Saudi Arabia tops GCC projects market in Q3: report  

Across the region, total GCC contract awards fell 27 percent year on year to $54.8 billion in the third quarter, with nine-month awards down 30.5 percent to $154.4 billion. Shutterstock
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Updated 12 October 2025
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Saudi Arabia tops GCC projects market in Q3: report  

RIYADH: Saudi Arabia led the Gulf Cooperation Council’s projects market in the third quarter of 2025 with $28.1 billion in contract awards, a new report showed.    

According to Kamco Invest, this represented 51.3 percent of total GCC awards — just over half of regional activity.  

Across the region, total GCC contract awards fell 27 percent year on year to $54.8 billion in the third quarter, with nine-month awards down 30.5 percent to $154.4 billion.  

In its report, Kamco stated: “Contract awards are expected to gain momentum in the fourth quarter of the year, driven primarily by recoveries in Saudi Arabia and the UAE.”   

It added: “However, despite a strong project pipeline, overall project awards in 2025 in the GCC are expected to decline and fall short of the 2024 record contract awards.”   

Sectorally, six of the GCC’s eight industries recorded year-on-year declines in the third quarter. Construction dropped 62.4 percent to $11.1 billion and power decreased 13.3 percent to $17.1 billion, while gas and oil were the only sectors to post growth.    

Within Saudi Arabia, power led with $9.8 billion in awards, compared with $17.1 billion a year earlier, while construction totaled $5.2 billion; there were no chemical sector awards and oil stood at $3.9 billion.     

Notable awards included an $853 million road package for Almabani General Contractors and a $167 million contract for a Pirelli tyre plant in King Abdullah Economic City. Over the first nine months, awards nearly halved to $61.5 billion from $116.6 billion.    

Saudi Arabia’s lead comes as contracts awarded under its giga-projects surged 20 percent in 2025 to $196 billion, according to Knight Frank.     

The report said the increase reflects a clear shift from planning to execution across major developments, particularly in real estate, tourism, and infrastructure, signaling steady progress in the Kingdom’s Vision 2030 diversification drive.    

Kamco’s report stated: “Overall project activity in Saudi Arabia has been sluggish throughout 2025. However, the Kingdom’s broader economic performance has been better than previously expected.” 

In the UAE, third-quarter awards fell 65.8 percent year on year to $6.7 billion, moving the country from the GCC’s largest projects market in the second quarter to third place in the third quarter.   

Over the first nine months, awards declined 18.0 percent to $59.7 billion. Construction led with $5.4 billion despite a 56.2 percent slide, and there were no oil and gas awards in the quarter.    

Major announcements included a $593 million contract for Sharjah’s Madar Mall and a $300 million award for the Erisha Smart Manufacturing Hub in Ras Al-Khaimah.   

Qatar was a bright spot, with contract awards jumping 115.9 percent year on year to $13.6 billion in the third quarter and rising 27.6 percent to $20.5 billion over the first nine months, supported by preparations for the 2030 Asian Games.   

Oil and gas led sector allocations, and China Offshore Oil Engineering won roughly $4 billion of contracts for the Bul Hanine offshore field.   

Kuwait’s market improved, with third-quarter awards up 33.8 percent year on year to $4.3 billion and first-nine-months awards up 25.3 percent to $7 billion.   

The quarter was dominated by the $4 billion Al Zour North IWPP phases two and three, alongside an $84 million upstream oil contract and a $65 million public-buildings package in Al Mutlaa Residential City.   

Looking ahead, Kamco expects awards to gain momentum in the fourth quarter on recoveries in Saudi Arabia and the UAE, although full-year 2025 awards are still seen finishing below 2024’s record.   

The GCC’s pre-execution pipeline totals about $1.78 trillion, led by construction with $624.2 billion, transport with $300 billion and power with $294.2 billion.   

Saudi Arabia accounts for roughly $887 billion of upcoming projects and the UAE $434.0 billion; Saudi Aramco plans 99 projects over the next three years and currently has about $50 billion of engineering, procurement, and construction contracts under execution. 


Saudi Arabia looks to Swiss-led geospatial AI breakthroughs

Updated 12 December 2025
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Saudi Arabia looks to Swiss-led geospatial AI breakthroughs

  • IBM’s Zurich lab is shaping tools policymakers could use to protect ecosystems

ZURICH: For Gulf countries such as Saudi Arabia, AI-powered Earth observation is quickly becoming indispensable for anticipating climate risks, modeling extreme weather and protecting critical national infrastructure. 

That reality was on display inside IBM’s research lab in Zurich, where scientists are advancing geospatial AI and quantum technologies designed to help countries navigate a decade of accelerating environmental volatility.

The Zurich facility — one of IBM’s most sophisticated hubs for climate modeling, satellite analytics and quantum computing — provides a rare look into the scientific foundations shaping how nations interpret satellite imagery, track environmental change and construct long-term resilience strategies. 

Entrance to IBM Research Europe in Zurich (left); inside IBM’s hardware development lab, (top, right); and IBM’s Diamondback system. (AN Photos by Waad Hussain)

For Saudi Arabia, where climate adaptation, space technologies and data-driven policy align closely with Vision 2030 ambitions, the lessons emerging from this work resonate with growing urgency.

