Kuwait Projects Market Report 2013

Published: July 2013
No. of Pages:
   

A complete analysis and overview of the opportunities, challenges and forecasts for the Kuwait projects market

Kuwait is a market with substantial potential given the two key ingredients for success: a need and the financial ability to meet that need. In terms of future projects, Kuwait has the highest upward potential of any market in the region, with potentially more than double the value of contracts awarded in the next five years compared with the previous half-decade period. If it delivers, it could find itself as the third largest market in the region.

MEED Insight’s latest market intelligence report, the Kuwait Projects Market Report 2013, examines historic, current and future project opportunities in the state as well as government policy; spending plans and challenges. The report covers the political and macro-economic situation in the state and provides a detailed and comprehensive overview of the key project trends and opportunities across all sectors such as oil and gas, construction, power, and the PPP programme.

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 key findings in this report are:

  • Kuwait is today the region’s fourth-largest projects market after Saudi Arabia, the UAE and Qatar. In 2012, the state awarded $10.1bn-worth of contracts, a marginal fall on the $10.6bn awarded in 2011. In terms of future projects, there are some $116bn-worth of projects planned or un-awarded in the state;
  • Of the contracts awarded in 2012, transport was the largest sector, followed by power and construction. More than 90 per cent of all contracts in Kuwait are awarded by the public sector, highlighting the restrictive role of the private sector in the projects market;
  • The MEED Insight forecast is for $16bn-worth of contracts to be awarded in Kuwait in 2013, a 60 per cent increase on the 2012 figure. The largest sector is likely to be construction, dominated by new hospital projects followed by power;
  • Longer term, there is likely to be upward momentum for the local projects market driven by heavy downstream investments, PTB’s PPP programme, and the $100bn-plus five-year development programme.
  • Buy MEED Insight’s 155-page Kuwait Projects Market Report today and gain an in-depth understanding of the potential for business development and growth in the Kuwait projects market.

Kuwait Projects Market Report 2013

Table of contents

Table of contents2
List of tables 4
List of figures 6

1.   Preface   8

2.  Executive summary 9

3.  Politics 12
3 .1 Current situation 14
3 . 2 Current parliament 15
3 . 3 Politics and the projects market 16

4.   Economy    18
4 . 1 Macro-economic overview    18
4.2 The 2012/13 budget and beyond   22
4.3 Development plan    23
4.4 PPPs and privatisation   24

5.   The Kuwaiti projects market   28
5.1 Historical analysis    28
5.2 Public vs Private   31
5.3 Cancelled projects   32
5.4 Main contractors   34
5.5 The main clients   35
5.6 Future projects    36
5.7 Forecast    38

6.   Energy   39
6.1 Introduction   39
6.1.1 Oil   39
6.1.2 Refining and petrochemicals   41
6.1.3 Politics and the oil sector    42
6.1.4 Project Kuwait/TSAs    44
6.1.5 The Al-Zour refinery    44
6.1.6 K-Dow   45
6.2 Industry structure    45
6.2.1 History    45
6.2.2 Strategy and management   46
6.2.3 Upstream KPC subsidiaries    47
6.2.4 Downstream KPC subsidiaries   48
6.3 Existing upstream, downstream and export infrastructure   50
6.3.1 Production and distribution   50
6.3.2 Export facilities    52
6.3.3 Gas imports   53
6.4  Upstream oil and gas development    53
6.4.1 Oil   53
6.4.2 Gas   60
6.5 Downstream   62
6.5.1 Mina al-Ahmadi    62
6.5.2 Mina Abdulla   63
6.5.3 Shuaiba   64
6.5.4 Major projects   64
6.5.5 Other projects   68
6.6 Petrochemicals   69
6.6.1Equate Petrochemicals    69
6.6.2The Kuwait Olefins Company (TKOC)    69
6.6.3 Kuwait Aromatics Company (Karo)   70
6.6.4 The Kuwait Styrene Company (TKSC)       70
6.6.5 Other plants   70
6.6.6 Future plans    71

