Kuwait Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2024 - 2029)
The Kuwait Construction Market size is estimated at USD 13.94 billion in 2024, and is expected to reach USD 18.59 billion by 2029, growing at a CAGR of 5.93% during the forecast period (2024-2029).
The major factor driving the construction market in Kuwait is the country's tax reforms, which encourage foreign investors to invest in the country. The government is giving benefits like income tax holidays and customs-free equipment importation, hoping to attract more foreign investment.
Key Highlights
The country is trying to diversify its oil-rich economy. The government focuses on increasing oil production to generate greater revenue, and improving government finances may also enable the government to increase public spending on infrastructure.
Industry growth is supported by government programs that encourage the development of transportation and renewable energy infrastructure. Kuwait's priority to accelerate economic reforms and diversify its economy away from hydrocarbon dependence will also support the construction industry.
With 5% of partnerships with the private sector in current years, Kuwait has authorized more than USD 60 billion for infrastructure, health, environment, and energy projects. The projects include four partnership projects valued at nearly USD 3.2 billion and 14 significant public projects with a combined value of almost USD 59 billion.
According to a government report cited by the Arabic language daily Alqabas, 12 big housing projects totaling nearly 10.2 billion (USD 33.66 billion) will receive the majority of the allocations. A total of 10 oil projects worth 5.8 billion dinars (USD 19 billion) and a handful of development projects worth 7 billion dinars (USD 23 billion) are also included in the plan.
Additionally, to meet the demand of a rising population, the government is investing in substantial infrastructurectural projects related to electricity and water. The government is developing most of the projects through Public Private Participation (PPP) or by inviting foreign companies to provide engineering, design, and construction capabilities.
Kuwait Construction Market Trends
Vision 2035 to Drive the Investments in the Construction Sector
The sustainable living environment axis in Kuwait Vision 2035 includes five pillars, the most prominent of which is to provide housing care to citizens through what is planned to ensure the provision of 65.5 thousand housing units through five projects costing about KWD 3.22 billion (USD 10.5 billion), the last of which ends in six years.
When these projects are implemented, the state will have met approximately 72% of the current housing requests, which is 91,000. The first project of the residential care plan revolves around the vision of Kuwait 2035 (New Kuwait) in the city of Jaber Al-Ahmad, which has a completion rate of 95%. The second project is in Al-Mutla’a, with a completion rate of 64%, to be completed by the end of the current year.
The third project is in the suburb of South Abdullah Al-Mubarak, which has a completion rate of 72% and will be completed by the end of 2025. The completion rate in the fourth project, the South Sabah Al-Ahmad, is about 14%, as it is still in the preparation stage and is expected to be completed in six years. This south of Saad Al-Abdullah has a completion rate of 13% as it is still in its preparatory phase and ends in six years.
Investments in Large-scale Projects to Boost the Construction Sector
Kuwait’s infrastructure sector is a leading sector. The country’s development plan (2020-2025) focuses on economic reform and implementation of numerous long-stalled megaprojects, with several large infrastructure projects estimated at USD 124 billion. It includes several infrastructure upgrades such as the USD 7 billion Kuwait City Metro, a rail project that will eventually link all GCC countries, a USD 4 billion new airport, five new planned cities, including Silk City/Northern Economic Zone, further development of the Mubarak Al-Kabeer Port on Boubyan Island, and a large number of mega oil projects, including a new refinery that is still under construction. The government is working on over USD 4 billion worth of hospital projects as part of its plan to boost the bed capacity of hospitals across the country.
Project implementation has seen frequent delays, especially with large infrastructure projects. The government acknowledged that only 10 out of 135 projects included in the 2015-2020 five-year development plan were completed. With 81 projects delayed and four yet to be tendered, those projects were included in the five-year development plan (2020-2025).
Despite challenges like cost overruns and bureaucratic delays, the market is expected to increase, given the vital infrastructure, government, and policy support.
Kuwait Construction Industry Overview
The construction market in Kuwait is highly competitive, with major international players. The market presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the market has an observable level of consolidation. Some major market players include Hyundai Engineering and Construction, Marafie Group, Consolidated Contracting Company, SK Engineering & Construction, and M.A. Kharafi & Sons.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
The major factor driving the construction market in Kuwait is the country's tax reforms, which encourage foreign investors to invest in the country. The government is giving benefits like income tax holidays and customs-free equipment importation, hoping to attract more foreign investment.
Key Highlights
The country is trying to diversify its oil-rich economy. The government focuses on increasing oil production to generate greater revenue, and improving government finances may also enable the government to increase public spending on infrastructure.
Industry growth is supported by government programs that encourage the development of transportation and renewable energy infrastructure. Kuwait's priority to accelerate economic reforms and diversify its economy away from hydrocarbon dependence will also support the construction industry.
