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Kuwait Road Projects Snapshot 2009

Overview

Kuwait has a highly maintained roads and transportation system that has been developing rapidly over the years. The first Kuwait Master plan (1KMP) was developed in 1952 by the British firm Minoprio, Spencely and Macfarlane which laid the foundation for:

  1. Establishing the road network in Kuwait
  2. Reorganizing the old Kuwait City by dividing the city into different sectors such as investment, residential, commercial, government, utilities, and services.
  3. Designing the landscape areas in Kuwait by selecting the sites for park and recreational areas
  4. Designing the first ring road and highway systems in Kuwait

The plan has changed the face of the old Kuwaiti City by introducing new residential areas outside the old wall of Kuwait. The second master plan (2KMP) has been developed in 1977 by Colin Buchanan to develop the country’s infrastructure capacity to 2 million people by 2000. The 3rd Kuwaiti Master Plan (3KMP) was prepared by WS Atkins in 1997 which laid the grounds for Kuwait in 2015 with 3.5 million in population. The 1997 plan was revised in 2003-2004 by Colin Buchanan to develop Kuwaitis infrastructure plans up to 2030. The plan included all the transport and infrastructure requirements for Kuwait’s new roads, highways, and new residential cities.

The currently tendered projects fall under the last revision of 3KMP.The total square meter area of roads has increased by 5% in Kuwait in the past three years which is considered a positive development compared to the years before, Figure 3.

All road projects in Kuwait are handled by the Ministry of Public Works (MPW). The ministry supervises, monitors, and pays for all road projects required by the 3KMP or requested by the different organizations in Kuwait except for the Housing Authority of Kuwait. The Housing Authority handles its projects independently from the other government projects due to the massive amount of works, contractors, and areas they deal with for every single project. The Authority also tenders its projects independently from the Central Tendering Committee (CTC). Unlike the Housing Authority, the Ministry of Public Works tenders its projects via the Central Tendering Committee.

Figure 3: Kuwait Total Square Meter of Road Areas

Central Tendering Committee (CTC)

Since its establishment in 1966, the Central Tendering Committee has been responsible for tendering all the needs of the governmental authorities in Kuwait except for the independent government institutes such as the Housing Authority. The CTC is also responsible for qualifying companies and contractors for the different works and projects in Kuwait including road and infrastructure projects. Certain projects which require international experience would demand special qualification process that is done jointly between the CTC and MPW. The CTC has divided the local contractors and companies working in “outside” projects (Outside projects include roads, infrastructure, sewage, and bridges) into 5 categories:

  1. Group A: companies with a capital no less than 500,000 KWD and a minimum of 3 years in road works experience
  2. Group B: companies with a capital no less than 200,000 KWD and a minimum of 3 years in road works experience
  3. Group C: companies with a capital no less than 100,000 KWD and a minimum of 3 years in road works experience
  4. Group D: companies with a capital no less than 50,000 KWD and a minimum of 3 years in road works experience
  5. Companies that are registered in CTC but not classified

CTC developed its own standards in classifying companies which are based on four major elements:

  1. Company financial status
  2. Previous works and experience within the same field
  3. Company structure and staff skills and experience
  4. Equipment and tools registered by the company

Since many big scale road and infrastructure projects are currently being designed to be executed in 2011 and 2012, the Ministry of Public Works represented by the CTC is currently prequalifying international firms with local representation to work in the 2011 and 2012 projects. This prequalification process will prevent international companies to enter the tendering process if not prequalified by the 27th of September. The short listing process is different from what was practiced in the past years by MPW where international firms would need to prequalify for each single big scale project independently.

 2009 Projects

contact us at info@globalmarkets.com.kw to learn more about:

  • companies executing road projects in Kuwait
  • projects description
  • projects value
  • project duration

Current and Future Projects

contact us at info@globalmarkets.com.kw to learn more about:

  • winning companies of current and future projects
  • projects description
  • projects value
  • project duration
  • projects to be tendered

Subcontractors

contact us at info@globalmarkets.com.kw to learn more about:

  • to learn more about the legality of the relationship between main and subcontractors
  • current subcontractors executing projects in Kuwait
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Kuwait Hospitality Market (2009)

Abstract

Kuwait has been on the map of hospitality investment and development since the 1960s. International operators entered Kuwait early where Sheraton Kuwait Hotel & Towers was opened in 1966 in the heart of Kuwait City. Other hotel operators then followed such as InterContinental Hotel Group (IHG), Starwood Hotels, Rotana Hotels, and Accor Hotels. Local hoteliers have built strong relationships with the international operators over the years which made them increase their ties with more brands and hotels in the country. Local hotel operators have also played a role in the Kuwaiti market and gradually expanded beyond the Kuwaiti borders such as Safir International Hotels and Refad Hotels. Continue reading “Kuwait Hospitality Market (2009)”

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Do we need a hotel, an apartment, or both?

