Kuwait contracting market set to grow at nearly 6%
The prospects for Kuwait's construction industry are continuing to improve following a series of recent contract awards for major projects, according to new research.
A report on the country's infrastructure market by Kuwait Finance House argues that the sector experienced growth of 3.9% in 2013, but this is set to accelerate to 5.9% in 2014.
KFH pointed out that since a new parliament was elected in June 2013, infrastructure development projects have moved forwards and money committed to capital spending projects has actually been allocated.
It also argued that Kuwait has developed one of the more advanced public-private partnership models in the GCC, which has already seen a consortium agree a deal to build and operate a $1.8bn, 1.5GW independent power and water plant by the Az-Zour North refinery.
The country's Partnerships Technical Bureau is also attempting to put together three new projects that will look to attract external funding, including a second phase at Az-Zour North, at Al-Abdaliyah solar power plant and the Kabd solid waste recycling plant.
KFH also argued that Kuwait's government is likely to increase spending by 3.2% to $77.3bn in 2014/15 with a view to supporting $75bn worth of energy, power and housing projects by 2016.