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Kuwait pushes ahead with infrastructure build out

August 2015

With the state planning to develop new rail links and upgrade its roads, seaports and airports, construction is set to surge in Kuwait over the coming years, according to the Oxford Business Group.

Plans to deliver hundreds of thousands of government-funded residential units by 2020 will also keep the sector on a growth path, despite challenges presented by reduced oil revenues and the rising cost of raw materials, says the Group.

The country’s infrastructure sector is forecast to grow by 15-20% this year, according to investment bank Alpen Capital, with projects aimed at greater GCC integration and economic diversification also serving as key growth drivers.

The region’s broader economic strategy is expected to bolster this trend. The GCC plans to boost investment in the construction sector by showcasing the region as a tourist and investment destination, helping to increase the industry’s value from USD 91.5bn to USD 126.2bn in the three years to 2016.