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Market brief

Kuwait

The authorities that procure water infrastructure in Kuwait, how the deals are put together, and what is in the pipeline.

Reference profile for Kuwait

Overview

Kuwait has almost no natural freshwater, and its water market runs through two channels. Bulk power-and-water and large wastewater plants are procured as partnerships through the Kuwait Authority for Partnership Projects,1 while the ministries let desalination, storage and treatment works as EPC or design-build-operate contracts through the Central Agency for Public Tenders. The register tracks 20 schemes with US$ 13.7 bn of disclosed value, US$ 7.9 bn of it in projects not yet operating.2 The reference partnership is Umm Al Hayman, where the Ministry of Public Works signed the agreement in January 2020 and six banks lent US$650 million over 26 years.3 4 Two features shape the economics: partnership projects above KD 60 million need a public company with half its shares offered to Kuwaiti citizens,5 and the ministry puts production cost at ten times what citizens pay.6 7

Market snapshot

The commercial picture in Kuwait: the scale of the economy and the water sector, the investment climate, and where the near-term activity is concentrated.

4.9 M
people (World Bank WDI, 2025) · -0.7% a year
US$ 157.2 bn
GDP (2025) · +2.7% a year
US$ 13.7 bn
disclosed value of tracked projects (major projects register)
US$ 7.9 bn
of which pipeline (projects not yet operating)

Political stability

73/100 · High

World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Political stability; higher is more stable.8

Investment climate

62/100 · Upper-middle

World Bank Worldwide Governance Indicators score, 0–100 (absolute scale), 2025. Regulatory quality for private investment; higher is better.8

Key institutions

  • Ministry of Electricity, Water & Renewable EnergyMinistry
  • Ministry water distributionUtility

Financing & PPP

  • PPP frameworkActive (IWPP model)
  • Tracked projectsUS$ 13.7 bn disclosed value in our projects register, of which US$ 7.9 bn pipeline (not yet operating)
  • Active fundersSovereign budget (EPC works), Kuwait Investment Authority (equity), Commercial bank project finance (PPPs)
  • Climate adaptation planSubmitted to UNFCCC (February 2021; plan for 2019–2030)

Opportunities

  1. 01Next-generation IWPP desalination
  2. 02Solar-powered desalination
  3. 03Reuse for landscaping & industry
  4. 04Storage & network resilience

Key challenges

  1. 01Almost no natural freshwater
  2. 02Extreme energy intensity of supply
  3. 03Peak-demand growth
  4. 04Aquifer salinity
Sources and notes

Sources: Desalination share: Ministry of Electricity, Water and Renewable Energy, Statistical Year Book: Water 2023. Reuse share: FAO AQUASTAT Dissemination System, 2016 figures, retrieved 7 October 2026. No sector split or total water withdrawal is shown: FAO AQUASTAT’s latest observed split dates from 2002. Population and GDP: World Bank WDI, latest year (shown on each tile). Other figures: FAO AQUASTAT / national reports, latest available, approximate. Governance indicators: World Bank Worldwide Governance Indicators (2025).

Contracting authorities

The bodies that commission, regulate and operate water infrastructure in Kuwait. In Kuwait the Ministry of Electricity, Water and Renewable Energy is the public entity for power-and-water offtake and provides water services; the Ministry of Public Works operates wastewater assets;4 the Kuwait Authority for Partnership Projects procures the partnerships;1 and water tariffs are set by Law No. 20 of 2016.7

How deals are structured

The framework in Kuwait is Active (IWPP model), the schemes we track carry US$ 13.7 bn of disclosed value, US$ 7.9 bn of it in projects not yet operating, and the funders active in the sector include Sovereign budget (EPC works), Kuwait Investment Authority (equity), Commercial bank project finance (PPPs).

In Kuwait, bulk power-and-water and large wastewater plants are procured as partnership projects through the Kuwait Authority for Partnership Projects (Az-Zour North, Umm Al Hayman), while the ministries let desalination, storage and treatment works as EPC or design-build-operate contracts through the Central Agency for Public Tenders (Doha reverse osmosis stage 2, North Kabd, the Shuwaikh water distribution complex). The Finance & Economics hub sets out each model and where it has been used.

