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Kuwait Projects Report 2020 - Trends, Opportunities and Challenges for Business - MEED Insights

  • ID: 5180207
  • Country Profile
  • April 2020
  • Region: Kuwait
  • 493 pages
  • GlobalData
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Summary

With $288bn of projects planned or underway, there is no shortage of potential business development opportunities in Kuwait. The country’s challenge is delivery.

Most of Kuwait’s planned projects include urgently needed infrastructure developments, following more than a decade of underspending.

To expedite the process, the government launched its ambitious Kuwait Vision 2035 investment strategy. But for the plan to succeed, it is an imperative for Kuwait to figure out how to bypass the roadblocks that have prevented progress in the past.

Despite having a clear vison for development in place and very strong financials, Kuwait’s economic development plans and capital investment projects have been delayed by a combination of political infighting and bureaucratic hurdles.

Written by MEED, the Middle East market experts within the publisher group, Currently, very little of what is planned in Kuwait is being brought to tender or contract award. As a result, the country’s projects market has declined every year since 2015, in terms of the value of project contract awards.

COVID-19 impact

The lockdowns introduced to prevent the spread of the novel coronavirus (COVID-19), both in Kuwait and internationally, are set to make things worse in the near term, but are likely to accelerate change in a country, whose project market offers huge potential for international investors and businesses alike.

On 14 April, the scale of the impact of the COVID-19 lockdown measures and the fall in oil prices on the Kuwait economy was made clear when the IMF projected real GDP growth of -1.1 per cent in Kuwait in 2020, down from the forecast it made in October 2019 that GDP growth of 3.1 per cent in 2020.

Hugely dependent on its oil export revenues for economic growth, the impact of oil prices below $20 a barrel in April 2020 places immense pressure on Kuwait’s finances, with the country’s fiscal deficit set to rise to 11.1 per cent of GDP in 2020, along with rising debt and depletion of its financial reserves.

Once it is through the COVID-19 health crisis, Kuwait’s highest priority is to accelerate its Vision 2035 diversification and structural economic reform programme aimed at bringing private investment and new job-creating industries into the country.

Outlook for Kuwait projects in 2020 and 2021

In 2020, several major active oil schemes are due to be completed, including the $12bn Clean Fuels Project, and the $16bn Al-Zour refinery.

But the completion of these projects will leave a vacuum in the oil sector, as there are no equivalent schemes in the pipeline that act meaningfully as a replacement.

PPP ambitions

Outside the oil & gas sector, Kuwait Authority for Partnership Projects (KAPP) is eager to move forward with its programme of privately-financed PPP projects.

Kuwait’s banks appreciate the need for greater participation by local institutions in PPP projects, and increasingly see the positives in committing to long-term local project finance. But government delivery is key.

Whether the stumbling block is at a ministerial, parliamentary or lower level, Kuwait increasingly needs decisive government action, and far swifter implementation moving forward if it is to achieve its socio-economic objectives.

Political infighting

Despite having one of the world’s largest sovereign wealth funds, Kuwait persistently struggles to progress key infrastructure and development schemes because of schisms between the government and its elected parliament.

The lack of cohesion between the two, exacerbated by often-bureaucratic procurement processes, is hampering the country’s ability to make progress on important projects.

Scope
  • The report takes a close look at the major project opportunities in Kuwait over the coming five years, analysing all key sectors including energy, power and water, transport and construction.
  • Originally, completed in January 2020, the report has been updated in April 2020 with an additional chapter examining the impact of COVID-19 on the Kuwait market.
  • This report provides a comprehensive guide for companies seeking to work in Kuwait. The report is a powerful resource for anyone seeking to find opportunities, understand risks and set strategy in Kuwait.
Reasons to Buy
  • Explains the policies shaping investment in Kuwait
  • It informs strategy
  • Identifies new and potential opportunities
  • Highlights challenges in the market
  • Helps you minimise risk.
  • Explains the measures taken to stop the spread of the virus, and to sustain business through the crisis
Note: Product cover images may vary from those shown
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1. After COVID-19, Kuwait must focus on economic reform

2. The impact of COVID-19 on Kuwait
2.1 COVID-19
2.2 Containment Measures (as of 17 April)
2.3 Policy Response
2.4 Economic impact
2.5 Economic Growth
2.6 Fiscal impact
2.7 Drawing on deep reserves
2.8 Capital Markets
2.9 Impact on construction
2.10 Impact on real estate projects
2.11 Impact on PPP
2.12 Impact on oil & gas projects
2.13 Impact on power & water projects
2.14 Impact of COVID-19 on Kuwait projects

3. Introduction to Kuwait
3.1 Geography
3.2 History
3.3 People
3.4 Economy

4. Governance
4.1 Challenges and policy objectives
4.2 Structure of government
4.3 Parliament since 2011
4.4 Current government and key policies
4.5 Regional relations

