituents, 80% of whom get their revenues from overseas. Yet the index's wealth of large defensive companies, including healthcare, utilities and food retailers, help insulate it against swings in the underlying economy, like drugmaker AstraZeneca or supermarket chain Tesco It also has growth-sensitive resource stocks such as Anglo American and BP to tap into strength in oil, copper and gold. Britain meanwhile is one of the few economies facing less trade uncertainty with a U.S. trade deal in place. In contrast, the European Union faces the threat of 30% tariffs if there is no agreement by August 1. 'Tea and biscuit' "The UK stock market is the calming cup of tea and biscuit in an uncertain world. There's nothing fancy on offer, just reliable names that do their job day in, day out," AJ Bell investment analyst Dan Coatsworth said. Valuations for FTSE-100 companies have lagged those elsewhere in Europe for years. The 2016 Brexit vote accelerated that trend, with fewer companies using London to list their shares and fewer cropping up as MA targets, given the political and economic uncertainty that prevailed at the time. Now the UK market is catching up. The FTSE-100's 12-month forward price-to-earnings ratio of 12.5 is the highest for around five years, compared with 14.11 for the STOXX, the narrowest gap in around 18 months, LSEG data shows. The SP trades at a ratio of 23, a near-10 point premium to the FTSE, compared with under 2 points 10 years ago. "The relatively poor performance we've seen in the UK versus particularly the U.S. over the past two years has begun to unwind. We're in the foothills of that," Michael Stiasny, head of UK Equities, MG Investments, said, adding that the UK market has traded at a "significant discount". The pound is close to a four-year high against the dollar, but has weakened against the euro this year, offering a tailwind to the FTSE's big exporters. The EU is Britain's largest trading partner, accounting for 41% of exports in 2024, followed by the United States, with 22%, according to official data. It isn't all rosy. The British economy is flagging, inflation is well above the Bank of England's target of 2% and business activity and employment are slowing. Barclays data shows UK equities have seen a net outflow of $20 billion in 2025, although outflows have almost dried up in the last month, compared with Europe's year-to-date inflow of $13 billion and rapidly slowing inflows. Sebastian Raedler, head of European equity strategy and Bank of America Merrill Lynch, said he felt the FTSE's strong run was a function of the currency and in line with the rest of Europe. "Net-net, the FTSE has mildly outperformed, but I would say in an environment where there are a lot of big stories ... a 2% (out)performance of the UK this year would rank further down the radar from my perspective," he said, referring to the percentage gain in the FTSE in 2025 versus that of the STOXX.
