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Yahoo
a day ago
- Business
- Yahoo
Kuwait Construction Industry Report 2025: Output to Record an AAGR of 5.1% During 2026-2029, Driven by Investments in Renewable Energy, Transport, and Oil and Gas Projects
Discover Kuwait's construction growth prospects: With a 4.5% real growth expected in 2025, fueled by government investments in infrastructure and oil & gas sectors, the market is set to expand. By 2029, the industry's annual growth rate is expected to average 5.1%, driven by renewable energy and infrastructure projects. Dublin, June 05, 2025 (GLOBE NEWSWIRE) -- The "Kuwait Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to construction industry to grow by 4.5% in real terms in 2025, supported by government investment in the oil and gas sector to boost production and investment in the infrastructure sector. In the short term, growth will be boosted by planned expenditure under the Fiscal Year (FY) 2025-26 Budget (1st April 2025 to 31st March 2026), which was approved in March 2025. The budget earmarked capital expenditure of KWD1.8 billion ($5.9 billion) and outlined investments in infrastructure and energy with a total allocation of KWD1.5 billion ($4.9 billion) for the construction and maintenance of several projects. The government has allocated substantial funds for key initiatives. Additionally, in March 2025, the government issued a new law setting the public debt ceiling at KWD30 billion ($97.6 billion), aligning with the Vision 2035 program. The program aims to transform the country into a financial and commercial hub by 2035. This vision focuses on diversifying the development of the economy focusing on oil and gas, infrastructure and improving social construction industry in Kuwait is expected to record an annual average growth rate of 5.1% between 2026 to 2029, supported by investments in renewable energy, transport, and oil and gas projects, coupled with government's plan to increase the share of renewable generation to 30% by 2030 and 50% by 2050, compared to 0.6% in 2023 and achieve carbon neutrality by 2060. In 2024, the Minister of Electricity, Water and Renewable Energy approved Kuwait Strategy for Energy and Renewable Energy Projects 2030-2050. In the Strategy, Kuwait is targeting for a combined renewable energy generation capacity of 22.1GW by 2030, of as part of its comprehensive 20-year strategy concluding in 2050. Kuwait is committed to attain carbon neutrality by 2060. Scope Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Kuwait, featuring details of key growth drivers. Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline. Listings of major projects, in addition to details of leading contractors and consultants Reasons to Buy Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies Assess market growth potential at a micro-level with over 600 time-series data forecasts Understand the latest industry and market trends Formulate and validate business strategies using the analyst's critical and actionable insight Assess business risks, including cost, regulatory and competitive pressures Evaluate competitive risk and success factors Key Topics Covered: 1 Executive Summary2 Construction Industry: At-a-Glance3 Context3.1 Economic Performance3.2 Political Environment and Policy3.3 Demographics3.4 Risk Profile4 Construction Outlook4.1 All Construction Outlook Latest news and developments Construction Projects Momentum Index 4.2 Commercial Construction Outlook Project analytics Latest news and developments 4.3 Industrial Construction Outlook Project analytics Latest news and developments 4.4 Infrastructure Construction Outlook Project analytics Latest news and developments 4.5 Energy and Utilities Construction Outlook Project analytics Latest news and developments 4.6 Institutional Construction Outlook Project analytics Latest news and developments 4.7 Residential Construction Outlook Project analytics Latest news and developments 5 Key Industry Participants5.1 Contractors5.2 Consultants6 Construction Market Data7 AppendixFor more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Zawya
29-04-2025
- Business
- Zawya
Fitch: Kuwaiti banking sector to benefit from public debt and mortgage laws
Fitch Ratings-London: Key new laws in Kuwait are set to drive growth and diversification in the country's banking sector, Fitch Ratings says. These reforms, including public debt and residential mortgage laws, will create new lending opportunities and support economic expansion following a period of fairly subdued conditions. Frequent political gridlock has delayed important economic reforms until recently, contributing to real GDP reducing by 3.6% in 2023 (non-oil: -2.9%) and by an expected further 2.8% in 2024 (non-oil: +1.5%). This constrained banks' lending opportunities and pushed them towards mergers and regional expansion as avenues for growth. However, government changes since the dissolution of parliament in May 2024 are helping decision-making and supporting the implementation of strategic public plans through Emiri decrees. Credit growth in the banking sector, which was a low 2.1% in 2023, accelerated to 6.8% in 2024. Fitch expects high 8%–9% growth in 2025 if planned large government projects are awarded swiftly, following the recent approval of the public debt law. Approval of the residential mortgage law could bolster growth by unleashing substantial demand for housing loans. The public debt law, which allows the sovereign to issue up to KWD30 billion over 50 years, will support government spending on large and diversified projects while preserving foreign assets, including foreign-currency reserves. This should also offset the negative impact from reduced global real GDP