Despite the low oil price and the recent reverberations felt around the world from the outcome of the Brexit referendum, it seems business is forging ahead in Kuwait. Plenty of opportunities exist for the private sector to grow their respective businesses as the Kuwait government fires ahead with its infrastructure development plans.
There has been no shortage of commitment of funds from the Kuwaiti government, with the ministry of public housing recently announcing that it will award US$1 billion contract for roads and infrastructure works within its $20bn South Al Mutlaa City project in the coming weeks, supporting a partnership between Italian contractor Salini Impregilo and Turkish contractor Limak Holding. The mixed-use development will feature 30,000 new homes, 120 schools as well as numerous mosques and hundreds of shopping areas inside the neighborhoods.
Schools alone will cost $1.5 billion, meaning a wealth of opportunities are opening up for project management companies, architects, developers and suppliers operating within the construction sector. Moreover, South Al Mutlaa is just the first of five major new cities being brought forward by the Kuwait government. A deal has recently been signed with the South Korean government for the development of the second city, a 60 square kilometre project known as South Saad Al Abdullah.
A third city, known as South Sabah Al Ahmad, is also set to cover a land area of 60 sq km with sign-off for the progression of this project expected by the end of the year, and for tenders to be issued for design companies to carry out the master planning and design.
Kuwaiti National Development plans clearly haven’t been hindered by recent economic downturns impacting other world markets, demonstrating the country’s strength and resilience as a world economy. There has never been a better time to invest in Kuwait.
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