Feb 19 2011
Research and Markets has announced the addition of the "Kuwait Infrastructure Report Q1 2011" report to their offering.
While the recent passing of a privatisation law and a government commitment to mobilising a US$108bn infrastructure package certainly does provide cause for optimism; BMI nonetheless maintain their core view that in the short to medium term (2010-2014) at least, political and bureaucratic hurdles will continue to deter much-needed private investment in Kuwaits infrastructure sector.
Following the release of new 2008 data, BMI have upwardly revised their forecast for Kuwaits construction industry value, pointing to a more favourable outlook for the Persian Gulf country construction sector in 2010. They now expect Kuwaits construction industry value to grow by 2.47% in 2010 in real terms and to experience stable average real growth of 2.36% over the duration of the 2010-2014 forecast period.
In May 2010, a long-awaited privatisation law was passed, which could lay the foundation for a boost to the countrys much-maligned business environment and long-term foreign direct investment (FDI) prospects. Importantly, the law paves the way for foreign companies to hold a stake in Kuwaits power sector for the first time, opening up the countrys power sector to crucial private sector capital and expertise. Still, however encouraging this positive step forward, optimism must be tempered given the widespread political opposition to what was already a considerably watered down legislative bill, which BMI believe will continue to affect foreign investor interest in the short to medium term.
Clearly, Kuwait has a large number of construction projects awaiting the green light for 2011: the private sector is primed to play the lead role in developing the US$7bn Kuwait urban metro, a slate of electricity generation projects, the US$3bn tourism development at Failaka Island and redevelopment of Kuwait airport.
There is reason to hope that Kuwait is on the brink of an infrastructure boom. In particular, a slew of planned power projects including a plan to tender an estimated US$17.4bn worth of power generation and desalination projects with the aim of installing 14,260 megawatts (MW) of new generating capacity by 2017 provide hope that the industry is on the verge of seeing the implementation of much-needed projects.
The progress of Kuwaits first independent power and water project (IWPP), with a tender due to be issued by Q1 2011, will be watched closely by many foreign investors for its potential to act as a bellwether for Kuwaits future energy strategy. With investors due to submit indications of interest (IOIs) in June 2010 for a 40% stake in the 1,500MW Al-Zour power and desalination plant, much significance will be attached to the projects progress and implementation. Indeed, if successful the project has the potential to pave the way for greater private sector participation in Kuwaits infrastructure development.
Key Topics Covered:
- Executive Summary
- SWOT Analysis
- Market Overview
- Industry Forecast Scenario
- Transport Infrastructure
- Energy And Utilities Infrastructure
- Residential/Non- Residential Construction and Social Infrastructure
- Business Environment
- Project Finance Ratings
- Macroeconomic Outlook
- Political Outlook
- Company Monitor
- Global Overview
- Methodology
Companies Mentioned:
- Burhan International
- Mabanee International
- Kharafi National
- Kuwait Company For Process Plant Construction & Contracting (KCPC)
- Gulf Consult
Source: http://www.researchandmarkets.com/