Kuwait’s development plan (2020-2025) focuses on economic reform and implementation of numerous long-stalled mega projects, with several large infrastructure projects estimated at $124 billion. It includes a number of infrastructure upgrades such a $4 billion new airport terminal; development of the Mubarak Al-Kabeer Port on Boubyan Island; and a petrochemicals complex. The government has nearly completed over $4 billion worth of hospital projects to boost the hospital bed capacity across the country. The Ministry of Health’s operating budget is projected to reach approximately $18 billion by 2030.
The rising demand for public housing Is expected to drive long-term residential construction growth, with the Public Authority for Housing and Welfare announcing plans to build 250,000 housing units in the next 10 years. The government also plans to employ a public-private partnership model to deliver public housing, including 11,000 units under the Sabah Al-Ahmad project, to house 100,000 people upon completion. The South Al-Mutlaa City project is in its initial infrastructure development phase will have the capacity to house 28,000 families.
Project implementation, particularly large infrastructure projects, has encountered frequent delays. The government acknowledged that less than 20 projects out of 135 projects included in the 2015-2020 five-year development plan were completed. Projects are expected to start moving again due to the recent budget surplus.
Kuwait’s commercial and residential construction plans offer opportunities for the full range of U.S. building products and construction equipment. Local construction companies apply U.S. building techniques and technologies and utilize American building materials and equipment for private development projects ranging from resorts to hospitals. The United States continues to lead as the supplier of equipment. Engineering and consulting companies also have strong prospects for entering the market. Construction materials and labor are sourced cheaply locally or regionally.
The U.S. Commercial Service in Kuwait promotes and hosts buyer delegations to the following shows:
For additional information on building and construction equipment, please contact Commercial Specialist Rasha Al-Muhtaseb at email@example.com.