Kuwait is currently the fourth largest projects market in the GCC after the UAE, Saudi Arabia and Qatar. Historically, the local market has underperformed its potential, weighed back by politics and a lack of central authority to help push through projects. This has meant that despite its vast oil wealth and healthy fiscal position, the state rarely exceeds $15bn of contract awards each year.
There were a couple of exceptions to this in 2014 and 2015 when Kuwait awarded more than $30bn of contracts on its clean fuels and new refinery programmes, which briefly made it the regional leader in terms of oil and gas activity. However, the fall in the oil prices since then has seen contract award levels slump as government spending declines.
Indeed, Kuwait has been a highly disappointing market, halving in value each year since 2015 even in the face of higher oil prices over the past two years. The result is a market that is underperforming well below the size of the economy. Until the government opts to spend more on its capital projects programme, then the figures are not going to rise significantly.
The long-awaited award of the first project under the new PPP law provides some optimism that more PPP projects could eventually materialise. But Kuwait remains perhaps more than any other GCC state almost totally reliant on government spending. Therefore, the recent collapse in oil prices is likely to mean the state will find it even harder to lift spending in 2020.
Kuwait Projects H1 2020 is the update to last year’s H1 report. Focused on data, it is aimed at helping companies create strategies for targeting and growing the market. It uses almost exclusively data from MEED Projects, the region’s leading online projects tracking service. With 15,000 active projects tracked and more than 35,000 in total in the database, MEED Projects makes it possible to quantify current, historical and future trends in the projects market in the region.
This analysis module will cover:
- Opportunities and challenges in Kuwait’s projects market
- Analysis of the pipeline of planned projects and contract awards
- Key policies and drivers shaping the outlook for projects in Kuwait
- Political and economic background
- The barriers and challenges that may arise
- Sector-by-sector breakdown of future project plans
- Key drivers of projects in each sector
- Kuwait’s most valuable key projects and major project sponsors
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