Kuwait Loses Industrial Projects to Neighboring Countries as Available Land Becomes Scarce

---

Researched by Industrial Info Resources India (New Delhi, India)--A scarcity of industrial land in Kuwait has caused multiple projects to be moved or to be scheduled to move to adjacent countries. This is impacting the overall industrial and economic growth Kuwait and has only recently been noticed by the government.

The root of the problem involves less allocation of land, the high cost of available land, and lengthy and complicated procedures for acquiring industrial activity approvals. According to the Industrial Union of Kuwait, a recent 50% hike in the cost of industrial land stemmed from an uneven distribution in the industrial sector. The country also lacks sufficient arrangements for other services, such as easy access to feedstock (gas) and power, which are required for any industry to run operations smoothly.

Kuwait's industrial loss is a gain for Saudi Arabia and Qatar, as most of the projects are moving to these countries. A previously planned joint venture project between Qurain Petrochemical Industries Company (South Sabahiya, Kuwait) and United Industries Company (KSE:UIC) (Al Saheed, Kuwait), which involved setting up two units of polyethylene terephthalate and purified terephthalic acid in Shuaiba, Kuwait, has been moved to Jubail 2 in Saudi Arabia.

The change of project location was largely because land acquisition procedures can be completed in just a couple of days in Saudi Arabia. Considering the polymer needs and growth of the plastic industry worldwide, the movement of projects due to such reasons is a major loss for any country in terms of both industrial and economical growth.

View Plant Profile - 3024333
View Project Report - 300030785 300030773

Industrial Info Resources (IIR) is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. IIR's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities.