The value of construction contracts awarded in Saudi Arabia during the first half of this year reached SR84.2 billion ($22.45 billion), a report said.

Contracts awarded during the second quarter of the year was SR34.5 billion, according to the National Commercial Bank Construction Contracts Index Second Quarter 2011.

The total contracts this year is likely to surpass that of the contracts released last year, it said.

More than 31 percent of the value of awarded contracts during Q2 were directed towards infrastructure related sectors.

The residential real estate and power sectors garnered the highest percentage of the value of awarded contracts, accounting for 26 percent and 23 percent, respectively, the report said.

Although the total value of awarded contracts fell compared to last quarter, the value represents a 43 percent increase compared to Q2, 2010 when it totalled SR24.2 billion.

The SR84.2 billion value of awarded contracts during H1 represents a 156 percent increase compared to the same period of 2010 when the value was SR33 billion, the report said.
 
According to the NCB report, the Construction Contracts Index (CCI) jumped to 205.3 points at the end of H1, 2011, compared 80.36 points during the same period last year.

The construction sector growth is expected to continue as there are numerous high value projects that are in the bidding phases and are expected to be awarded in Q3.

The Phase 2 of the Haramain high-speed railway project, estimated at SR30 billion, is likely to be awarded thsi quarter. - TradeArabia News Service