Ministry is the largest client for construction companies in Kuwait
Kuwait has recently earmarked $3.3bn for projects under the Ministry of Public Works in the next financial year budget of 2017-18, according to local reports that have quoted the undersecretary of the ministry.
Kuwaiti newspaper Alanba quoted Awatef al-Ghoneim saying that the budget will cover the ministrys entire infrastructure and development projects across the country.
Kuwait has also recently announced the development of five islands, which the country is looking to attract $132bn-worth of investments in order to build up.
State news agency Kuna reported that the government was considering developing the islands of Boubyan, Failaka, Warba, Miskan and Awha into a multi-purpose free trade zone for the northern Gulf region and Kuwait.
The government plans to introduce incentives to attract foreign investment in the islands project, including tax exemptions for up to 10 years, stated the report.
Kuwait returns to its usual pace
Despite having considerable oil wealth and healthy domestic finances, Kuwait has traditionally ranked among the three smallest projects markets in the GCC. However, the country experienced record years in 2014 and 2015 in terms of the value of contract awards, totalling $25.8bn and $33.2bn respectively.
In 2015, the projects market was driven by contract signings in the oil sector, followed by transport, which saw the award of the long-delayed Terminal 2 project at Kuwait International airport. Such high spending has not been repeated in 2016, with the value of contract awards for the year as a whole anticipated to be $20bn or less. Read more.
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