(MENAFN- GlobeNewsWire - Nasdaq) Dublin, Aug. 14, 2023 (GLOBE NEWSWIRE) -- The "kuwait construction market size, trend analysis by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and forecast, 2023-2027" report has been added to ResearchAndMarkets.com's offering.
The construction industry in Kuwait was severely impacted in 2020 by COVID-19 disruption and will struggle to generate growth momentum to enable it to return to 2019 levels during the forecast period. Nevertheless, construction output in real terms will expand in this year, by 7.1%, supported by investment in the transport infrastructure, non-oil and renewable sectors, amid diversifying oil economy.
Reflecting the potential for recovery, the National Bank of Kuwait (NBK) announced that the pace of project activities improved in the first quarter of 2023, following the weak performance during 2022, as the value of awarded projects increased by 78.3% on a quarterly basis, to reach KWD527 million ($1.7 billion). The acceleration of project activities is due to the recovery of the transportation sector, energy and water sectors during Q1 2023. The Ministry of Electricity and Water (MEW) awarded projects with a combined value of KWD236 million ($270.7 million), while the value of contract awards in the transportation sector stood at KWD127 million ($414.8 million), largely related to road and infrastructure works for Sabah Al-Ahmad Residential City by the Public Authority for Housing Welfare. However, the NBK's report released in April 2023 stated that the value of contracts awarded in the oil and gas sector decreased by 44% on a quarterly basis, to KWD60 million ($196 million) in Q1 2023. Moreover, the domestic environment remains challenging with the expected decline in government capital expenditure higher borrowing costs due to the tightening of monetary policies, and higher costs of labor and building materials, which will affect project activities in the short term.
The industry is expected to register an annual average growth rate of 4% from 2024 to 2027, supported by investment in the renewable energy, transport, electricity, housing, sports facilities, and economic zone projects. Kuwait aims to produce 15% of total energy from renewable energy by 2023. Furthermore, as of May 2023, Kuwait has clean energy projects worth KWD1.9 billion ($6.3 billion) under implementation, and KWD86.3 million ($282 million) in projects under study, according to MEW. The construction of the Al-Zour petrochemical project of the Kuwait Integrated Petroleum Industries Company (KIPIC) with a cost of KWD2.9 billion ($9.8 billion) will further support construction activity over the forecast period.
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.
This report provides a comprehensive analysis of the construction industry in Kuwait. It provides:
Historical (2018-2022) and forecast (2023-2027) 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
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Tags commercial construction industrial construction institutional construction residential construction utilities
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