Construction in Kuwait - Key Trends and Opportunities to 2017

Published: Feb, 2014 | Pages: 73 | Publisher: Timetric
Industry: Construction | Report Format: Electronic (PDF)


Synopsis
This report provides detailed market analysis, information and insights into the Kuwaiti construction industry including:
The Kuwait construction industry's growth prospects by market, project type and type of construction activity
Analysis of equipment, material and service costs across each project type within Kuwait
Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the Kuwaiti construction industry
Assessment of the competitive forces facing the construction industry in Kuwait, and profiles of the leading operators
Data highlights of the largest construction projects in Kuwait. 

Summary
The Kuwaiti construction industry recorded a CAGR of 7.50% during the review period (2008?2012). Cash surplus from oil and gas revenues allowed the government to make concessions and provide subsidies, which helped it to avoid the civil uprisings that have affected much of the Arab region. However, the government is trying to lower the country's reliance on oil revenues and announced a KWD39 billion (US$130 billion) National Economic Development Plan for 2010?2014, with the aim of diversifying the country's economy. Subsequently, significant investments are being made to improve the country's transport infrastructure and increase participation in the private sector; although progress has slowed due to excessive bureaucracy and corruption. The industry's output is expected to record a CAGR of 4.94% over the forecast period (2013?2017).  
Scope
This report provides a comprehensive analysis of the construction industry in Kuwait. It provides:
Historical (2008-2012) and forecast (2013-2017) valuations of the construction industry in Kuwait using construction output and value-add methods
Segmentation by sector (commercial, industrial, infrastructure, institutional and residential) and by project type
Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
Analysis of key construction industry issues, including regulation, cost management, funding and pricing
Assessment of the competitive environment using Porter's Five Forces analysis
Detailed profiles of the leading construction companies in Kuwait 
Reason 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 Timetric's critical and actionable insight
Assess business risks, including cost, regulatory and competitive pressures
Evaluate competitive risk and success factors 
Key Highlights
 The construction industry in Kuwait is set to thrive, due to new projects from the private sector and an increase in demand for residential, commercial and infrastructure activity. A number of large projects are currently planned or underway, accounting for a total of KWD52.6 billion (US$188 billion). The following projects are likely to be completed over the next six to seven years: the government's ongoing metro project at KWD1.9 billion (US$7 billion), Kuwait International Airport at KWD0.9 billion (US$3.3 billion), a motorway construction project at KWD1.7 billion (US$6.2 billion) and the Subiya causeway at KWD0.7 billion (US$2.6 billion).  
According to the National Bank of Kuwait (NBK), the real growth of GDP, in terms of oil production, slowed from 6.1% in 2012 to 3.2% in 2013, whereas the growth of non-oil GDP increased from 4% in 2012 to 4.7% in 2013. Kuwait is small, but has emerged as the second-wealthiest nation in the Gulf Corporation Council (GCC), with a per capita GDP of around KWD51.5 billion (US$184 billion). The country accounted for 7% of the total world reserves, with crude oil reserves of 104 billion barrels in 2012. In 2010, the Kuwaiti government introduced the National Economic Development Plan 2010-2014 to diversify from oil reserves and increase participation in the private sector. The plan is expected to allocate KWD36.4 billion (US$130 billion) to the development of residential, infrastructure, commercial and industrial markets.  
Within the GCC, Kuwait emerged as the fourth-largest country undertaking high-end value projects, after the UAE, Qatar and Saudi Arabia. The project market is anticipated to flourish in 2014, although it may face excessive bureaucracy, budget surpluses and a scarcity of labor, resulting in the increasing cost of labor. Projects worth KWD3.8 billion (US$13.7 billion) will be signed in the first quarter of 2014 and contracts worth KWD2.6 billion (US$9.5 billion) will be signed at the end of 2014. Kuwait's clean fuel and new refinery projects will together account for more than KWD4.2 billion (US$15 billion) and form the strength of Kuwait's economy.  
The GCC is undertaking a railway network project and construction work worth KWD55.9 billion (US$200 billion) will start in 2014. The project will link six GCC states in the Middle East and is expected to be operational by 2018. The Saudi Railway Organization (SRO) is involved in the engineering and design of the rail network. It involves the construction of 3,954km of rail line, covering the Gulf coast and extending from Oman to Kuwait, passing through the UAE, Bahrain, Qatar and Saudi Arabia. Progress on the project has been hampered by political and technical issues, although it will create a long-lasting impact on the country's economy by encouraging trade. 
