meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait election gives hope to businesses

13 June 2023

 

Kuwait’s recent snap election has offered a glimmer of hope to businesses with its promise to form a government freshly mandated to make key policy decisions to help revitalise the country’s economy.

The vote took place on 6 June after Kuwait’s constitutional court in March annulled the results of last year’s election and reinstated the previous parliament elected in 2020.

Opposition lawmakers won 29 of the legislature’s 50 seats, according to results published by the official Kuwait News Agency.

While the make-up of the new parliament is similar to the one elected last year and later annulled, with all but 12 of its 50 members retaining their seats, business leaders say there is potential for ending the country’s political deadlock.

“It’s still a difficult situation,” said one source. “After a couple of days have passed, we will have a much clearer picture of the situation and whether or not a government is going to be formed.”

Picking a prime minister

A key indicator as to whether the country will break the political deadlock will be whether a prime minister is named over the coming days and who that prime minister is.

One source said: “It is possible that, if the right person is named as prime minister, the political deadlock will be broken, a government will be formed, and the key strategic economic decisions that need to be made will be pushed through.”

Turnout reached 50 per cent one hour before polls closed, according to the Kuwait Transparency Society, a non-governmental organisation. Last year’s election saw a turnout of 63 per cent.

While lawmakers are elected, Kuwait’s cabinet ministers are installed by the ruling Al-Sabah family, which maintains a tight hold over political life.

Continual standoffs between the branches of government have prevented lawmakers from passing economic reforms, while repeated budget deficits and low foreign investment have added to an air of gloom.

Speaking after the new parliament was elected, Janan Bushehri, the new parliament’s only female member, said she expected it “to seek stability and move ahead on outstanding issues, whether political or economic”.

Far-reaching ramifications

The country has seen a dramatic contraction in the value of its oil and gas projects market over recent years as the political deadlock has blocked approvals for major infrastructure projects in the sector.

Between the start of 2020 and the start of May this year, the total value of all active oil, gas and chemical projects in Kuwait declined by 65 per cent from $67.1bn to just $23.5bn.

Many industry stakeholders believe that breaking the political deadlock is essential for reversing the contraction seen in the country’s oil and gas sector.

The interim government has only approved essential projects such as maintenance. It has avoided making decisions on major strategic projects, such as the planned $10bn Al-Zour petrochemicals complex being developed by state-owned Kuwait Integrated Petroleum Industries Company (Kipic).

Kuwait is also struggling with an increasingly unsustainable public sector wage bill that has stifled productivity in both its private and public sectors.

This is unlikely to be resolved without strong leadership and an end to the political impasse.

Reform requirements

In the absence of strong leadership, the country will likely struggle to catch up with other nations in the region that have enacted economic reforms, particularly taxation.

In 2017, Kuwait agreed, along with its co-members of the Gulf Co-operation Council, to introduce value-added tax, but has yet to implement it or announce a set date for doing so.

The IMF has also encouraged Kuwait to introduce taxation such as excise duties, expand corporate tax to domestic firms and implement property tax.

On 5 June, the IMF issued a statement saying: “The dominance of oil in the economy, coupled with global decarbonisation trends, necessitates fiscal reforms to reinforce sustainability, and structural reforms to boost non-oil private sector-led growth.

It noted that Kuwait has benefitted economically from higher oil prices over recent years – helping its economy recover from the pandemic – with fiscal and external balances strengthening and financial stability being maintained.

However, it added: “Political gridlock between the government and parliament has hindered reform progress, which could be made now from a position of strength.”

The IMF highlighted the failure to enact reforms as a key risk for the country’s economy.

It said: “Delays in needed fiscal and structural reforms could give rise to pro-cyclical fiscal policy and undermine investor confidence while hindering progress towards diversifying the economy and enhancing its competitiveness.”

Though the chance of a new strong political leadership emerging from the latest election remains slim, if it does occur, it could be transformational for the country by accelerating needed fiscal and structural reforms, boosting investor confidence and stimulating private investment.

https://image.digitalinsightresearch.in/uploads/NewsArticle/10933769/main2540.jpg
Wil Crisp

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Saudi Arabia qualifies firms for gas-fired IPPs

    28 September 2026

    Principal buyer Saudi Power Procurement Company (SPPC) has qualified 13 companies to bid for the third round of Saudi Arabia’s combined-cycle gas turbine (CCGT) independent power producer (IPP) programme.

