meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait lays out ambitious plans

29 August 2023

Commentary
John Bambridge
Analysis editor

Kuwait’s new cabinet has so far made all of the right noises to reassure the country’s business leaders. It has laid out an ambitious programme of new public spending and secured approval for an expansionary budget with increased public spending in the 2023-24 fiscal year.

On paper, the government is on track to restart many stalled schemes and provide its projects sector with some much-needed stimulus. It has submitted a four-year programme of strategic projects to the National Assembly that includes Kuwait’s leg of the GCC railway programme, Terminal 2 of Kuwait International airport and port expansions.

In practice, it remains to be seen if the plans of the cabinet – the country’s fifth in less than a year – can be brought to fruition.

The hard work will only begin when parliament resumes its deliberations in October. However, the lesson of late in Kuwait has been that major projects are highly susceptible to political infighting.

Overall, Kuwait’s projects market has contracted significantly in recent years, both in terms of the value of project awards and the total value of work under execution, which stands at about $27bn.

Of particular concern is the systemic stalling of major infrastructure projects in the oil and gas sector – the critical sector that fuels the Kuwaiti economy. The dearth of recent oil contract awards is such that it has caused international contractors to shut down offices in Kuwait.

Now, the government plans to raise its oil production capacity to 3.15 million barrels a day (b/d) within a few years, up from 2.7 million b/d, but the downsizing of contracting capacity could make the pace of the proposed ramp-up a challenge.

Kuwait also faces challenges in its utilities sector, which saw the August heat cause power loads to exceed capacity, resulting in blackouts and water supply shortfalls.

The country aims to address its electricity and water supply issues with several new independent water and power plants and upgrades to existing infrastructure. There are positive signs of progress with many of these projects, with the plans well advanced.

Looking ahead, oil price volatility remains a major risk factor for Kuwait’s fragile finances, especially since parliament is still unsold on the idea of turning to debt markets to finance public spending.

Unsavoury fiscal and structural reforms – including addressing the country’s public sector wage bill, which is soaring rapidly – remain vital if the country is to find itself on firmer fiscal footing. Whether there is political appetite for this is, again, the perennial question in Kuwait. Much hinges on the new government.

This month’s special report on Kuwait includes: 

> POLITICS: Stakeholders hope Kuwait can execute spending plans
> ECONOMY: Kuwait enjoys sustained non-oil growth
> BANKING: Kuwaiti banks enter bounce-back mode
> ENERGY: Kuwait’s $300bn energy target is a big test
> POWER & WATER: Warming erodes Kuwait’s power and water reserves
> CONSTRUCTION: Kuwait poised for renewed construction activity

https://image.digitalinsightresearch.in/uploads/NewsArticle/11084586/main.gif
John Bambridge

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

Click here to register
Exclusive from Meed
Related Articles
  • Jordan tenders IPP8 power project

    14 July 2026

    Jordan’s National Electric Power Company (Nepco) has issued a tender for a contract to develop the 700MW combined-cycle gas turbine (CCGT) power project known as independent power project 8 (IPP8).

    Companies understood to have prequalified include France’s EDF, Saudi Arabia’s Acwa and Egypt’s Orascom Construction. Bids are due in July, although the market expects the closing date may be extended.

    MEED reported in November last year that Nepco had invited developers to submit prequalification documents for IPP8. The project will be developed on a build, own and operate (BOO) basis and will supply power to the national grid under a 25-year agreement.

    Natural gas will serve as the primary fuel, with light distillate as backup. The facility will be connected to Nepco’s 132kV/400kV transmission infrastructure, which will be built separately.

    In April, MEED reported that Nepco had signed an agreement to establish a natural gas supply point for the 700MW IPP7. The agreement was signed with Fajr Jordanian-Egyptian for Natural Gas Transmission and Supply to support fuel provision for the CCGT plant.

    The plant will be developed in partnership with Etihad Development Company, a subsidiary of the UAE’s Etihad Water & Electricity (EtihadWE), following recent approval by the Ministry of Energy & Mineral Resources.

    The IPP7 plant is expected to meet about 10% of Jordan’s electricity demand once operational. It is also intended to enhance the reliability and efficiency of the national power system.

    The project is scheduled to become operational between 2027 and 2028.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/17662814/main.jpg
    Colin Foreman
  • AtkinsRealis wins key Riyadh infrastructure roles

    14 July 2026

    Canadian engineering firm AtkinsRealis has been awarded a contract by the Royal Commission for Riyadh City (RCRC) to support the operation and expansion of the Riyadh Metro and oversee the delivery of major road infrastructure projects across the capital.

    AtkinsRealis will provide engineering consultancy, project management, construction supervision and technical oversight for ongoing works on the Riyadh Metro.

    The agreement was signed during the Saudi Arabia-Canada Investment Forum in Jeddah, held on the sidelines of Canadian Prime Minister Mark Carney’s visit to the kingdom.

    The company will also supervise a portfolio of strategic road development schemes designed to strengthen Riyadh’s wider transport network.

    AtkinsRealis also recently secured a contract to deliver lead design services for the Place & Planet Pavilion at the Expo 2030 Riyadh site.

    The contract was awarded by Expo 2030 Riyadh Company, which is tasked with delivering the Expo 2030 Riyadh venue.

    AtkinsRealis will deliver the full architectural and engineering design for the pavilion, coordinate all relevant design disciplines and embed sustainable design principles throughout.