The residential construction market is driven by a number of factors, such as the rate of urbanization, demographics, property prices and the disposable income of citizens. According to the Central Intelligence Agency (CIA), the country's urban population accounted for 98.3% of the country's total population in 2011. Moreover, the rate of urbanization is expected to grow at a rate of 2.42% annually during 2010-2015, while the Department of Economic and Social Affairs states that the country's urbanization rate is expected to increase.

 1 Executive Summary
2 Market Overview
2.1 The Domestic Economy
2.2 Key Trends and Issues
2.3 Key Construction Indicators
2.4 Benchmarking by Market Size and Growth
2.5 Price Dymics
2.5.1 Salaries
2.5.2 Equipment
2.5.3 Materials
2.5.4 Energy
2.6 Porter's Five Forces Alysis
2.6.1 Bargaining power of suppliers - high
2.6.2 Bargaining power of buyers - low
2.6.3 Barriers to entry - medium
2.6.4 Intensity of rivalry - high
2.6.5 Threat of substitution - low
2.7 Demographic Profile
3 Commercial Construction
3.1 Performance Outlook
3.2 Key Trends and Issues
3.3 Data and Project Highlights
4 Industrial Construction
4.1 Performance Outlook
4.2 Key Trends and Issues
4.3 Data and Project Highlights
5 Infrastructure Construction
5.1 Performance Outlook
5.2 Key Trends and Issues
5.3 Data and Project Highlights
6 Institutiol Construction
6.1 Performance Outlook
6.2 Key Trends and Issues
6.3 Data and Project Highlights
7 Residential Construction
7.1 Performance Outlook
7.2 Key Trends and Issues
7.3 Data and Project Highlights
8 Company Profile: Combined Group Contracting Company KSCC
8.1 Combined Group Contracting Company KSCC - Company Overview
8.2 Combined Group Contracting Company KSCC - Business Description
8.3 Combined Group Contracting Company KSCC - Main Services
8.4 Combined Group Contracting Company KSCC - History
8.5 Combined Group Contracting Company KSCC - Company Information
8.5.1 Combined Group Contracting Company KSCC - key competitors
8.5.2 Combined Group Contracting Company KSCC - key employees
9 Company Profile: Kharafi tiol
9.1 Kharafi tiol - Company Overview
9.2 Kharafi tiol - Main Services
9.3 Kharafi tiol - Company Information
9.3.1 Kharafi tiol - key competitors
9.3.2 Kharafi tiol - key employees
10 Company Profile: Heavy Engineering Industries and Shipbuilding Company K.S.C.
10.1 Heavy Engineering Industries and Shipbuilding Company K.S.C. - Company Overview
10.2 Heavy Engineering Industries and Shipbuilding Company K.S.C. - Main Services
10.3 Heavy Engineering Industries and Shipbuilding Company K.S.C. - Company Information
10.3.1 Heavy Engineering Industries and Shipbuilding Company K.S.C. - key competitors
10.3.2 Heavy Engineering Industries and Shipbuilding Company K.S.C. - key employees
11 Company Profile: Mushrif Trading & Contracting Co.
11.1 Mushrif Trading & Contracting Co. - Company Overview
11.2 Mushrif Trading & Contracting Co. - Business Description
11.3 Mushrif Trading & Contracting Co. - Main Products and Services
11.4 Mushrif Trading & Contracting Co. - History
11.5 Mushrif Trading & Contracting Co. - Company Information
11.5.1 Mushrif Trading & Contracting Co. - key competitors
11.5.2 Mushrif Trading & Contracting Co. - key employees
12 Company Profile: Mohammed Abdulmohsin Al-Kharafi & Sons Company
12.1 Mohammed Abdulmohsin Al-Kharafi & Sons Company - Company Overview
12.2 Mohammed Abdulmohsin Al-Kharafi & Sons Company - Main Products and Services
12.3 Mohammed Abdulmohsin Al-Kharafi & Sons Company - Company Information
12.3.1 Mohammed Abdulmohsin Al-Kharafi & Sons Company - key competitors
12.3.2 Mohammed Abdulmohsin Al-Kharafi & Sons Company - key employees
13 Market Data Alysis
13.1 Construction Output and Value Add
13.1.1 Construction output by project type
13.1.2 Construction output by cost type
13.1.3 Construction output by activity type
13.1.4 Construction value add by project type
13.2 Commercial Construction
13.2.1 Commercial construction output by project type
13.2.2 Commercial construction output by cost type
