Kuwait will seek to boost infrastructure spending in 2017 through a mix of government spending and private sector investment, according to a recent research note from BMI Research. Risks remain, however, particularly around government’s poor record of follow through on promised investment.
“Kuwait’s 2017 budget will seek to blend substantial government support with growing levels of private investment in support of its infrastructure development plans,” said BMI Research.
“Our optimism is tempered, however, by the government’s chequered history with regard following through on budget pledges and a suboptimal operating environment that will impact the attractiveness of the market for private investors.”
According to BMI Research, Kuwait will allocate US$15 billion for infrastructure projects in the coming fiscal year with 49% of that coming directly from the government. The state-owned oil sector is expected to contribute a further 33%, while regulatory reform “would catalyse an uptick in Kuwait’s public-private partnership market.”
Read the article online at: https://www.worldcement.com/africa-middle-east/24022017/kuwait-plans-to-boost-infrastructure-spending/