Kuwait is accelerating its construction project pipeline in 2025, backed by bold investments and a long-term growth strategy aligned with Vision 2035. The government is prioritizing large-scale construction and development initiatives aimed at transforming the country into a key financial and trade hub in the Middle East region. 

The new upcoming construction projects in Kuwait - 2025 are Kuwait Islands Development, Madinat Al Hareer (Silk City), Kuwait International Airport Expansion, Mubarak Al Kabeer Port, and the Kuwait National Railroad Network. These projects are valued at over USD 300 billion combined and are central to Kuwait Vision 2035. 

In February 2025, Kuwait approved 124 projects worth USD 5.6 billion in the 2025-2026 draft budget. The country currently has close to 300 active projects, valued at approximately USD 115 billion, with large infrastructure projects making up nearly half of that total.  

This blog highlights the top five upcoming construction projects in Kuwait that will transform the country’s skyline and construction in 2025.

List of Top 5 Upcoming Projects in Kuwait (2025) - According to Project Value

Kuwait Islands Development - (Tourism, Logistics)

Kuwait is launching one of the region’s mega infrastructure projects, transforming five islands into tourism, logistics, and investment hubs. The islands involved are Boubyan, Warba, Failaka, Miskan, and Aou, which are located off the eastern and northwestern coasts of the country. 

The total investment is estimated at USD 160 billion, to be spent over the next 20 years. This large-scale initiative is led by Kuwait’s Mega Projects Administration and includes partnerships with China under the Belt and Road Initiative. 

Key Features of the Project: 

• Mubarak Al Kabeer Port on Boubyan Island is set to be one of the largest and most sustainable shipping hubs in the Middle East

• The master plan of Failaka Island was completed in 2005. Currently undergoing an early stage of island development

• New infrastructure, including an international airport, roads, canals, and smart transport hubs

• Tourism development with a focus on luxury resorts, hotels, amusement parks, and Venice-style canals

• Green energy, including solar and wind power stations, across the islands

• Wildlife protection zones for ecotourism and conservation areas

• Business ecosystem consisting of shopping malls, commercial centers, and dedicated free zones 

According to government sources, the project could generate up to USD 40 billion in annual revenue and create around 200,000 new jobs. It is also positioned to draw substantial foreign investment into the country through the Kuwait National Rail Road (KNRR) Network. 

Once completed, the island development will place Kuwait at the center of a USD 2.2 trillion regional economy, with far-reaching benefits for trade, tourism, and employment. The project aligns with Kuwait Vision 2035 and aims to diversify the economy beyond oil by creating attractive zones for tourism, business, and foreign investment.

Madinat Al Hareer (City of Silk) - (Urban Development)

Madinat Al Hareer, also known as Silk City, is one of the largest mixed-use development projects in the world. Originally proposed in 2006 by Tamdeen Group in partnership with Ajiyal Real Estate & Entertainment Co., the project has since gained the approval of Kuwait’s Municipal Council, Planning Authority, and State Cabinet. 

Located in the Subiya area, Silk City is projected to cost over USD 132 billion and is being developed over a 25-year timeline, extending into 2040. The city is a key pillar of Kuwait’s national development strategy and forms part of China's Belt and Road Initiative. 

Silk City will be divided into four distinct zones - Finance City, Leisure City, Ecological City, and Residential City. Each zone will have its own city center and will cater to specific functions such as business, tourism, sustainability, and housing. The development is designed to meet the highest global standards, with a strong focus on education, culture, and environmental responsibility.

Key Features of the Madinat Al Hareer project: 

Sheikh Jaber Al-Ahmad Al-Sabah Causeway: 

• Completed in 2019 at a cost of USD 3 billion

• Connects Kuwait City with northern areas, including Subiya

• One of the largest and most complex infrastructure projects globally 

Mubarak Al Kabeer Port (part of Phase I): 

• The strategic shipping hub is currently over 50% complete

• Also part of the Belt and Road Initiative

The new city will be home to the largest skyscraper in the world, Burj Mubarak. The EUR 72 billion skyscraper is planned to reach a height of 1,001 meters, replacing the Burj Khalifa as the world's tallest building. Silk City is expected to accommodate around 750,000 residents, with plans for the construction of approximately 175,000 residential units.

Kuwait International Airport Expansion - (Transportation)

Kuwait International Airport is undergoing expansion to develop a new Terminal 2 (T2). One of the largest construction projects in Kuwait is aimed at transforming the airport into a major regional air hub. The project, headed by the Directorate General of Civil Aviation, is part of the country’s broader strategy to modernize its transport infrastructure in line with growing passenger traffic. 

T2 is being constructed in three phases. The first phase will boost annual capacity to 13 million passengers, while later phases will increase it to between 25 million and 50 million. The terminal is designed to offer top-tier passenger comfort and operational efficiency. 

The terminal’s trefoil design features three symmetrical wings branching from a 25-meter-high central space, beneath a single roof canopy with 8,000 skylights that filter daylight while minimizing heat gain. Interior spaces are being built for simplicity and accessibility, using a world-leading 3D BIM model. 

T2 will include: 

• Four above-ground levels and one underground

• 120 check-in desks and a baggage handling system capable of sorting nearly 3,000 bags per hour

• 30 to 51 aircraft contact stands in the first phase

• A 3-km utility tunnel transporting essential services

• New access roads, including a metro link from Kuwait City 

Designed with sustainability in mind, the terminal targets LEED Gold certification. Photovoltaic panels will generate solar energy, while the concrete structure provides thermal insulation. Landscaping will include native desert plants to reduce water use. 

