Aug 23 2013
Research and Markets has announced the addition of the "Kuwait Construction Industry 2013" report to their offering.
Despite the setback witnessed in the early half of 2011 owing to the prevailing global economic conditions; political crisis in the nation; regional civil unrest and frequent dissolving of the assembly by the ruling Emir citing political stagnation and gridlock between the legislature and the government on issues such as the change in electoral law, including one instance as late as June 2013, causing political uncertainty, growth in Kuwait's construction sector continues to grow at a steady pace, though economic growth and hydrocarbons growth are not likely to continue to sustain earlier pace.
Though the large hydrocarbons sector that accounts for nearly 95 percent of government revenues and export income continues to keep Kuwait in surplus, as Kuwait stepped up production to meet shortfalls during the Libyan crisis in 2012, as global oil production and prices resume normalcy and stagnations in the country's development plans are likely to pull down growth in the non-oil sector and pull the economy into deficit by 2017 if diversification plans are not put back on track, according to warnings by the IMF which downgraded Kuwait's economic growth forecast for 2013 to 1.1 percent in April 2013 from its earlier 1.8 percent forecast.
The country's young and quickly growing population base and the Sultanate's economic diversification program continue to be the key driving forces behind the economy's steady construction sector development. However, with a lack of political consensus and constant political upheaval, the implementation of developmental plans has slowed down considerably. However, with a gradual return to political stability and better focus on the development of the manufacturing sector, growth levels are gradually likely to be restored with the major beneficiary being the construction sector.
Stability of oil prices, high income, low inflation and low prices of construction materials, and attempts by real estate companies to address consequences of global financial crisis have contributed to a healthy boost for the real estate sector in Kuwait. Heavy government investment in building social infrastructure is also expected to drive the sector. The government's projected spending of KD 37 billion during 2010 - 2014 within the development plan is expected to boost real estate, coupled with housing facilities offered by banks.
This report aims to explore the main areas of growth in the Kuwait building construction market and the prime forces driving the growth of this market while trying to enumerate and outline the main restraints to the growth over the coming years. The Kuwait Construction Industry 2013 analyzes all the sectors within the construction industry in detail including, building construction, infrastructure, power and water desalination and, last but not the least, oil and gas, as to their growth and prospects in the current economic scenario and their future up to 2014.