5.5% growth of construction equipment market expected in Kuwait

The American company Ariston Consulting expects the construction equipment market in Kuwait to grow at an annual rate of more than 5.5% until 2028 to reach $450 million, noting that this growth is driven by the government’s approval to finance infrastructure development worth $7 billion, in addition to oil projects.

Moreover, the government plans to expand the country’s capacity to generate renewable energy such as wind and solar power, reports a local Arabic daily.

The company stated in a recent report that the Kuwaiti government approved the development of a housing project south of Saad Al-Abdullah with investments of 6.8 billion dollars, in addition to renovating the Mubarakiya market. The company pointed out that it is also investing in construction projects in the current year, so it is expected to increase the demand for excavators and construction materials until 2028.

The “Ariston” report said the Kuwaiti government has allocated more than $100 billion for infrastructure projects, hospitals, power stations, and more than 100,000 housing units, in addition to oil projects, most notably the first phase of the Lower Fars project, worth $4.2 billion.

The report also expects the growth in infrastructure investment within the framework of the “Kuwait 2035” plan, and the increase in civil engineering and housing projects to support the construction equipment market in the country, noting that the Kuwaiti government planned last year to complete 43 housing projects worth more than $3.2 billion.

Ariston stated that the Kuwait Oil Company has allocated $2.8 billion to implement 3 oil projects, after the recovery in oil prices since last year, noting that the company has allocated $832 million to construct crude oil pipelines and a water station in the north of the country, and the Kuwait Oil Company plans to increase oil production capacity to 4.75 million barrels per day by 2040.

The report added, “Therefore, it is expected that the growth of oil projects in Kuwait and the increase in the number of infrastructure development projects and renewable energy will have a strong positive impact on the demand for construction equipment in Kuwait.”

However, the “Ariston” report warned that the shortage of labor in Kuwait constitutes a major challenge, and explained that the construction sector suffers from a shortage of employment this year by 20%, pointing out that the rise in the prices of building materials and the increase in steel prices may hinder infrastructure development projects planned within the framework of Kuwait 2035 plan.

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