Since 2016, the GCC alone has awarded over $348bn in oil, gas and petrochemicals contracts – averaging more than $34bn annually. This momentum peaked in 2023, with a record $76bn of project spending fuelled by landmark investments from Adnoc, QatarEnergy and Saudi Aramco, including:

• Jafurah and Hail and Ghasha field developments
• Qatar liquefied natural gas expansion
• Amiral petrochemicals complex

Capital expenditure in 2024 marked a notable decline of 11.8% compared to the record levels of 2023. By May 2025, total contract awards across the region had reached $22bn, reflecting a tempered pace of investment.

Saudi Arabia recorded a sharp drop – just $2.2bn in awards during the first five months of 2025 versus $16bn in the same period of 2024.

This downward trajectory is influenced by a combination of geopolitical uncertainty and fluctuating oil prices, which continue to cast a shadow over near-term spending plans. While the long-term fundamentals remain robust, short-term caution appears to be the prevailing tone in regional project activity.

Vast pipeline

The outlook for the region remains highly promising, with over $640bn-worth of oil, gas and petrochemicals projects currently in the pipeline across the Middle East and North Africa (Mena) region.

These planned developments present exceptional opportunities for contractors, suppliers and consultants alike – particularly those equipped to deliver in specialised, high-growth areas such as offshore engineering.

Within this total, the GCC alone accounts for $321bn, underscoring its role as a key driver of energy sector expansion and a magnet for investment and technical expertise.

Evolving procurement rules are reshaping how oil, gas and petrochemicals projects are executed

However, growth comes with challenges, including:

• Shortages of experienced engineering, procurement and construction (EPC) and specialist subcontractors
• Rising costs due to constrained capacity and supply chain inflation
• Increased complexity in delivering capital-intensive, high-tech projects

To overcome these challenges, clients are embracing innovative delivery models like early contractor involvement, advanced work packaging and integrated feed+EPC frameworks to control risk and keep costs in check.