Abu Dhabi Commercial Bank report: Saudi Arabia and the UAE to drive a fresh wave of Persian Gulf project awards in the second half of 2026

According to a report by Abu Dhabi Commercial Bank, published by Asharq Bloomberg and carried by Arab News, Saudi Arabia and the United Arab Emirates are expected to lead a fresh wave of project awards in the Persian Gulf in the second half of 2026, despite higher shipping, insurance and construction costs tied to the Iran conflict.

The value of contracts awarded across the Persian Gulf states fell 26.1% in the second quarter of 2026 from the previous quarter, but was still 32% higher than a year earlier and broadly in line with the level recorded in the fourth quarter of 2025.

Among the awards ahead, the report names more than $10 billion of contracts for the expansion of Dubai's Al Maktoum International Airport, a $10 billion award for the second phase of the TA'ZIZ industrial chemicals zone in Abu Dhabi's Al Ruwais Industrial City, and the possible award in the third quarter of Riyadh Metro's Line 7, valued at about $15 billion. The persistence of this investment volume indicates that Iran's southern neighbours have not, for now, paused their development programmes despite the higher risk premium.