meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait poised for renewed project activity

29 August 2023

This month’s special report on Kuwait also includes: 

> POLITICS: Stakeholders hope Kuwait can execute spending plans
> ECONOMY: Kuwait enjoys sustained non-oil growth
> ENERGY: Kuwait’s $300bn energy target is a big test
> POWER & WATER: Warming erodes Kuwait’s power and water reserves
> BANKING: Kuwaiti banks enter bounce-back mode
> INTERVIEW: Kuwait’s Gulf Centre United sets course for expansion

 

Higher oil prices are usually the signal for GCC oil exporters to open their wallets and engage in some crowd-pleasing project spending. This was certainly true for Kuwait in 2014, 2015 and 2016, when contract awards activity in the construction and transport sectors soared close to $27bn.

However, the situation is notably different in 2023, due to the country’s long-running political impasse between its parliament and executive body disrupting decision-making.

After witnessing two consecutive years of positive growth in 2020 and 2021, Kuwait’s overall project activity dropped significantly.

The construction and transport projects market saw a decline of about 40 per cent in 2022 to settle at just under $1.7bn as a result of fewer project awards. 

So far this year, the country has awarded $1.2bn-worth of contracts in the construction and transportation sectors.

Construction contraction

Construction was the second-largest projects sector in Kuwait last year, with about $627m of contract awards in 2022. In 2023 so far, there have been awards worth about $440m, setting the year on a similar trajectory. 

Both of these figures are well below the $1.8bn average annual awards between 2018 and 2022, or the $4bn average annual spend in the five years before that. 

As with other project sectors in Kuwait, construction is a victim of a significant curtailing of public project spending in the country as planned schemes have been caught up in the political infighting over expenditure and debt.

The pipeline of planned and unawarded construction projects in the country meanwhile stands at about $22.9bn, with $8.7bn-worth of projects under study, $6.6bn in design and $7.6bn in the bidding phase.

The largest projects are two dredging and reclamation schemes being carried out in anticipation of future developments. The first of these is a $900m scheme under the Ministry of Public Works to prepare the way for phase one of the Mubarak al-Kabeer port development, and the second is a $675m reclamation project as part of Kuwait Oil Company’s (KOC) North & South Kuwait Revegetation Project.

There is also a $400m villa construction project in prequalification as part of phase two of KOC’s Mina al-Ahmadi Township redevelopment scheme. 

Public projects worth $1.4bn are in the design stage as part of the development of Sabah al-Salem University’s medical campus. These include a hospital and colleges for medicine and dentistry. 

Among the latest projects added to the pipeline are the $8bn-worth of planned real estate developments in the Neutral Zone that Saudi Arabia and Kuwait share. 

In July, Gulf Coast Real Estate Development Company, a subsidiary of Saudi Arabia’s Public Investment Fund, received bids from companies to provide project management consultancy services and invited firms to bid for another contract covering cost consultancy services.

Transport traction

The transport sector had the strongest project activity in Kuwait in 2022, with more than $1bn-worth of awards. This beat the average annual awards total of $800m from 2018 to 2022. 

In 2023, there have also been awards worth $800m year-to-date, without accounting for awards in the last four months of the year. The largest projects were for road works and surfacing, led by a $370m scheme for road infrastructure works as part of the Sabah al-Ahmad residential project under the Public Authority for Housing Welfare (PAHW).

There are about $28bn-worth of planned transport projects in Kuwait. Of these, about $22.9bn are still in the early stages, $2.3bn in design and $2.8bn in the bidding phase.

The largest project in the bidding stage is a similar road infrastructure project for PAHW, but this time a $1.3bn contract as part of the South Saad al-Abdullah housing scheme. 

Also in the bidding phase is a $550m project for the preparation of four rest stops and mixed-used developments along Sheikh Jaber al-Ahmad al-Sabah Causeway – a project directly under the Council of Ministers General Secretariat.

There are also 10 tenders from the Ministry of Public Works, worth $726m-$792m, for road and bridge maintenance and stormwater upgrade works in several parts of the country, including the capital city, Hawally, Farwaniya, Jahra and Mubarak al-Kabeer.

