Kuwait is making progress in creating manufacturing value from its upstream energy resources, with some of the region’s most ambitious projects in various stages of implementation.

With some 10 per cent of world oil reserves, Kuwait at the moment can do without exerting too much on non-oil industries, but it has to look ahead to times when oil may not be the mainstay of its income. Hence, it is enthusiastically broadening and consolidating its industrial base away from the oil sector. With Equate, it has a world-class production facility, and that establishment along with Petrochemicals Industries Company (PIC), has put Kuwait among the Gulf stars adding value to the upstream crude oil sector.
Equate is implementing its Olefins II project which entails the construction of a cracker, an ethylene glycol unit, an ethyl benzene/styrene monomer unit and a debottleneck expansion of polyethylene capacity. Olefins II will be completed in 2008. The company is additionally building an ethylbenzene/styrene unit and an aromatics plant.
The aromatics plant is being built through a contract with SK Engineering and Construction Company, which is collaborating with Italian builder Tecnimont.
Kuwait has also prequalified 11 international companies for constructing a new $6.3 billion oil refinery with a capacity of more than 600,000 barrels per day (bpd).
While the petrochemicals and refining sector has engaged international attention, a local company is demonstrating that businesses owned and operated by private entrepreneurs can make a strong impact in the country’s economy. The Kuwait Projects Company (Holding) (Kipco) announced net profits of KD15 million ($51.4 million), or 14.54 fils ($5 cents) per share, during the first three months of 2006. This is a record increase of 79 per cent compared to KD8.4 million, or 8.32 fils per share, for the same period last year.  The company had made a record net profit of KD38 million for 2005, a 51 per cent increase compared to previous year.
Kipco is Kuwait’s largest private company and has a diversified portfolio of some 55 firms in financial services, media and telecommunications, management and advisory, real estate and industry.
One of the companies to make a strong impression is National Industries Group, which reported a 2005 net profit of KD189.52 million, of which more than 40 per cent was ‘unrealised profits’. The firm has diversified from its traditional roots as a building materials company into direct major investments in petrochemicals, engineering and metals.
Kuwaiti companies are increasingly looking beyond their borders to capitalise on a new wave of construction projects, industrial ventures and ports management and logistics services.
KGL Ports International Company (KGL PI) is stepping boldly into regional and international spheres in the business of ports management. It is close to finalising a concession to run Damietta Port in Egypt.
Refrigeration Industries and Storage Co (Risco), the only fully-fledged AC manufacturing company in Kuwait, has pursued and won a number of air conditioning contracts for tall buildings and private residential areas in recent years. It sees great potential and growth in AC contracting in the region and is now concentrating on major, high-value projects. Simultaneously it is diversifying its range of air conditioning projects and continues to be a prominent player in the warehousing and logistics field.
The Kharafi Group of Kuwait, represented by one of its subsidiaries, Utilities Development Holdings, has joined hands with Al Qudra Holding to launch a joint venture named Emirates Utilities Company Holdings (Euch) to develop, build, operate and transfer projects. Euch will handle infrastructure, utilities management, industrial and environmental projects.
The Gulf’s unique catalyst producer and exporter, Kuwait Catalyst Company, has broadened its range through alliances with leading companies including Advanced Refining Technologies (Art), which is supplying the technology to manufacture ebulated bed resid catalysts used in the h-oil process.
Also making waves internationally is Public Warehousing Company, which is partnering Fujitsu Siemens Computers in operating a state-of-the-art PC assembly plant in Dubai, UAE.