The projects register gives a partial view. Of the 20 tracked schemes in Kuwait, 4 name a concession or independent-producer structure in the finance note; the rest record only where the money came from, which is not the same as saying they were not concessions.

How to bid

Kuwait has one distinguishing feature a bidder must model from the start: the public float. Partnership projects costing more than KD 60 million require a public joint-stock company, with 50% of the shares allocated for subscription by living Kuwaitis.5 The authority has tendered advisory work on the subscription and transfer of the citizen shares in the Umm Al Hayman wastewater company, but that public offering has not yet taken place.1 9

How to bid
Procuring bodyThe Kuwait Authority for Partnership Projects, which has taken part since its establishment under Law No. 116 of 2014 in every stage from inception to financial close, with a Higher Committee above it taking the approvals.1 10
RouteExpression of interest, then pre-qualification, then bidding, following the authority’s own guidebook. Published project stages run from terms of reference for technical advice through procurement, pre-tendering and tendering to a signed project.11 12
Unsolicited proposalsExplicitly open to foreign as well as Kuwaiti persons. An idea needs a preliminary feasibility study and consistency with the state development plan; two higher tiers, an initiative and a distinguished project, require an integrated feasibility study and Higher Committee approval.13
Contract formA partnership agreement under Law 116 of 2014, with the project company incorporated under that law.3
Offtake counterpartyThe line ministry: the Ministry of Public Works signed the Umm Al Hayman partnership agreement.4
Public offeringShares allocated to Kuwaiti citizens are subscribed and transferred under a process the authority itself procures advisers for.1

The reference transaction is Umm Al Hayman: the project company was incorporated on 27 November 2019 and its commercial licence was registered on 26 December 2019; the Ministry of Public Works signed the partnership agreement on 23 January 2020, and a six-bank consortium signed a US$650 million, 26-year project loan by 29 January 2020.3 4

Regulatory intelligence

Regulatory status matrix
RegulationStatusYearNote
IWPP/PPP framework (KAPP)Active2010–IWPP companies under Law 39 of 2010; PPPs under Law 116 of 2014; Az-Zour North model; water and power bundled tenders.
Umm Al Hayman PPPOperational/expanding2019–500k m³/day wastewater BOT; project company incorporated November 2019, partnership agreement and US$650 m loan signed January 2020.
Tariff structurePartly reformed2016–Law 20 of 2016 raised rates for non-private users from 2017, including KD 2 per 1,000 gallons for investment and commercial users; Kuwaiti private homes remained exempt at 800 fils, and substantial subsidies remain.

Primary references: MEWRE and KAPP.

Projects

Tracked schemes in Kuwait, largest first. Each has its own page with the parties, the finance and a dated history.

Switch layer
OperationalUnder constructionIn tenderPlannedDot size follows disclosed value. Click a dot for the project page.
Sources and notes

Interactive map: switch views, hover or focus a marker, and use the +/− controls (or double-click, then drag) to zoom and pan. Geometry and data from the MENA Water Review library.

20 tracked in total. The full set, filterable, is in the major projects register.

Track record

Contracts on record in Kuwait, from the awards log and the major projects register, dated by commissioning where known.

Disclosed value by year

US$ bn of tracked awards in Kuwait carrying a published value

20040.39 bn20080.32 bn20110.19 bn20121.26 bn20161.8 bn20171.8 bn20250.24 bn20267.67 bn

1 further award in this sector has no value recorded in our register and is not in the chart.

Tracked awards in Kuwait
YearProjectWinning firmsUS$ m
2026Az-Zour North Phase 2 & 3 IWPPACWA Power, Gulf Investment Corporation developer4,100
2026 awardedDoha Seawater RO Stage 2VA Tech Wabag, Heavy Engineering Industries and Shipbuilding Company contractor372
2026 awardedNorth Kabd Wastewater Treatment PlantChina State Construction Engineering Corporation contractor3,200
2025 awardedShuwaikh Water Distribution ComplexKhalid Ali Al-Kharafi and Brothers contractor243
2018 on lineDoha Seawater RO Stage 1Doosan Heavy Industries & Construction contractorn/a
2017Umm Al Hayman Wastewater PPPWTE Wassertechnik, International Financial Advisors developer1,800
2016 on lineAz-Zour North Phase 1 IWPPENGIE, Sumitomo developer1,800
2012 on lineShuaiba North Power and DesalinationMitsui, Fisia Italimpianti contractor1,260
2011Az-Zour South reverse osmosis plantVeolia, Alghanim International contractor190
2008Shuwaikh seawater reverse osmosis plantDoosan Heavy Industries & Construction contractor320
2004 on lineSulaibiya Wastewater ReuseKharafi Group, Ionics developer390
Sources and notes

