Page 9 - Kuwait-Three-Years-Business-Outlook-2019-2020-2021

Kuwait Economy KHOA

Future Ambitions High With Large Share Of Projects • Finally, growing fixed capital formation will provide tailwinds to
In Planning Stages overall growth. Despite lower oil production growth, rising oil

GCC States – Combined Value of Infrastructure Projects by Status, %
Total prices will encourage the government to increase spending on
capital and infrastructure projects.

• Several large-scale projects are set to be completed by end-2019,
such as the Clean Fuels Project which consists of upgrades of the

Mina Abdullah and Mina Al- Ahmadi refineries.

• Net Exports Outlook: Kuwait is expecting several refineries to be

completed over the short-term, most notably the Al-Zour refinery
in 2020. This will substantially bolster the country's refined oil

production capacity, enabling Kuwait to benefit from high value-
added production.
• That said, the country's ongoing construction projects related to

Kuwait Vision 2035 combined with strong consumption growth will,
to some extent, mitigate the revenue gains.

• Plans to build Silk City also appear to be moving forward – the government has recently unveiled plans to build an international

airport, rail network and logistics & industrial hub as part of the first phase of the mega project.
• These strong ambitions are reflected in Kuwait's infrastructure pipeline which has a large share of projects still at planning stages

compared to the rest of the GCC. That said, we remain cautious that red tape and bureaucracy will continue to keep
implementation risks elevated – indeed, Kuwait ranks lowest in the GCC on our proprietary Operational Risk Index. 9