Kuwait underspends on infrastructure, says report
Kuwait spends 14% of GDP on infrastructure, compared with 38% in KSA
Kuwait has one of the lowest infrastructure expenditures in the GCC, with only $11bn or 14% of its budget dedicated to such projects, says a study conducted by Al-Jarida daily.
Saudi Arabia topped the list with an infrastructure-related expenditure of $71bn or 38.4% of its budget, followed by Oman with $26bn, Qatar with $20bn, the UAE with $12.5bn, Kuwait and then Bahrain with $2.9bn. The total spend of the other GCC countries is $143bn, or 32.3% of their combined budgets.
The International Monetary Fund (IMF) and the World Bank have also placed Kuwait at the top of the list of countries that rely on single sources of income, with both institutions warning against the country’s consumptive behavior this year as investment in development hit a ten-year low.
However, Kuwait's construction sector is now expected to experience a strong growth of 7.5% by 2016 according to market research firm Timetric, in a recovery from the 1% growth between 2007 and 2011.
Infrastructure construction constituted 48.1% of the construction industry’s total value last year.