Kuwait construction sector plans projects worth $8b

DUBAI — The private construction sector in Kuwait is making progress at a very fast pace with large-scale projects worth more than $8 billion planned or under construction in the buildings, infrastructure and residential categories.

By A Staf Reporter

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Published: Thu 28 Jul 2005, 10:32 AM

Last updated: Thu 2 Apr 2015, 2:48 PM

The high economic growth of the country was attributed mainly to high oil revenues, low interest rates and a lower inflation rate, with real gross domestic product (GDP) rising by more than 6.5 per cent in 2005, according to a special report published this week by the Middle East Economic Digest.

Ayman Razek, general manager of MEED projects, the group's online business tracker said: “Much of this new liquidity is being channeled into the real estate sector, with unprecedented levels of investment in private and public sector projects. Kuwait is a major market for mega shopping malls, both for entertainment and for retail spending, and developers are aware that malls can be highly profitable ventures. ’’

Razek said: “For years, the private sector has been unwilling to invest in civil infrastructure, but now Kuwait is undergoing a period of rejuvenation. Inward investment is on the rise again, and the economy has been boosted by high oil prices and increased liquidity.’’

Local contractors estimate that more than $8,000 million of private sector investment will be channeled into the construction industry over the next five years, in addition to $3,000 million the government plans to spend out of its own resources.

If future build-operate-transfer (BOT) projects such as the residential and touristic developments of Failaka and Bubiyan islands are taken into account, this figure could rise even further to more than $40,000 million.

Razek also said: “The construction sector will also benefit from the shortage of quality commercial and residential space. With the overall population expanding by 8 per cent a year, Kuwait faces a severe housing shortage, and most real estate projects currently under development are focused on building commercial office space, hotels, and housing units.’’

Razek explained: “The pace of construction activity in Kuwait is increasing so rapidly that it is becoming difficult to keep track of the market developments - which is where MEED projects comes into play.’’

Subscribers to MEED projects get accurate project information in the top 1,000 projects across the region, delivered to their desktop, and tailored to their individual needs. The information includes up-to-date contact details for key personnel, bidder lists, project background and scope, among other key details. Projects are updated on a daily basis ensuring that subscribers are always up to date.



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