Market Size of Kuwait Construction Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 13.94 Billion |
| Market Size (2029) | USD 18.59 Billion |
| CAGR (2024 - 2029) | 5.93 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Kuwait Construction Market Analysis
The Kuwait Construction Market size is estimated at USD 13.94 billion in 2024, and is expected to reach USD 18.59 billion by 2029, growing at a CAGR of 5.93% during the forecast period (2024-2029).
The major factor driving the construction market in Kuwait is the country's tax reforms, which encourage foreign investors to invest in the country. The government is giving benefits like income tax holidays and customs-free equipment importation, hoping to attract more foreign investment.
- The country is trying to diversify its oil-rich economy. The government focuses on increasing oil production to generate greater revenue, and improving government finances may also enable the government to increase public spending on infrastructure.
- Industry growth is supported by government programs that encourage the development of transportation and renewable energy infrastructure. Kuwait's priority to accelerate economic reforms and diversify its economy away from hydrocarbon dependence will also support the construction industry.
- With 5% of partnerships with the private sector in current years, Kuwait has authorized more than USD 60 billion for infrastructure, health, environment, and energy projects. The projects include four partnership projects valued at nearly USD 3.2 billion and 14 significant public projects with a combined value of almost USD 59 billion.
- According to a government report cited by the Arabic language daily Alqabas, 12 big housing projects totaling nearly 10.2 billion (USD 33.66 billion) will receive the majority of the allocations. A total of 10 oil projects worth 5.8 billion dinars (USD 19 billion) and a handful of development projects worth 7 billion dinars (USD 23 billion) are also included in the plan.
- Additionally, to meet the demand of a rising population, the government is investing in substantial infrastructurectural projects related to electricity and water. The government is developing most of the projects through Public Private Participation (PPP) or by inviting foreign companies to provide engineering, design, and construction capabilities.
