Kuwait project deals surge 688% quarter-on-quarter to $1.25bln

Kuwait project deals surge 688% quarter-on-quarter to $1.25bln

Project activity in Kuwait picked up pace in the final quarter of 2022 after a lacklustre third quarter, but the total value of contracts awarded remained low compared to 12 months earlier.

The Gulf state’s project market, which saw record falls in deals activity for the most part of 2021 due to several factors including high costs and supply-chain issues, will continue to recover this year on the back of high oil prices, solid economic growth and slower interest rate increases, according to National Bank of Kuwait (NBK) research.

Like its Gulf neighbours, Kuwait is looking to diversify its economy from oil through the implementation of National Vision 2035, which seeks to transform Kuwait into a major commercial and financial hub.

According to the bank’s report, businesses and other entities in Kuwait awarded deals worth KD383 million ($1.25 billion) during the last three months of 2022, up by 688% from a near 20-year low in the third quarter.

However, the value of deals awarded in the final quarter of the year was still down 32.5% when compared to the same period in 2021.

The bank said project activity last year was marred by legislative delays, supply-chain disruptions and higher labor and materials costs.

From January to