With 5% of partnerships with the private sector in current years, Kuwait has authorized more than USD 60 billion for infrastructure, health, environment, and energy projects. The projects include four partnership projects valued at nearly USD 3.2 billion and 14 significant public projects with a combined value of almost USD 59 billion.
According to a government report cited by the Arabic language daily Alqabas, 12 big housing projects totaling nearly 10.2 billion (USD 33.66 billion) will receive the majority of the allocations. A total of 10 oil projects worth 5.8 billion dinars (USD 19 billion) and a handful of development projects worth 7 billion dinars (USD 23 billion) are also included in the plan.
Additionally, to meet the demand of a rising population, the government is investing in substantial infrastructurectural projects related to electricity and water. The government is developing most of the projects through Public Private Participation (PPP) or by inviting foreign companies to provide engineering, design, and construction capabilities.
Kuwait Construction Market Trends
Vision 2035 to Drive the Investments in the Construction Sector
The sustainable living environment axis in Kuwait Vision 2035 includes five pillars, the most prominent of which is to provide housing care to citizens through what is planned to ensure the provision of 65.5 thousand housing units through five projects costing about KWD 3.22 billion (USD 10.5 billion), the last of which ends in six years.
When these projects are implemented, the state will have met approximately 72% of the current housing requests, which is 91,000. The first project of the residential care plan revolves around the vision of Kuwait 2035 (New Kuwait) in the city of Jaber Al-Ahmad, which has a completion rate of 95%. The second project is in Al-Mutla’a, with a completion rate of 64%, to be completed by the end of the current year.
The third project is in the suburb of South Abdullah Al-Mubarak, which has a completion rate of 72% and will be completed by the end of 2025. The completion rate in the fourth project, the South Sabah Al-Ahmad, is about 14%, as it is still in the preparation stage and is expected to be completed in six years. This south of Saad Al-Abdullah has a completion rate of 13% as it is still in its preparatory phase and ends in six years.
Investments in Large-scale Projects to Boost the Construction Sector
Kuwait’s infrastructure sector is a leading sector. The country’s development plan (2020-2025) focuses on economic reform and implementation of numerous long-stalled megaprojects, with several large infrastructure projects estimated at USD 124 billion. It includes several infrastructure upgrades such as the USD 7 billion Kuwait City Metro, a rail project that will eventually link all GCC countries, a USD 4 billion new airport, five new planned cities, including Silk City/Northern Economic Zone, further development of the Mubarak Al-Kabeer Port on Boubyan Island, and a large number of mega oil projects, including a new refinery that is still under construction. The government is working on over USD 4 billion worth of hospital projects as part of its plan to boost the bed capacity of hospitals across the country.
Project implementation has seen frequent delays, especially with large infrastructure projects. The government acknowledged that only 10 out of 135 projects included in the 2015-2020 five-year development plan were completed. With 81 projects delayed and four yet to be tendered, those projects were included in the five-year development plan (2020-2025).
Despite challenges like cost overruns and bureaucratic delays, the market is expected to increase, given the vital infrastructure, government, and policy support.
Kuwait Construction Industry Overview
The construction market in Kuwait is highly competitive, with major international players. The market presents opportunities for growth during the forecast period, which is expected to drive market competition further. With a few players holding a significant share, the market has an observable level of consolidation. Some major market players include Hyundai Engineering and Construction, Marafie Group, Consolidated Contracting Company, SK Engineering & Construction, and M.A. Kharafi & Sons.
Additional Benefits:
The market estimate (ME) sheet in Excel format
3 months of analyst support
1 INTRODUCTION
1.1 Scope of the Market
1.2 Market Definition
1.3 Executive Summary
2 RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Mapping of Industrial Clusters and SEZs and a Brief Analysis of Investment Opportunity
4.5 Review and Commentary on the Extent of Kuwait's Economic Diversification
4.6 Comparison of Key Industry Metrics of Kuwait with Other GCC Member Countries (Analyst View)
4.7 Comparison of Construction Cost Metrics of Kuwait with Other GCC Member Countries (Analyst View)
4.8 Impact of COVID-19 on the Market
4.9 Market Dynamics
4.9.1 Drivers
4.9.1.1 Government Investments in Construction Projects
4.9.1.2 Urban Development Intiatives
4.9.2 Restraints
4.9.2.1 Shortage of Skilled Labor Has Had a Stirring Effect on the Market
4.9.2.2 Lack of Investments in New Technologies is Affecting the Market
4.9.3 Opportunities
4.9.3.1 Amplifying Sustainable Construction Projects
4.9.3.2 Surge in the Demand of Infrastructure Projects
4.10 Industry Attractiveness - Porter's Five Forces Analysis
4.10.1 Bargaining Power of Suppliers
4.10.2 Bargaining Power of Consumers/Buyers
4.10.3 Threat of New Entrants
4.10.4 Threat of Substitute Products
4.10.5 Intensity of Competitive Rivalry
4.11 Industry Value Chain Analysis
5 MARKET SEGMENTATION AND ANALYSIS
5.1 By Sector
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation Construction)
5.1.5 Energy and Utilities Construction
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Strategies Adopted by Major Players
