Kuwait is expected to award $27b worth of contracts before year-end despite the significant slump in oil prices, indicating an expansion in Kuwait’s projects market as high as $255b in June. According to Trade Arabia, Kuwait awarded $2.7b worth of contracts in Q1 of 2016, bringing the total value of contracts awarded so far this year to $7.5b.
Thanks to its rich economy and the government’s five-year plan of public-private partnership schemes, the project market’s challenges are being contained despite low oil prices and lack of foreign direct investment interest, QKuwait informed. In addition to oil and gas projects, the water and power sectors are taking the bulk of share in the planned projects, while the transportation sector accounts for 34% of the value of planned projects in 2016.
In mid July, the Kuwaiti Ministry of Finance and state-run Kuwait Petroleum Corporation were reported seeking to privatize the oil services sector. The Kuwaiti programs aim at offering the shares to the citizens and thus strengthening their role and the private sector’s contribution to reduce the load on the state budget.