Thursday, March 30, 2017 — The Government plan to increase oil production is spurring Kuwait’s construction sector. According to BNC’s latest report commissioned by The Big 5 Kuwait, four of the five major construction projects currently going on in the Gulf country are taking place in the oil and gas sector.
After the Kuwait National Railway Network, worth USD 10 billion, Al Ahmadi’s Olefins III comes second, with an investment of USD 9 billion. This is followed by the Package 1 & 2 of the Clean Fuel at the Mina Abdullah Refinery (USD 8 billion), the Package 3 of the Clean Fuel Mina at the Al Ahmadi Refinery (USD 5 billion), and the Package 1 of the Process Plant at Al Zour Refinery (USD 5 billion).
In line with its five-year plan, the Social & Economic Objectives 2015-2020, the Kuwaiti Government is investing USD 100 billion to improve the efficiencies of upstream and downstream facilities, BNC reports. Indeed, 34% of all project investments in the country are currently in the oil and gas sector.
“The Kuwait construction sector shows clear signs of recovery, and will be growing at a steady pace this year”, Andy Pert, Portfolio Exhibitions Director, commented ahead of the fifth edition of The Big 5 Kuwait. The country’s largest construction show, taking place from 25 to 27 September at the Kuwait International Fair, is expected to attract record-breaking numbers of exhibitors and visitors in 2017.
“This is an excellent time for construction industry players to make business in Kuwait: projectsin the initial stages of construction are valued USD 48 billion, and indicate a steady flow of new investments,” Mr. Pert explained. Moreover, 11 projects under the concept or design phases are worth USD 1 billion or more, and have a combined estimated value of USD 33.8 billion, the report discloses.
Beyond public spending to support medium and long-term government objectives, emerging sectors such as tourism and travel, as well as urban construction projects, are the main growth drivers of the construction market in the Gulf country. Undoubtedly, in order to create an efficient operating environment for businesses to thrive, the expansion and improvement of facilities and infrastructures in multiple sectors are key.
The combined estimated value of all 722 active projects in Kuwait is USD 234.4 billion, The Big 5 Kuwait’s report discloses. The urban construction sector lists the highest number of projects, representing nearly 73% of all construction activities in the country. There is an estimated USD 29 billion worth of building projects, including the South Saad Al Abdullah New City (USD 4 billion) and the Nawaf Al-Ahmad City (USD 3 billion).
In the hospitality and tourism sector, the Kuwaiti Government is investing USD 1 billion aiming to attract 440,000 overnight visitors by 2025 (up 60% from 2015), creating 30,000 jobs over the next ten years. These objectives align with Vision 2035 and the mission to transform Kuwait into a financial and commercial hub in the Gulf region.
Construction being a catalyst for economic growth, The Big 5 Kuwait 2017 will be an unmissable platform for decision makers and industry professionals to stay up-to-date with latest developments and opportunities in the market. Attracting thousands of manufacturers and buyers from around the globe, the event will also offer a series of complimentary and CPD (Continued Professional Development) certified workshops delivered by experts on the industry’s most compelling topics.
The Big 5 Kuwait will take place from 25 to 27 September 2017 at the Kuwait International Fair, visit www.big5kuwait.com.