7.   The Partnerships Technical Bureau and the PPP programme   72
7.1 The request for proposals (RFP)   76
7.2 Evaluation of bids   76
7.3 Sale of shares in the PPP project company   77
7.4 Project implementation and monitoring   78
7.5 The PTB’s projects programme    79
7.6 Active projects   80
7.6.1 Al-Zour North IWPP   82
7.6.2 The Umm al-Hayman wastewater project   83
7.6.3 New physical medicine and rehabilitation hospital and related facilities   84
7.6.4 Kuwait national rail road (KNRR) network    85
7.6.5 Kuwait City metro   86
7.6.6 The 17 rest houses project   86
7.6.7 Labour cities project   86
7.6.8 Privatisation of the Kuwait Post Office   87

8.   Power and desalination   88
8.1 Power    88
8.1.1 Existing infrastructure   90
8.1.2 Feedstock   91
8.1.3 Demand outlook    93
8.1.4 Fuel outlook   94
8.1.5 Procurement   96
8.2 Desalination   98

9 .  Renewables   101
9.1 Regulatory framework   101
9.2 Solar   102
9.2.1 The Al-Abdaliya ISCC project    103
9.2.2 Rooftop solar projects    104
9.2.3 The Kisr solar/wind project   104
9.2.4 KOC projects   105

10.   Wastewater    106
10.1 Sulaibiya      108
10.2 Umm al-Hayman    109
10.3 Sewer systems   110
10.1 TSE    112

11.   Construction   115
11.1 The Kuwait Masterplan    119
11.2 The PAHW township development programme   120
11.3 Khiran   122
11.4 Kuwait University   123
11.5 Healthcare   125
11.6 Other construction projects    127

12.   Transport   130
12.1 Aviation   130
12.2 Ports   134
12.3 Rail   138
12.3.1 Mainline   139
12.3.2 Metro/light rail   140
12.4 Roads   142
12.5 The Subiya Causeway    144
13.   Appendix 1, Law No   7 of 2008 (establishing the PTB)    147

List of Tables

Table 1: Kuwait’s rulers   12
Table 2: Kuwait cabinet as of May 2013   16
Table 3: Key economic indicators, 2006-14   18
Table 4: Proven oil reserves, 1980-2012   18
Table 5: Proven oil reserves, 2012    19
Table 6: Oil production and revenue, 2007-13   19
Table 7: Largest sovereign wealth funds    20
Table 8: International trade, 2007-13 ($bn)    20
Table 9: GDP by economic activity, 2009-11 (KDm)    21
Table 10: FDI flows, 2001-11 ($m)    21
Table 11: State budget, 2010/11-11/12 (KDm)   22
Table 12: Key targets in the five-year development plan   23
Table 13: Project finance deals, 2005-11 ($m)   26
Table 14: Top 10 largest contracts awarded, 2012    31
Table 15: Top 10 countries by oil reserves, 2011   39
Table 16: Top 10 countries by oil production, 2011   39
Table 17: May 2013 changes in Kuwait’s oil and gas companies    43
Table 18: Members of the SPC, appointed February 2010    46
Table 19: Export facilities and storage capacities   53
Table 20: Selected major KOC oil production increase projects, 2005-12*   56
Table 21: TSAs and ETSAs    58
Table 22: Selected major planned KOC projects   60
Table 23: Gas programme projects    61
Table 24: Refining capacity, 2010-20    62
Table 25: Mina al-Ahmadi refinery units    62
Table 26: Mina Abdulla refinery units   63
Table 27: Shuaiba refinery units    64
Table 28: Al-Zour refinery first tender results, December 2006   65
Table 29: Al-Zour refinery second tender results, April 2008    65
Table 30: New refinery project packages and prequalification applicants, May 2013   66
Table 31: Clean fuels project: status of packages, May 2013   68
Table 32: Kuwait downstream future projects   68
Table 33: Petrochemicals plants   71
Table 34: Status of selected PTB projects   81
Table 35: Umm al-Hayman shortlisted developer groups   83
Table 36: Prequalified groups for Kuwait physical medicine and rehabilitation hospital    85
Table 37: The 28 PPP projects originally announced by the PTB   87
Table 38: Kuwaiti power sector key facts, 2012    89
Table 39: Existing power plants   91
Table 40: Long-term power and water supply and demand forecast, 2015-30   94
Table 41: Planned power plant projects   97
Table 42: Existing desalination capacity, 2012   99
Table 43: Planned desalination projects, June 2013   100
Table 44: Renewable electricity performance indicators    101
Table 45: Prequalifiers for Kisr’s renewable energy projects   105
Table 46: Existing wastewater treatment plants, 2012    106
Table 47: The wastewater treatment sector in 2016   107
Table 48: Umm al-Hayman prequalified groups    110
Table 49: The five major pumping stations   110
Table 50: Recent and planned phases of the sanitary network improvement programme    111
Table 51: Selected major wastewater contract awards    114
Table 52: Selected major PAHW awarded contracts   121
Table 53: PAHW’s major township programme   122
Table 54: Kuwait University new campus contracts under execution, June 2013   124
Table 55: Kuwait University Sabah al-Salem campus future projects, June 2013   124
Table 56: New hospitals masterplan   125
Table 57: Major healthcare projects under construction, June 2013      126
Table 58: Planned healthcare projects, June 2013    127
Table 59: Selected major construction projects, 2004-13   128
Table 60: Selected future construction projects   129
Table 61: Prequalified international contractors for KIA main terminal   132
Table 62: New terminal statistics    132
Table 63: Commercial ports   135
Table 64: Prequalifiers for Bubiyan Port dredging package    137
Table 65: Port throughput data, 2009   137
Table 66: Kuwait rail projects   139
Table 67: The Kuwait metro   140
Table 68: Value of road projects   142
Table 69: Road contracts under way    143
Table 70: Prequalified international contractors for Doha link    146

