BMI's Executive Summary

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With remarkable infrastructure sector growth in the last few years, Kuwait has been one of the major drivers of the construction boom in the Gulf Cooperation Council (GCC) region. The country's construction industry was valued at US$1.64bn in 2006. In its newly released Kuwait Infrastructure Report Q407, BMI forecasts the construction industry to grow at an average rate of about 4.22% during 2008-12.

Infrastructural development in the country is being spurred by high levels of population growth. A robust economy, bolstered by surging oil prices, has provided the government the necessary liquidity to undertake large-scale construction projects. The government is expected to invest US$3bn in the construction industry in the next five years, while private sector investment to the tune of US$8bn is also anticipated. The Public Authority of Housing has taken up an ambitious welfare project for providing 69,000 new housing units by 2014, while the Ministry of Education has promised to build 340 new schools by the same time period. The first phase of the ambitious Boubyan Island Project has commenced, while Project Kuwait – which aims to increase production in the country's northern oil fields – is now in its final stages of being drawn up. Other major projects include US$14bn al-Zour refinery, US$3.3bn Failaka island development, the US$2bn planned expansion of Kuwait International Airport (KIA) and a major road development programme including the construction of an eighth ring road.

The Kuwaiti infrastructure sector has its share of drawbacks. High growth levels in the construction industry are somewhat mired by bureaucratic procedures. The decision-making process is rather lengthy and complicated. Ventures such as the US$1.5bn Subiya causeway have suffered on account of the nation's bureaucratic hassles. Further, the country's real estate sector is largely fragmented due to limited plots and restricted development space. Further, foreign companies have to bear with high levels of duties and taxes.

BMI forecasts the construction industry to be valued at KWD0.63bn (US$2.19bn) in 2012, making up 1.97% of the GDP. However, a rapid pace of development may entail higher raw material prices and lead to labour shortages. The government will have to ensure availability of necessary back-up infrastructure to support the new developments.

Contents

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Chapter 1 – Industry Trends And Developments

Market Overview

Kuwait's Economy In 2006–2007

Kuwait's Construction Industry In 2006

Major Companies

Some Recent Investment Initiatives

Chapter 2 – Key Projects

Transport

Utilities

Tourism

Residential And Commercial Construction

Table: Kuwait — Major Infrastructure Projects

Chapter 3 – Business Environment

Introduction

Table: Middle East And Africa Business Environment Rankings

Explanation Of BMI Rankings

Middle East And Africa Region

Kuwait's Business Environment Ranking

Construction Growth

Competitive Environment

Anticipated Potential

Chapter 4 – SWOT Analysis

Kuwait Infrastructure Industry SWOT

Kuwait Economic SWOT

Kuwait Political SWOT

Kuwait Business Environment SWOT

Chapter 5 – Industry Forecast Scenario

Table: Construction And Industry Data

Risks

Chapter 6 – Macroeconomic Outlook

Table: Economic Activity

Chapter 7 – Competitive Landscape

Table: Key Players

Chapter 8 – Company Monitor

MA Al–Kharafi & Sons

United Real Estate Company

Al Ahlia Contracting Group

Kuwait Company for Process Plant Construction & Contracting (KCPC)

Mushrif Trading & Contracting Company

Chapter 9 – BMI Forecast Modelling

How We Generate Our Industry Forecasts

Construction Industry

Sources

Competitive Landscape for Middle East & Africa Infrastructure Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.

Network of Middle Eastern & African Infrastructure Sources

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BMI's Middle Eastern & African Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, Infrastructure industry associations, chambers of commerce and company reports. Information sources include: