Kuwait construction sector facing mass closures due to COVID-19 lockdown

Kuwait Business Impact Survey finds that 39% of construction related businesses have shut down operations since lockdowns instituted

Approximately 39% of businesses involved in the construction, contracting and architecture sector have shut down operations since Kuwait instituted lockdowns to reduce the spread of the COVID-19 virus in March 2020, a new survey has revealed.

According to a Business Impact Survey, published by Bensirri PR (BPR), an independent corporate, financial and political communications firm based in Kuwait, nearly 31% of businesses had a revenue drop of more than 80%, but were still operating when the survey was conducted.

The Kuwait Business Impact Survey (KBIS) gathered key insights from 498 Kuwaiti businesses that were profitable in 2019 across 13 different sectors, and provides decisionmakers with a direction to better understand policy decisions surrounding the future and sustainability of the Kuwaiti economy in a post-COVID-19 environment, a statement from BPR said.

Conducted between April 24 and April 28, 2020, during the partial curfew period and prior to the full lockdown announcement that came into effect on May 11, 2020, the survey is the only COVID-19 related Business Impact Survey conducted in Kuwait, and is available in full and free of charge on, the statement added.

As many as 45% of Kuwaiti business owners said that they have suspended or shutdown their businesses, while another 26% said that they’re on the verge of collapse after seeing revenue drop by more than 80%.

With full curfew enacted in Kuwait on May 11, more closures are expected, the survey warned.

Furthermore, 32% of respondents admitted to having adjusted employee hours or reduced salaries, in clear violation of Kuwait’s labour law. 15% have already started laying off staff instead of waiting for legislation to pass as Kuwait enters its third month of the crisis, it was found.

Now into their third month of working capital pressure, 56% of business owners/CEOs said that they cannot afford to cover their fixed costs for another two months under the new status quo.


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