    The projects will comprise new CCGT plants developed on a build-own-operate basis. Each project will be implemented through a special-purpose project company wholly owned by the successful bidder.

    The qualified firms are:

    • Abu Dhabi National Energy Company [Taqa] (UAE)
    • Acwa (Saudi Arabia)
    • Al-Bawani Capital (Saudi Arabia)
    • Al-Jomaih Energy & Water (Saudi Arabia)
    • EDF (France)
    • Etihad Development Company (UAE)
    • Kepco (South Korea)
    • Marafiq (Saudi Arabia)
    • Mitsubishi Power (Japan)
    • Nesma Renewable Energy (Saudi Arabia)
    • PowerChina (China)
    • Saudi Energy (Saudi Arabia)
    • Sumitomo Corporation (Japan)

    Developers submitted statements of qualification for the round on 23 August, as exclusively reported by MEED.

    Some have already begun “the process of forming consortiums to bid” for the project, with up to three or four groups likely to make offers.

    Also in September, MEED exclusively reported that US-based GE Vernova was close to finalising a turbine reservation agreement with SPPC for the plants.

    The new plants will use advanced H-class or J-class gas turbine technology. Each IPP is expected to comprise two or three gas turbine generators, corresponding heat recovery steam generators with duct firing, and one or two steam turbine generators.

    The request for qualifications released by SPPC in July did not specify the number, locations or capacities of the projects, which mark the next stage of its CCGT IPP programme.

    The first round comprises Taiba 1, Taiba 2, Qassim 1 and Qassim 2, with a combined capacity of 7,200MW.

    The second round comprises Rumah 1, Rumah 2, Nairyah 1 and Nairyah 2, also with a combined capacity of 7,200MW.

    Saudi Arabia’s Acwa recently said it had begun initial commercial operations at the Taiba 1 and Qassim 1 CCGT power plants.

    US/India-based Synergy Consulting is the financial adviser for the procurement; Germany’s Fichtner is the technical adviser; and UK-headquartered Eversheds Sutherland is the legal adviser.

    READ THE SEPTEMBER 2026 MEED BUSINESS REVIEW – click here to view PDF

    Nuclear power ambitions gather pace; Kuwait keeps dealmaking alive despite war; Region invests in raising gas processing capacity.

    Distributed to senior decision-makers in the region and around the world, the September 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/20055392/main.jpg
    Mark Dowdall
  • Ohana begins Abu Dhabi project construction

    25 September 2026

    Dubai-based real estate firm Ohana Development has started the main construction works on the $4bn Manchester City Football Club-branded gated waterfront community on Yas Canal in Abu Dhabi.

    The construction works are being carried out by Ohana-owned Nova International General Contracting.

    The development will span an area of about 1.67 million square metres. It will include 2,000 residential units, ranging from four- and five-bedroom villas to mansions, penthouses and apartments, across six clusters.

    The project is slated for completion in 2029 and will be delivered in two phases.

    It will be located on Yas Canal, next to Ferrari World Abu Dhabi and SeaWorld Abu Dhabi.

    The development is Manchester City’s first branded residential project worldwide.

    A key feature of the project is a Manchester City Academy, which will offer training and recovery facilities aligned with the club’s player development model.

    More than 55% of the masterplan is allocated to landscaped gardens and green spaces.

    Last year, Ohana Development launched the AED4.7bn ($1.3bn) Jacob & Co Beachfront Living by Ohana residential project in the Al-Jurf area of Abu Dhabi.

    The developer said in a statement that the project comprises 457 residential units, including apartments, villas, penthouses and mansions.

    The project is expected to be completed by 2028 and is being developed in partnership with US-based jewellery firm Jacob & Co.

    Ohana Development’s portfolio in Abu Dhabi also includes Ohana by the Sea in Al-Jurf and Elie Saab Waterfront by Ohana on Reem Island.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19994074/main.jpg
    Yasir Iqbal
  • Breaking silos on Saudi megaprojects

    25 September 2026

    In conversation with Abdullah Ahmed AlKharan, CEO of Teef Najd

    From a contractor’s perspective, what does integrated delivery actually look like? And how does this approach transform the way different stakeholders operate within a project?

