Kuwait Real Estate Report 2016 - Business Monitor International - Industry Reports

Kuwait Real Estate Report 2016

Kuwait Real Estate Report 2016 - Business Monitor International - Industry Reports
Kuwait Real Estate Report 2016
Published Apr 23, 2016
67 pages — Published Apr 23, 2016
Price US$ 1,295.00  |  Buy this Report Now

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BMI View: Over the long term the Kuwaiti real estate sector continues to provide enticing opportunities. The country enjoys immense oil wealth and high GDP per capita, while government initiatives are supporting an increasingly dynamic private sector. ...We expect the economy to continue to grow at a moderate pace between -.- and -.- for the next several years, supported by the many advantages that Kuwait continues to possess, but held back by instability in the wider region and lower demand for oil internationally. In terms of commercial real estate, this will mean that supply will continue to exceed demand for the next several years as projects currently under development reach completion, and we are forecasting rents to remain constant through ---- before beginning to rise again in ----. Declining oil revenues pose the greatest risk to the retail real estate sector. ...Declining oil revenues pose the greatest risk to the retail real estate sector. Although we are projecting rising incomes to support a buoyant retail sector over the long term, the short term outlook is quite different.

...If falling government revenues result in declines in transfer payments and other benefits to Kuwaitiu citizens, they will be forced to make corresponding reductions in their spending habits. Regional instability and violence may also deter a portion of the expats who make up -- per cent of Kuwait s workforce, also driving down consumer spending, although it is worth noting that roughly one third of them come from other countries within the region and thus may not have any safer alternatives. ...As a centre for financial services in the heart of a region economically dominated by oil production, the industry will surely suffer some knock-on effects from declines in the price of oil. On the other hand, Kuwait has one of the lowest break-even prices in the world for its oil production, at USD--.- per barrel, and the government has over the years accumulated a substantial sovereign wealth fund, leaving the country in a sound financial position even in the case of prolonged low oil prices. Lower oil prices will encourage the government to further expand its initiatives to develop the private sector beyond extractive industries, with the financial services industry a likely beneficiary. ...Companies will benefit greatly from declining oil prices, and particularly the effects that US shale gas production is having on various hydrocarbon based industrial inputs. However, as energy was already heavily subsidized in Kuwait for both Kuwaiti nationals and expats, companies located there stand to gain less from falling oil prices than do their international competitors, and as such, relatively speaking

...Firms from other sectors including hydrocarbons are starting to diversify into real estate. In the long term, retail may expand due to strong growth in private consumption. ...

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Business Monitor International - Industry Reports—Established in 1984, Business Monitor International is a leading online publisher of specialist business information on global emerging markets. Business Monitor's range of quarterly services covers political risk, finance, macroeconomic performance, outlook and forecast, industry sectors and the business operating environment. Each Industry Report has been researched at source, and features latest-available data covering production, sales, imports and exports; 5-year industry forecasts through end-2012; company rankings and competitive landscapes for multinational and local manufacturers and suppliers; and analysis of latest industry developments, trends and regulatory changes.

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Business Monitor International - Industry Reports. "Kuwait Real Estate Report 2016" Apr 23, 2016. Alacra Store. Apr 19, 2018. <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Kuwait-Real-Estate-Report-2016-2026-1031>
Business Monitor International - Industry Reports. (2016). Kuwait Real Estate Report 2016 Apr 23, 2016. New York, NY: Alacra Store. Retrieved Apr 19, 2018 from <http://www.alacrastore.com/storecontent/Business-Monitor-International-Industry-Reports/Kuwait-Real-Estate-Report-2016-2026-1031>
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