DUBAI, Jan 17 (TRPN) – At least $13.3 billion of government projects are at risk of being cancelled in Saudi Arabia this year due to fiscal pressure and a realignment of government priorities, consultants Faithful+Gould said.
The total value of project awards for 2017 is forecast at $27 billion, and could rise to $32 billion if the Makkah Metro project, which was expected to be awarded in 2016, goes through this year.
“If Makkah Metro is awarded, which I believe will be the case in 2017, admittedly slightly downscaled, then it’s 60 percent growth year-on-year,” David Clifton, regional development director at Faithful+Gould, told Thomson Reuters Projects.
This would imply that the industry awarded $20 billion in contracts last year, compared with $35.5 billion in 2015. More info
By Megha Merani