Overview of the Kuwait Projects Market 2013

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The number one conference for Kuwaits project market www.MEEDKuwaitProjects.com

Projects forecast and review

GCC government expenditure, 2005-17
350

300

250

Kuwaits government expenditure is set to triple by 2016 compared with $25bn in 2005

200 $bn 150 100 50

0 2005 2006 2007 2008 2009 2010 2011f 2012f 2013f 2014f 2015f 2016f 2017f

Source: MEED Insight

Bahrain

Kuwait

Oman

Qatar

Saudi Arabia

United Arab Emirates

Projects forecast and review

Comparison of project activity, 2008-17 Kuwait has the most significant projected increase in project activity compared with other GCC states over the next five years, compared with the preceding five-year period. Kuwaits market has comparatively underperformed until now and the government is implementing ambitious plans to invest in its infrastructure

Source: MEED Insight & MEED Projects

Projects forecast and review

MEED forecast for GCC contract awards in 2014 Kuwait is expected to make the biggest impression in contract awards next year by virtue of $15bnworth on its clean fuels project. The tenders for the three main packages on the mega-project have already been issued, with a submission date set for November and awards in 2014
UAE

60,000

50,000

40,000

$m

30,000

20,000

10,000

0 Bahrain Kuwait Oman Qatar Saudi Arabia

Source: MEED Insight & MEED Projects

Spending has been broadly spread

Split of contracts awarded by sector, 2008-12 (%) In terms of sectors, Kuwait is a relatively diverse market, with no one sector dominating. The construction sector is generally, but not always, the largest in terms of annual awards closely followed by transport, power and hydrocarbons.

Water 5%

Chemical 0%

Transport 22%

Construction 28%

Power 18%

Gas 18% Oil 8%

Source: MEED Insight and MEED Projects

Industrial 1%

The leading clients

Top 15 clients by value of work under execution
12,000

10,000

8,000

6,000

Unsurprisingly, the list of top clients in Kuwait is dominated by public sector bodies. Upstream operator Kuwait Oil Company (KOC) is the top client thanks to a raft of large EPC contracts awarded over the last couple of years. It is followed by the Ministry of Public Works which is in charge of wastewater, roads and major building projects and Ministry of Electricity and Water which until recently was the sole client for all power and desalination projects in the state.

$m

4,000

2,000

Source: MEED Insight & MEED Projects

No one company dominates

Top 15 largest contractors by value of work under execution in all sectors
3,500 3,000

$m

2,500

2,000

In the civil sectors, local contractors predominate due to the fact the public tenders tend to be restricted to local firms only. However, the oil sector is a different story with Korean EPC contractors along with Petrofac and Saipem being the main players

1,500

1,000

500

Source: MEED Insight & MEED Projects

MEED Insight forecast for Kuwaiti contract awards in 2013

Kuwait could possibly award more than $114bnworth of contracts in the period between 2013 and 2017, more than double the $58bn-worth of projects awarded in the previous five years.

As of June 2013, just over $5.8bn-worth of contracts were awarded, signaling a projects market moving forward and, based on the current pipeline of projects due to be awarded this year, MEED forecasts there are just over $16bn-worth of contracts to be awarded in Kuwait in 2013, an increase of 60% on the 2012 figure.

Value of planned and un-awarded projects by sector

The largest sector by a considerable margin is the oil sector, particularly in the refining and downstream sectors. The three main packages on Kuwait National Petroleum Companys (KNPC) clean fuels project (CFP) are scheduled to be awarded in 2014 and if implemented, they will be the largest projects ever undertaken within Kuwait, and will have a cumulative project value of over $17bn. Construction is the second-largest sector thanks to ongoing and planned projects by PAHW, Kuwait University and MPW. Infrastructure too features highly due to the planned metro and rail projects, although neither scheme is confirmed. There is more certainty, however, over the power sector, as it seeks to keep up with high demand growth and avoid the summer blackouts which have plagued it over the last five years. Along with the Partnerships Technical Bureau (PTB), MEW is planning a number of major power plant and transmission and distribution projects as it seeks to meet its supply targets.

Interested in Kuwait and want to find out more?

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Kuwait Projects 2013 Conference

Kuwait Oil Company Ministry of Public Works Partnerships Technical Bureau Ministry of Electricity & Water Public Authority for Housing Welfare Ministry of Health Kuwait National Petroleum Company Ministry of Commerce & Industry Petrochemicals Industry Company Public Authority for Industry Kuwait Municipality Ministry of Social Affairs and Labour Kuwait Direct Investment Promotion Authority Al Tamini Company International Power Kleos Healthcare GE Healthcare Total Kuwait Shell Alargan International Real Estate Kharafi National Directorate General of Civil Aviation Daelim Industrial Company GDF-Suez KUFPEC Mabanee Kuwait Energy Atkins Gulf Bank World Bank Shapoorji Pallonji URS ..and many more

Kuwait Projects Market Report 2013

A complete analysis and overview of the opportunities, challenges and forecasts for the Kuwait projects market Please click on the below link to download your free sample chapter http://subs.meed.com/MIKuwaitReportEvents/ Through this comprehensive report you will gain exclusive insight into: Rankings of the top clients and contractors A political and macroeconomic overview highlighting the investment environment Lists of the current and future projects along with their status, value and scope Overview and analysis of plans for each sector along with key drivers Historical, current and future sizing of each sector and market

The full report is available to purchase from MEED Insight. Special offer: Attend the Kuwait Projects Conference and receive 20% discount on this exclusive market intelligence report. Please contact MEED Insight today to order your report:

@ komal.jadhwani@meed.com

+971 (0) 4 390 0436