5. Economy
5.1 Structure of the economy
5.2 Challenges and policies
5.3 Economic performance
5.4 Debt & assets
5.5 Energy sector
5.6 Banking & finance
5.7 Capital markets
5.8 Capital markets

6. The PPP Programme
6.1 The legal framework
6.2 The High Committee for PPP projects
6.3 Kuwait Authority for Public Partnerships
6.4 Projects programme
6.5 PPP objectives and progress

7. Business and investment climate
7.1 Objectives, challenges and policies
7.2 Ease of doing business
7.3 Foreign direct investment
7.4 Stock market
7.5 Future opportunities and challenges

8. Projects market
8.1 Overview
8.2 Key projects and masterplan
8.3 Projects awards 2010-2019
8.4 Project trends in 2019
8.5 Outlook for 2020
8.6 Main clients
8.7 Main contractors
8.8 Future projects

9. Energy
9.1 Introduction
9.2 Industry structure
9.3 Politics & the oil sector
9.4 Upstream
9.5 Production & export infrastructure
9.6 Downstream
9.7 Petrochemicals
9.8 Contract awards
9.9 Leading contractors

10. Power
10.1 Introduction
10.2 Industry structure
10.3 Consumption and peak demand
10.4 Generation capacity and reserve margin
10.5 Forecasts
10.6 Projects
10.7 Fuel and alternative energy
10.8 Renewable energy
10.9 Transmission & distribution
10.10 Leading contractors

11. Desalination
11.1 Overview
11.2 Introduction
11.3 Demand and Supply trends
11.4 Market structure
11.5 Projects
11.6 Top contractors

12. Wastewater
12.1 Overview
12.2 Industry structure and policy objectives
12.3 Sulaibiya
12.4 Umm al-Hayman treatment plant
12.5 Sabah Al-Ahmad Sea City: sewage treatment plants
12.6 Sewer systems
12.7 Upcoming projects
12.8 Top contractors

13. Construction
13.1 Market overview
13.2 New projects in a stagnant market
13.3 The Kuwait Masterplan
13.4 Township programme
13.5 Healthcare
13.6 Kuwait University
13.7 KAPP
13.8 Other projects
13.9 Leading clients
13.10 Leading contractors

14. Transport
14.1 Overview
14.2 Aviation
14.3 Ports
14.4 Rail
14.5 Roads
14.6 Top contractors
Disclaimer

List of Tables
Table 1: Kuwait’s rulers
Table 2: New Council of Ministers appointed in November/December 2019
Table 3: Kuwait’s key economic indicators, 2016−2022
Table 4: Kuwait key banking sector indicators
Table 5: Market capitalisation by sector
Table 6: Kuwait's 10 largest listed companies by market capitalisation
Table 7: KAPP's planned and ongoing PPP projects
Table 8: World Bank Ease of Doing Business ranking
Table 9: Foreign direct investment flows
Table 10: Major contract awards in 2018
Table 11: Major projects under execution in 2019*
Table 12: Major projects due for award in 2020*
Table 13: Top 10 countries by oil reserves at the end of 2018
Table 14: Top 10 countries by oil production, 2018
Table 15: Top 20 countries by gas reserves at the end of 2018
Table 16: Top 10 KOC projects by value, October 2019
Table 17: Planned KNPC projects, October 2019
Table 18: Kuwait's largest oil fields
Table 19: Selected major KOC oil production increase projects*
Table 20: TSAs and ETSAs
Table 21: Upcoming KOC gas projects
Table 22: Gathering centre projects, planned or underway
Table 23: Export facilities and storage capacities
Table 24: Refining capacity, 2010−2020
Table 25: Mina al-Ahmadi refinery units
Table 26: Mina Abdulla refinery units
Table 27: Shuaiba refinery units
Table 28: NRP first tender results, December 2006
Table 29: NRP second tender results, April 2008
Table 30: NRP third tender results, July/August 2015
Table 31: CFP Packages
Table 32: The Greater Equate joint venture
Table 33: Kuwait petrochemicals plants
Table 34: Kuwait oil and gas contract awards by quarter ($m)
Table 35: Kuwait oil, gas, and petrochemical contract awards by year ($m), 2008-2019*
Table 36: Existing power plants
Table 37: Peak power demand and available capacity, 2015−2030 (MW)
Table 38: Breakdown of additional demand by sector, 2012-22
Table 39: Future projections of installed power stations (MW)
Table 40: KAPP planned power projects
Table 41: Kuwait planned generation capacity additions, 2024-27 (MW)
Table 42: Kuwait planned generation capacity additions, 2028−35 (MW)
Table 43: Oil consumption of power and desalination plants (b/d), H1 2019
Table 44: Natural gas consumption of power and desalination plants (‘000 cf/d), H1 2019
Table 45: Kisr planned renewable programme
Table 46: Small-scale solar schemes in Kuwait
Table 47: Planned T&D contracts, 2019*
Table 48: Kuwait transmission network (ckm), 2017
Table 49: Kuwait distribution network (ckm), 2017
Table 50: Kuwait leading contractors by value ($m), 2019*
Table 51: Kuwait water sector key facts
Table 52: Desalination plants operating in Kuwait
Table 53: Kuwait upcoming private water & desalination projects by value, 2019−25
Table 54: Kuwait upcoming water projects by value, 2019−27
Table 55: Kuwait wastewater sector key facts, 2016
Table 56: Wastewater treatment plants in Kuwait, 2019
Table 57: Future wastewater treatment projects
Table 58: Kuwait’s wastewater treatment projects which are underway*
Table 59: The five major pumping stations

