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Kuwait’s Public Authority for Housing Welfare (PAHW) has awarded three contracts worth $847m covering the infrastructure development works in South Saad Al-Abdullah City in the Al-Jahra Governorate.

PAHW awarded three separate contracts covering various zones within the development, two of which, worth a combined $557m, were awarded to the Chinese firm China Gezhouba Group.

The first contract, worth $250m, covers infrastructure development works for residential areas in sectors including NFU1, NFU3, NFU4, NFU5, NFU6, NFU18 and NFU19-15.

The second contract, worth $307m, involves infrastructure development works for residential areas in sectors including NFU2, NFU12, NFU13, NFU14, NFU15 and NFU16-13.

PAHW awarded the third $290m contract to the local firm Kuwait Company for Process Plant Construction & Contracting. The contract involves infrastructure development works for residential areas in sectors including NFU7, NFU8, NFU9, NFU10, NFU11 and NFU17-11-12.

In December last year, MEED reported that PAHW had issued several new tenders for the project’s infrastructure development.

The tender notices were issued on 9 September with a bid submission deadline of 24 October.

GlobalData expects the Kuwaiti construction industry to grow at an annual average growth rate of 7.1% from 2025 to 2028, supported by investments in renewable energy, transport, and oil and gas projects, coupled with investments as part of the New Kuwait 2035 National Development Plan. Under this, the government plans to invest KD350m ($1.1bn) to construct several sports projects across the country.

The residential construction sector is expected to register an annual growth of 3.8% between 2025 and 2028, supported by the government’s plan to implement the Kuwait Vision 2030, under which the government plans to build 65,500 housing units through five projects by 2029.

The infrastructure construction sector is expected to grow at an annual average growth rate of 14.1% from 2025 to 2028, supported by government plans to upgrade Kuwait’s transportation network, particularly through road infrastructure projects.