Kuwait’s infrastructure sector is a leading sector. The Country’s development plan (2020-2025) focuses on economic reform and implementation of numerous long-stalled megaprojects, with several large infrastructure projects estimated at $124 billion. It includes a number of infrastructure upgrades such as the $7 billion Kuwait City Metro; a rail project that will eventually link all GCC countries; a $4 billion new airport; five new planned cities including Silk City/Northern Economic Zone; further development of the Mubarak Al-Kabeer Port on Boubyan Island; and a large number of mega oil projects, including a new refinery which is still under construction. The government is working on over $4 billion worth of hospital projects as part of its plan to boost the bed capacity of hospitals across the country. The Ministry of Health’s operating budget is projected to reach about $18 billion by 2030. There are also plans to increase power generation capacity in the country.
The rising demand for public housing is expected to drive long-term residential construction growth, with the Public Authority for Housing and Welfare announcing plans to build 250,000 housing units in the next 15 years. The government also plans to employ a public-private partnership model to deliver public housing, including 11,000 units under the Sabah Al-Ahmad project, which will house up to 100,000 people upon completion. The South Al-Mutlaa City project is in its initial infrastructure development phase and in five years will have the capacity to house 28,000 families.
Project implementation has seen frequent delays, especially with large infrastructure projects. The government itself acknowledged that only ten projects out of 135 projects included in the 2015-2020 five-year development plan were completed. With 81 projects delayed and 4 projects yet to be tendered, those projects are included in the current five years development plan (2020-2025). The projects are expected to move slowly due to the current budget situation.
Opportunities
Kuwait’s commercial and residential construction plans offer opportunities for the full range of U.S. building products and construction equipment. Local construction companies apply U.S. building techniques and technologies and utilize American building materials and equipment for private development projects ranging from resorts to hospitals. The United States continues to lead as the supplier of construction materials and equipment.
