The Kuwaiti economy contracted in 2009, due to the global financial crisis and falling oil prices. Although it recovered in 2010, the country is largely dependent on its oil sector to produce its revenues. Due to the importance of oil to Kuwaits economy, the state controls major part of the land to ensure the freedom of oil exploration. However, as this leaves little land for private developers to build on, there is a shortage of residential housing in Kuwait, leading to increased house prices. Property speculation activities have also added to the housing problem, raising house prices to a level that most homebuyers cannot afford. To address this, the government is expected to release more land and develop housing cities in collaboration with private developers to encourage residential construction over the forecast period.
There are also shortages in the institutional construction market, as the government has failed to invest in its healthcare facilities since the 1980s. As a result, Kuwaits citizens often have needed to travel abroad to access specialized healthcare services which are not currently available in Kuwait. To address this, the government has begun to invest large amounts of capital into the development of a better healthcare infrastructure during the review period. Similarly, the government has increased its expenditure on education to ensure it complies with international standards and provides an adequate private school education for the expatriate population. |
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