    The Place & Planet Pavilion is anticipated to be a key attraction at Expo 2030 Riyadh.

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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17660065/main.jpg
    Yasir Iqbal
  • Clarifications begin for Saudi Landbridge Riyadh section

    14 July 2026

     

    Register for MEED’s 14-day trial access 

    Saudi Arabia Railways (SAR) has begun post-tender clarifications with bidders for a contract to design and build the Riyadh Rail Link, a new north-to-south railway line across the capital.

    MEED understands that the latest round of clarifications with bidders was held last week.

    Contractors submitted their commercial proposals on 30 June, as MEED reported.

    The bidders include:

    • China Civil Engineering Construction Corporation / Al-Ayuni Investment & Contracting (China/local)
    • Nesma & Partners / China Harbour Engineering Company (local/China)
    • Al-Rashid Trading & Contracting / IC Ictas Construction / Saipem (local/Turkiye/Spain)
    • Saudi Binladin Group (local)

    The scope includes a 35-kilometre double-track line connecting SAR’s North-South Railway to the Eastern Railway network.

    Issued on 29 January, the tender also covers the procurement, construction and installation of associated infrastructure, including viaducts, civil works, utility diversions/installations, signalling systems and other related works.

    Once delivered, the Riyadh Rail Link is expected to become a key component of the Saudi Landbridge railway.

    In January, SAR said it would deliver the Saudi Landbridge project through a “new mechanism” by 2034, after failing to reach an agreement with a Chinese consortium to construct it, as MEED reported.

    In an interview with local media, SAR CEO Bashar Bin Khalid Al-Malik said the consortium failed to meet local content requirements, and that the project would instead be delivered in several phases under a different procurement model.

    Negotiations have been under way between Saudi Arabia and China-backed investors interested in developing the scheme through a public-private partnership (PPP). Al-Malik put the project cost at about SR100bn ($26.6bn).

    Overall, it comprises more than 1,500km of new track. A core element is a 900km railway between Riyadh and Jeddah, providing the capital with direct freight access to King Abdullah Port on the Red Sea.

    Other key elements include upgrading the existing Riyadh-Dammam line, a bypass around the capital known as the Riyadh Link, and a connection between King Abdullah Port and Yanbu.

    The Saudi Landbridge is one of the kingdom’s most anticipated project programmes. First announced in 2004, it was put on hold in 2010 before being revived a year later. Rights-of-way issues, route alignment and the high cost have been among the main stumbling blocks.

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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17659657/main.jpg
    Yasir Iqbal
  • Contractors win $213m King Salman airport deal

    14 July 2026

     

    Register for MEED’s 14-day trial access 

    A joint venture of Beijing-headquartered China Civil Engineering Construction Corporation and Dammam-based Mofarreh AlHarbi & Partners has won an estimated SR800m ($213m) deal to undertake the enabling and substructure works for Terminal 6 at King Salman International airport (KSIA) in Riyadh.

    The contract was awarded by King Salman International Airport Development Company (KSIADC).

    In March, MEED exclusively reported that KSIADC had selected three groups for the main construction of Terminal 6.

    KSIADC, which is backed by Saudi sovereign wealth vehicle the Public Investment Fund, will initially deliver the Terminal 6 main works on an early contractor involvement basis.

    The latest development follows KSIADC’s receipt of prequalification statements from contractors on 1 July for two new packages at KSIA.

    These include the construction of a permanent East-West corridor and landside access roads serving the North and South terminals.

    In May, KSIADC selected three groups to deliver the Terminal 6 apron, taxiways and other airfield infrastructure at KSIA.

    MEED reported in May 2025 that US firm Bechtel Corporation had been appointed as the delivery partner for the terminals at KSIA.

    Terminal 6 will boost the airport’s capacity by 40 million passengers.

    The project is expected to be delivered before the start of Expo 2030 Riyadh.

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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17659431/main.jpg
    Yasir Iqbal
  • I Squared eyes $2bn deployment across PIF portfolio

    13 July 2026

    Register for MEED’s 14-day trial access 

    Saudi Arabia's Public Investment Fund (PIF) has signed a memorandum of understanding (MoU) with US infrastructure investor I Squared Capital, under which the firm will pursue the deployment of up to $2bn in real estate and infrastructure assets owned by the sovereign fund and its portfolio companies.

    The non-binding agreement, announced on 13 July, will see the two work with PIF portfolio companies to identify opportunities in digital infrastructure and district cooling, which the parties describe as critical enablers of the real estate sector. I Squared will target allocating up to $1bn in each of the two areas, with the option to scale across additional related business themes.

    The MoU aligns with PIF's 2026-30 strategic objectives to partner with global investors on opportunities within its portfolio and to maximise the value of its portfolio companies. The collaboration is expected to accelerate project delivery and increase the contribution of third-party capital into opportunities across the portfolio.

    Founded in 2012 and headquartered in Miami, I Squared Capital manages $60bn in assets across power and utilities, transport and logistics, digital infrastructure, and environmental and social infrastructure. Its portfolio includes more than 100 companies operating in over 70 countries.

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

    Stress test for Gulf aviation; Mixed performance as country outlooks diverge in the Levant; GCC tourism sector pivots from crisis to recovery mode.

    Distributed to senior decision-makers in the region and around the world, the July 2026 edition of MEED Business Review includes:
    To see previous issues of MEED Business Review, please click here
    https://image.digitalinsightresearch.in/uploads/NewsArticle/17655682/main2812.png
    Colin Foreman