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Kuwait Authority for Partnership Projects (Kapp) has awarded a contract to develop the third phase of a waterfront real estate project located in the Sharq area of Kuwait City.

The contract was awarded to the local firm United Real Estate Company, which bid the highest in January, as MEED reported.

The commercial offers were opened on 21 January, after the Kuwait Finance Ministry and the Kuwait Authority for Partnership Projects approved technical bids from seven groups for a contract to develop the project.

The scope includes rehabilitation, renovation, development, operation and maintenance, and management of the project under a 15-year usufruct arrangement.

The project covers an area of 384,385 square metres and is being developed on a public-private partnership (PPP) basis.

The other groups that were bidding for the project included:

• Mabanee / Al-Durra National Real Estate Company
• Al-Tijaria Real Estate Company / Al-Mutajara Real Estate Company / Al-Salmiya Group for Development
• Arkan Real Estate Company / National Investments / Real Estate House / Al-Safat Investment / Al-Buyout Holding / SAK Construction
• National Real Estate Company / United Projects Company
• Al-Hamra Group / Al-Hani Group
• Aayan Real Estate Company / Al-Enmaa Real Estate Company

UK analytics firm GlobalData expects Kuwait’s construction industry to grow by 5.1% in 2026-29, supported by government investment in the oil and gas sector aimed at raising production, as well as investment in the infrastructure sector.

In the short term, growth will be boosted by planned expenditure under the 2025-26 budget, which was approved in March 2025.

The construction industry in Kuwait is expected to record an annual average growth rate of 4.9% in 2026-29, supported by investments in renewable energy, transport, and oil and gas projects.

The commercial construction sector is expected to grow by 4.8% in 2026-29, supported by public and private sector investment in the construction of hotels, retail outlets and office buildings.