Kuwaiti cement outlook positive on public investment and private homeownership

Greenwich (CT), USA, May 8, 2017 – According to CW Research’s “2017 Kuwait Cement Market Report”, cement demand in Kuwait expanded at a buoyant CAGR of 18% between 2010 and 2016. The increase in consumption was sustained by a strong pipeline of governmental infrastructure projects, founded through capital sourced from oil revenue. Conversely, the international oil price crisis took its toll on Kuwaiti government’s public investments, leading to a 1.2% decrease in cement consumption in 2016.
“Despite consumption almost tripling from 2010 to 2016, domestic suppliers were not able to keep up with the growth. Domestic supply-demand is, thus, imbalanced, making Kuwait reliant on imports”, noted Tea Vukicevic, CW Research’s Associate Analyst.
The combination of lack of natural resources and a rapidly growing demand has created a market reliant on cement importers. With only two domestic manufacturers, Kuwait Cement Company and ACICO, a significant share of cement in the market is imported in bags, either directly or as clinker for grinding through dedicated cement import terminals.

Public projects and affordable residential housing sustain positive forecast

The conservative optimism currently surrounding the future international crude oil prices in OPEC countries prevents CW Research from forecasting a cement demand increase above 2%, from 2017 to 2021.
The infrastructure sector outlook is moderately positive over the next few years, driven by Kuwaiti government’s numerous planned projects and increasing homeownership affordability. Nonetheless, threats subsist, as Kuwait’s undiversified GDP structure poses challenges to the capital necessary to invest in infrastructure expansion.
As Tea Vukicevic stresses, “the slim forecast consumption growth is encouraging enough for cement manufacturers to add new capacity on the market. As a result, CW Research projects that Kuwait will become less dependent on foreign-sourced cement”.

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For more information, placing an order, or interview inquiries, please contact Liviu Dinu, Market Services & Marketing Consultant, CW Group, by phone at +40-744-67-44-11, or e-mail at ld@cwgrp.com.

About the Report
The CW Group Research’s Cement Industry Country Report series meet the country-level cement market research needs of small and large businesses, analysts and governments. The reports cover cement volume trends in detail, analyzing trade flows, cement demand and production (historical and outlook), per capita consumption, and the competitive landscape, including company profiles, cement production facility details, including past and announced brownfield production increases and greenfield projects. Cement Industry Country Reports also cover demand drivers, including macro-economic and construction sector dynamics, for the specific country. Industry reports are presented in an objective, easy to understand format, providing hard-to-find answers to top market research questions.
The comprehensive CW Research’s Kuwait Cement Market Report provides an in-depth and data-oriented analysis of the cement market in Kuwait. This cement industry report provides a detailed review of the cement market in Kuwait, with regional perspectives, discussion of demand drivers, as well as cement tonnage volume and price trends in the country, which provides a national five-year demand forecast.

More information about the report can be found here: http://www.cwgrp.com/research/research-products/country-reports

About CW Group
The Greenwich (Conn.), USA headquartered CW Group is a leading advisory, research and business intelligence boutique with a global presence and a multi-industry orientation. CW Group is particularly recognized for its sector expertise in heavy-side building materials (cement), light-side building materials, traditional and renewable power & energy, petrochemicals, metals & mining, industrial minerals, industrial manufacturing, bulk cargo & shipping, among others. We have a strong functional capability, grounded in our methodical and quantitative philosophy, including due diligence, sourcing intelligence, feasibility studies and commodity forecasting. www.cwgrp.com

Liviu Dinu
Market Services & Marketing Consultant
M: +40-744-67-44-11
E: ld@cwgrp.com

PO Box 5263, Greenwich, CT 06831, USA

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