growth and lower oil prices. Progress on reforms, particularly the diversification of fiscal revenue (a 15% minimum top-up tax on multinational companies came into effect on 1 January 2025, with collections expected to begin in 2027), rationalisation of expenditure and diversification away from oil, would further support the government's budget and financial flexibility. Fitch expects wholesale lending to increase by 7%–8% as the public debt reforms take hold and have a spillover effect across multiple sectors that require financing. Sovereign bonds issued under the new law will support banks' liquidity, offering high-quality liquid assets that can be traded or used in repurchase agreements with other banks and the Central Bank of Kuwait. These bonds, being 0% risk-weighted, will bolster banks' regulatory capital ratios while providing a stable interest income stream. The residential mortgage law, if approved, could significantly transform Kuwait's housing finance landscape. For the first time, banks would be allowed to offer mortgage loans, potentially up to KWD200,000 and with a tenor of up to 25 years, with state-subsidised interest for tranches above KWD70,000. Given Kuwait's population of 1.5 million, even modest uptake could generate a substantial volume of new loans, expanding the banking sector and stimulating growth in the construction industry. Potential reforms to foreign property ownership laws could further increase demand for housing loans, mostly from high-earning expatriates. Kuwaiti banks are adequately capitalised to support the likely growth in housing finance. We do not anticipate a significant build-up of asset-quality risk as over 80% of Kuwaiti citizens are civil servants with stable income sources. However, the new corporate income tax could put pressure on profitability, particularly at some of the largest multinational banks. -Ends- Matt Pearson Associate Director, Corporate Communications Fitch Group, 30 North Colonnade, London, E14 5GN E:
Zawya
08-04-2025
- Business
- Zawya
New debt law triples Kuwait's loan ceiling
Kuwait has tripled the maximum loan it can get from local and global markets within the much-anticipated debt law it approved last month. An Emiri decree set the new debt ceiling at 30 billion Kuwaiti dinars ($99 billion) in the new law which replaced a previous debt law with a ceiling of KWD10 billion ($33 billion). The new law allows the government to borrow up to $99 billion over a period of 50 years to fund budget deficits and infrastructure projects beyond withdrawal from the Gulf state's financial reserves abroad. 'The Emiri decree replaced the debt law which expired on 4 October 2017 and which set the loan ceiling at KWD10 billion…the new ceiling is KWD30 billion,' said Kuwait's daily Aljardia, which published the Emiri decree, citing the official gazette. The approval of the 'financing and liquidity' law after eight years of government-parliament haggling coincides with widening budget deficits due to spiraling spending on wages to public servants and subsidies to citizens. While the law will enable the OPEC member to shun depleting its overseas reserves, analysts warn against the improper use of the loans. 'This law allows Kuwait to shore up the fiscal shortfall and fund development projects if oil revenues decline without the need to directly withdraw from the general reserves,' said Mohammed Al-Asumi, a Dubai-based economic adviser. 'But it could be harmful if it is used to cover salaries and other parts of the current expenditure…there is also a risk of excessive reliance on borrowing.' Kuwaiti Finance Minister Noura Al-Fassam said last week the debt law gives the emirate greater flexibility by allowing it to tap local and global markets. 'This reflects a strategic approach to keep pace with global economic developments and ensuring the sustainability of the state's public finances. This law is part of the government's efforts to enhance financial stability and support economic development in line with Kuwait's Vision 2035,' she said. Faisal Al-Muzaini, Director of the Public Debt Management Department at the Ministry of Finance, said the new law reflects the government's commitment to adopting a sustainable financial approach that balances the need to finance development projects and ensure long-term financial sustainability. In a weekend report, National Bank of Kuwait (NBK) said the debt law will increase the options available to the government to finance current and future fiscal deficits beyond drawing down reserves at the General Reserve Fund, the government's cash flow account. 'Moreover, the new law will facilitate the establishment of a sovereign yield reference curve and catalyse bond issuance and the debt markets more broadly going forward….it is also an important step in stimulating capital project financing avenues and should help in strengthening Kuwait's sovereign credit rating,' it said. Kuwait's last foray in the bond markets was in 2017 when it raised about KWD 2.5 billion ($8 billion) in five and 10-year Eurobonds. In 2021, Kuwait was reported by local newspapers to have withdrawn nearly KWD 7.5 billion ($24.7 billion) from the Future Generation Fund to cover a large budget deficit during fiscal year 2021-2022. Kuwait's think-tank Al-Shal Centre said last week that borrowing would not resolve the Emirate's fiscal problems. 'It does not matter whether we support or oppose the debt law…but providing liquidity to a government with expenditures above 50 percent of GDP, and with an efficiency rate of 0.54, compared to a global average of 37 per cent of GDP with an efficiency rate of 0.74, will only deepen the financial imbalance,' it said. (Reporting by Nadim Kawach; Editing by Anoop Menon)
