Key Trends and Issues of Kuwait’s Construction Industry

Kuwaits Construction Industry

The construction industry in Kuwait is set to thrive, due to new projects from the private sector and an increase in demand for residential, commercial and infrastructure activity. A number of large projects are currently planned or underway, The following projects are likely to be completed over the next six to seven years: the government’s ongoing metro project

According to the National Bank of Kuwait (NBK), the real growth of GDP, in terms of oil production, slowed from 6.1% in 2012 to 3.2% in 2013, whereas the growth of non-oil GDP increased from 4% in 2012 to 4.7% in 2013. Kuwait is small, but has emerged as the second-wealthiest nation in the Gulf Corporation Council (GCC), with a per capita GDP of around KWD51.5 billion (US$184 billion). The country accounted for 7% of the total world reserves, with crude oil reserves of 104 billion barrels in 2012. In 2010, the Kuwaiti government introduced the National Economic Development Plan 2010–2014 to diversify from oil reserves and increase participation in the private sector. The plan is expected to the development of residential, infrastructure, commercial and industrial markets.

Within the GCC, Kuwait emerged as the fourth-largest country undertaking high-end value projects, after the UAE, Qatar and Saudi Arabia. The project market is anticipated to flourish, although it may face excessive bureaucracy, budget surpluses and a scarcity of labor, resulting in the increasing cost of labor. Projects

The Saudi Railway Organization (SRO) is involved in the engineering and design of the rail network.. Progress on the project has been hampered by political and technical issues, although it will create a long-lasting impact on the country’s economy by encouraging trade.

The residential construction market is driven by a number of factors, such as the rate of urbanization, demographics, property prices and the disposable income of citizens. According to the Central Intelligence Agency (CIA), the country’s urban population accounted for 98.3% of the country’s total population in 2011. Moreover, the rate of urbanization is expected to grow while the Department of Economic and Social Affairs states that the country’s urbanization rate is expected to increase.

About Anand Sai 84 Articles
Anand Sai has worked in the field of market research as an analyst and a consultant and has also operated at several leadership positions. He has an enormous experience with respect to the compilation of high-quality market research reports and boasts over six years of experience in end-to-end project management. Anand is a dependable voice in the market research field and has been named in some of the top industry publications. He is also a travel junkie and loves to explore new places with his friends.