Key features of the airport construction project also include:

• Accommodation for 21 Airbus A380s and 9 Airbus A320s using the MARS system, with flexibility to serve up to 51 narrow-body aircraft

• 28 terminal gates, 8 of which will serve the A380

• A 400-bed transit hotel and parking for at least 4,500 cars

• Facade resistant to weather and explosions, designed to reflect local hospitality with waterfall features 

A USD 4.3 billion contract was awarded to Turkish firm Limak, making it one of the largest such contracts handled abroad by a Turkish company. The design team includes Gulf Consult and Foster + Partners, with engineering support from firms such as Robert Bird Group, Deerns, and Aecom. 

The construction is being implemented in three phases: 

• Phase 1: Passenger terminal, central plant, and service tunnels

• Phase 2: Parking areas, service buildings, and approach roads

• Phase 3: Aircraft parking areas and taxiways

Latest Update: In June 2025, TK Elevator secured a key contract for Kuwait International Airport’s Terminal 2 project, covering the supply, installation, and two-year maintenance of 55 passenger boarding bridges. The agreement is part of Package 3, supporting the airport’s expansion to accommodate 25 million passengers annually.

Mubarak Al Kabeer Port - (Shipping/Logistics)

Mubarak Al Kabeer Port is one of the biggest infrastructure projects in Kuwait. The project, located on Bubiyan Island off Kuwait’s northern coast, is a central pillar of both Kuwait Vision 2035 and China’s Belt and Road Initiative. The port is being developed in multiple phases and is designed to serve as a strategic gateway connecting Kuwait to global trade routes, particularly those linking linking Asia with Central Asian trade corridors. 

Phase 1: Completed in 2014 at a cost of USD 1.2 billion 

• Included: quay walls, berths, marina, navigational terminal, port buildings

• 4 berths completed by April 2021

• Lacks essential equipment; not yet operational 

Phase 2: Estimated cost USD 390 to USD 425 million 

• Installation of loading/unloading equipment

• Construction of a container yard and terminal

• Reclamation, buildings, infrastructure, and safety systems 

The overall project cost of Mubarak Al Kabeer Port is estimated at USD 3.2 billion. In March 2024, Kuwait allocated USD 614 million in its 2024–2025 budget to accelerate development. The port will span approximately 3 square kilometers and is expected to handle over 8 million containers annually. 

In a sign of deepening international collaboration, Kuwait signed a port management agreement with China in 2024. Additionally, there are plans to develop linkages between Mubarak Al Kabeer Port and Pakistan’s Gwadar Port, further strengthening Kuwait’s role in regional logistics and trade.

Kuwait National Rail Road (KNRR) Network - (Rail Transport)

The Kuwait National Rail Road (KNRR) is a major infrastructure project that aims to connect Kuwait with the broader Gulf Cooperation Council (GCC) railway network. The project, which spans a total of 265 km, aims to enhance regional connectivity and trade across the Middle East. The KNRR will include both passenger and freight lines, with double tracks designed for speeds of up to 200 km/h for high-speed services and 120 km/h for regional lines. 

Phase 1 Details: 

• Length: 111km from Kuwait City to Nuwaiseb (Saudi border)

• Additional Line: 153 km from Kuwait City to Boubyan Port

• Train Specs: 10 trains with a top speed of 220 km/h

• Estimated cost: KD 900 million (USD 3 billion at 2016 prices)

• Construction timeline: Expected to take 4 to 5 years 

The design contract for KNRR was awarded to Turkiye’s Proyapi. Construction will be split into two design-build-maintain packages, one covering civil works and the other railway infrastructure and stations. Locomotives and rolling stock will be procured separately and leased to operators by the Public Authority for Roads and Transportation (Part). 

Ownership of the KNRR will be shared between the public and private sectors. Up to 44% of shares will go to a private consortium, 50% to Kuwaiti nationals via an IPO, and 6% will be retained by the government. The contract structure is based on a public-private partnership (PPP), with the government paying availability-based charges over a 30-year period. 

The first tender for the project was issued in January 2024 by Part and KAPP, with a revised deadline of 11 July 2024. It is valued at KD 1 million (USD 3.25 million). The full main contract is expected to be worth KD 300 million (USD 973 million). Originally planned as a Built Operate and Transfer (BOT) model, the project shifted to an EPC approach to attract broader participation. 

The KNRR is part of the GCC rail network (gulf railway project), which aims to span 2,177km from Kuwait to Oman. The regional project is scheduled for completion by 2030.

Final Thoughts on Kuwait’s 2025 Project Pipeline

Kuwait’s 2025 construction and infrastructure projects demonstrate a clear commitment to economic diversification, sustainability, and national development under 2035 national development plan. With nearly USD 6 billion allocated for public works, housing projects, infrastructure and services, and close to 300 active projects valued at around USD 115 billion, the Kuwait's construction sector is making major investments across transport, utilities, healthcare, and urban development. 

The Kuwaiti government has made significant financial commitments to infrastructure development in the 2025-2026 fiscal year. This includes capital spending of approximately 1.7 billion Kuwaiti dinars (USD 5.7 billion) covering more than 90 major projects. 

Despite challenges such as OPEC (Organization of the Petroleum Exporting Countries) production cuts and regional uncertainty, Kuwait remains focused on reducing its reliance on hydrocarbon revenues and building a balanced, future-ready economy. These large-scale construction projects offer strong potential for private sector involvement, foreign investment, and long-term social and economic impact, firmly positioning Kuwait as one of the most dynamic construction industry in the GCC in 2025.

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