"Kuwait Infrastructure Report Q4 2012" Is Now Available At Fast Market Research

New Construction market report from Business Monitor International: "Kuwait Infrastructure Report Q4 2012"

by Bill Thompson

(WireNews+Co) - Boston, MA - 20 October 2012

BMI View: The outlook for the Kuwaiti construction sector continues to be favourable as high oil prices mean the economy remains strong and government commitment to stimulus does not waver. Construction industry value is forecast to rise from US$2.5bn in 2012 to US$3.4bn by 2016 and US$5.0bn.

The key developments in Kuwait's infrastructure sector are:

- The final construction phase of the Kuwaiti Mega Port Mubarak has been suspended, following negotiations between the Iraqi and Kuwaiti governments. The port, which is located on Bubiyan Island, was initially intended to have 60 wharves, but will now have just 24. The project was criticised due to fears over its impact on Iraqi ports.
- A completion date of 2020 was announced for the Kuwait metro railway network. The project is in the first development phase, with the Kuwaiti Partnerships' Technical Bureau having announced a series of tenders. Interested parties will be invited to express an interest during the second phase, while the third phase will see offers being submitted. A feasibility study is also being undertaken by the project's investors.
- The Kuwaiti government announced plans to invest US$6bn in the expansion of its international airport. US$3bn of the total is to be directed towards the expansion of the passenger terminal to 7.6mn square feet. The government is aiming to increase the annual passenger handling capacity of the terminal from 7mn to 13mn by 2016, with potential for capacity to reach 25mn by 2025. Expansion work is likely to start in 2012, with completion scheduled for 2016.

View Full Report Details and Table of Contents (http://www.fastmr.com/prod/451317_kuwait_infrastructure_report_q4_2012.aspx) (http://www.fastmr.com/prod/451317_kuwait_infrastructure_report_q4_2012.aspx)

We expect the Kuwaiti economy to continue growing robustly in 2012. Elevated global hydrocarbon prices will allow the government to keep fiscal spending high, driving domestic consumption, while oil production looks set to remain near capacity in the months ahead. Kuwait's political backdrop is complicated by labour and population imbalances, and a parliament that has consistently blocked the government's reform efforts. With three elections over the space of four years, the prospect of new polls and policy instability is always on the horizon.

We expect the Kuwaiti government to respond to the re-emergence of industrial unrest in parts of the country by acceding to union demands for further wage hikes. Despite near-term disruption to business activity, we therefore anticipate that the uptick in strike activity will translate into increased consumer spending, reaffirming our positive outlook on household consumption in 2012.

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