13.2.3 Commercial construction output by activity type
13.2.4 Commercial construction value add by project type
13.3 Industrial Construction
13.3.1 Industrial construction output by project type
13.3.2 Industrial construction output by cost type
13.3.3 Industrial construction output by activity type
13.3.4 Industrial construction value add by project type
13.4 Infrastructure Construction
13.4.1 Infrastructure construction output by project type
13.4.2 Infrastructure construction output by cost type
13.4.3 Infrastructure construction output by activity type
13.4.4 Infrastructure construction value add by project type
13.5 Institutiol Construction
13.5.1 Institutiol construction output by project type
13.5.2 Institutiol construction output by cost type
13.5.3 Institutiol construction output by activity type
13.5.4 Institutiol construction value add by project type
13.6 Residential Construction
13.6.1 Residential construction output by project type
13.6.2 Residential construction output by cost type
13.6.3 Residential construction output by activity type
13.6.4 Residential construction value add by project type
14 Appendix
14.1 What is this Report About?
14.2 Definitions
14.3 Summary Methodology
14.4 Methodology
14.5 Contact Timetric
14.6 About Timetric
14.7 Timetric's Services
14.8 Disclaimer


List of Tables
Table 1: Benchmarking with Other Major Construction Industries
Table 2: Commercial Construction Project 1 - NBK - tiol Bank of Kuwait Headquarters - Kuwait
Table 3: Commercial Construction Project 2 - Amiri Diwan - Jaber Al-Ahmad Al-Cultural Center - Kuwait
Table 4: Commercial Construction Project 3 - KOC - Al-Tameer Office Building Development - Kuwait
Table 5: Industrial Construction Project 1 - PIC/DCC/BPC/ALQURAIN - Al Zour Olefins III Complex - Al Ahmadi
Table 6: Infrastructure Construction Project 1 - GCC - Railway Network - Kuwait
Table 7: Infrastructure Construction Project 2 - MoC/KOTU - Metropolitan Rapid Transit System Development - Kuwait
Table 8: Infrastructure Construction Project 3 - MoPW - Subiya Causeway - Kuwait
Table 9: Institutiol Construction Project 1 - KU - Sabah Al-Salem University City Development - Kuwait
Table 10: Institutiol Construction Project 2 - MoH/MPW - Al Jahra New Hospital Development - Kuwait
Table 11: Institutiol Construction Project 3 - MPW - Jaber Ahmed Al Jaber Al Sabah Hospital - Al Assimah
Table 12: Residential Construction Project 1 - PAHW - Low Cost Housing Development - Kuwait
Table 13: Residential Construction Project 2 - MPW - Expatriate Workers Residential Cities - Kuwait
Table 14: Residential Construction Project 3 - PAHW - North West Sulaibikhat Residential City Development - Al Asimah
Table 15: Combined Group Contracting Company KSCC, Key Facts
Table 16: Combined Group Contracting Company KSCC, Main Services
Table 17: Combined Group Contracting Company KSCC, History
Table 18: Combined Group Contracting Company KSCC, Key Employees
Table 19: Kharafi tiol, Key Facts
Table 20: Kharafi tiol, Main Services
Table 21: Kharafi tiol, Key Employees
Table 22: Heavy Engineering Industries and Shipbuilding Company K.S.C., Key Facts
Table 23: Heavy Engineering Industries and Shipbuilding Company K.S.C., Main Services
Table 24: Heavy Engineering Industries and Shipbuilding Company K.S.C., Key Employees
Table 25: Mushrif Trading & Contracting Co., Key Facts
Table 26: Mushrif Trading & Contracting Co., Main Products and Services
Table 27: Mushrif Trading & Contracting Co. - History
Table 28: Mushrif Trading & Contracting Co., Key Employees
Table 29: Mohammed Abdulmohsin Al-Kharafi & Sons Company, Key Facts
Table 30: Mohammed Abdulmohsin Al-Kharafi & Sons Company, Main Products and Services
Table 31: Mohammed Abdulmohsin Al-Kharafi & Sons Company, Key Employees
Table 32: Kuwaiti Construction Output by Project Type (KWD Million), 2008-2012
Table 33: Kuwaiti Construction Output by Project Type (KWD Million), 2012-2017
Table 34: Kuwaiti Construction Output by Cost Type (KWD Million), 2008-2012
Table 35: Kuwaiti Construction Output by Cost Type (KWD Million), 2012-2017