List of Figures
Figure 1: Oil fields in the Divided Zone
Figure 2: GDP by sector, 2017 (%)
Figure 3: Kuwait GDP, 2010−2022
Figure 4: Government finances (% GDP), 2010−2022
Figure 5: Brent crude prices, Jan 2014-Aug 2019 ($ a barrel)
Figure 6: Oil and gas production, 2000−2018
Figure 7: Boursa Kuwait performance, 2012-2018
Figure 8: Kuwait contract awards, 2010−19* ($m)
Figure 9: Kuwait contract awards by sector, 2010−19* ($m)
Figure 10: Top clients by work under execution* ($m)
Figure 11: Top contractors by work under execution* ($m)
Figure 12: Unawarded projects by stage* ($m)
Figure 13: Kuwait oil and gas fields
Figure 14: Kuwait oil production (thousand b/d), 1966−2018
Figure 15: Gas production and consumption (billion cubic metres), 2008−2018
Figure 16: Kuwait refining capacity (thousand b/d), 1966−2018
Figure 17: KOC projects by status, October 2019 (percentage of $20bn)
Figure 18: Kuwait Oil fields
Figure 19: Key largest oil fields’ contribution to total output in 2018* (%)
Figure 20: Pipeline and export infrastructure
Figure 21: Crude handling network
Figure 22: GCC chemicals production capacity by country (million tonnes)
Figure 23: Kuwait chemicals capacity by product segment, 2015*
Figure 24: Kuwait Leading contractors
Figure 25: Peak power demand, 2008-19* (MW)
Figure 26: Existing power plants
Figure 27: Cumulative installed capacity (MW), Kuwait, 2010-18
Figure 28: Annual power generation (GWh), Kuwait, 2010-18
Figure 29: Breakdown of additional demand by sector, 2012-22
Figure 30: Breakdown of energy consumption by sector, 2015 (%)
Figure 31: Breakdown of energy consumption by sector, 2015 (%)
Figure 32: Projected fuel consumption by the power sector, 2010-30 (billion BTUs a day)
Figure 33: Solar thermal electricity generating potential in Kuwait
Figure 34: Proposed output levels from the Al-Abdaliya ISCC
Figure 35: Available natural water resources in the Mena region by country, 2014
Figure 36: Forecast desalination demand and available capacity, 2014-30 (MIGD)
Figure 37: Population in Kuwait (million) 2010−2025
Figure 38: Total population vs Urban population in Kuwait (million), 2010−2025
Figure 39: Kuwait power and desalination plants (includes planned Al-Khiran facility)
Figure 40: Kuwait top desalination contractors
Figure 41: Kuwait’s sewage network
Figure 42: Kuwait’s wastewater treatment capacity (cm/d), 2013-2030
Figure 43: Kuwait’s planned wastewater network
Figure 44: TSE produced by STPs, 2010 (cm/d)
Figure 45: Kuwait’s planned network schemes
Figure 46: The Sulaibiya wastewater treatment plant
Figure 47: Umm al-Hayman forecast capacity and flow profile (cm/d)
Figure 48: Kuwait construction contract awards, 2010−19* ($m)
Figure 49: Kuwait construction contract awards by sector, 2010−19* ($m)
Figure 50: The Third Kuwait Master Plan Review, 2005
Figure 51: Housing waiting list, 2012−2022
Figure 52: Location of PAHW’s new cities
Figure 53: Sabah al-salem university campus masterplan, 2010
Figure 54: Leading clients by projects under execution ($bn)
Figure 55: Leading contractors by projects under execution* ($bn
Figure 56: Kuwait International airport expansion
Figure 57: Kuwait City metro network
Figure 58: Subiya Causeway final alignment
Figure 59: Kuwait Transport Sector Top Contractors, 2019*
Note: Product cover images may vary from those shown
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