GCC Contract Awards Reach $213B in 2025, Surpassing Decade Average by 30%
GCC countries awarded $213B in project contracts in 2025, about 30% above the decade average, with Saudi Arabia and the UAE each topping $50B and a multi-year procurement pipeline ahead.
Gulf Cooperation Council countries awarded $213B in project contracts in 2025, according to MEED Projects' Annual GCC Contracts Review (January 2026). Saudi Arabia and the UAE each exceeded $50B in awards by August. The 10-year average for annual GCC contract awards stands at $164B, making 2025 approximately 30% above the historical baseline.
Saudi Arabia: $43B capital expenditure budgeted for FY2026
The Saudi Ministry of Finance Budget Statement FY2026 (December 2025) allocates SAR 162B ($43B) in capital expenditure for fiscal year 2026, representing 12.3% of total government spending. Major projects in the pipeline include Red Sea Global Phase 2, the Qiddiya entertainment complex, and Diriyah Gate. The Riyadh Metro is ramping up operations.
NEOM, the marquee giga-project, has undergone restructuring and scope reduction from its original plans, according to King & Spalding's GCC Projects Outlook 2026. The broader Saudi project pipeline remains substantial, driven by Vision 2030 national transformation spending across tourism, entertainment, transport, and industrial infrastructure.
UAE: $35B Al Maktoum airport expansion anchors project pipeline
The single largest project in the UAE pipeline is the $35B Al Maktoum International Airport expansion. Dubai International Airport (DXB) currently handles over 90M passengers annually, and the expansion is driven by projected capacity constraints at the existing facility.
Additional UAE projects include Etihad Rail Phase 2, Roads and Transport Authority (RTA) transit expansion, and developments under the Dubai 2040 Urban Master Plan.
Procurement structure of large-scale GCC contracts
A $213B year in contract awards does not translate to $213B in procurement activity in a single year. Large infrastructure contracts awarded in 2025 generate requests for quotation (RFQs) for sub-components through 2026, 2027, and into 2028.
Headline contracts are awarded to large EPC (engineering, procurement, and construction) firms. Below those primary contracts, the demand distributes across hundreds of sub-packages, each with its own specifications, timelines, and procurement channels. Categories include structural steel, MEP components, HVAC systems, electrical enclosures, piping and fittings, industrial valves, pumps, cables, switchgear, fire safety systems, and elevators.
Vendor qualification and certification requirements
GCC EPC contractors maintain prequalified supplier databases. The qualification process typically takes 3 to 6 months and involves factory audits, documentation review, and trial orders, according to the IMARC Group, GCC Construction Market Report (2025 edition).
Certification requirements vary by sector: API and ASME certifications apply to oil and gas projects, CE marking to projects built under European standards, GSO G-Mark to regulated product categories, and ISO 9001 serves as a baseline requirement across sectors.
Sustained pipeline, not a single-year spike
The 2025 contract awards reflect multi-year national transformation programmes with committed budgets rather than a one-time spending surge. Saudi Arabia's Vision 2030, the UAE's diversification strategy, and similar programmes across the GCC underpin a project pipeline that extends through the end of the decade. MEED Projects, Ventures Onsite, and BNC Network track GCC awards, contractor appointments, and procurement phases across the region.
Sources: MEED Projects, Annual GCC Contracts Review (January 2026); King & Spalding, GCC Projects Outlook 2026; Saudi Ministry of Finance, Budget Statement FY2026 (December 2025); IMARC Group, GCC Construction Market Report (2025 edition).
