KFH keeps positive outlook for construction industry
The Kuwaiti Finance House announced in a recent report that it has maintained a positive outlook for the Kuwaiti construction industry, on the back of strong domestic demand in the economy and a pick-up in government capital spending, Kuna reported. “While we remain fundamentally cautious about the country’s medium-term investment outlook, we note that higher growth in bank lending over the last few months of 2013 and signs of progress on some of Kuwait’s development projects have improved growth prospects,” the KFH said in its latest report. Since the election of a new parliament in July 2013, the government has attempted to move forward on long stalled infrastructure development projects and implement increases in public capital expenditure. This seems to be paying off; looking at government expenditure on construction, loans for private sector construction projects and remittances sent by Pakistani workers, “We note that there has been a generally improving picture across the board, in line with estimates that the industry grew by 3.9% y-o-y in 2013.