Kuwait Projects, H1 2022 - Outlook of Major Projects in Kuwait - MEED Insights

Kuwait Projects, H1 2022 - Outlook of Major Projects in Kuwait - MEED Insights

Summary

Political climate

The frequent standoffs between the cabinet and parliament have meant that many potentially useful economic reforms and major projects have not moved forward, as the government has been unable to secure approval from MPs for its plans.

The underlying dynamic of pressure from members of parliament and their constituents to have greater influence over the detail of government policy is, in part, fuelled by a view that the ruling Al-Sabah family and its allies are gaining disproportionately from Kuwait’s oil and gas riches. While the tensions between the executive and the parliament have made it harder for the government to move ahead with a reforming policy agenda, there is only limited appetite for major constitutional change in the country.

Economic climate

Until recently, government revenues easily outpaced expenditure in most years, allowing the government to accumulate substantial savings. However, the gap narrowed notably in 2016 when it measured just 0.3 per cent of GDP. In the years before then, the gap was often around 30 per cent or more of GDP.

Written by MEED, the Middle East market experts within the GlobalData Group, Kuwait Projects H1 2022, the situation improved somewhat in the following three years, but the Covid-19 crisis led to a further reversal, with government net borrowing reaching 8.3 per cent of GDP that year. The situation is expected to stabilise in the coming years, according to IMF projections. IMF further stated that, after contracting by 8.1 per cent in 2020, the Kuwait’s GDP is estimated to have grown by 0.9 per cent in 2021 and is projected to grow by 4.3 per cent in 2022.

Reasons to Buy

• Opportunities and challenges in Kuwait’s projects market
• Analysis of the pipeline of planned projects and contract awards
• Key policies and drivers shaping the outlook for projects in Kuwait
• Political and economic background
• The barriers and challenges that may arise
• Sector-by-sector breakdown of future project plans
• Key drivers of projects in each sector
• Kuwait’s most valuable key projects and major project sponsors