At the heart of the lab’s research is a shift in how satellite data is understood. While traditional space programs focused largely on engineering spacecraft and amassing imagery, researchers say the future lies in extracting meaning from those massive datasets. 

As Juan Bernabe-Moreno, director of IBM Research Europe for Ireland and the UK, notes, satellites ultimately “are gathering data,” but real impact only emerges when institutions can “make sense of that data” using geospatial foundation models.

r. Juan Bernabe Moreno, Director of IBM Research Europe for Ireland and the UK/(AN Photo by Waad Hussain)

These open-source models allow government agencies, researchers and local innovators to fine-tune Earth-observation AI for their own geography and environmental pressures. Their applications, Bernabe-Moreno explained, have already produced unexpected insights — identifying illegal dumping sites, measuring how mangrove plantations cool cities, and generating flood-risk maps “for places that don’t usually get floods, like Riyadh.”

The relevance for Saudi Arabia is clear. Coastal developments require precise environmental modeling; mangrove restoration along the Red Sea is a national priority under the Saudi Green Initiative; and cities such as Riyadh and Jeddah have recently faced severe rainfall that strained existing drainage systems. 

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The ability to simulate these events before they unfold could help authorities make better decisions about zoning, infrastructure and emergency planning. Today’s satellites, Bernabe-Moreno said, provide “an almost real-time picture of what is happening on Earth,” shifting the challenge from collecting data to interpreting it.

This push toward actionable intelligence also reflects a larger transformation in research culture. Major advances in Earth observation increasingly depend on open innovation — shared data, open-source tools and transparent models that allow global collaboration. “Open innovation in this field is key,” Bernabe-Moreno said, noting that NASA, ESA and IBM rely on openness to avoid the delays caused by lengthy IP negotiations.

Scientific posters inside IBM’s research facility showcasing decades of breakthroughs in atomic-scale imaging and nanotechnology. (AN Photo by Waad Hussain)

Saudi Arabia has already embraced this direction. Through SDAIA, KAUST and national partnerships, the Kingdom is moving from consuming global research to actively contributing to it. Open geospatial AI models, researchers argue, give Saudi developers the ability to build highly localized applications adapted to the region’s climate realities and economic priorities.

Beyond Earth observation, IBM’s Zurich lab is pushing forward in another strategic frontier: quantum computing. Though still in its early stages, quantum technology could reshape sectors from logistics and materials science to advanced environmental modeling. 

Alessandro Curioni, IBM Research VP for Europe and Africa and director of the Zurich lab, stressed that quantum’s value should not be judged by whether it produces artificial general intelligence. Rather, it should be viewed as a tool to expand human capability. 

 Dr. Alessandro Curioni, VP of IBM Research Europe and Africa & Director of IBM Research Zurich/ (AN Photo by Waad Hussain)

“The value of computing is not to create a second version of myself,” he said, “it’s to create an instrument that allows me to be super-human at the things I cannot do.”

Curioni sees quantum not as a replacement for classical computing but as an extension capable of solving problems too complex for traditional machines — from simulating fluid dynamics to optimizing vast, interdependent systems. But he cautioned that significant challenges remain, including the need for major advances in hardware stability and tight integration with classical systems. Once these layers mature, he said, “the sky is the limit.”

DID YOU KNOW?

• Modern satellites deliver near real-time views of Earth’s surface.

• Geospatial foundation models transform vast satellite datasets into clear, actionable insights.

• These tools can produce flood-risk maps for cities such as Riyadh, analyze how mangroves cool urban areas, and even detect illegal dumping sites.

Saudi Arabia’s investments in digital infrastructure, sovereign cloud systems and advanced research institutions position the Kingdom strongly for the quantum era when enterprise-ready systems begin to scale. Curioni noted that Saudi Arabia is already “moving in the right direction” on infrastructure, ecosystem development and talent — the three essentials he identifies for deep research collaboration.

His perspective underscores a broader shift underway: the Kingdom is building not only advanced AI applications but a scientific ecosystem capable of sustaining long-term innovation. National programs now include talent development, regulatory frameworks, high-performance computing, and strategic partnerships with global research centers. Researchers argue that this integrated approach distinguishes nations that merely adopt technology from those that ultimately lead it.

Inside IBM’s hardware development lab, where researchers prototype and test experimental computing components. (AN Photo by Waad Hussain)

For individuals as much as institutions, the message from Zurich is clear. As Curioni put it, those who resist new tools risk being outpaced by those who embrace them. Generative AI already handles tasks — from literature reviews to data processing — that once required days of manual analysis. “If you don’t adopt new technologies, you will be overtaken by those who do adopt them,” he said, adding that the goal is to use these tools “to make yourself better,” not to fear them.

From geospatial AI to emerging quantum platforms, the work underway at IBM’s Zurich lab reflects technologies that will increasingly inform national planning and environmental resilience. 

For a country like Saudi Arabia — balancing rapid development with climate uncertainty — such scientific insight may prove essential. As researchers in Switzerland design the tools of tomorrow, the Kingdom is already exploring how these breakthroughs can translate into sustainability, resilience and strategic advantage at home.