Kuwait Quarterly Newsletter – Issue 17 Economy & Projects Update

We are pleased to share the latest edition, featuring an overview of macroeconomic indicators, financial market trends, and key sector developments through Q1 2026.

Key developments highlighted in Issue 17 are as follows:
 

  • Record growth in contract awards: Despite a regional slowdown, Kuwait recorded robust growth in contract awards, reaching USD 8.10 billion in Q1 2026, the highest quarterly level since Q1 2021. This marks a 5.5x year-on-year increase and the strongest growth among GCC countries.
  • Improving procurement pipeline: Kuwait's pre-execution projects increased to USD 133.05 billion in Q1 2026, showing a strong structural shift away from early-stage studies toward more advanced stages, including Design, FEED, and Pre-qualification.
  • Power and water upgrade plans: Kuwait's Ministry of Electricity, Water & Renewable Energy (MEWRE), through KAPP, plans to launch 115 upgrade tenders in the 2026-2027 fiscal year across six power generation and water desalination plants, including Doha, Subiya, and South Zour.
  • Grand Mubarak Port Phase 2 milestone: Kuwait and China have signed a major KD 1.219 billion (USD 4.1 billion) agreement with China Communications Construction Company to develop quay walls, container terminals, and infrastructure for Phase 2 of the Grand Mubarak Al-Kabeer Port.
  • USD 1.5 Billion oil pipeline awards: Kuwait Oil Company (KOC) awarded four major pipeline packages worth a combined USD 1.46 billion to local contractors (MECC, Heisco, and Combined Group) to support its long-term strategy to expand crude infrastructure.
  • Drainage infrastructure initiative: The Ministry of Public Works (MPW) set a 21st April deadline for a major KD 222 million (USD 718 million) tender to develop rainwater drainage and stormwater networks across residential areas such as Sabah Al Ahmad and Al Khairan.
  • Shuaiba oil pier subcontract: Gulf Dredging & General Contracting Company (a subsidiary of Heisco) secured a USD 172 million subcontract covering civil, marine, and mechanical works for the South Arm facility expansion at the Shuaiba oil pier.