The Coronavirus (COVID-19) pandemic and the drop in oil prices took a severe toll on Kuwait’s economy and construction industry in 2020. Although the industry is set to pick up from the 2020 slump, supported by the re-opening of the economy and an improvement in global crude oil demand, construction output in real terms is not expected to return to 2019 levels until beyond 2025. The government is focusing on increasing oil production to generate greater revenue, and an improvement in government finances will enable the government to increase public spending on infrastructure. In June 2021, the government approved the Financial Year (FY) 2021-22 (April 2021 to March 2022) state budget, which allocates KWD19.6 billion (US$64.6 billion) to 19 strategic projects, including the Sabah al-Salem Kuwait University City, Kuwait International airport expansion, Al-Mutlaa residential city project and the railway network plans, among others.
Having rebounded by an estimated 33.1% in 2021, the publisher expects Kuwait’s construction industry to register an annual growth of 14.3% in 2022, before expanding by an annual average rate of 4.1% over the remainder of the forecast period (2023-2025). The government’s programs to promote the development of economic zones, logistic cities, transport, and renewable energy infrastructure are expected to continue supporting the recovery of the Kuwaiti construction industry in the coming years. Kuwait’s priority to fast-track economic reforms and diversify the economy away from its dependence on hydrocarbons will also support the construction industry. The country aims to position itself as a center for re-exports, shipping and warehousing; to achieve this goal, the country aims to develop a series of ‘logistic cities’. This initiative will help in attracting foreign investments, diversifying the economy and boosting the local economy. The Kuwait Ports Authority (KPA) plans to award the design and consultancy study contract for the KWD121.4 million (US$400 million) ‘Logistics City’ project in the first quarter of 2022. Moreover, in November 2021, Kuwait's Oil Minister, Mohammed al Fares, revealed that the country is planning to develop solar and wind power projects through a joint venture between the government and the private sector. This will attract investments towards the renewable energy sector, thereby helping the country in reaching its goal of generating 15% of its electricity from renewable energy sources by 2030.
Having rebounded by an estimated 33.1% in 2021, the publisher expects Kuwait’s construction industry to register an annual growth of 14.3% in 2022, before expanding by an annual average rate of 4.1% over the remainder of the forecast period (2023-2025). The government’s programs to promote the development of economic zones, logistic cities, transport, and renewable energy infrastructure are expected to continue supporting the recovery of the Kuwaiti construction industry in the coming years. Kuwait’s priority to fast-track economic reforms and diversify the economy away from its dependence on hydrocarbons will also support the construction industry. The country aims to position itself as a center for re-exports, shipping and warehousing; to achieve this goal, the country aims to develop a series of ‘logistic cities’. This initiative will help in attracting foreign investments, diversifying the economy and boosting the local economy. The Kuwait Ports Authority (KPA) plans to award the design and consultancy study contract for the KWD121.4 million (US$400 million) ‘Logistics City’ project in the first quarter of 2022. Moreover, in November 2021, Kuwait's Oil Minister, Mohammed al Fares, revealed that the country is planning to develop solar and wind power projects through a joint venture between the government and the private sector. This will attract investments towards the renewable energy sector, thereby helping the country in reaching its goal of generating 15% of its electricity from renewable energy sources by 2030.
This report provides detailed market analysis, information, and insights into Kuwait’s construction industry, including:
- Kuwait’s construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in Kuwait’s construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Kuwait. It provides:
- Historical (2016-2020) and forecast (2021-2025) valuations of the construction industry in Kuwait, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the publisher's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
