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Kuwait Infrastructure Report Q1 2009

http://www.companiesandmarkets.com/Summary-Market-Report/kuwait-infrastructure-report-q1-2009-64235.asp

Report Summary

In time for the launch of BMI’s infrastructure Q109 reports we have revised our construction data. The data has been modified from 2008 onwards. This initiative stems from new methodology being introduced in our forecasting method and aims to increase the relevance and reliability of BMI’s infrastructure data. BMI strives to be able to offer five year industry forecasts and we are happy to announce that the infrastructure data for Kuwait now stretches to 2013.

For 2009 BMI forecasts that Kuwait’s construction industry will be worth KWD0.71bn (US$2.65bn), although growth is slowing in the sector, the construction industry’s value is set to reach KWD0.86bn (US$3.44bn) in 2013. The country’s construction industry growth is down from previous years, whilst in 2007 and 2008 the sector grew by an estimated 3.51% and 2.67% respectively this figure is expected to slip to 2.28% before falling further to 1.03%. Kuwait’s construction industry growth will recover slightly at the end of the forecast period with constriction growth registering 1.60% in 2013. One area of Kuwait’s construction industry that is experiencing growth is the sector’s percentage of GDP, which is expected to increase from 1.59% in 2008 to 2.10% in 2009 BMI believes that the construction sector, not just domestically in Kuwait, but worldwide will be buffeted by the global economic downturn and will lead to investors tightening their belts, leaving less money to go towards funding infrastructure related projects, especially those in the real estate sphere. This could see a serious decline in the number of companies available to participate in Private Public Partnership (PPP) projects, which will lead to delays and in some case cancellations of proposed infrastructure schemes.

In relation to Kuwait, BMI has no news of specific projects that may be affected by the downturn, with the information that is currently available to us we assume that some of the large infrastructure initiatives launched in 2008, such as huge residential and commercial construction project the City of Silk or the planned metro system for Kuwait City will go ahead.

Table of Contents

Executive Summary ....................5
Market Overview..........................6
Kuwait ............ 6
Global Overview ..........................7
Mega-Urban Regions: Opportunities And Challenges For Infrastructure...................... 8
Mega-Urban Regions: Investment Opportunities And Risks ............. 9
Table: The World's 30 Largest Urban Agglomerations .................. 11
Table: The World's Richest Cities In 2020 By GDP........................ 15
Table: The World's Fastest-Growing Urban Areas......................... 17
SWOT Analysis..........................19
Kuwait Infrastructure Industry SWOT ............... 19
Kuwait Political SWOT......... 20
Kuwait Economic SWOT....... 21
Kuwait Business Environment SWOT ................ 22
Major Infrastructure Developments And Key Projects.....................23
Transport Infrastructure Overview......................... 23
Road Links ............................ 23
Steaming Ahead With Railway Development ..... 23
Travelling By Air .................. 24
Utilising Its Coastline ........... 24
New And Ongoing Transport Projects .................... 25
Airports................................. 25
Ports ........ 25
Road Networks...................... 26
Rail Networks ....................... 27
Energy And Utilities Infrastructure Overview......... 28
New And Ongoing Energy and Utility Projects............................... 30
Power Plants and Transmission Grids............... 30
Water ....... 31
Pipelines And Refineries ....... 31
Construction Overview ......... 32
New And Ongoing Projects................................ 33
Commercial Construction.................................. 33
Residential Construction....... 33
Table: Kuwait – Major Infrastructure Projects – Transport........... 34
Table: Kuwait – Major Infrastructure Projects - Utilities............... 35
Table: Kuwait – Major Infrastructure Projects - Construction....... 36
Industry Forecast Scenario......37
Table: Construction and Industry Data ............. 37
Risks ........ 39
Business Environment .............40
Regional Overview – Middle East And Africa......... 40
Kuwait: Business Environment Rating............... 43
Table: Regional Infrastructure Business Environment Ratings....... 43
Limits Of Potential Returns................................ 44
Risk To Realisation Of Returns .......................... 44
Foreign Direct Investment ......... 44
Labour Force............................. 45
Legal Framework....................... 46
Tax Regime................................ 47
Corruption ................................. 48
Macroeconomic Outlook ...........49
Table: Kuwait - Economic Activity .................... 51
Political Outlook........................52
Company Monitor......................55
Table: Key Players ............... 55
Kharafi National................... 56
United Real Estate Company ............................. 57
Al-Ahlia Contracting Group .............................. 58
Kuwait Company For Process Plant Construction & Contracting (KCPC) ................. 59
Gulf Consult.......................... 60
Table: Gulf Consult Projects ............................. 60
Country Snapshot: Kuwait Demographic Data ....61
Section 1: Population............ 61
Table: Demographic Indicators, 2005-2030...... 61
Table: Rural/Urban Breakdown, 2005-2030 ..... 62
Section 2: Education And Healthcare................ 62
Table: Education, 2002-2005 ............................ 62
Table: Vital Statistics, 2005-2030...................... 62
Section 3: Labour Market And Spending Power ............................. 63
Table: Employment Indicators, 1997-2006........ 63
Table: Consumer Expenditure, 2000-2012 ........ 63
BMI Forecast Modelling ............64
How We Generate Our Industry Forecasts ........ 64
Introduction ............................... 65
Ratings Overview....................... 65
Table: Infrastructure Business Environment Indicators ................. 66
Construction Industry ........... 67
Sources ......... 67