Kuwait awarded projects worth a record $32bn last year and plans to raise the figure in 2016 despite a sharp decline in oil revenues, an economic report said on Monday.
Last year’s awards were 20% higher than in 2014, National Bank of Kuwait, the largest lender in the emirate, said in a report.
Over half of the amount spent on projects in 2015 went to the oil and gas sectors, it said.
The awards include a $13bn contract to build a new refinery with a capacity of 615,000 barrels per day and a heavy oil production facility costing $4bn.
In the transportation sector, the government awarded a $4.3bn contract for the airport expansion, but the project has not yet been signed.
This year appears to be a bumper year with contracts worth $55bn expected to be signed before the end of 2016, NBK said.
The projects include a $3.3bn liquefied natural gas import terminal, a $7bn petrochemicals project and a natural gas development project worth $5.7bn, it said.
The government also plans to tender a large number of projects in the power, health and housing projects in 2016.
The investment spending spree comes although Kuwait is projected to post its first budget deficit due to low oil prices, after 16 consecutive years of windfall.
During those 16 years, the GCC state amassed fiscal reserves of over $600bn.
In February, parliament approved a five-year development plan that envisages spending $112bn between the current 2015-16 fiscal year and 2019-20.
Like other GCC states, Kuwait’s economy heavily relies on oil which contributes 94% of public revenues.