List of Figures

Figure 1: Total contract awards in the GCC, 2005-12   29
Figure 2: Value of GCC contract awards by country, 2006-12   29
Figure 3: Breakdown of Kuwait contracts awarded, 2008-12   30
Figure 4: Breakdown of contracts awarded by sector, 2008-12 (%)   30
Figure 5: Contract awards by public/private client and sector, 2012   32
Figure 6: Cancelled or on hold projects due to have been awarded in 2008-12 (%)   33
Figure 7: Cancelled or on hold projects due to have been awarded in 2008-12 by sector    33
Figure 8: Top 10 largest contractors by value of work under execution in all sectors   35
Figure 9: Top 15 clients by value of work under execution   36
Figure 10: Value of planned and un-awarded projects by sector    37
Figure 11: Comparison of project activity, 2007-17    37
Figure 12: MEED Insight forecast for Kuwaiti contract awards, 2013       38
Figure 13: Top 10 countries by gas production, 2011    40
Figure 14: Gas production and consumption, 1990-2011   41
Figure 15: Petrochemical production, 2001-11   42
Figure 16: The structure of the petrochemicals industry   49
Figure 17: Gathering centre and booster station infrastructure    50
Figure 18: Pipeline and export infrastructure   51
Figure 19: Crude handling network   52
Figure 20: Oil fields       54
Figure 21: Key oil fields’ contribution to total output (%)   54
Figure 22: Lower Fars project layout    59
Figure 23: GCC ethylene capacity, 2011   69
Figure 24: Law No   7 of 2008 – Joint Stock Company (JSC)    78
Figure 25: The PPP framework: typical contractual structure   79
Figure 26: Installed capacity and peak load, 2006-12   88
Figure 27: Installed power capacity, 1979-2011   89
Figure 28: Breakdown of energy consumption by sector, 2011 (%)   92
Figure 29: The power sector’s fuel mix, 2010 (%)    92
Figure 30: Projected fuel consumption by the power sector, 2010-30    95
Figure 31: Planned MEW spending on projects, 2011-14   98
Figure 32: Peak desalination demand and expected available capacity, 2010-20   100
Figure 33: Solar thermal electricity generating potentials   103
Figure 34: Proposed output levels from the Al-Abdaliya ISCC   104
Figure 35:The planned wastewater network, 2016   107
Figure 36: The Sulaibiya wastewater treatment plant      109
Figure 37: TSE produced by STPs, 2010   112
Figure 38: Estimated cost of water production and tariffs, 2009   113
Figure 39: Value of contracts awarded in the construction sector, 2006-12   115
Figure 40: Breakdown of construction contracts awarded, 2006-12 ($m)   116
Figure 41: Top seven largest contractors by value of work under execution in the construction sector, June
2013    117
Figure 42: Top five clients by value of construction work under execution, June 2013   117
Figure 43: Breakdown of planned and un-awarded construction contracts   118
Figure 44: The Third Kuwait Masterplan Review, 2005   119
Figure 45: Kuwait International airport, new terminal       131
Figure 46: Kuwait International airport expansion    133
Figure 47: Commercial ports   134
Figure 48: Bubiyan island development plan   136
Figure 49: Planned rail networks    138
Figure 50: Kuwait City metro The Kuwait Projects Market 2013
network   141
Figure 51: Kuwait future road projects   144
Figure 52: Subiya Causeway final alignment   145

