MoCI eyes steps to tighten control over ‘prices’ of building materials
He pointed out that once the workers return from abroad, the productivity of factories will increase; hence, the concerned authorities must facilitate procedures for these workers to return as soon as possible. He warned that prices will keep on increasing if the present situation continues. Chairman of the Board of Directors of Amlak Capital Holding Company Mahmoud Al-Jumah attributed the remarkable increase in the prices of building materials to the great recession that lasted for almost a year due to the corona pandemic, the accompanying health and governmental measures, and public closures. He enumerated various factors leading to the remarkable price hike; such as the construction boom amidst the low production capacity of factories. He said some factories operate with a production capacity of 25 percent; thus, their inability to meet the current demand. He added the low production capacity of factories is due to their workers being banned from returning to Kuwait while those who are in the country have yet to be vaccinated. He thinks this led to an increase in wages that affected the prices of building materials in general. At this point, the building materials price hike will have dire consequences as several citizens will be forced to postpone the construction of their homes until the prices drop. This will also cause problems between contractors and citizens.
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Kuwait's MoCI eyes steps to tighten control over ‘prices’ of building materials
He disclosed the freight and transportation fees have increased, which then affected the prices of building materials. He pointed out this is in addition to the lack of workers who operate factories at their full production capacity; and that prices have increased in most countries, not just in Kuwait. He said some factories operate with a production capacity of 25 percent; thus, their inability to meet the current demand. He added the low production capacity of factories is due to their workers being banned from returning to Kuwait while those who are in the country have yet to be vaccinated.
KUWAIT CITY: The construction sector recently witnessed unprecedented price hikes of building materals which affected the construction cost, in addition to other factors like manpower shortage and high wages, reports Al Jarida daily. Chairman of the Board of Directors of Kuwait Industries Holding Company Muhammad Al-Naqi argued such price increase is expected due to many factors. Image used for Illustrative purpose. Vehicles travel on First Ring Road next to a building under construction in Kuwait City November 10, 2012.
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Construction and Building Materials
The building industry in Kuwait is fortunate to find itself in an open market that facilitates import, and encourages free trade and fair competition. That being said, the Kuwait’s building codes and standards currently in use are mostly outdated and not performance based. Furthermore, with the exception of petroleum, Kuwait is very poor in natural mineral resources and has to endure aggressive environmental conditions. This situation has often resulted in the use of inconsistent and occasionally substandard materials, which has contributed to premature deterioration and loss of safe and efficient functionality of many Civil Engineering building structures and road surfacing. Realizing the importance of regulating construction and building practices, KISR launched the Construction and Building Materials (CBM) program to study how best to maintain and improve the performance, durability and sustainability of Kuwait’s infrastructure and buildings. The program has led efforts to upgrade Kuwait’s material and building standards and to support local industry in order to address concerns related to safe and sustainable construction practices.
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