Kuwait Grants Contracts Valued at 1.8 Billion Dollars during the First Six Months of 2025
In the latter half of 2025, Kuwait is witnessing a significant surge in large-scale infrastructure projects, marking a promising recovery for the construction sector. The government's capital expenditure is driving this growth, with a focus on transport, urban housing developments, healthcare facilities, and utilities.
The transport sector is at the forefront of this expansion, with plans for major rail and port expansions. One of the largest planned but unawarded transport projects is the Mubarak Al-Kabeer Port expansion, which is set to bolster the country's maritime capabilities. In August, the government had already awarded contracts exceeding $1.8 billion, with South Saad Al-Abdullah City seeing significant investment, totaling $847 million and involving major firms like China Gezhouba Group and Kuwait Processing and Construction Company.
Urban development remains a priority, with projects like Al Sabriya City, planned to have 55,000 units, advancing under government supervision and inspection. Technical and investment cooperation with Chinese state companies is also on the horizon for these projects.
Healthcare infrastructure is also receiving attention, with the construction of an 800-bed children's hospital in the Sabah Health District and a 700-bed university hospital at Sabah Al-Salem University. These new hospitals are aimed at enhancing Kuwait's healthcare capacity in line with national development goals and will span 224,859 square meters combined.
The Kuwait Authority for Partnership Projects (KAPP) is also preparing to tender 7-8 projects soon, including the Al-Khairan Independent Water and Power Project (IWPP), indicating ongoing expansion in utilities infrastructure.
Diplomatic and business ties are strengthening with regional partners such as Egypt, where high-level delegations seek participation in Kuwait's infrastructure, housing, energy, and transport projects, including integration into the GCC rail network.
Despite an 80% drop in construction activity early in 2025 compared to the previous year, sectors are expected to recover, with projects worth $700 million currently in the tender phase, including new developments in Mutlaa Residential City and Sulaibikhat Bay. The transport sector is projected to be the second-largest project market in Kuwait in 2025, with contract awards surpassing $1 billion.
In summary, Kuwait is advancing a wide array of large-scale infrastructure projects in the latter half of 2025, backed by significant government capital expenditure and active international partnership engagement. These projects are poised to reshape the country's transportation, urban development, healthcare, and utilities sectors.
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