COVID HAS WREAKED HAVOC ON THE CONSTRUCTION INDUSTRY, KUWAIT FACES LABOUR CRISIS

  • 21/02/2022

Kuwait City: The global coronavirus pandemic wreaked havoc on not only the health sector, but also other industries as countries struggled to contain the outbreak and communities altered their lifestyles to mitigate the consequences. Kuwait's construction industry was not spared from the effects. Experts have weighed in on the rise in building material prices, citing a lack of labour, transportation costs, and a drop in production as firms reduce capacity. Basel Al- Turkait, sales and marketing manager of National Industries Company, said that price increases could be attributable to an increase in disbursing residential lands, and that construction materials prices have risen by 30 percent. He stated that the corporation has a limited involvement in setting material pricing, claiming that plastic prices have increased by 50% due to increased demand and a scarcity of products on the market due to the closure of some sourcing plants. Talal Al- Shaibani, the General Manager of Al- Buraq Contracting, said that costs increased as a result of skilled workers' inability to travel during the pandemic due to travel restrictions in place at the time. 


Al-Shaibani stated that such an increase might have a negative impact on citizens and the building industry, implying the need for a method to regulate land allocation so that strong demand does not lead to price increases. He also mentioned that the surge in primary materials prices could be attributed to international producers raising export prices in response to the pandemic's importing difficulties. He explained that before the epidemic, the cost of constructing one square metre was expected to be KD 150 (USD 495), but now it is estimated to be KD 250 (USD 825), a 70 percent increase. He also stated that the cost of a cement bag has not increased significantly, since it used to be worth KD 1.1 and is now worth KD 1.25 as a result of the state subsidising cement companies. Al-Shaibani projected that prices will rise further as a result of new legislation requiring Kuwait Credit Bank to enhance its capital and disburse roughly 12,000 residential units this year.

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