Labour shortage in Kuwait fuels construction delays, says report
KUWAIT CITY, 3 days ago
The construction sector in Kuwait is facing many challenges, the most important of which is the decline in the launch and award of projects and the signing of contracts in the last five years, reported Arab Times, citing sources.
There have also been delays in payments owed to contractors. The sector is also grappling with the worsening issue of rising construction costs, driven by a labour shortage that has led to an unprecedented increase in wages, they stated.
Real estate experts have confirmed that the labour shortage is not only a matter of quantity but also quality.
The real estate market has witnessed the departure of a large number of experienced workers over the past two years, following the end of the Covid-19 pandemic.
Meanwhile, local banks’ financing for the construction sector for residents and non-residents plunged by KD61.8 million ($200 million) every month in December.
This 12.1% drop has brought down the funding to KD445.5 million compared to KD507.3 million in November, stated the Arab Times report.
However, financing increased on an annual basis by KD211.4 million (90.3%) compared to KD234.1 million in December 2023.
The total financing provided by banks to the construction sector in 2024 amounted to approximately KD 3.86 billion, it added.
