Government orders freeze to transport and housing awards
The Transport and Housing Ministries, and their attached agencies, have been asked to suspend the signing of new contracts until further notice, MEED reported, quoting a copy of the directive, which is dated 14 February. In addition, projects awarded in 4Q2015 will also be postponed. The decision excludes all projects related to Umrah and Pilgrimage. The decision is expected to place further pressure on the award additions to contracts with full (Al-Khodari) or partial exposure to the Saudi market (Arabtec, DSI). Our numbers incorporate weaker award additions for Al-Khodari (-40% in 2016e), slight improvements for Arabtec and DSI, albeit on improved numbers from the UAE. (MEED, Mai Attia, Sara Boutros)
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