Kuwait Construction Projects Report 2019
With its Vision 2035 program, Kuwait has signaled that it is becoming more open to foreign investment. The plan includes 709 various mega projects with a combined estimated value of USD 230.4 billion.
Of the 709 projects, approximately 58% are under construction, indicating a healthy flow-through of project investments. At the same time, newly announced projects in 2019 add to the pipeline of project investments in the country.
The GCC has approximately 18,885 active construction projects with a combined estimated value of USD 2.3 trillion.
Kuwait makes up around 10% of all construction project values in the GCC making Kuwait one of the most important country to tap into.
Top Kuwait Projects Pipeline
Project Name: New Kuwait Airport
Project Value: US$ 4.3 billion
Overview: A new mega airport that could attract $12bn (KWD3.6bn) of investment and create 15,000 jobs may be on the horizon for Kuwait, a senior aviation official revealed last month. Directorate General of the Civil Aviation (DGCA) chief Sheikh Salman Sabah Salem Al-Humoud Al-Sabah said plans to build an airport with a capacity of 25 million passengers per year were being explored to address Kuwait's growing air traffic. Al-Sabah said DGCA was "studying" the viability of issuing a tender for setting up an airport in the northern part of the country.
Project Name: Kuwait Government Homes
Project Value: US$ 153 million
Overview: Public Authority for Housing Welfare (PAHW) to build government housing in the first three months of 2019 (Phase 1) which includes 3,260 land plots for the local government authority. It is one of the biggest largest residential schemes in Kuwait, with 5,201 units, of which 2,346 are part of Phase 1, succeeding phases will start by mid of 2020.
Project Name: South Al Mutla Roads and Infrastructure Development
Project Value: US$ 708 million
Completion: June 2020
Overview: In tandem with the construction of major residential areas in South Al Mutla, Kuwait’s development plans for the area call for significant road and transport infrastructure works.4 These include the construction of a northern regional road leading from Al Mutla and several support infrastructure works such as electrical substations, storm drains and sewerage systems to further enhance the resilience of the regional transport network against flash floods and other natural hazards.
Project Name: South Surra Road Upgrade
Project Value: US$ 708 million
Completion: May 2020
Overview: The South Surra area will undergo a significant expansion and upgrade of its transport network as this project envisages the construction of new roads, bridges, and sewage systems.6 Tied to the project area is a $86 million roads maintenance package aiming to review and then improve the condition and safety levels of road infrastructure following the November 2018 floods. These upgrades include an appraisal and modification of the roads’ water draining systems as well as resurfacing with higher quality asphalt and bitumen in line with emerging regulations.
Project Name: Silk Road Project
Project Value: US$ 300 billion
Overview: Kuwait has told the world's second-largest economy, China, it is "eager to collaborate" with the Asian superpower on its trillion-dollar Belt and Road initiative. China wants to work with Kuwait on infrastructure projects, including the construction of Al-Harir City and the development of five uninhabited islands off Kuwait's eastern coast. China is reportedly set to invest close to $300bn by 2030 in its Belt and Road initiative, which is a revival of the ancient Silk Road trading route and aims to transform global trade.
Project Name: Power Plant Upgrade
Project Value: US$ 384.7 million
Overview: Kuwait's Ministry of Electricity and Water signed two contracts, worth $141m (KWD47m), to upgrade the Doha West and the Sabiya power plants. The Doha West power station's fuel reception systems will be renovated for over two and a half years. Sabiya power plant's fuel conditioning systems will be overhauled over a period of 36 months. Both of the upgrade agreements were signed by Bakheet Al-Rashidi, Kuwait's Minister of Electricity and Water. At the signing ceremony Al-Rashidi updated official on another major energy project - a sea-water desalination plant at the Doha West power plant.
Project Name: Kuwait Metro
Project Value: US$ 20 billion
Overview: Kuwait Metro is a long-awaited rail scheme that, when it is complete, will span 111km across the GCC country. In November 2018, international advisors were being sought to work on Kuwait Metro’s design, according to the head of Public Authority for Roads and Transportation (Part), Ahmad Al-Hassan. Al-Hassan, director-general of Part at the time, said work on Kuwait Metro would start after the government had approved a “special budget” that was required to hire the international company, adding that the finance ministry in Kuwait was collaborating with Part to remove “all obstacles surrounding the project”. Phase 1 of Kuwait Metro’s design plan includes the construction of a link to Nuwaiseb on the Saudi Arabian border, and a 153km-long line linking Kuwait City with Boubyan Port, all at a cost of $3bn (KWD908.4m).
The need for building materials and construction supplies
Kuwait relies massively on importing building materials, equipment, construction supplies and technology to deliver billions worth of on-going and future projects, which also presents huge opportunities for international manufacturers and local distributors to win business deals to supply these major projects.
Kuwait Building Show is the largest building and construction event in the country which brings 6,000+ trade visitors, high-spending buyers and consumers from Kuwait and surrounding GCC countries in a period of 4 days. The 2020 edition will be held on 4-7 March 2020 at Halls 5-6, Kuwait International Fair, Mishref.
Make sure to position your brand at Kuwait Building Show and meet thousands of attendees during the event.
Sources: Construction Review, Construction Online, Zawya, Mordor Intelligence, Bloomberg, Arab Times Online