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
  • Parsons wins role on Elon Musk-backed Dubai Loop project

    4 May 2026

    US-based Parsons Corporation has been appointed to deliver programme management services for the Dubai Loop transportation system.

    The contract was awarded by Elon Musk-backed firm The Boring Company, which signed a construction agreement with Dubai’s Roads & Transport Authority (RTA) in February.

    Parsons’ scope of work includes independent design verification, stakeholder management, permitting and no-objection certificate (NOC) support, and multidisciplinary design reviews for the project’s first phase.

    The first phase comprises a 6.4-kilometre route with four stations, linking the Dubai International Financial Centre (DIFC) and Dubai Mall.

    Stations will be located at DIFC 2, ICD Brookfield Place, Dubai Mall Zabeel Parking and Burj Khalifa.

    The first phase is expected to cost about AED565m ($154m) and to be delivered within one year after design work and other preparations are completed. Tunnelling is expected to begin in the second half of this year.

    Next phase

    The second phase will connect Dubai World Trade Centre and DIFC with Business Bay.

    The tunnels will extend up to 22km and include 19 stations.

    The total cost across both phases is expected to be around AED2bn ($545m), with completion scheduled within three years.

    The pilot route is expected to serve around 13,000 passengers a day, while the full route is projected to have a capacity of about 30,000 passengers a day.

    The RTA and The Boring Company signed a memorandum of understanding on the sidelines of the World Governments Summit in Dubai in February last year to explore the development of the Dubai Loop transportation system.

    The Dubai Loop is expected to be similar to The Boring Company’s Las Vegas Convention Centre (LVCC) Loop project. The LVCC Loop is a 2.7km underground tunnel system that connects different convention centre halls, reducing walking time across the site to about two minutes.

    The LVCC Loop has been in operation since 2021. It uses Tesla Model 3 cars to carry passengers between five stations. The Boring Company began construction in November 2019 at an estimated cost of $49m.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16672074/main.jpg
    Yasir Iqbal
  • Humain tenders infrastructure for 6GW data centre campus

    4 May 2026

    Saudi artificial intelligence (AI) infrastructure company Humain, owned by the Public Investment Fund (PIF), has issued a tender inviting firms to develop infrastructure for its planned 6GW hyperscale AI data centre campus in Riyadh.

    The project will be delivered on an early contractor involvement (ECI) basis. Under the ECI process, selected contractors are required to submit methodologies and design proposals, after which one team will be selected to deliver the construction works.

    Firms have until 8 May to submit proposals.

    The development will be built on a 24-square-kilometre site in the Al-Saad area in east Riyadh. It will be delivered in two phases across six plots, each with a capacity of 1GW.

    The scope of infrastructure work covers:

    • Construction of 380kV/132kV/33kV electrical distribution network, two substations with a capacity of 500MVA and 200MVA, bulk supply point (2,000MVA)
    • Water network and fire protection systems
    • Sewage treatment plant and wastewater network
    • Stormwater systems
    • Roads
    • Underground cable and fibre optic networks
    • Landscaping works

    The client is being supported by Canadian engineering firm Hatch, France’s Egis and US-based firm JLL.

    Humain was launched in May last year to operate and invest across the AI value chain.

    Humain is building full-stack AI capabilities across four core areas: next-generation data centres, hyper-performance infrastructure and cloud platforms, and advanced AI models, including Allam.

    Also in May 2025, Humain signed preliminary deals with US chipmakers AMD and Nvidia to build multibillion-dollar advanced digital infrastructure in the kingdom.

    AMD said it will invest up to $10bn to deploy 500MW of AI compute capacity in Saudi Arabia over the next five years.

    In October, PIF and Saudi Aramco signed a non-binding term sheet setting out key terms under which Aramco would acquire a minority stake in Humain, with PIF retaining majority ownership.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16671267/main.jpg
    Yasir Iqbal
  • Abu Dhabi selects consortium for 2.5GW Taweelah C IPP

    4 May 2026

     

    Register for MEED’s 14-day trial access 

    A consortium of Al-Jomaih Energy & Water Company (Saudi Arabia) and Sembcorp Industries (Singapore) has been selected to develop the Taweelah C independent power producer (IPP) project in Abu Dhabi.

    The consortium will sign a power purchase agreement (PPA) in mid-May, a source told MEED.

    The combined-cycle gas turbine (CCGT) plant will have a capacity of 2.5GW. It will be located at the Al-Taweelah power and desalination complex, about 50 kilometres northeast of Abu Dhabi city.