Published By: Meed
Product Code: Meed1032


Did you find what you are/were looking for ? If not, read below and browse through other relevant pages for similar market research reports OR get in touch with us through the form/contact info in your right navigation panel and we’ll share relevant market report titles for you to explore.

Related Reports:

  • The Insurance Industry in Kuwait, Key Trends and Opportunities to 2017

    SynopsisThe report provides in depth market analysis, information and insights into the insurance industry in Kuwait, including:The Kuwaiti insurance industry’s growth prospects by insurance segments and c...

  • Kuwait Soft Drinks Review 2012

    SynopsisA competitively priced comprehensive overview of the key categories in the soft drinks market. SummaryWhy was the report written?Soft Drinks Review 2012 reports provide a comprehensive overview of soft drinks markets. Compiled from Cana

  • Kuwait Oil Markets, 2012

    Kuwait Oil Markets, 2012 Summary This profile is the essential source for top-level energy industry data and information. The report provides an overview of each of the key sub-segments of the energy industry in Kuwait. It details the market st

  • The Top 50 Construction Projects in the Middle East and Africa: Project Guide

    The Top 50 Construction Projects in the Middle East and Africa: Project Guide'' contains information on the scope of the top 50 construction projects including project overviews and locations. The report also details project ownership and ...

  • The Top 50 Construction Projects in North America: Project Guide

    The Top 50 Construction Projects in North America: Project Guide'' contains information on the scope of the top 50 construction projects including project overviews and locations. The report also details project ownership and funding, give...

  • The Top 50 Construction Projects in South and Central America: Project Guide

    The Top 50 Construction Projects in South and Central America: Project Guide'' contains information on the scope of the top 50 construction projects including project overviews and locations. The report also details project ownership and f...

  • The Top 50 Construction Projects in Europe: Project Guide

    SynopsisThe Top 50 Construction Projects in Europe: Project Guide'' contains information on the scope of the top 50 construction projects including project overviews and locations. The report also details project ownership and funding, gives full pro

  • The Top 50 Construction Projects in Asia-Pacific: Project Guide

    SynopsisThe Top 50 Construction Projects in Asia-Pacific: Project Guide'' contains information on the scope of the top 50 construction projects including project overviews and locations. The report also details project ownership and funding, gives fu

  • The Kuwait Projects Market 2012

    A comprehensive forecast and review of opportunities in Kuwait’s projects marketThere are more than $115bn worth of projects in Kuwait planned or announced as of early 2012, making it one of the most promising future ...


Why ReportsnReports.com?

  • 400,000 market research reports and growing.
  • Top Fortune 500 Organizations trust us for research data.
  • 24/7 support on call as well as emails.
  • Your Details are safe with us.
  • Free support for your research requirements.
  • Report Delivery: Email
  • Delivery Time:
    • Upto 24 hrs - working days
    • Upto 48 hrs max - weekends and public holidays

Research Support / Custom Research

If this business study does not have the data and information analysis you need, contact us with your research requirements. We explore available market research reports to map your needs and share report titles with you. Alternatively, we can also offer custom research that suits your budget and timelines. Share your information requirements here.
Connect With Us
Email: sales@reportsandreports.com Call : + 1 888 391 5441

Subscription Option

Using our subscription option, you get access to market research reports and industry data of Country Reports market as per your needs. Get the best of Country Reports research reports by utilizing your research budgets in an optimum way.

More about our Subscription option
Email Alerts

Get Email alerts about market research reports from industries and publishers of your interest:

Live Chat
Live Chat by Comm100