Despite facing numerous challenges related to time, cost overruns, and bureaucratic delays, the construction sector in Kuwait is poised to register robust growth over the short to medium term.
A new report from Verified Market Research, a global market research and business intelligence firm, shows that the Kuwaiti construction industry, which is growing at a rapid pace, will witness an annual average growth of more than 6 percent over the 2022-2025 period, and is projected to be valued at over US$9 billion by 2028.
The local construction market includes a wide range of activities that cover upcoming, ongoing, and proposed construction projects in different sectors, including commercial, residential, industrial construction, infrastructure transportation, energy, and utilities. When coupled with the government’s programs to promote the development of economic zones, logistic cities, transport, and renewable energy infrastructure, the Kuwaiti construction field is estimated to post strong rebound in the post-COVID era.
The industry is further buoyed and supported by reforms to diversify the economy away from hydrocarbons. However, the current growth rate of the Kuwaiti construction market is accompanied by certain challenges that continue to stifle the industry’s performance at full capacity. Companies that intend to rise above the competition within the Kuwaiti market need to adopt the right technology solutions that could prove to be a game-changer, said Belal Ibrahim Hamouda, General Manager in Kuwait of Grand International Company (GIC), a regional construction firm.
Kuwait is also a fast-emerging IT hub within the Middle East and GCC regions. With the country’s 2035 Vision, the nation is poised to become a financial and commercial center within the region. The rapid development in network connectivity, increased support from government bodies, high adoption of latest cloud services have been strong drivers for the growth of the Kuwait IT industry. Additionally, the private sector’s approach towards adopting the latest in IT solutions, particularly within the construction industry, is a strong indicator of how far the industry will go in the near future.
“For an industry to grow at an unprecedented rate, it requires strong infrastructural, government, and policy support. Kuwait has the ideal combination of all three. Therefore, we believe that the country is on its way to becoming the financial and commercial hub within the Middle East in the years to come,” added Abhilash Nair, Regional Manager of GIC.