Table 36: Kuwaiti Construction Output by Activity Type (KWD Million), 2008-2012
Table 37: Kuwaiti Construction Output by Activity Type (KWD Million), 2012-2017
Table 38: Kuwaiti Construction Value Add by Project Type (KWD Million), 2008-2012
Table 39: Kuwaiti Construction Value Add by Project Type (KWD Million), 2012-2017
Table 40: Kuwaiti Commercial Construction Output by Project Type (KWD Million), 2008-2012
Table 41: Kuwaiti Commercial Construction Output by Project Type (KWD Million), 2012-2017
Table 42: Kuwaiti Commercial Construction Output by Cost Type (KWD Million), 2008-2012
Table 43: Kuwaiti Commercial Construction Output by Cost Type (KWD Million), 2012-2017
Table 44: Kuwaiti Commercial Construction Output by Activity Type (KWD Million), 2008-2012
Table 45: Kuwaiti Commercial Construction Output by Activity Type (KWD Million), 2012-2017
Table 46: Kuwaiti Commercial Construction Value Add by Project Type (KWD Million), 2008-2012
Table 47: Kuwaiti Commercial Construction Value Add by Project Type (KWD Million), 2012-2017
Table 48: Kuwaiti Industrial Construction Output by Project Type (KWD Million), 2008-2012
Table 49: Kuwaiti Industrial Construction Output by Project Type (KWD Million), 2012-2017
Table 50: Kuwaiti Industrial Construction Output by Cost Type (KWD Million), 2008-2012
Table 51: Kuwaiti Industrial Construction Output by Cost Type (KWD Million), 2012-2017
Table 52: Kuwaiti Industrial Construction Output by Activity Type (KWD Million), 2008-2012
Table 53: Kuwaiti Industrial Construction Output by Activity Type (KWD Million), 2012-2017
Table 54: Kuwaiti Industrial Construction Value Add by Project Type (KWD Million), 2008-2012
Table 55: Kuwaiti Industrial Construction Value Add by Project Type (KWD Million), 2012-2017
Table 56: Kuwaiti Infrastructure Construction Output by Project Type (KWD Million), 2008-2012
Table 57: Kuwaiti Infrastructure Construction Output by Project Type (KWD Million), 2012-2017
Table 58: Kuwaiti Infrastructure Construction Output by Cost Type (KWD Million), 2008-2012
Table 59: Kuwaiti Infrastructure Construction Output by Cost Type (KWD Million), 2012-2017
Table 60: Kuwaiti Infrastructure Construction Output by Activity Type (KWD Million), 2008-2012
Table 61: Kuwaiti Infrastructure Construction Output by Activity Type (KWD Million), 2012-2017
Table 62: Kuwaiti Infrastructure Construction Value Add by Project Type (KWD Million), 2008-2012
Table 63: Kuwaiti Infrastructure Construction Value Add by Project Type (KWD Million), 2012-2017
Table 64: Kuwaiti Institutiol Construction Output by Project Type (KWD Million), 2008-2012
Table 65: Kuwaiti Institutiol Construction Output by Project Type (KWD Million), 2012-2017
Table 66: Kuwaiti Institutiol Construction Output by Cost Type (KWD Million), 2008-2012
Table 67: Kuwaiti Institutiol Construction Output by Cost Type (KWD Million), 2012-2017
Table 68: Kuwaiti Institutiol Construction Output by Activity Type (KWD Million), 2008-2012
Table 69: Kuwaiti Institutiol Construction Output by Activity Type (KWD Million), 2012-2017
Table 70: Kuwaiti Institutiol Construction Value Add by Project Type (KWD Million), 2008-2012
Table 71: Kuwaiti Institutiol Construction Value Add by Project Type (KWD Million), 2012-2017
Table 72: Kuwaiti Residential Construction Output by Project Type (KWD Million), 2008-2012
Table 73: Kuwaiti Residential Construction Output by Project Type (KWD Million), 2012-2017
Table 74: Kuwaiti Residential Construction Output by Cost Type (KWD Million), 2008-2012
Table 75: Kuwaiti Residential Construction Output by Cost Type (KWD Million), 2012-2017
Table 76: Kuwaiti Residential Construction Output by Activity Type (KWD Million), 2008-2012
Table 77: Kuwaiti Residential Construction Output by Activity Type (KWD Million), 2012-2017
Table 78: Kuwaiti Residential Construction Value Add by Project Type (KWD Million), 2008-2012
Table 79: Kuwaiti Residential Construction Value Add by Project Type (KWD Million), 2012-2017
Table 80: Timetric Construction Market Definitions