According to a report by GlobalData, Kuwait's construction sector's output is expected to expand by 6.6% in real terms this year, supported by investment in the energy sector, government efforts to increase oil and gas production, and investment in infrastructure development.

In July 2023, the government announced a four-year development programme, which included 107 major projects across various sectors. Under the plan, the government will operate several major projects, including the Gulf Railway project and the new Kuwait Airport Terminal 2, and increase the number of flights in and out of Kuwait from 240,000 to 650,000 by building three new runways by 2027.

Political unrest and a decline in the real estate market will pose a downside risk to the construction sector’s outlook in the short term.

GlobalData expects Kuwait’s construction industry to register an annual average growth rate of 3.9% from 2025 to 2028, supported by investment in renewable energy, transport, electricity, housing, and sports facilities, coupled with investment as a part of the New Kuwait 2035 National Development Plan.

Under this, the government plans to invest over KD350m ($1.1bn) in the construction of several sports projects across the country. Growth will also be supported by the government's plans to boost oil production in the country from 2.9 million barrels per day (b/d) in 2023 to 4 million b/d by 2035.