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Construction in Kuwait - Key Trends and Opportunities to 2023

Construction in Kuwait - Key Trends and Opportunities to 2023

Summary

Kuwait's construction industry suffered a downturn for a third year in a row in 2018, where it contracted by 4.0% in real terms, preceded by annual declines of 1.4% and 0.4% in 2016 and 2017 respectively. In October 2018, the country did not export any oil to the US for the first time in 25 years; this resulted in lower government earnings, which in turn reduced investments in construction projects. Consequently, the country’s construction industry's output value, measured at constant 2017 US dollar exchange rates, declined from US$11.7 billion in 2015 to US$11.0 billion in 2018.

The total construction project pipeline in Kuwait including all mega projects with a value above US$25 million - stands at KWD81.0 billion (US$268.2 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 74.5% of the pipeline value being in projects in the pre-execution and execution stages as of April 2019.

This decline can be attributed to economic slowdown and a fall in oil prices, which worsened the business environment in the country. The crude oil production in the country decreased by 3.4%, going from 2.95 million barrels per day (b/d) in November 2016 to 2.85 million b/d in November 2018. Moreover, a decline in crude oil and petroleum product exports to the US impacted the economy, with the total amount of oil and petroleum products exported to the US declining by 44.0% in the first eleven months of 2018, going from 50.4 million barrels in January¬-November 2017 to 28.2 million barrels in January - November 2018.

The industry’s output value is expected to recover over the forecast period (2019-2023), with investments in transport infrastructure, energy and residential construction projects. The government’s aim to reduce the country’s dependency on the oil and gas sector, with a particular emphasis on the non-oil sector, will drive funding towards infrastructure, industrial and institutional construction projects. In January 2019, the Ministry of Economic Development presented the development plan 2019-2020 in front of the government, under which it aims to develop 135 projects and 32 programs with a total investment of KWD3.5 billion (US$11.7 billion) by 2020.

In real terms, the industry’s output value is forecast to rise at a compound annual growth rate (CAGR) of 3.08% over the forecast period - up from 0.65% during the review period (2014-2018). The industry’s output is expected to increase from US$11.0 billion in 2018 to US$12.8 billion in 2023 in real terms, measured at constant 2017 US dollars exchange rates.

Energy and utilities construction was the largest market in the Kuwaiti construction industry during the review period, accounting for 25.8% of its total value in 2018. The market is expected to expand and account for 27.8% of the industry’s total value in 2023. Residential construction accounted for 23.2% of the industry’s total output in 2018, followed by infrastructure construction with 22.8%, commercial construction with 20.4%, institutional construction with 4.6% and industrial construction with 3.3%.

Scope

  • This report provides a comprehensive analysis of the construction industry in Kuwait.
  • Historical (2014-2018) and forecast (2019-2023) 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.
Reasons to buy
  • Identify and evaluate market opportunities using GlobalData's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.


  • Executive Summary
  • Construction Outlook: At-a-glance
    • Table Construction Outlook
    • Table Figure 1:Key Markets, Construction Output Growth Matrix and Risk Matrix
    • Table Figure 2:Kuwait, Construction Projects Pipeline by Sector (KWD Billion)
  • Latest News and Indicators
  • Key Drivers and Risks
    • Economic Performance
      • Table Kuwait, Key Economic Indicators
    • Political Environment
    • Demographics
    • Risk Profile
      • Table Figure 3:Kuwait, Risk Review
      • Table Figure 4:Kuwait, Risk Comparison
  • Construction Outlook
    • All Construction
      • Outlook
        • Table Figure 5:Kuwait, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate)
        • Table Figure 6:Kuwait, Construction Output Value, Growth Matrix
        • Table Figure 7:Kuwait, Construction Output Value, by Sector (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 8:Kuwait, Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
        • Table Figure 9:Kuwait, Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Kuwait, Construction Output Value (nominal, KWD Million)
        • Table Kuwait, Construction Output Value (nominal, US$ Million)
    • Commercial Construction
      • Outlook
        • Table Figure 10: Kuwait, Commercial Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 11: Kuwait, Commercial Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 12: Kuwait, Commercial Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
        • Table Kuwait, Top Commercial Construction Projects by Value
    • Industrial Construction
      • Outlook
        • Table Figure 13: Kuwait, Industrial Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 14: Kuwait, Industrial Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 15: Kuwait, Industrial Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
    • Infrastructure Construction
      • Outlook
        • Table Figure 16: Kuwait, Infrastructure Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 17: Kuwait, Infrastructure Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 18: Kuwait, Infrastructure Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018- 2023
        • Table Kuwait, Top Infrastructure Construction Projects by Value
    • Energy and Utilities Construction
      • Outlook
        • Table Figure 19: Kuwait, Energy and Utilities Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 20: Kuwait, Energy and Utilities Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 21: Kuwait, Energy and Utilities Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
        • Table Kuwait, Top Energy and Utilities Construction Projects by Value
    • Institutional Construction
      • Outlook
        • Table Figure 22: Kuwait, Institutional Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 23: Kuwait, Institutional Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 24: Kuwait, Institutional Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
        • Table Kuwait, Top Institutional Construction Projects by Value
    • Residential Construction
      • Outlook
        • Table Figure 25: Kuwait, Residential Construction Output by Project Type (KWD Million), 2014-2023
      • Project analytics
        • Table Figure 26: Kuwait, Residential Construction Projects Pipeline, Value by Stage (KWD Million)
        • Table Figure 27: Kuwait, Residential Construction Projects Pipeline, Projected Annual Spending by Stage (KWD Million), 2018-2023
        • Table Kuwait, Top Residential and Mixed-Use Construction Projects by Value
  • Key Industry Participants
    • Contractors
      • Table Kuwait, Key Contractors
      • Table Figure 28: Kuwait, Headquarters of Key Contractors (% of Total Project Pipeline)
      • Table Figure 29: Kuwait, Headquarters of Foreign Contractors (% of Project Pipeline with Foreign Contractor)
    • Consultants
      • Table Kuwait, Key Consultants
      • Table Figure 30: Kuwait, Headquarters of Key Consultants (% of Total Project Pipeline)
      • Table Figure 31: Kuwait, Headquarters of Foreign Consultants (% of Project Pipeline with Foreign Consultants)
  • Appendix
    • What is this Report About?
    • Definitions
      • Table GlobalData Construction Market Definitions
      • Table Construction Risk Index Ratings and Scores
  • About GlobalData
    • GlobalData at a Glance
      • Table Figure 32: GlobalData at a Glance
    • GlobalData Construction
    • Disclaimer
    • Contact Us

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