    At Teef Najd, integrated delivery is realised through the seamless synergy of our core industrial, contracting and mining sectors, alongside our specialised supporting divisions. This ecosystem establishes a comprehensive foundation of capabilities and expertise tailored to meet diverse project demands, driven by a consolidated supply chain.

    Rather than functioning in isolated silos, this approach bridges traditional gaps between suppliers and contractors, shifting the dynamic from transactional relationships to strategic partnerships. By consolidating the execution framework, we eliminate friction on-site, streamline communication and accelerate decision-making, ultimately reshaping how stakeholders collaborate to build highly efficient and fully integrated national projects.

     Where do you see the greatest value in bringing together contractors and specialists with integrated capabilities, rather than relying on a single entity to execute all works independently?

    The ultimate value lies in achieving uncompromised quality benchmarks and strict adherence to project timelines. Given the unprecedented scale and complexity of today’s megaprojects in the kingdom, relying on a single entity to execute the entire scope independently diminishes execution efficiency and heightens operational risk. Conversely, a collaborative framework between a main contractor and specialised partners ensures high-tier project delivery through professional, unified management that optimises workflows and prevents overlapping jurisdictions. This instills absolute client confidence, guaranteeing top-spec quality across every single deliverable under a unified management system.

    Teef Najd actively embodies this model by integrating our major sectors – mining, industry, contracting and trade. This integration serves as a foundational pillar supporting Vision 2030’s local content mandates, while simultaneously providing clients with a powerful commercial advantage that shields projects from global price fluctuations and mitigates supply chain risks through reliable, locally manufactured products.

    What are the core operational elements required for a successful integrated partnership, spanning clear responsibilities and communication through to decision-making, programme management and accountability?

    A successful partnership is built on a robust institutional framework that drives alignment among all stakeholders by defining clear scopes of responsibility and agile decision-making mechanisms. This is coupled with the strategic deployment of local talent and resources to maximise project execution efficiency and value, thereby ensuring uncompromised quality standards and strict adherence to timelines.

    Furthermore, effective partnership thrives on a mutual alignment of interests, absolute transparency in managing risks, and shared accountability for the project’s ultimate success. This collective commitment not only secures the sustainability of the current alliance but also paves the way for future mega-scale collaborations.

    How can close collaboration between delivery partners directly optimise client outcomes in terms of quality, cost, schedule, risk management and execution speed?

    Effective collaboration begins with a well-defined delivery governance structure that links all partners to the overarching project goals and deliverables from the earliest phases, clearly outlining responsibilities and decision-making pathways.

    At Teef Najd, this model translates into seamless coordination between engineering design and material approvals, advanced procurement and manufacturing planning, and proactive risk and interface management. Backed by specialised teams, robust in-house manufacturing capabilities and dedicated local resources, this approach enhances quality control, secures supply chains and accelerates responsiveness to evolving project demands.

    What are the key lessons Teef Najd has learned from working with diverse delivery partners? And what needs to change in procurement and contracting methods to facilitate wider adoption of these models in the kingdom?

    Drawing from our extensive track record dating back to 1977, we have learned that the success and sustainability of partnerships fundamentally rest on operational integration and management flexibility – the vital drivers ensuring contracts are executed seamlessly throughout the project lifecycle.

    As for the necessary shift in procurement systems, scaling the adoption of the Integrated Delivery model strictly requires moving away from the conventional lowest-bidder award philosophy. Instead, the industry must transition toward comprehensive technical and commercial evaluations that prioritise financial solvency, proven operational capacity and local content contributions. This shift is essential to guarantee that megaprojects are delivered with maximum efficiency and optimum economic value.

    Click here to contact Teef Najd

    Published in partnership with

    Don’t miss MEED’s SMP 2026, where Teef Najd joins as Integrated Delivery Partner.
    Secure your place as an attendee or request the sponsorship deck by clicking here, or email us at meedevents@meed.com

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19993992/main.gif
  • Bahrain retenders Hawar desalination works

    25 September 2026

     

    Bahrain’s Electricity & Water Authority (EWA) has retendered a contract to develop a seawater intake and outfall system for a planned seawater reverse osmosis (SWRO) desalination plant on Hawar Island.

