Kuwait's construction industry has been forecast to increase at a compound annual growth rate (CAGR) of 7.45% through to 2016, driven predominantly by the government's plan for diversification which is expected to encourage more private investment.
The Kuwaiti construction industry increased in value at a CAGR of 1% during the years between 2007 and 2011. This slow CAGR was a result of the 2009 economic crisis, which led the construction industry to shrink at a rate of 9.8% in the same year.
In the pre-recession years, the construction industry in Kuwait was active, driven by the government's diversification initiatives and several investment programs for infrastructure development.
To reduce economic dependence on oil, the government started investing in other sectors such as education, infrastructure and manufacturing, which is influencing construction activity in the country and is acting as a catalyst for the Kuwaiti construction industry.
The infrastructure market constituted a 48.1% share and contributed the largest value of the total Kuwait construction industry in 2011. Residential and commercial markets followed it with shares of 22.2% and 17.4% respectively
The construction industry in Kuwait is estimated to spend more than $63 billion over the next three years, with a significant focus on the development of educational facilities and commercial building as well as a boost in residential developments.
Education and commercial construction will take precedence throughout 2012 and 2013, with a major spike in residential development in 2014, rising from an average of $600 million to a staggering $5.4 billion in 2014.
For more information on Kuwait's construction industry, see the latest research: Kuwait Contruction Industry Report
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