Kuwait’s real estate sector provides modest support to local steel demand

Thursday, 29 August 2019 12:19:05 (GMT+3)   |   Istanbul

Kuwait has registered the total value of the real estate sales at KWD 1.88 billion ($5.9 billion) over the first six months of the current year, according to the report of the Kuwait National Bank. In particular, the residential sales in the country rose by 24 percent to KWD 790 million ($2.6 billion). The sales in the commercial sector increased by 25 percent in the first half of the year to KWD 300 million ($990 million). However, despite positive sales performance, the profits of the listed real estate companies in Kuwait lost 40.8 percent during the second quarter of 2019 to KWD 14.34 million ($47.3 million), according to the local media.

Real estate sector is of high importance for the country’s construction industry. According to the local sources, the Al Mutlaa City project, which is currently in its second phase, is the key driver for the real estate construction these days. The works within the investment are about 35-40 percent complete, the timeline for commissioning is 2023. In addition, Kuwait continues construction of the South Sabah Al Ahmad residential city and South Sabah Al Abdullah city. The investments provide support to the local demand for the building materials, including steel. Currently, domestic monthly consumption for rebar in Kuwait is estimated at around 90,000-100,000 mt, SteelOrbis has learned.

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