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alraiEconomy By | كتب خالد الحطاب |

$17.04 billion in Kuwaiti investments in the concrete and pipe industry

$17.04 billion in Kuwaiti investments in the concrete and pipe industry

Data from the Gulf Industrial Platform, operated by the Secretariat General of the Gulf Cooperation Council (GCC), reveals that approximately seven out of every ten dollars of total industrial investment in Kuwait is concentrated in the ready-mix concrete industry and the manufacturing of pipes, tubes, hollow shapes, and their fittings, with combined investments totaling around $17.04 billion, representing 68.1 percent of the total industrial investment of $25 billion.

The data indicates a clear dominance of construction and infrastructure-related industries within Kuwait’s industrial investment structure. The ready-mix concrete industry accounts for 50.02 percent of total investments, amounting to approximately $12.5 billion, while the pipe and tube manufacturing industry ranks second with $4.53 billion, representing 18.12 percent.

According to the platform’s data, the total number of factories in Kuwait is projected to reach 856 in 2026, with the industrial sector employing approximately 156,878 workers, and total industrial investment standing at around $25 billion.

Regarding the distribution of factories by investment size, the data shows a significant concentration of capital in large industrial establishments. There are 151 large factories out of a total of 856, yet they account for approximately $24.05 billion in investments, equivalent to about 96.2 percent.

Conversely, there are 174 medium-sized factories with investments nearing $603.3 million, and 531 small factories with investments estimated at $346.7 million. Together, small and medium-sized enterprises (SMEs) constitute approximately 82.4 percent of the total number of factories but hold only about 3.8 percent of total investments. In contrast, large factories, which make up 17.6 percent of the total, account for more than 96 percent of the invested capital.

Investments classified under the “unspecified” category rank third, with a value of approximately $1.74 billion, representing 6.96 percent of total investments. This is followed by welding workshops, with investments of around $1.51 billion, accounting for 6.04 percent.

Additionally, investments in the air conditioning ducts and accessories industry amount to approximately $766 million, while investments in the manufacturing of pipes, hoses, plastic tubes, their fittings, and accessories reach about $334.3 million. The polypropylene industry records investments of around $321.5 million, while investments in specialized chemical industries listed amount to approximately $262.5 million.

The composition of investments demonstrates that construction and infrastructure-related industries occupy a substantial share of the industrial investment base, ranging from ready-mix concrete and cement products to pipes and tubes, and extending to metal products and air conditioning ducts.

Conversely, the highest-investment activities also include industries with chemical and plastic characteristics, reflecting diversity in the industrial base alongside the heavy concentration in construction-related activities.

The Gulf Industrial Platform classifies industrial establishments into three categories based on investment size: small enterprises with investments not exceeding $2 million; medium-sized enterprises with investments greater than $2 million but less than $6 million; and large enterprises with investments of $6 million or more.

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