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Kuwaiti economy expected to grow by 5.8% in 2022 and about 3.8% in 2023
KUWAIT CITY, Dec 6: The construction equipment market in Kuwait has reached $306 million by 2021 and is expected to reach $450.4 million by 2028, at a compound annual growth rate of 5.76% from 2022 to 2028, according to a report by Dublinbased firm Research & Market, reports Al-Qabas daily. The report, which was prepared to assess the construction equipment market in Kuwait, including earthmoving equipment, road construction equipment and material handling equipment, expected that the share of the construction equipment market in Kuwait would reach 7,383 units by 2028.
Growth The growth in the construction equipment market is mainly attributed to an increase in government investment in infrastructure projects and their renewal; the support provided by the request from the oil sector and the construction plans in Kuwait to expand its power generation capacity in wind and solar complexes.
The Covid pandemic caused an increase in the cost of the construction equipment market in Kuwait due to the increase in the prices of building materials, the shortage of labor and transportation expenses. The price of materials also increased due to the increase in export prices by global producers with the import crisis caused by the pandemic. The earthworks sector has the largest share in Kuwait for construction equipment, as excavators accounted for the largest share in the earthworks sector in 2021. An increase in civil engineering and housing projects in 2021 would support the demand for excavators in Kuwait.
In 2021, the Kuwaiti government has increased investment in energy and climate infrastructure projects. The government has also shifted its focus on renewable and nuclear energy resources and has planned to invest $20 billion in upgrading the renewable energy industry by 2030. The rise in renewable energy projects has increased demand. on excavators and cranes in the Kuwait market. The report indicated that the increase in government investment in warehouses and logistics infrastructure led to the growth of the logistics and transportation services industry in the country in 2021, and there is a great demand for forklifts in the Kuwait market due to the growth of logistics services and the warehouse industry.
The report expected that economic activity in Kuwait would return to its pre-pandemic level by 2023. The Kuwaiti economy is expected to grow by 5.8% in 2022 and about 3.8% in 2023, supported by the growth of the construction sector and oil and gas. Kuwait has approved more than $60 billion for infrastructure, health, environment and energy projects, with 5 percent of partnerships with the private sector in 2022. The projects include 14 major public projects with a total value of nearly $59 billion and four partnership projects worth nearly $3.2 billion. The projects mainly include the expansion of the airport, the development of the Silk City, the railway network across Kuwait, the railway link with neighboring Gulf countries and the clean fuel project, which is expected to contribute 2.5% of the country’s GDP. In addition, Kuwait authorized financing of $6.8 billion to develop a housing project south of Saad Al- Abdullah City, along with the renovation of Al-Mubarakiya Market.