Kuwait government earmarks US$68.9B construction spend

The construction industry in Kuwait is expected to grow at a compound annual growth rate of 6.44% from 2016 to 2020, says a report by Timetric. This is due to the government developing projects in areas including rail, infrastructure, road, and airport under its Vision 2035 programme.

Recently, the Kuwaiti construction sector has profited from the New Direct Investment Promotion law which addressed flaws in the previous system, encouraging the creation of new, large companies in the country. Mr. Ashley Roberts, Event Director of The Big 5 Kuwait commented: "The sector is now benefitting from the government's initiative to develop the public private partnership (PPP) model.

The Kuwait government's 2035 economic vision comprises five separate five-year plans that aim to reduce oil dependency by transforming Kuwait into a diversified commercial and financial hub. The latest plan (2015-2020) sets aside $116bn for a broad range of projects including 45,000 new housing units, a metro and railway system and a new refinery.

With an investment of $7bn, the 171.0km Kuwait Metro Rail is due for completion by 2020. The government also plans to start construction work of the Kuwait National Rail Road System, a long-distance railway project, under the five-year development program 2015-2020. The government is expected to complete the projects by 2018 at a cost of $10bn.