The spread of Coronavirus has dealt a severe blow to the construction sector in Kuwait, with the number of building permits plunging by at least 40 percent in 2020.

Official data published by the Kuwaiti Arabic language daily Alanba on Tuesday showed permits for private residential buildings dipped by around 46 percent in the first 10 months of 2020 compared with the same period of 2019.

Permits for investment housing projects plummeted by around 65 percent while permits for commercial buildings and industrial units tumbled by 61 percent and 57 percent respectively, the report showed.

"The decline reflects the serious crisis in the country's economic sectors, mainly the construction industry as a result of the spread of Coronavirus this year," it said.

"Economists in Kuwait warn that the stagnation this year against a boom last year would put further pressure on domestic companies which are already reeling under low investment flow and lower public spending."

The report showed the number of permits awarded for private housing plunged to 4,821 from 8,863 in the same period.

Permits dipped to 222 from 652 for investment housing, to 170 from 440 for commercial buildings and 96 from 224 for buildings used for industrial purposes.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

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