Construction in Kuwait – Key Trends and Opportunities to 2016

Synopsis

This report provides detailed market analysis, information and insights into the Kuwait construction market, including:

• The Kuwait construction market’s growth prospects by sector, project type and type of construction activity
• Analysis of equipment, material and service costs across each project type within Kuwait
• Critical insight into the impact of industry trends and issues and the risks and opportunities they present to participants in the Kuwait construction market
• Assessment of the competitive forces facing the construction industry in Kuwait and profiles of the leading players
• Profiles of the ten largest construction projects in Kuwait

Summary

The Kuwaiti construction industry increased in value at a compounded annual growth rate (CAGR) of 1% during the review period of 2007–2011. This slow CAGR was a result of the 2009 economic crisis, which led the construction industry to shrink at a rate of 9.8% in the same year. In the pre-recession years, the construction industry in Kuwait was active, driven by the government’s diversification initiatives and several investment programs for infrastructure development. The construction industry’s growth of 17.6% in 2007 remained the highest yearly growth recorded during the review period. Diversification of the economy attracted investment in the industrial and commercial markets, resulting in an increased level of construction activity. Commercial and industrial construction were the main two categories demonstrating significant activity. The continuing diversification of the economy is expected to result in these two categories supporting growth in the Kuwaiti construction industry over the forecast period.

Scope

This report provides a comprehensive analysis of the construction industry in Kuwait:
• Historical (2007-2011) and forecast (2012-2016) valuations of the construction market in Kuwait using the construction output and value-add methods
• Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
• Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
• Analysis of key construction industry issues, including regulation, cost management, funding and pricing
• Assessment of the competitive environment using Porter’s Five Forces
• Detailed profiles of the leading construction companies in Kuwait
• Profiles of the top ten construction mega-projects in Kuwait by value

Reasons To Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level via 600+ time series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies by leveraging our critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Highlights

• To reduce economic dependence on oil, the government started investing in other sectors such as education, infrastructure and manufacturing, which is influencing construction activity in the country and is acting as a catalyst for the Kuwaiti construction industry.
• Kuwait is experiencing shortages in the institutional construction market as a result of the government’s failure to invest in healthcare facilities since the 1980s. As a consequence, there are opportunities in the healthcare construction market.
• The infrastructure market constituted a 48.1% share and contributed the largest value of the total Kuwait construction industry in 2011. Residential and commercial markets followed it with shares of 22.2% and 17.4% respectively.
• The government’s plan for diversification is expected to encourage more private investment which will drive the construction industry in Kuwait to record a CAGR of 7.45% over the forecast period.