With 234.4 billion worth of active construction projects and $34 billion worth of developments in the concept or design phase, the construction sector in Kuwait is poised for solid growth this year despite low oil prices, said a report.
The government plan to increase oil production is spurring Kuwait’s construction sector, stated a report by BNC Networks, a leading project research and intelligence provider in the region, commissioned by The Big 5 Kuwait, the largest construction show in the country, which kicks off in September.
To be held from September 25 to 27 at the Kuwait International Fair, the event is expected to attract record-breaking numbers of exhibitors and visitors in 2017.
Of the five major construction projects currently going on in the Gulf country, four are linked to the oil and gas sector, it stated.
After the Kuwait National Railway Network, worth $10 billion, Al Ahmadi’s Olefins III comes second, with an investment of $9 billion. This is followed by the Package 1 & 2 of the Clean Fuel at the Mina Abdullah Refinery ($8 billion), the Package 3 of the Clean Fuel Mina at the Al Ahmadi Refinery ($5 billion), and the Package 1 of the Process Plant at Al Zour Refinery ($5 billion).
“The Kuwait construction sector shows clear signs of recovery, and will be growing at a steady pace this year,” remarked Andy Pert, portfolio exhibitions director at The Big 5 Kuwait.
“This is an excellent time for construction industry players to make business in Kuwait: projects in the initial stages of construction are valued at $48 billion, and indicate a steady flow of new investments,” remarked Pert.
According to the report, Kuwaiti government is investing $100 billion to improve the efficiencies of upstream and downstream facilities in line with its five-year plan, the Social & Economic Objectives 2015-2020. About 34 per cent of all project investments in the country are currently in the oil and gas sector.
Beyond public spending to support medium and long-term government objectives, the emerging sectors such as tourism and travel, as well as urban construction projects, are the main growth drivers of the construction market in the Gulf country, it stated.
Undoubtedly, in order to create an efficient operating environment for businesses to thrive, the expansion and improvement of facilities and infrastructures in multiple sectors are key, it added.
The combined estimated value of all 722 active projects in Kuwait is $234.4 billion, The Big 5 Kuwait’s report discloses.
The urban construction sector lists the highest number of projects, representing nearly 73 per cent of all construction activities in the country. There is an estimated $29 billion worth of building projects, including the South Saad Al Abdullah New City ($4 billion) and the Nawaf Al Ahmad City ($3 billion), said the report.
In the hospitality and tourism sector, the Kuwaiti Government is investing $1 billion aiming to attract 440,000 overnight visitors by 2025 (up 60 per cent from 2015), creating 30,000 jobs over the next 10 years.
These objectives align with Vision 2035 and the mission to transform Kuwait into a financial and commercial hub in the Gulf region, it stated.
According to organisers, construction being a catalyst for economic growth, The Big 5 Kuwait 2017 will be an unmissable platform for decision makers and industry professionals to stay up-to-date with latest developments and opportunities in the market.
Attracting thousands of manufacturers and buyers from around the globe, the event will also offer a series of complimentary and CPD (Continued Professional Development) certified workshops delivered by experts on the industry’s most compelling topics, they added.