Kuwait's $108 billion infrastructure boost

Kuwait City

It seems everyone in the Middle East region is investing heavily in their infrastructure, be it Abu Dhabi or Qatar. Now, Kuwait have announced that they will spend the next four years investing $108 billion into new cities and ports.

Speaking at the 15th joint meeting of Japan-Kuwait Businessmen Committee in Kuwait, Wael Jassem Al-Sagar, Co-chairman of the Kuwaiti side stated that public-private sector partnerships will increase the role played by private sectors changing the local economic landscape providing a host of projects for outside investment.

These projects that no doubt Japanese investors would actively contribute to, include the construction of railway system, seaports, new industrial cities and investments in power, water, oil, health and education sectors.

Co-operation

"Our ties are growing rapidly and Japan is number five in terms of our commercial relations with other countries," he said. "Japan has the superior capability, knowledge and experience to carry out projects. There are lots of opportunities and Kuwait is ready to cooperate with Japanese companies," he added.

Meanwhile, Kuwait's state-run Petrochemical Industries Co's have announced a planned petrochemical plant that will cost about $5 billion.

Once completed, the plant will produce over 1 million tonnes per year of ethylene and is expected to be operational by 2015.

It is an interesting change of pace for Kuwait who, up until recently, was content to survive on petrodollars and cheap credit. However, investment in infrastructure and aggressively purchasing assets such as property and stocks has seen its financial markets become more stable.

Relevant articles:

Abu Dhabi - top GCC infrastructure spender | Abu Dhabi's $2bn power need | Abu Dhabi International Airport seeks bids

Timon Singh

Timon Singh is a graduate of Liverpool University where he received a degree in Social and Economic History. He has previously worked for BBC Magazines on BBC Who Do You Think You Are? Magazine, the publication for the popular genealogy show.

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