    The scope includes constructing a seawater intake facility with a capacity of 1,515 cubic metres an hour and a seawater outfall structure with a diffuser system.

    The bid deadline is 21 October.

    The original tender received just two bids from Noble Development (UAE) and Al-Hassanain Company (Bahrain). These were opened in December 2025.

    The reissued tender is expected to attract bids from Al-Hassanain Company, Noble Development, UK-based engineering consultancy HR Wallingford, Bahrain Mechanical & Diving Services and Ocean Diving & Marine Services (Bahrain).

    As previously reported, the marine works project is linked to two other contracts: one covering the main Hawar desalination plant and another involving the construction of two ground storage tanks and the installation of water transmission pumps.

    Malaysia-based Sparco Engineering recently won the engineering, procurement and construction contract for the desalination plant project after submitting the lowest bid last year.

    The plant is designed to produce 1 million imperial gallons a day (MIGD) of potable water.

    The Hawar Islands form an archipelago of 16 desert islands and islets located approximately 26 kilometres southeast of Ras Al-Bar in Bahrain. The desalination plant is intended to support water supply requirements on the islands.

    The third package linked with the SWRO project was tendered last November, with Greece-headquartered Ergotem submitting the lowest bid of $1.92m.

    This contract covers the construction of two steel ground storage tanks with a capacity of 1 million gallons each, pumping stations, motors, pipelines and associated facilities.

    As of August, the contract had not yet been awarded.

    It is understood that Sparco Engineering will be required to ensure that the plant’s design and construction align technically and operationally with these two projects so that all three components function together as one integrated system.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19993971/main.jpg
    Mark Dowdall
  • Dubai property bubble risk rises as price growth stalls

    25 September 2026

    Register for MEED’s 14-day trial access 

    Dubai’s residential property market remains in elevated bubble-risk territory after a sharp slowdown in price growth, according to UBS.

    The emirate’s housing boom came to an abrupt halt at the onset of the regional conflict, the Swiss bank said in its Global Real Estate Bubble Index 2026 report. Inflation-adjusted house prices have fallen back to mid-2025 levels, after real growth of more than 10% in 2025.

    Dubai scored 1.16 on the index, up on last year, placing it fourth among the 23 cities covered. Only Zurich and Tokyo, at 1.69 and 1.54 respectively, are classed as high risk. Miami, Seoul, Geneva and Lisbon join Dubai in the elevated category, which covers scores between 1.0 and 1.5.

    Real prices in Dubai rose by 0.4% in the year to Q2 2026, while real rents fell by 4%. UBS said bubble risk remained elevated despite some easing since March.

    Ownership costs

    UBS said existing tenants were likely to take advantage of the pause in price growth and, in some cases, price concessions to buy homes. Despite elevated mortgage rates, Dubai remains one of the few markets where ownership is relatively attractive given the high cost of renting, according to the bank.

    A skilled service worker in Dubai needs about five years of average income to buy a 60-square-metre apartment near the city centre, compared with about 15 years in Hong Kong and 11 years in London. It takes 16 years of rent to pay for an equivalent apartment, one of the lowest ratios in the study. UBS attributed the low price-to-rent ratios in Dubai, Sao Paulo and the US cities surveyed to less regulated rental markets and higher interest rates, as well as elevated risk premiums in Dubai and Sao Paulo.

    The bank said uncertainty over whether the inflow of high-income earners would recover was weighing on the premium segment. It added that Dubai’s structural advantages, including its strategic location and its appeal as an international business hub, remained intact, and that an improvement in the geopolitical environment was likely to support a rapid recovery in market sentiment and price expectations.

    Supply is a further source of uncertainty. Some developments have stalled, and others may be delivered later than planned, although UBS said the market remained exposed to heightened volatility because of persistent concerns about structural oversupply.

    Global slowdown

    Across the cities analysed, real residential prices rose by an average of 0.5% in the year, down from 1.4% in mid-2025. Seoul recorded the strongest real growth, at 11%, while Toronto and Vancouver fell by about 10%.

    The report also points to Gulf capital supporting other markets. UBS said interest from Middle Eastern buyers could further lift prices in Geneva, and that investors from the Middle East, the US and Asia had supported London’s prime segment.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/19987757/main.jpg
    Colin Foreman