    It is understood that China Energy Engineering Corporation (CEEC) will be the engineering, procurement and construction (EPC) contractor.

    Last September, MEED reported that state offtaker Emirates Water & Electricity Company (Ewec) had received three bids for the facility.

    The bidders included:

    • Al-Jomaih Energy & Water Company / Sembcorp Industries
    • Sumitomo Corporation (Japan) / Korea Overseas Infrastructure & Urban Development Corporation / Korean Midland Power
    • Korea Western Power Company / Etihad Water & Electricity (UAE) / Kyuden International (Japan)

    At the time, Mohamed Al-Marzooqi, chief asset development and management officer at Ewec, said the bids would make Taweelah C “one of the lowest tariff CCGT projects in the region”.

    The carbon-capture-ready facility had been scheduled to begin commercial operations in the fourth quarter of 2028.

    This was based on the initial timeline for a PPA to be signed in the fourth quarter of 2025.

    Taweelah C is part of Ewec’s wider programme to support the UAE’s Net Zero by 2050 Strategic Initiative and the Abu Dhabi Department of Energy’s Clean Energy Strategic Target 2035.

    Ewec plans to raise solar power capacity to 18GW and wind capacity to 2.6GW by 2035, while reducing the carbon intensity of its power generation by more than half compared to 2019.

    Ewec is also expanding its low-carbon water desalination capacity, with the Taweelah reverse osmosis (RO) plant already operating as the world’s largest RO facility and additional projects, such as the Mirfa 2 RO and Shuweihat 4 RO, under way.

    By 2030, it expects 95% of Abu Dhabi’s installed water capacity to come from RO technology.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670622/main0858.jpg
    Mark Dowdall
  • Dubai launches Blue Line metro tunnelling works

    4 May 2026

    Dubai has announced the launch of tunnelling works for the Dubai Metro Blue Line extension project.

    In a post on X, Sheikh Mohammed Bin Rashid Al-Maktoum, UAE Vice President, Prime Minister and Ruler of Dubai, announced the start of operations of the tunnel boring machine (TBM), which the Roads & Transport Authority (RTA) has named ‘Al-Wugeisha’.

    The TBM is 163 metres long, weighs more than 2,000 tonnes and will operate around the clock. The post added that its average excavation rate ranges from 13 to 17 metres a day.

    The Blue Line will connect the existing Red and Green lines. It will be 30 kilometres (km) long, with 15.5km underground and 14.5km above ground.

    The line will have 14 stations, seven of which will be elevated. There will be five underground stations, including one interchange station, and two elevated transfer stations connected to the existing Centrepoint and Creek stations.

    In December 2024, the RTA awarded a AED20.5bn ($5.5bn) main contract for the construction of the project to a consortium comprising Turkiye’s Limak Holding and Mapa Group, along with the Hong Kong office of China Railway Rolling Stock Corporation (CRRC).

    The consortium is responsible for all civil works, electromechanical works, rolling stock and rail systems. After completing the project, it will assist with maintenance and operations for an initial three-year period.

    According to an official statement, the Blue Line will have a capacity of 46,000 passengers an hour in both directions.

    The project is scheduled for completion in September 2029.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670584/main.jpeg
    Yasir Iqbal
  • Firms submit Jeddah distribution centre bids

    4 May 2026

     

    Contractors submitted bids on 26 April for an estimated SR140m ($37m) contract to build a distribution centre in Jeddah.

    Saudi Logistics Services Company (SAL) launched the tender on 11 March, as previously reported by MEED. The project will cover an area of about 37,000 square metres. Egyptian firm Cosmos-E Engineers & Consultants has been appointed as the project consultant.

    This tender follows the start of construction by Egyptian contractor Rowad Modern Engineering, a subsidiary of Elsewedy Electric Group, on the expansion of SAL’s facilities at King Khalid International airport in Riyadh. The scope of work includes rehabilitating and upgrading existing infrastructure, as well as constructing new supporting facilities and services.

    SAL also launched the tendering process in September last year for its SR4.2bn ($1bn) logistics zone in northern Riyadh, MEED previously reported. UAE-based Global Engineering Consultants is the consultant for that development.

    The logistics hub aims to meet demand for customised warehouses near King Khalid International airport and the Riyadh Metro. The project aligns with Vision 2030 and the National Transport & Logistics Strategy, which aims to strengthen the kingdom’s logistics sector and enhance Saudi Arabia’s position as a global logistics hub.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16670338/main.gif
    Yasir Iqbal