What makes an egg an egg? It is oval, white, and delicious, when cooked of course. What makes an orange an orange? It is round, orange, and full of vitamin C. What makes a hotel apartment a hotel apartment? It is a combination of a hotel room and an apartment; well it is a bit more complicated than that. Apartment hotels are apartments with hotel services that are commonly used for short term accommodation with facilities that are absent from hotel rooms such as kitchen, dishwasher, living room, and even a balcony. In the following lines I will be talking about different parts that play into the hotel apartment market in our region, so get your eggs and oranges ready because you will need them. Continue reading “Do we need a hotel, an apartment, or both?”

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Is it time for focused hotel developments?

Up until 10 years ago we shared very similar environments in the Gulf, our food is the same, our culture is the same, and our oil is the same. Then the Dubai project happened and opened our eyes to new sectors such as health care, education, sports, entertainment and more. People who target special locations for their facilities and services would always need a decent room to house them for a night or may be ten nights. Three players must coordinate to make such specialized hotel development success; the developer, the operator, and the location.

All real estate developers have one global goal they thrive to achieve which is making more money. Developers should invest more in market researches to better satisfy focused demand. Dubai for example is filled with resort and business hotels but have very few health care oriented hotels that cater for visiting patients and their families in Dubai Healthcare City. Hotel Developers have taken many steps to target focused customer groups by signing strategic management agreements with hotel operators to provide certain brands to the right markets. Al Hokair Group has signed an agreement with Hilton International to introduce the Hilton Garden Inn brand in the Kingdom to mainly target mall shoppers. Another focused hotel developer is Bu Khamseen Holding Group which owns the only branded hotel in Al-Sayeda Zainab City in Syria, The Safir Sayeda Zainab. The hotel mainly targets religious travelers seeking Al Sayeda Zainab shrine. The group is also the first international group to build a hotel in the holy city of Karbala which is most likely to be a Safir.

Customer are always looking for something familiar to relate to, and being in the Middle East customers would related strongly to a brand that respects the believes and culture of its guests. The majority of brands present in our countries are imported brands which lacks the identity to us, Muslims. On the other hand, local brands and local hotel developers have taken the initative to shape the local hotel industry by introducing Shaza Hotels and Rayhaan Hotels and Resorts by Rotana (alcohol free). Both brands can expand in uncharted markets especially Rayhaan which is a dry concept to the bone.

Saudi Arabia is a religious Destination, Doha is a sports destination, Dubai is a business destination, and Beirut is a holiday destination. Each destination has different hotel branding requirements. Each location has its different set of traveler profiles. Taking the holy city Mecca as an example, the city receives an average of two to three million Muslims during Al Hajj season only. Hotel developers can utilize the fact that there is a guaranteed minimum occupancy rates in the city therefore more hotels can be accommodated. Moreover, there are other destinations that can attract new hotels and developers but are still undiscovered. The holy city of Karabala and Al Najaf which both witness all year long massive religious traffic but they still lack the developers attention due to Iraq’s security issue. There is always room to expand successfully if brand and developer agree on the right piece of land.

Many destinations were mentioned in the above lines but not Kuwait. Kuwait lacks an identity that would motivate hotel developer to innovate. Kuwait has major hotel development companies that are introducing more and more new ideas to the regional market. IFA, NREC, United, and Tijaria are all companies that had tailored hotel projects for locations and visitors but have minimum participation in the local market. Companies and government should put their heads together to create a better Kuwait destination that can attract local investments first and then international.

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Market Research Recipe for Success

My mother is my market research inspiration. Being responsible for all the needs for us at home, my mother set a good example to when to provide food, love, and care to us. She knows what each one of us likes to eat for lunch and based on that, lunch is prepared and the same applies to breakfast and dinner. Chicken would always make us happy but not tomatoes. The same basics apply to market study, an hotelier should know what hotel to build to make his pockets bigger and bring in more customers. Continue reading “Market Research Recipe for Success”

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How to jump start your hotel development

Jump starting a car is fairly easy, but jump starting a hotel development is a bit more complicated. More things need to be put together than just another car battery and few wires to get a hotel project rolling. In principle, initiating a hotel development is no different from other property developments but some few tweaks here and there. Many developers in Kuwait were exposed due to their lack of understanding to the property development concept which made them misuse their resources. Financial, technical, and managerial skills are some key qualifications a developer would need to properly start a hotel development. Continue reading “How to jump start your hotel development”

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The rising star of hotels in mixed-use developments

Al Salhia Mall, Al Muthanna complex, Al Rayya Mall, Al Manshar Mall, and Marina Mall all have something in common. They are all mixed-use developments that have hotels integrated in them. Kuwait witnessed a big step forward in real estate development in 1978 with the introduction of Al Salhia mixed-use development by Al Salhia Real Estate Company. The property is not a hotel, office, or a mall, but it is a combination of all. Hotels are considered within the mixed-use development equation and are major players in the overall mix. What makes such hotel developments special and how can they be more profitable than a stand alone a hotel property? Continue reading “The rising star of hotels in mixed-use developments”

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The Business of Business Hotels

A shift in the category of hotels being developed in Kuwait was noticed in recent years. A Four Points by Sheraton, an Ibis Hotel, and a Courtyard Hotels started to show since 2003. Developers have noticed a niche market that has a potential of attracting the business type of demand. Two questions to be answered are; Why are these so called business and budget hotels categorized differently? and why have we not seen them before? Continue reading “The Business of Business Hotels”