Kuwait’s government announced a five-year (2015-2020) $116 billion spend last year which will fuel its economy and project market, says the Ventures report Kuwait Construction Industry 2015.
The report says that the total construction contractor awards in Kuwait are estimated to increase from $27 billion in 2014 to $31 billion in 2015 as building and infrastructure projects are likely to be key focus areas of the government in the next few years.
Building construction projects are likely to constitute a larger share of 42 per cent of the construction projects pie in 2015, largely attributed to the ongoing development of the township projects planned by the Public Authority for Housing Welfare (PAHW) as the state seeks to build affordable housing and associated infrastructure for local nationals.
Kuwait is also investing $2 billion in its tourism sector as the government aims to boost the country as a regional trade and financial hub by 2035.
The five-year $116 billion spend on construction projects, ending in March 2020, will also help boost development for this master plan.
Though Kuwait has seen rapid development in recent decades, substantial investment is now being planned for airports, roads, bridges, ports and rail.
Some of the projects awarded in 2015 include Lower Fars Heavy Oil Field Development – Phase 1, Fifth Gas and Condensate Train at Mina Al Ahmadi Refinery, Sabah Al Salem University – Colleges of Social Science, Shari’a and Law and Administration Facilities Buildings, New Equate Headquarters.
Though future growth seems promising in the gulf state, challenges such as the lack of local companies' operational capabilities, the private sector's lagging contribution to economic activity and dependence on foreign workers still exist despite efforts to address development issues in Kuwait.
Overall, the construction industry in Kuwait is poised for increased project activity in 2015.
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