Industrial Construction Opportunities Kuwait - Find all latest market reports like Construction industry Kuwait, Commercial Construction market Kuwait, Residential Construction Growth in Kuwait, Major construction companies Kuwait, Market opportunities construction sector Kuwait online at kenresearch.com
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The fall in oil prices worldwide has created a challenging situation for export-led economies such as Kuwait, where revenues from oil trade typically account for as much as 70% of the budget. In order to prevent an economic downturn and sustain the current GDP levels, the Kuwaiti government is planning to diversify and develop the manufacturing sector, and to enhance domestic demand/consumption in the construction sector. However, this growth model is threatened by the poor business environment in the country, which in turn can be attributed to its inadequate transport infrastructure, low ranking on the World Bank’s Ease of Doing Business Index, lack of skilled labor and a complex regulatory framework. Aiming to improve the business environment, the Kuwaiti Government has planned a total investment of USD 17.0 billion in various rail and road infrastructure development projects. For instance, it plans to use the Public Private Partnership (PPP) Model under the Gulf Cooperation Council’s (GCC) rail projects to build the 171.0 km long Kuwait Metro Rail by 2020. In addition, the government is also simplifying the regulatory framework for businesses, to encourage more people to become entrepreneurs. In this regard, new laws such as New Commercial Licenses Law and the Direct Investment Promotion Law have been introduced. Furthermore, to fulfill the skill gap, the government is working with private partners to develop world-class schools and colleges in the country.