Kuwaiti construction sector to hit $15.6bn in 2020
The value of Kuwait’s construction sector will reach $15.6bn in 2020, according to research conducted by the Construction Intelligence Center (CIC)
Kuwait’s construction sector will hit $15.6bn (KWD4.7bn) in 2020, according to research from Timetric’s Construction Intelligence Center (CIC).
The Construction in Kuwait – Key Trends and Opportunities to 2020 report found that the value of Kuwait’s construction industry rose at a compound annual growth rate (CAGR) of 5.23%, in real terms, during the review period 2011-2015.
The CIC researchers predict that the sector’s CAGR will grow to 6.44% over the forecast period 2016-2020, owing to the Government of Kuwait’s initiatives to boost infrastructure development.
Commenting on anticipated growth, Danny Richards, lead economist at CIC, said: “[Kuwait’s] attractive public-private partnership (PPP) policies and regulatory framework encouraged foreign and domestic investors to invest in the country’s railways, highways, and road and seaport infrastructure.
“Looking forward, the market will continue to expand up until 2020, driven by increased investments in transport infrastructure, including through the Kuwait five-year development programme 2015-2020,” he added.
Infrastructure construction was the third-largest market in Kuwaiti construction during the last five years, accounting for 20.5% of the industry’s total value in 2015.
Aside from the development of infrastructure projects, investment in healthcare, education facilities, and new housing projects will also contribute to growth within Kuwait’s construction sector, according to the CIC report.
Kuwait’s Vision 2035, which aims to develop the country’s road, railway, and airport infrastructure, was also been identified as key driver for future growth.