Executive Summary
Global economies are confronting higher inflation in 2022. Supply-chain disruptions and soaring commodity prices have significantly raised construction cost in Kuwait real estate, affecting timelines and investor sentiment. Across the GCC, transport costs and imported goods have surged, contributing to broader construction sector trends in Kuwait, where procurement delays and inflation are reshaping project schedules. However, while GCC inflation remains moderate compared to global levels, tax implications on Kuwait industries and input cost volatility continue to strain profitability, especially for small-scale developers. In the Middle East, 40% of respondents in a Turner & Townsend survey indicated that rising costs are impacting delivery, posing serious challenges to the development of SMEs in Kuwait that rely on predictable pricing and supplier networks. This report, as part of the Kuwait construction industry research report, provides detailed insights into factors influencing construction costs in Kuwait, including cement price fluctuations in Kuwait and volatility in other key materials.
