Kuwait Construction Market Trends and Forecasts: Annual Average Growth of 3.9% Forecast During 2024-2027 - Growth Supported by Kuwait Vision 2035 and New Kuwait 2035 National Development Plan

DUBLIN, March 1, 2024 /PRNewswire/ -- The "Kuwait Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027" report has been added to ResearchAndMarkets.com's offering.

The construction industry in Kuwait is expected to expand by 7.1% in real terms this year, supported by an increase in the oil and gas industries, as well as investments in the energy sector and rising real estate demand. Previously, Kuwait planned to increase its oil production from 2.43 million barrels per day (bpd) in 2020 to four million bpd by 2040. To achieve this goal, Kuwait Oil Company announced its plan to invest KWD116.4 million ($380 million) in September 2023 in developing oil and gas facilities in North Kuwait.

In addition, in July 2023, the government submitted to the national assembly its four-year programme, which included 107 major projects spanning all economic, social, entertainment, and human resource fields, with completion dates ranging from 2023 to 2027. However, in the short term, the industry's output will be limited in the short term due to the disruption caused by the pandemic and political uncertainty; thus, creating the slowdown in project approvals and financial approvals.

The industry's output is expected to register an annual average growth rate of 3.9% from 2024 to 2027, supported by investments in renewable energy, housing, tourism, and data centres. Despite this expansion, output will remain below 2019 levels, reflecting the challenges the industry has faced in returning to pre-COVID-19 levels.

Forecast growth will be supported by Kuwait Vision 2035 and New Kuwait 2035 National Development Plan. According to the Kuwait Vision 2035 plan, the government is focusing on accelerating economic reforms and diversifying the economy away from hydrocarbons. The government intends to invest over KWD350 million ($1.1 billion) in the construction of several sports projects across the country as part of the New Kuwait 2035 National Development Plan. In addition, the government approved a budget of KWD26.3 billion ($85.9 billion) for fiscal year (FY) 2023-24 in August 2023, which is 11.7% higher than the spending plans for 2022-23. 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.

The 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

Key Topics Covered:

1. Executive Summary

2. Construction Industry: At-a-Glance

3. Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4. Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction

5. Key Industry Participants
5.1 Contractors
5.2 Consultants

6. Construction Market Data

For more information about this report visit https://www.researchandmarkets.com/r/ir81bi

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SOURCE Research and Markets