Kuwait cement demand is forecast to grow by 2% between 2017 and 2021, according to a new report from CW Research, well below the CAGR of 18% seen between 2010 and 2016. It does however show a return to growth, after a 1.2% decrease in demand last year.
“The slim forecast consumption growth is encouraging enough for cement manufacturers to add new capacity on the market,” said Tea Vukicevic, Associate Analyst at CW Research. “As a result, CW Research projects that Kuwait will become less dependent on foreign-sourced cement.”
Kuwait has been import dependent following the boom in demand between 2010 and 2016, which outpaced the ability of the two domestic suppliers, Kuwait Cement and ACICO, to meet demand. The country also has limited natural resources to support domestic production, noted CW Research.
Cement demand growth will be driven by planned government projects and increasing homeownership. The country remains dependent on the oil sector to fund government spending, adding risk to the forecast should oil prices fall, as was seen in 2016.
Read the article online at: https://www.worldcement.com/africa-middle-east/16052017/a-return-to-growth-in-kuwait/