In total, between the construction and transport sectors, there are $4.7bn-worth of projects past the prequalification stage and at either the bid submission or bid evaluation stage. 

If even half of this value is awarded, 2023 could become the best year for general contractors since 2018. Much of this value is bound up in very large projects, however, and will rest on the resumption of major schemes that in turn could require the go-ahead from parliament.

https://image.digitalinsightresearch.in/uploads/NewsArticle/11103323/main.gif
Yasir Iqbal

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

Click here to register
Exclusive from Meed
Related Articles
  • Dubai approves metro extension to Al-Maktoum airport

    10 November 2026

    Dubai’s Executive Council has approved a project to extend the Dubai Metro’s Route 2020 to Al-Maktoum International Airport City, with passenger services scheduled to begin operations in 2031.

    Sheikh Hamdan bin Mohammed bin Rashid Al-Maktoum, Crown Prince of Dubai, announced the decision following a council meeting held during the UAE Government Annual Meetings 2026.

    The rail project forms part of a package of strategic schemes worth over AED11bn ($3bn) approved by the council.

    The wider approvals include a comprehensive framework to upgrade community facilities and public services by 2040, with priority given to residential communities for UAE citizens.

    The project approval follows the procurement of detailed design work for the rail link. MEED exclusively reported in September that Dubai’s Roads & Transport Authority (RTA) had awarded US-based engineering consultancy Aecom the design contract for the Route 2020 extension.

    The planned extension will run for about 3 kilometres from the existing Expo 2020 terminus station to connect directly with the West Terminal of Al-Maktoum International airport. The scheme will add two new stations to the network.

    The existing Route 2020 corridor is a 15km spur that branches off the Dubai Metro Red Line at Jebel Ali station. It comprises 11.8km of elevated viaduct and 3.2km of underground track, serving five elevated and two underground stations.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21301168/main.png
    Yasir Iqbal
  • Egypt seeks to accelerate gas pipeline project with Libya

    10 November 2026

    Egypt aims to accelerate a range of energy projects with Libya, including gas pipeline links, according to a statement from the Egyptian Foreign Minister Badr Abdelatty.

    Other projects include a scheme to refine Libyan crude in Egypt and an electricity interconnection.

    Abdelatty’s comments came in a ministry statement after a meeting with Libya’s acting oil and gas minister, Khalifa Abdulsadek, in the Libyan capital of Tripoli.

    Egypt is currently trying to address an energy squeeze that has escalated ​due to elevated global liquefied natural gas (LNG) prices since the ​start of the US-Israeli war on Iran in February of this year.

    In his statement, Abdelatty called ‌for ⁠cooperation on petroleum products and the completion of projects to refine Libyan oil in Egypt and re-export ​it.

    He also said that Abdulsadek would ​visit ⁠Cairo soon to continue technical talks with Egypt’s petroleum and electricity ministers.

    The ⁠statement ​did not provide ​details on costs or the status of the projects.

    Plans for new gas pipeline links with Libya are just one of several ambitious gas pipeline plans Egypt is pursuing.

    In October, the Italian oil and gas company Eni signed the main engineering, procurement, construction and drilling contracts for a project to export gas from reserves in Cyprus using a major pipeline to Egypt.

    The project includes contracts with several companies that will develop infrastructure in both Egypt and Cyprus.

    The awards included a $170m contract won by Egypt’s Petrojet for a new onshore gas pipeline in Egypt that will help transport gas to Egypt’s Damietta LNG facility.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273777/main.jpg
    Wil Crisp
  • Omani company signs Kuwait drilling contract

    10 November 2026

    Oman’s MBPS has signed a drilling rig contract worth $127.3m with state-owned upstream operator Kuwait Oil Company (KOC).

    Under the terms of the deal, MBPS will supply and operate three newly built 1,000-horsepower land rigs for drilling and workover operations, according to a company statement.

    The UAE-based oil field services company Adnoc Drilling is a majority shareholder in MBPS.

    The chief executive of MBPS, Salim Al-Harthy, said: “This is another important milestone for MBPS and a strong reflection of KOC’s confidence in our capabilities.

    “It further strengthens our presence in Kuwait and our commitment to delivering safe, reliable and efficient drilling and workover services across the region.”

