Financial CW RESEARCH: KUWAITI CEMENT OUTLOOK POSITIVE ON PUBLIC INVESTMENT AND PRIVATE HOMEOWNERSHIP 14 December, 2020 SHARE THIS ARTICLE Share Tweet Post Email MOST READ Financial Caribbean Cement income rises in 2024 Strong financial results despite challenges and May 08, 2025 Mergers & Acquisitions Cherat Cement plan to acquire majority stake in Rafhan Major deal planned in the agro-processing May 08, 2025 CW RESEARCH: KUWAITI CEMENT OUTLOOK POSITIVE ON PUBLIC INVESTMENT AND PRIVATE HOMEOWNERSHIP 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 the Kuwaiti government's public investments, leading to a 1.2% decrease in cement consumption in 2016. ÔÇ£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 importsÔÇØ, noted Tea Vukicevic, CW Research's Associate Analyst. The combination of lack of natural resources and rapid 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 two percent, from 2017 to 2021. The infrastructure sector outlook is moderately positive over the next few years, driven by the 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, ÔÇ£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 cementÔÇØ. Find out more about the report here Sign in Don't have any account? Create one SHOW Forgot your username/ password? Log in Terms Of Service Privacy Policy This site is protected by reCAPTCHA and Terms of Service apply Sign in as: User Registration * Required field Sign In Information Personal Information Agree Yes No Terms of Service:You consent that we will collect the information you have provided us herein as well as subsequent use of our platform to render and personalize our services, send you newsletters and occasionally provide you with other information. * Fields marked with an asterisk (*) are required. Register SaveCookies user preferencesWe use cookies to ensure you to get the best experience on our website. If you decline the use of cookies, this website may not function as expected.Accept allDecline allCW GroupNewsAcceptDecline