Kuwait’s energy and water sector experienced a steep drop in the area of contracts awarded in 2025, with total values standing at $633 million by early August, compared to $2.6 billion in 2024 and $2.7 billion in 2023.

The water sector also slowed sharply, with just $11 million in awarded contracts, down from $93 million last year.

Despite the downturn, new developments signal a possible recovery. ACWA Power of Saudi Arabia and Kuwait’s Gulf Investment Corporation have signed a $4 billion agreement to develop the second and third phases of the Al-Zour North power and water plant — the largest of its kind in the country, with a capacity of 2,700 megawatts and 120 million imperial gallons of desalinated water production daily.

In another major move, the Ministry of Electricity, Water and Renewable Energy approved bids for the fourth phase of the Subbiya Combined Cycle Power and Desalination Plant, by Alghanim International which submitted the lowest offer at $1.7 billion. The project will add 900 megawatts of generating capacity and expand desalination output.

Kuwait is also advancing other large-scale projects, including the Nuwaiseeb Integrated Water and Power Plant, the refurbishment of the West Doha Power Plant, and the resumption of operations at the Shuaiba North facility.

The renewable energy efforts are accelerating, with tenders issued for the Dabdaba and Shagaya solar projects — key steps toward producing 22.1 gigawatts of renewable energy by 2030.

The infrastructure works extend beyond energy, with the Doha Seawater Reverse Osmosis Plant and South Mutlaa Wastewater Treatment Plant progressing toward completion.

The regional cooperation is also expanding through a new electricity transmission link to Iraq and agreements with Qatar and China to secure LNG supplies and boost renewable energy capacity.