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Kuwait's project market witnessed a sharp decline in activity during the first quarter of 2024, raising concerns after a strong performance in 2023.
According to a quarterly brief issued by the National Bank of Kuwait (NBK) on Monday, the value of awarded projects in the first quarter plunged by 78 percent compared to the previous quarter and 80 percent year-on-year, reaching a mere 98 million Kuwaiti dinars ($318 million).
The report highlights that only a few infrastructure projects, such as those related to Al-Mutlaa and Sabah Al-Ahmad cities, showed any progress during the quarter.
It said the first quarter figure marks the lowest in two decades, though seasonal factors like Ramadan might have contributed alongside a general slowdown.
The NBK report expressed optimism about the remainder of 2024, citing positive developments surrounding major projects like the Al-Zour IWPP phases 2&3, valued at KWD1.2 billion ($3.9 billion) and the pipeline of city projects linked to the Public Authority for Housing Welfare (PAHW).
The report cited construction intelligence provider MEED, which forecasted total project awards in Kuwait to reach KWD6.3 billion ($20 billion) by the year's end.
(Writing by SA Kader; Editing by Anoop Menon)
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