6.3 Company Profiles
6.3.1 JGC Corp.
6.3.2 SNC-Lavalin
6.3.3 Fluor Corp.
6.3.4 Van Oord Dredging & Marine Contractors BV
6.3.5 VINCI
6.3.6 Marafie Group
6.3.7 Combined Group Contracting Co.
6.3.8 Mohammed Abdulmohsin Al-Kharafi & Sons
6.3.9 Hyundai Engineering & Construction Co. Ltd
6.3.10 Kuwait Contracting and Processing Co. (KCPC)
6.3.11 Mushrif Trading & Contracting Co.
6.3.12 Kharafi Group
6.3.13 Gulf Dredging
6.3.14 Sayed Hameed Behbehani & Sons*
6.4 Other Companies
7 INVESTMENT ANALYSIS
8 MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, AND CONTRACTORS)
8.1 Existing Infrastructure
8.2 Ongoing Projects
8.3 Upcoming Projects
9 FUTURE OF THE MARKET
10 APPENDIX
11 DISCLAIMER
1.1 Scope of the Market
1.2 Market Definition
1.3 Executive Summary
2 RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases
3 EXECUTIVE SUMMARY
4 MARKET INSIGHTS AND DYNAMICS
4.1 Current Economic and Construction Market Scenario
4.2 Technological Innovations in the Construction Sector
4.3 Impact of Government Regulations and Initiatives on the Industry
4.4 Mapping of Industrial Clusters and SEZs and a Brief Analysis of Investment Opportunity
4.5 Review and Commentary on the Extent of Kuwait's Economic Diversification
4.6 Comparison of Key Industry Metrics of Kuwait with Other GCC Member Countries (Analyst View)
4.7 Comparison of Construction Cost Metrics of Kuwait with Other GCC Member Countries (Analyst View)
4.8 Impact of COVID-19 on the Market
4.9 Market Dynamics
4.9.1 Drivers
4.9.1.1 Government Investments in Construction Projects
4.9.1.2 Urban Development Intiatives
4.9.2 Restraints
4.9.2.1 Shortage of Skilled Labor Has Had a Stirring Effect on the Market
4.9.2.2 Lack of Investments in New Technologies is Affecting the Market
4.9.3 Opportunities
4.9.3.1 Amplifying Sustainable Construction Projects
4.9.3.2 Surge in the Demand of Infrastructure Projects
4.10 Industry Attractiveness - Porter's Five Forces Analysis
4.10.1 Bargaining Power of Suppliers
4.10.2 Bargaining Power of Consumers/Buyers
4.10.3 Threat of New Entrants
4.10.4 Threat of Substitute Products
4.10.5 Intensity of Competitive Rivalry
4.11 Industry Value Chain Analysis
5 MARKET SEGMENTATION AND ANALYSIS
5.1 By Sector
5.1.1 Commercial Construction
5.1.2 Residential Construction
5.1.3 Industrial Construction
5.1.4 Infrastructure (Transportation Construction)
5.1.5 Energy and Utilities Construction
6 COMPETITIVE LANDSCAPE
6.1 Market Concentration Overview
6.2 Strategies Adopted by Major Players
6.3 Company Profiles
6.3.1 JGC Corp.
6.3.2 SNC-Lavalin
6.3.3 Fluor Corp.
6.3.4 Van Oord Dredging & Marine Contractors BV
6.3.5 VINCI
6.3.6 Marafie Group
6.3.7 Combined Group Contracting Co.
6.3.8 Mohammed Abdulmohsin Al-Kharafi & Sons
6.3.9 Hyundai Engineering & Construction Co. Ltd
6.3.10 Kuwait Contracting and Processing Co. (KCPC)
6.3.11 Mushrif Trading & Contracting Co.
6.3.12 Kharafi Group
6.3.13 Gulf Dredging
6.3.14 Sayed Hameed Behbehani & Sons*
6.4 Other Companies
7 INVESTMENT ANALYSIS
8 MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, AND CONTRACTORS)
8.1 Existing Infrastructure
8.2 Ongoing Projects
8.3 Upcoming Projects
9 FUTURE OF THE MARKET
10 APPENDIX
11 DISCLAIMER
