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
  • Chinese firm wins $265m Saudi hospital contract

    24 June 2026

    Zhejiang Construction International, the local subsidiary of Chinese contractor Zhejiang Construction Investment Group, has won a $265m contract to build the Prince Mohammed Bin Fahd University Speciality Hospital in Al-Khobar.

    Construction is expected to take three years from the start date.

    Prince Mohammed Bin Fahd University awarded the contract.

    Located in Al-Raja district, Al-Khobar, in Saudi Arabia’s Eastern Province, the hospital project will cover about 60,000 square metres.

    The contract covers the construction of a 10-storey hospital building, two five-storey auxiliary buildings connected by corridors and a basement.

    Work will include civil works, mechanical and electrical installation, curtain walling, landscaping, detailed design and the procurement of medical equipment.

    The award is the latest in a series of contracts secured by Chinese contractors from Saudi entities in recent months.

    Last week, MEED reported that Saudi Arabia’s Ministry of Municipalities & Housing awarded contracts worth more than SR1.9bn ($506m) to Chinese contractors for two residential developments in the kingdom.

    China Architectural Construction Corporation won the first contract, valued at SR875m ($233m), to build 2,010 housing units at the Al-Ruba residential project in Riyadh.

    China State Construction Engineering Corporation secured the other contract, valued at more than SR1bn ($266m), for the Al-Rasha Al-Faisaliah residential project in Dammam, comprising 2,426 housing units.

    GlobalData expects Saudi Arabia’s construction industry to record average annual growth of 5.2% in 2025-28, supported by investments in transport, electricity, housing and tourism infrastructure, as well as the $850bn-plus gigaprojects programme.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17412846/main.jpg
    Yasir Iqbal
  • Kuwait extends deadline for $718m drainage tender

    24 June 2026

     

    Kuwait’s Ministry of Public Works (MPW) has extended the deadline for a major drainage tender estimated to be worth about KD222m ($718m).

    The new bid submission deadline is 19 July.

    The tender scope covers the construction of rainwater drainage networks across the residential areas of Sabah Al-Ahmad, South Sabah Al-Ahmad, Al-Khairan and Al-Wafra.

    The MPW floated the tender on 22 March. The most recent deadline was 21 June.

    According to regional projects tracker MEED Projects, the works include the construction of a major concrete sewer, three collection basins and extensive stormwater drainage basins.

    Rainwater collection tanks will be connected through an independent network, with outlets to the sea via the Nuwaiseeb exit to manage overflow.

    The infrastructure will also filter pollutants such as oils, minerals and sediments to protect water quality and support environmental sustainability.

    The project aims to reduce surface runoff, prevent street and urban flooding, and improve groundwater recharge.

    Kuwait’s MPW currently has several contracts out for tender for infrastructure works across various parts of the country.

    Also, in March, the client released two additional tenders covering the construction of a treated water system in Kuwait’s southern region and another in Kuwait’s northern region.

    Bids for both projects are due by 28 June.

    Meanwhile, the MPW is planning to begin construction of the $3.3bn North Kabd sewage treatment plant, which has a planned capacity of up to 1 million cubic metres a day.

    China State Construction Engineering Corporation (CSCEC) won the contract to build the plant earlier this year.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411675/main.jpg
    Mark Dowdall
  • Contractor wins Emaar Dubai Harbour project deal

    24 June 2026

     

    Register for MEED’s 14-day trial access 

    Local construction firm Al-Sahel Contracting Company has won a contract to build The Bristol Luxury Hotels & Resorts project in Dubai.

    The contract was awarded by local real estate developer Emaar Properties.

    The Bristol Luxury Hotels & Resorts is located at Emaar Beachfront in Dubai Harbour.

    The project comprises a 54-storey mixed-use building with about 150 hotel keys and 227 one- to four-bedroom apartments.

    Enabling works have been completed by local firm Dutch Foundation.

    Dubai-based Mirage Leisure & Development is the project’s consultant.

    Construction is expected to be completed by 2028.

    The contract award follows Emaar’s appointment of Dubai-based Aroma International Building Contracting to build the Address Grand Downtown tower.

    The award also comes shortly after Emaar reported strong operating momentum in 2025, led by record property sales of AED80.4bn ($21.9bn), up 16% year on year.

    The company’s revenue backlog from property sales rose to AED155bn ($42bn), supporting visibility on future revenue recognition.

    Total revenue for 2025 reached AED49.6bn ($13.5bn), a 40% year-on-year increase. Earnings before interest, taxes, depreciation and amortisation grew 33% to AED25.6bn ($7bn), while net profit before tax rose 36% to AED25.7bn ($7bn).

    Emaar’s platform continued to support performance across property development, malls, hospitality, leisure and international operations.

    > Be recognised among the best in the industry at the MEED Projects Awards 2026 …

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17411104/main.jpg
    Yasir Iqbal
  • Saudi Arabia launches new mineral exploration licensing round

    24 June 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia’s Ministry of Industry & Mineral Resources (MIMR) has launched its tenth round of a mineral exploration licensing competition, qualifying 24 local and international companies and consortiums to participate.

    The exploration opportunities offered under Round 10 cover about 13,000 square kilometres across the regions of Medina, Mecca, Riyadh, Qassim and Hail. They encompass several highly prospective mineralised belts that are said to contain significant deposits of gold, copper, silver, zinc and nickel.

