Kuwait project activity gathered pace in fourth quarter of 2021

Kuwait project activity gathered pace in fourth quarter of 2021

KUWAIT: The total value of project awards in Kuwait surged to KD 556 million (+265 percent q/q; +279 percent y/y), according to MEED Projects. This brings the total value of awards in 2021 to KD 1.5 billion, up 13 percent on 2020. The figure falls short of the KD 2.4 billion that was forecast earlier, a likely outcome of government tendering delays amid cutbacks in capital spending and pandemic-linked supply chain constraints.

The surge in project awards in 4Q21 stemmed from the oil and gas sectors, while, for the year as a whole, the construction sector accounted for almost 50 percent of all awards, followed by the oil and gas sector with 32 percent. MEED Projects anticipates activity accelerating in 2022, with about KD 3.0 billion worth of projects set to be awarded.

Project awards in the construction sector amounted to KD 128 million in 4Q21. The bulk of awards came from the Hessah Al-Mubarak-Low Rise Commercial Buildings project (KD 42 million) and the KOC-KERP: Soil Remediation project (KD 36 million). Meanwhile, total 2021 construction sector awards reached KD 705 million, up 89 percent from 2020. In 2022, a similar value of construction contracts are expected to be awarded (KD 723 million).