Global Investment House executive says nation cannot move ahead with projects due to parliament wrangles
Kuwait’s political instability is affecting its construction potential, a financial expert has warned, citing a number of stalled projects in the Gulf Arab country.
“The political instability is directly impacting the short-term and long-term outlook for Kuwait,” said Fouad Darwish, head of brokerage services at Global Investment House.
There have been several large construction projects announced recently, including the recent extension of the Fashion Mall and the country is on-line to proceed with several big-ticket projects are together worth $110bn.
Currently, the nation has not been able to move ahead with projects as the government cannot sign deals for any projects that were not allocated for in last year’s budget.
The oil -rich Gulf state continues to be rocked by political instability. The turmoil has blocked development plans and paralysed the political system.
As recently as October 7, after months of political deadlock, Kuwait’s ruler Sheikh Sabah Al Ahmad Al Sabah ordered the dissolution of parliament – the sixth legislature disbanded since early 2006 – opening the way to a parliamentary election on December 1.
Kuwait is the third-largest construction market in the Gulf – behind the UAE and Saudi Arabia. However, about $61.47bn out of an estimated total value of $195.99bn in projects, are currently on hold or cancelled, according to a recent report.