Riyadh - Arabstoday
Construction contracts totalling SR84.2bn ($22.4bn) were awarded in Saudi Arabia in the first half of 2011, it was revealed on Tuesday.The NCB Construction Contracts Index said contracts reached SR34.5bn in the second quarter, a drop on the first quarter.April was the second quarter\'s strongest performing month with contract awards valued at SR16.4bn, led by the power and residential real estate sectors, the index showed.Both May and June saw a significant dip with values of SR9.3bn and SR8.8bn but the index added that the outlook for the kingdom\'s construction industry was strong.It said that 2011 was likely to outstrip the previous year\'s total value of awarded contracts, driven by the government\'s focus on meeting its citizens\' demands for improved infrastructure.More than 31 percent of the value of awarded contracts during the second quarter were directed towards infrastructure related sectors while the residential real estate and power sectors garnered 26 percent and 23 percent respectively.The SR84.2bn in awarded contracts during H1 2011 represented a 156 percent increase compared to the same period last year, the index showed. \"This reflects the robustness of the construction industry over the past six months in particular as the initiatives from the annual budget and King Abdullah\'s royal decrees are currently being implemented,\" the index added.In terms of geographical break-up, Riyadh accounted for the highest portion of awarded contracts by value with a 26 percent share followed by the Eastern Province and the Makkah and Madinah regions. From / Arabian Business News