Kuwait construction market to grow by 7.5% a year
Diversification efforts drive growth; infrastructure spend most active
Kuwait's construction industry grew at a rate of just 1% a year in the five years to 2011, according to new research.
A report from market research firm Timetric found that the period started with a boom in 2007, when Kuwait's construction industry recorded its highest growth rate to date of 17.6%, but the ensuing financial crisis in 2009 caused the industry to shrink by 9.8% in the same year.
Prior to the recession, growth was generated largely by government diversification efforts as it attempted to stimulate both industrial and commercial markets.
These ongoing efforts are expected to support Kuwait's construction sector over the next five years. Timetric forecasts a compound annual growth rate for Kuwait's construction sector of around 7.5% to 2016.
The report also found that the country is facing shortages in the market for social infrastructure buildings - particularly healthcare - due to a historic lack of investment.
In total, the market for all infrastructure grew was responsible for 48.1% of all construction activity in Kuwait during 2011. Residential building was responsible for 22.2% and commercial construction for 17.4%.