Kuwait Construction Projects Report 2018
10 July 2018, Source: BNC Network, Construction Week Online
Kuwait has 709 active projects with a combined estimated value of USD 230.4 billion. Of the 709 projects, approximately 58% are under construction, indicating a healthy flow-through of project investments. At the same time, newly announced projects in 2019 add to the pipeline of project investments in the country.
Value of active Project in Kuwait and in the GCC
Kuwait’s project investments are relatively small in comparison to the project investments of other GCC countries. But the Kuwaiti construction market is performing well under the backdrop of an economic slowdown in the region.
The GCC has approximately 18,885 active construction projects with a combined estimated value of USD 2.3 trillion. Kuwait has the lowest number of active projects in the region.
Kuwait constitutes almost 4% of the 18,885 active projects in the GCC. But when looking at this in dollar terms, the combined estimated value of construction
projects in Kuwait makes up around 10% of all construction project values in the GCC. The reason for the variance between the number and value of projects
in Kuwait is because of a few high-value projects in the country.
Top 10 Construction Developments in Kuwait
Aviation megaproject: A new mega airport that could attract $12bn (KWD3.6bn) of investment and create 15,000 jobs may be on the horizon for Kuwait, a senior aviation official revealed last month. Directorate General of the Civil Aviation (DGCA) chief Sheikh Salman Sabah Salem Al-Humoud Al-Sabah said plans to build an airport with a capacity of 25 million passengers per year were being explored to address Kuwait's growing air traffic. Al-Sabah said DGCA was "studying" the viability of issuing a tender for setting up an airport in the northern part of the country.
Phase 4 of The Avenues mall opens: The fourth and final phase of Kuwait's biggest shopping mall, The Avenues, worth $2bn (KWD600m), opened in April. Phase 4 was delivered by Mabanee Co, which owns the project, and consultants Pace and Gensler. Completion of the final phase could pave the way for the creation of 30,000 jobs, many of which will be customer-facing roles in the 300 new shops at The Avenues, which now has more than 1,100 retail units altogether. The Avenues' Phase 4 has a built up area of13ha, a total leasable area of 8.5ha and cost $900m (KWD265m). As part of the project, a four- and five-star hotel are due to be developed.
Limak signs $830m airport expansion funding pact: Turkish construction firm Limak Holdings signed an agreement in February to pay $830m to finance a new terminal at Kuwait International Airport. The $830.6m (KWD249.2m) funding agreement was signed with two local banks - National Bank of Kuwait and Kuwait Finance House. Limak is working with Kuwaiti construction firm Kharafi National on the project.
Kuwait eyes cut of China's trillion-dollar Silk Road project: Kuwait has told the world's second-largest economy, China, it is "eager to collaborate" with the Asian superpower on its trillion-dollar Belt and Road initiative. China wants to work with Kuwait on infrastructure projects, including the construction of Al-Harir City and the development of five uninhabited islands off Kuwait's eastern coast. China is reportedly set to invest close to $300bn by 2030 in its Belt and Road initiative, which is a revival of the ancient Silk Road trading route and aims to transform global trade.
Limak wins contract to build $153m Kuwait govt homes: Limak also won a $153m contract to build government housing in the first three months of the year. Limak Holding has won an infrastructure contract from the Public Authority for Housing Welfare (PAHW) to construct, complete, and maintain 3,260 land plots for the local government authority. It is one of the biggest largest residential schemes in Kuwait, with 5,201 units, of which 2,346 are part of Phase 1.
Ministry signs $141m contracts to upgrade two power plants: Kuwait's Ministry of Electricity and Water signed two contracts, worth $141m (KWD47m), to upgrade the Doha West and the Sabiya power plants. The Doha West power station's fuel reception systems will be renovated over two and a half years. Sabiya power plant's fuel conditioning systems will be overhauled over a period of 36 months. Both of the upgrade agreements were signed by Bakheet Al-Rashidi, Kuwait's Minister of Electricity and Water. At the singing ceremony Al-Rashidi updated official on another major energy project - a sea-water desalination plan at the Doha West power plant. This $384.7m (KWD116.7m) plant is more 76% complete.
Government plans to generate 15% of power from clean energy: Kuwait hopes renewable energy will meet 15% of its power demand within the next 12 years. The Ministry of Electricity and Water said the country would produce 15% of the country's power demand from renewable energy sources, particularly solar, by 2030. ''Mounting power demand in Kuwait should prompt all stakeholders to come up with practical solutions to minimise dependence on oil to produce energy,'' said Mohammad Al-Sharhan, the ministry's assistant undersecretary for technical services, according to the Kuwait News Agency. Early efforts to increase renewable energy production are already in place, following a solar energy agreement between the Kuwait Institute for Scientific Research (KSIR) and two South Korean companies – KEPCO E&C and SAM UN.
Two skyscrapers launched: Two 40-storey skyscarpers were launched by Kuwaiti real estate giant United Real Estate Company (URC), which will develop 40% of the project through its affiliate company, MENA Homes. Both residential buildings were launched as part of the Hessah Towers development project in the Hessah Al Mubarak district and along the Arabian Gulf Road. The project was conceptualised and designed by Dar SSH and Nabil Gholam Architects.
Kuwait to build 80 road projects: Kuwait's budget for road projects is valued at $26m (KWD8bn), according to a government official. The director general of the roads authority and land transports, Ahmad Al-Hesan, said up to 80 projects will be implemented in Kuwait in the coming years as the country looks to improve conditions for drivers.
KIPCO completes infra work for Hessah Al Mubarak District: Kuwait Projects Company (KIPCO) completed infrastructure work for Hessa Al Mubarak District. Handover of public facilities to government entities are reportedly ongoing, with developers expected to commence construction work “soon”.
The need for building materials and construction supplies
Kuwait relies massively on importing building materials, equipment, construction supplies and technology to deliver billions worth of on-going and future projects, which also presents huge opportunities for international manufacturers and local distributors to win business deals to supply these major projects.
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