Kuwait Construction Industry August 2015

August 24 , 2015

undefinedA new report created for The Big 5 Kuwait Exhibition in September highlights Kuwait’s plan to invest more in affordable housing as well as the education and healthcare sectors in the next 10 years.

The report, Kuwait Construction Industry August 2015 by Ventures Onsite says that major growth drivers for construction in affordable housing, education and healthcare sectors are the increasing population, ongoing projects by the Public Authority of Housing Welfare (PAHW), and the PPP contract model.

Housing has always been an issue in Kuwait with the government caught between rising land prices and the commitment to provide nationals with their own house.

According to the report, the residential market of Kuwait is currently undersupplied, with the demand for the government-funded housing units to reach 110,300 units by the end of 2015 and 175,000 units by 2020, registering a CAGR of 8 per cent between 2014 and 2020.

For all these reasons, affordable housing has been given special attention by the government to help provide the families who are unable to afford a home. The Public Authority of Housing Welfare (PAHW) has committed to the implementation of a roadmap, which stipulates distribution of 12,000 housing units per year over 10 years, starting from March 2015.

Five affordable housing developments are currently planned or under construction as of August 2015 including Jahra Housing Scheme, Sabah Al Ahmad City - 1,271 Housing Units, Sulaibikhat Residential City, Residential Buildings at Jaber Al Ahmed City, and Al Ahmed New City - 1,475 Housing Units at Area N2.

Construction of 45,000 housing units is also planned as part of the government’s new five-year development plan (2015-2020).

Additionally, along with the focus on housing, the government will also dedicate funds to the healthcare and educational sectors, both of which are lagging behind due to the country’s growing population.

In order to tackle this undersupply of healthcare facilities, the government has initiated the implementation of Nine Hospital Expansion Project, which is expected to add a total of 5,000 beds to the existing capacity.

The education sector in Kuwait is growing at a moderate pace over other GCC countries. But a crowded public school system has led the government to move forward on a host of investments in the construction of new schools and refurbishment, and expansion of existing schools and universities.

The Kuwait Authority for Partnership Projects (KAPP) in collaboration with the Ministry of Education (MoE) invited companies to submit Request for Qualification (RFQ) document on January 18, 2015 for the Kuwait Schools Development Programme project.

The Big 5 Kuwait is the largest construction and build exhibition in the country, supporting professionals with conferences and seminars from September 14-16, 2015.

 

You can download the report direct: fill in the box on the right (below on mobile).