A new study found that the Kuwaiti construction industry value grew at a compounded annual growth rate (CAGR) of one percent from 2007 to 2011, Saudi Gazette reported. The Construction in Kuwait: Key Trends and Opportunities to 2016 study also forecasted infrastructure construction to grow a CAGR of 8.85 percent to USD5.4 billion in 2016, while residential construction is poised to increase a CAGR of 8.31 percent over to USD2.4 billion.
Infrastructure construction constituted a 48.1 percent share of the construction industry value in 2011 and grew at a CAGR of -1.29 percent during the review period.
Construction growth was driven by increased investments in the industrial and commercial markets.
The residential construction growth was mainly boosted by demand which pushed the market to grow a CAGR of 6.85 percent during the review period.
Kuwait's residential market fared better than other markets, despite the 2009 global financial crisis impact on the overall sector, the study indicated.
The commercial construction market, which constituted a 17.4 percent share in the Kuwaiti construction industry, grew at a CAGR of 1.26 percent during the review period.
The study said that the office building category is expected to grow a CAGR of 4.38 percent over the forecast period, while the overall commercial construction market is expected to advance a CAGR of 4.26 percent.
Institutional construction, the smallest construction market in the industry recorded a CAGR of 0.45 percent during the review period, helped by the high priority attached to the construction of educational and healthcare facilities in Kuwait.
The educational and healthcare sectors are expected to grow a CAGR of 3.69 percent over the forecast period.