    One of the key areas offered in the round is the Nabithah-Ad Duwayhi (Dahlat Shabeb) Belt, which hosts the Ad-Duwayhi Mine, one of Saudi Arabia’s largest gold-producing operations, with annual production of approximately 180,000 ounces of gold.

    Other notable exploration zones include the Sukhaybarat-Al-Safra Belt, recognised for its gold and base metals potential and home to the Sukhaybarat and Bulghah mining operations, as well as the Al-Nuqrah Belt, known for substantial gold resources and volcanogenic massive sulphide mineralisation rich in copper and zinc.

    According to MIMR, 17 companies that previously qualified under Round 9 have retained their eligibility, while seven additional companies and consortiums successfully completed the Round 10 prequalification process.

    The newly qualified bidders in Round 10 are:

    • Anaam Al-Qarat for Trading / Sahara Mining Company consortium
    • Danakali / Masadar Al-Zamarda for Mining consortium
    • Power Metallic Mines 
    • PT ANTAM Tbk
    • Saudi Arabian Mining Company (Maaden)
    • Thurb Al-Hayya for Trading Company
    • Wildsky Resources

    The previously qualified participants from Round 9 are:

    • Al-Ghazal Al-Arabi Mining Company
    • Almasar Minerals Holding
    • Al-Tasnim Enterprises
    • Aurum Global Group
    • Batin Al-Ard for Gold Company
    • China National Geological and Mining Corporation
    • DesertEx 
    • Eqleed-Indotan Mining Company
    • Helderberg 
    • Jacaranda Minerals
    • Midana Exploration
    • Royal Road Arabia
    • Saudi Gold Refinery 
    • Sierra Nevada Gold
    • Sun Peak Metals
    • The Distinguished Consortium Mining Company
    • Vedanta 

    In a statement carried by the official Saudi Press Agency, MIMR said exploration licence competitions are conducted through a structured three-stage process designed to ensure transparency, competitiveness and equal opportunity for all participants.

    The process begins with prequalification assessments covering technical expertise and financial capability, followed by a site-selection phase through the ministry’s digital mining platform, Taadeen. Where multiple bidders compete for the same exploration site, the process advances to a public, multi-round bidding stage, with licences awarded based on exploration expenditure commitments and predefined evaluation criteria.

    The next phase of Round 10 will allow qualified bidders to select available exploration sites via the Taadeen platform, in accordance with established procedures that promote fair competition and enable companies to pursue opportunities aligned with their technical capabilities and investment strategies.

    ALSO READ: Aramco and Maaden seek to form joint venture

    “The continued participation of major international and regional mining companies reflects growing confidence in Saudi Arabia’s mining sector and the effectiveness of its transparent licensing framework,” MIMR said in its statement.

    Jarrah Aljarrah, a ministry spokesperson, said increasing participation in successive exploration licensing rounds demonstrates growing investor confidence in the kingdom’s mining ecosystem, supported by regulatory reforms, improved availability of geological data, transparent licensing mechanisms and a steadily expanding pipeline of exploration opportunities.

    Saudi Arabia’s metals and mining sector is pivotal to the country’s non-oil growth trajectory. Commercial exploitation of the kingdom’s mineral resource base – most of which remains untapped – is a key component of the Saudi Vision 2030 socio-economic transformation strategy.

    The kingdom took a first step towards realising the commercial potential of its mineral resources when it enacted the Mining Investment Law in 2021. Since the law came into effect, MIMR has awarded about 3,248 mining permits to local and foreign firms under its accelerated exploration initiative, including alone.

    Addressing the Future Minerals Forum in Riyadh in January 2024, Bandar Alkhorayef, the kingdom’s minister of industry and mineral resources, said Saudi Arabia’s natural resources are worth $2.5tn – an increase of more than 90% compared to the 2016 estimate.

    This near-doubling of natural resource estimates – which exclude fossil fuels and include phosphate, gold and rare earths – is expected to provide a stimulus to the kingdom’s nascent mining industry.

    ALSO READ: Maaden mineral resources grow by 7.8 million ounces
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17398549/main.jpg
    Indrajit Sen
  • Kuwait tenders oil manifold project

    24 June 2026

    State-owned upstream operator Kuwait Oil Company (KOC) has tendered a contract to construct remote header manifolds and associated works in the southern and eastern regions of Kuwait.

    A meeting with prospective contractors has been scheduled for 21 July 2026, and bids are due to be submitted ahead of a deadline on 20 September 2026.

    Manifolds are devices used in the oil sector to divide the flow of liquids from a single source to several outlets, or to collect liquids, or vice versa.

    Previously, a project with a similar scope in the same region was awarded to the Kuwaiti contractor Al-Ghanim International General Trading & Contracting.

    In 2016, it signed a contract worth $435m to construct remote header manifolds and associated works in the south and east Kuwait areas.

    The scope of that contract included design, procurement, construction and commissioning of 25 remote manifold stations and associated pipelines in south and east Kuwait using multi-phase pumps to deliver liquids to gathering centres.

    Kuwait’s oil fields are connected to more than 25 gathering centres, which serve as collection points for crude oil produced by several wells connected by flowlines, providing initial treatment by separating associated gas and removing salt.

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

    GCC looks beyond the Strait; Iraq’s reform window narrows as fiscal assumptions shatter; MEED Top 100 companies.

    Distributed to senior decision-makers in the region and around the world, the June 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17409564/main.jpg
    Wil Crisp