Decline in Kuwait's construction projects sector: A drop of $14.9 billion, causing a slip to fifth place in Gulf rankings.
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Kuwait's projects market plummeted by a staggering $14.9 billion between May 16 and June 13, 2025, amounting to a 6.8% decrease. This drop shrank the total market value to $205 billion, pushing Kuwait to fifth place among Gulf Cooperation Council (GCC) countries in terms of active project market size [1].
Despite continued growth in Kuwait's non-oil sector, the overall projects market contraction suggests some sectors may have experienced slowdowns or completions in large project investments. The non-oil private sector in Kuwait experienced sustained growth in output and new orders, with employment levels surging at record highs. However, the market environment remained cautious, leading to a decline in output prices for the tenth consecutive month [2][3].
Contrarily, the Gulf Projects Index witnessed a third consecutive month of growth, with a significant 0.9% rise to $39.3 billion. The United Arab Emirates and Oman were the main catalysts, contributing a collective $92 billion to the index.../而且， восьми других рынков-государств Совета сотрудничества арабских государей (ГСЦ) показали сокращение, что потребовало от компенсации некоторых этих выигрышей [4].
The UAE spearheaded the growth, expanding by an impressive 7.6%, adding $72 billion to the index, primarily due to the announcement of a $40 billion artificial intelligence complex in Abu Dhabi by G42, a joint initiative with the U.S. government. Oman followed closely behind with a 7.1% increase, largely thanks to the revised valuation of the "Blue City" project and progress on the Duqm green ammonia plant, as well as a feasibility study for an Oman-Yemen electricity grid link [4].
Meanwhile, Saudi Arabia and Iran experienced steep declines, losing $16.7 billion and $12.3 billion, respectively, as completed projects were removed from the index. Interestingly, Kuwait and Bahrain were the only Gulf countries with May contract awards below the million-dollar mark [4]. Bahrain signed a $50 million road project, while Kuwait awarded three contracts in the construction and electricity sectors worth a combined $42 million [4].
In summary, while Kuwait's non-oil sectors and employment grew, the overall projects market contracted, possibly due to larger projects reaching completion or project revaluations. The growth in the Gulf Projects Index was primarily driven by expansion in non-oil activities like infrastructure development, robust employment growth, improvements in supply chains, and strengthened business sentiment linked to the real estate and industrial sectors in the GCC region [2][3].
[1] Source: MEED 2025 Report
[2] Source: Kuwait Private Sector Purchasing Managers’ Index (PMI) Report, June 2025
[3] Source: Kuwait Future Energy Report, May-June 2025
[4] Source: MEED Gulf Projects Index, June 2025
In light of the contractions observed in Kuwait's projects market, there might be a need for strategic investments in the finance sector to support ongoing business activities. The robust growth seen in the Gulf Projects Index, particularly in the UAE and Oman, could provide an opportunity for financial institutions to capitalize on the state of expansion in certain sectors like infrastructure development.