    He : “My sincere appreciation to KOC for their continued trust, and to our MBPS team for their hard work and dedication in making this possible.”

    In October last year, KOC said it planned to spend KD1.2bn ($3.92bn) on its exploration drilling programme through 2030.

    The spending was part of a KD9.8bn budget, the company’s biggest ever, allocated for drilling and maintenance of up to 6,193 wells by the end of this decade.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273731/main.png
    Wil Crisp
  • Adnoc Drilling wins $315m Kuwait offshore rig deals

    10 November 2026

    Register for MEED’s 14-day trial access 

    Abu Dhabi National Oil Company (Adnoc Group) subsidiary, Adnoc Drilling, has been selected for two offshore drilling rig contracts in Kuwait with a combined maximum value of KD96.55m ($315m), according to documents published by Kuwait’s Official Gazette.

    The Higher Purchasing Committee of state-owned Kuwait Petroleum Corporation (KPC) has given approval for its subsidiary Kuwait Oil Company (KOC) to award the contracts to the Abu Dhabi-listed drilling contractor after Adnoc Drilling submitted the lowest compliant bids.

    While the maximum combined contract value has been confirmed as KD96.55m ($315m), the individual contract values, rig identities, durations and expected commencement dates have not been disclosed.

    The approval comes as Kuwait moves to expand offshore exploration and development following a series of discoveries in its territorial waters.

    It is currently unclear how Kuwait will provide security for its planned offshore oil and gas projects in the Gulf, adding uncertainty to the outlook for these plans.

    On 5 October, KPC chief executive Shaikh Nawaf Al-Sabah reiterated the company’s commitment to developing three major offshore oil discoveries in the region.

    KPC initially launched the Al-Seef project to develop the three fields in February, just weeks before the US and Israel attacked Iran, triggering a regional war that has sparked a crisis in Kuwait’s oil and gas sector.

    The regional conflict has seriously disrupted shipping through the Strait of Hormuz, a key export route for Kuwaiti oil.

    The war has also led to dozens of attacks on Kuwaiti oil and gas infrastructure, with at least one causing damage to a Kuwaiti offshore platform.

    This attack took place on 12 July, when a drone struck a KOC offshore drilling platform in Kuwaiti territorial waters, causing damage to the platform and injuring one worker.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21273678/main2430.jpg
    Wil Crisp
  • Aramco-backed firm tenders logistics hub expansion

    9 November 2026

     

    Asmo, the logistics joint venture of Saudi Aramco and DHL Supply Chain, has set a 15 November deadline for a contract to expand the logistics complex at King Salman Energy Park (Spark) in Saudi Arabia’s Eastern Province.

    The logistics hub will add over 124,000 square metres (sq m) at Spark.

    Al-Khobar-based engineering firm House of Consulting Office is the project consultant.

    The tender for the expansion works comes shortly after Asmo awarded an estimated SR820m ($218m) contract to build the logistics complex’s first phase in May this year.

    The overall project will feature a 43,000 sq m, temperature-controlled Grade A warehouse; more than 3,000 sq m of offices and staff amenities; 5,300 sq m dedicated to chemicals storage; and an open yard covering about 1.2 million sq m.

    Asmo signed an agreement with Bahrain‑headquartered Arcapita Group Holdings in February to deliver the project at Spark.

    Planned for large-scale industrial use, the site is expected to incorporate advanced warehouse and building management systems, end-to-end digital connectivity, automation and robotics.

    It will also be developed in line with internationally recognised sustainability standards, featuring solar photovoltaic readiness, electric-vehicle charging infrastructure and a target of Leed Gold certification.

    The development aims to support the next stage of Saudi Arabia’s logistics and supply chain expansion.

    Under the deal structure, Arcapita will provide funding and retain ownership of the asset, while Asmo will develop the facility and then lease and operate it under a 22-year occupational lease.

    According to a statement, “the scheme will be executed via a forward-funding model, underscoring a long-term commitment to national infrastructure”.

    Asmo added that this will be its first purpose-built logistics centre and one of four strategic locations planned to anchor its nationwide logistics network, aligned with the National Transport and Logistics Strategy under Saudi Vision 2030.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/21267403/main.gif
    Yasir Iqbal