THE IMPACT OF DECLINE OF OIL PRICES ON KUWAIT CONSTRUCTION INDUSTRY

Q4 Engineering

The Journal of Engineering Research Pub Date : 2021-09-15 DOI:10.36909/JER.13377

H. Al-Tabtabai, Ehab Soliman

{"title":"THE IMPACT OF DECLINE OF OIL PRICES ON KUWAIT CONSTRUCTION INDUSTRY","authors":"H. Al-Tabtabai, Ehab Soliman","doi":"10.36909/JER.13377","DOIUrl":null,"url":null,"abstract":"The oil price has fallen significantly from its peak at $128.14 per barrel in March 2012, reaching a low of $29 in February 2016. Kuwait depends mainly on oil revenue to finance infrastructure governmental projects. Oil price decline has a direct impact on economic and capital expenditure in the construction industry’s resources in Kuwait, specifically construction material. This research investigates the effect of changes in oil prices over range from 2007-2017 on the construction industry in Kuwait. Different types of data regarding global economic data, construction materials, and awarded contracts during the study period were gathered and analyzed. A set of statistical and correlation analysis are performed. The study revealed that many construction materials are affected by oil price in Kuwait. The GDP is highly affected by oil price drop; this implies that there is a limited result of government plans to divers governmental finance. A regression model is proposed to forecast the construction cost per square meter in Kuwaiti dinar based on study variables. The study results can be used to evaluate the effect of oil price drop in similar construction environments such as Gulf countries and to predict construction costs changes due to oil price decline.","PeriodicalId":31979,"journal":{"name":"The Journal of Engineering Research","volume":"4 1","pages":""},"PeriodicalIF":0.0000,"publicationDate":"2021-09-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"The Journal of Engineering Research","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.36909/JER.13377","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q4","JCRName":"Engineering","Score":null,"Total":0}

引用次数: 0

Abstract

The oil price has fallen significantly from its peak at $128.14 per barrel in March 2012, reaching a low of $29 in February 2016. Kuwait depends mainly on oil revenue to finance infrastructure governmental projects. Oil price decline has a direct impact on economic and capital expenditure in the construction industry’s resources in Kuwait, specifically construction material. This research investigates the effect of changes in oil prices over range from 2007-2017 on the construction industry in Kuwait. Different types of data regarding global economic data, construction materials, and awarded contracts during the study period were gathered and analyzed. A set of statistical and correlation analysis are performed. The study revealed that many construction materials are affected by oil price in Kuwait. The GDP is highly affected by oil price drop; this implies that there is a limited result of government plans to divers governmental finance. A regression model is proposed to forecast the construction cost per square meter in Kuwaiti dinar based on study variables. The study results can be used to evaluate the effect of oil price drop in similar construction environments such as Gulf countries and to predict construction costs changes due to oil price decline.

查看原文本刊更多论文

油价下跌对科威特建设行业的影响

油价从2012年3月每桶128.14美元的峰值大幅下跌，2016年2月跌至每桶29美元的低点。科威特主要依靠石油收入来资助政府基础设施项目。油价下跌对科威特建筑业资源，特别是建筑材料的经济和资本支出有直接影响。本研究调查了2007-2017年期间油价变化对科威特建筑业的影响。在研究期间，收集和分析了有关全球经济数据、建筑材料和授予合同的不同类型的数据。进行了一组统计和相关分析。调查结果显示，在科威特，很多建筑材料都受到了油价的影响。国内生产总值受油价下跌的影响较大;这意味着政府计划对政府财政的影响是有限的。提出了一个基于研究变量的科威特第纳尔每平方米工程造价的回归模型。研究结果可用于评估海湾国家等类似建设环境中油价下跌的影响，并预测因油价下跌而导致的建设成本变化。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

求助全文

约1分钟内获得全文求助全文

来源期刊

The Journal of Engineering Research Engineering-Engineering (all)

CiteScore

0.70

自引率

0.00%

发文量

审稿时长

12 weeks

期刊介绍： The Journal of Engineering Research (TJER) is envisaged as a refereed international publication of Sultan Qaboos University, Sultanate of Oman. The Journal is to provide a medium through which Engineering Researchers and Scholars from around the world would be able to publish their scholarly applied and/or fundamental research works.