Kuwait Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2025 - 2030)

Kuwait Construction Market Analysis

The Kuwait construction marke stands at USD 15.40 billion in 2025 and is projected to reach USD 20.20 billion by 2030, advancing at a 5.7% CAGR. Momentum stems from the government’s Vision 2035 program, an agenda that channels sizeable capital into housing, transport, power, and urban regeneration projects. Public investment remains decisive, yet private capital is expanding quickly through a widening portfolio of Public-Private Partnership initiatives that de-risk large schemes and introduce advanced delivery methods. Corporate and public clients are also prioritizing speed-to-market, energy efficiency, and digital coordination, prompting faster adoption of modular construction, Building Information Modeling (BIM), and lean work flows. Persistent labour shortages and volatile material prices temper headline growth, but they likewise accelerate mechanisation and create openings for contractors able to combine off-site fabrication with rigorous cost control. These cross-currents leave the Kuwait construction market on a moderate-growth but increasingly technology-intensive trajectory.

Kuwait Construction Market Trends and Insights

Accelerated infrastructure drive under Vision 2035

Vision 2035 assigns top priority to modern transport corridors, new economic zones, and public-service facilities. Government budgets earmark USD 5.6 billion for 124 projects in FY 2025-2026, ensuring a visible pipeline that anchors contractor order books. Landmark schemes such as Terminal 2 at Kuwait International Airport and the Umm Al-Hayman Wastewater Treatment Plant illustrate the breadth of opportunities spanning aviation, water, and environmental services. New-city programmes—including South Saad Al-Abdullah, set to house 150,000 residents—extend construction activity into previously under-served terrain, while the Northern Economic Zone is designed to lift non-oil GDP and create private-sector jobs.Together, these investments underpin long-cycle demand across building, civil, and utilities segments in the Kuwait construction market.

Expansion of Public–Private Partnership frameworks

The Kuwait Authority for Partnership Projects (KAPP) streamlines risk-sharing between government and investors and has become pivotal for power, desalination, and real-estate concessions. Current mandates cover the Khairan power complex and successive phases of the Al-Zour North plant, supporting 2.7 GW of incremental capacity. Real-estate PPPs worth up to USD 10 billion, ranging from shopping malls to leisure parks, are also slated for tender. These structures lower fiscal pressure, invite global know-how, and accelerate delivery, broadening the capital base that fuels the Kuwait construction market.

Chronic labour shortages affecting productivity

The pandemic triggered an exodus of experienced tradespeople, and replacement inflows have not matched demand. Field research among 230 construction professionals links manpower gaps with longer planning windows and project delays. Wage escalation strains budgets, prompting contractors to mechanise tasks and import modular assemblies. Government localisation programmes face structural barriers, meaning workforce tightness will linger, compressing schedules and margins across the Kuwait construction market.

Other drivers and restraints analyzed in the detailed report include:

1. Ongoing oil-sector investment
2. Rising adoption of modular, precast, and BIM-enabled delivery
3. Elevated construction-material costs

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Residential construction retained the largest slice of the Kuwait construction market at 35% in 2024, powered by an acute housing backlog and welfare grants that subsidise land and mortgages for nationals. The Public Authority for Housing Welfare has 217 public buildings in progress, with 92 in Mutlaa City and 74 in the Affordable Housing Project. Ongoing delivery of South Al-Mutlaa—planned for 28,000 families—signals a deep pipeline built around standardised villas and mid-rise blocks. These factors underpin a 6.5% CAGR for the residential slice, outpacing the wider Kuwait construction market.

Commercial development displays mixed momentum. Logistics platforms gain traction owing to Kuwait’s ambitions as a Gulf trade node; the USD 648 million Shuwaikh Port logistics city will add warehouses, offices, and retail by 2028. Office supply is lifted by public entities such as the Kuwait Oil Company’s 1,200-office Ahmadi complex, while retail remains selective but benefits from experiential formats embedded in masterplans. Infrastructure construction, notably rail and metro lines, creates sustained heavy civil demand, and power-generation schemes aim for 25 GW capacity by 2025. Together these drivers keep the Kuwait construction market diversified.

New-build work represented 79% of the Kuwait construction market size in 2024, mirroring the emphasis on greenfield cities and transport corridors. Nonetheless, renovation and expansion projects are accelerating at a 6.5% CAGR as authorities refurbish ageing schools, hospitals, and ministries in core urban zones. Recent tenders include structural upgrades at Abdullah Al-Salem University and Ministry of Trade facilities. Private landlords are retro-fitting older commercial blocks to attract tenants seeking modern fire, IT, and sustainability standards. Rising utility tariffs also prompt energy retrofits, further enlarging the renovation slice of the Kuwait construction market.

Maintenance and restoration contracts increasingly bundle performance-based requirements, encouraging contractors to deploy predictive analytics and asset-management software. This evolution fosters recurring revenue streams that offset the cyclicality of new-build awards. As urban districts mature, the renovation segment is expected to command greater Kuwait construction market share beyond 2030.

The Kuwait Construction Market Report is Segmented by Sector (Residential, Commercial and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site and Modern Methods of Construction), by Investment Source (Public and Private) and by Governorate (Kuwait City, Al Ahmadi, and More). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

List of Companies Covered in this Report:

1. Combined Group Contracting Co.
2. Kuwait Company for Process Plant Construction & Contracting (KCPC)
3. Mushrif Trading & Contracting Co.
4. Mohammed Abdulmohsin Al-Kharafi & Sons (MAK)
5. Hyundai Engineering & Construction Co. Ltd
6. JGC Corp.
7. SNC-Lavalin Group
8. Fluor Corp.
9. VINCI SA
10. Van Oord Dredging & Marine Contractors BV
11. China State Construction Engineering Corp.
12. Technip Energies
13. Daewoo Engineering & Construction Co.
14. Larsen & Toubro Ltd – GCC Division
15. Orascom Construction PLC
16. Bechtel Group Inc.
17. Shapoorji Pallonji Mideast LLC
18. Marafie Group
19. Gulf Dredging & General Contracting Co.
20. Sayed Hameed Behbehani & Sons
21. Alghanim International

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support