Years without a label are award years from the curated log; rows marked on line are dated by commissioning, from the projects register. Register rows without a commissioning date show their stage instead: awarded, with the year recorded, or under construction or operating, with no year. 11 rows in total for Kuwait.

Repeat winners

  • Doosan Heavy Industries & Construction2 tracked awards, as contractor

Pipeline & tenders

Structured procurements and live tenders in Kuwait, drawn from the same review that maintains the pipeline tracker.

Pipeline & awards

Tenders

Prices

What households pay

What households pay in Kuwait
Household tariff (US$/m³)Cost of supply (US$/m³)YearSource
$0.57 / $1.43$5.742024Arab Times quoting the Ministry of Electricity, Water and Renewable Energy, 24 July 2025; Law No. 20 of 2016 (Arab Times, 2 March 2017)6 7

Kuwaiti private homes pay 800 fils per 1,000 imperial gallons ($0.57/m³); investment apartments have paid KD 2 ($1.43/m³) since 2017, under Law No. 20 of 2016. The ministry puts production cost at about KD 5 per 1,000 gallons (about $3.59/m³), rising to KD 8 ($5.74/m³) in 2024, ten times what citizens pay. Converted at KD 0.3067 per US$ (World Bank official exchange rate, 2024 average).

Residential tariffs, and the cost of supply where a utility publishes it, are kept in one place for the whole region so the comparison holds: a tariff means little without the cost it is measured against.

Watch list

No dated items have been carried forward for Kuwait yet. This section fills from the monthly briefings as they are published.

Sources

13 references

Project, pipeline and tender records are compiled from procurer announcements, lender disclosures and trade reporting; each project page carries its own source and the date it was last checked. Institutions are from the decision-maker directory. Economic and water indicators are cited on the reference profile.

  1. Kuwait Authority for Partnership Projects, authority site, including the advisory tender on the citizen share subscription in the Umm Al Hayman company.
  2. MENA Water Review major projects register and PPP pipeline — compiled from procurer publications, development-bank project pages and trade reporting; each record names its source.
  3. Umm Al Hayman for Wastewater Treatment Company, company history.
  4. KfW IPEX-Bank, financing for the Umm Al Hayman plant, 29 January 2020.
  5. Law No. 116 of 2014 on public-private partnership (Kuwait), English text, Articles 12 and 13.
  6. Arab Times, report quoting the Ministry of Electricity, Water and Renewable Energy on water production cost, 24 July 2025.
  7. Arab Times, report on the sanctioning of the electricity and water tariffs under Law No. 20 of 2016, 2 March 2017.
  8. Kaufmann & Kraay, Worldwide Governance Indicators (World Bank), 2025 update: political-stability and regulatory-quality scores, 0–100, shown in the market snapshot. worldbank.org/wgi.
  9. Zawya, report on the Umm Al Hayman project nearing full operations and its IPO plans, April 2026.
  10. Kuwait Authority for Partnership Projects, project roadmap.
  11. Kuwait Authority for Partnership Projects, guidance for investors.
  12. Kuwait Authority for Partnership Projects, water sector projects.
  13. Kuwait Authority for Partnership Projects, unsolicited proposals.

Numbered references are linked from the superscript markers in the text. Figures without a marker come from the sources above as compiled in the site methodology.

Sources and notes

Firms appearing on two or more tracked awards in Kuwait. For a PPP, BOT, BOO or independent water, power or sewage project the winner counted is the developer or sponsor consortium; for an EPC or works contract it is the contractor. Each consortium member is counted on its own. EPC contractors working for a developer, subcontractors and equipment suppliers are not counted, and a PPP whose developer is not recorded counts for no firm.