GAS STATIONS IN KUWAIT

April 2011

Study by the consulting company EXCPR- Kuwait 1,850 VISITORS PER DAY, FOR THE GAS STATION IN KUWAIT - TRAFFIC!!

In the study of analytical and detailed set up by the company EXCPR ™ - Consulting and Business Management in Kuwait, on the topic of gas stations marketing in Kuwait. The following is part of the main study which was in April 2011.

The fuel market in Kuwait can be consider as one of the growing business for several reasons. First, the population in the State of Kuwait and how it is growing in the last few years - the results approve that the rate of increasing in Kuwait population is 3.9% per year. Thus, the population is expected to reach 5 Million, by 2018. From another hand, the fuel cost, which is subsidize by Kuwait's government, make this kind of business, so attractive for the investors or private companies. Then, the market size of the fuel market in Kuwait, representing approximately 32.8% of the total number of population, which refers to a large number of attendees of the roads.

NUMBER OF AUTOS
There is a direct correlation between the number of cars in Kuwait and the driving licenses numbers issued, thus the study shows that for every 5 people in Kuwait , they have 6 cars - which means that, there is one car which is NOT is used for every five people. Additionally, the growing number rate for the autos in Kuwait is increasing by 5.7% annually, which means that by 2016, the number of autos will be 2 million vehicles!!. This sharply increasing in this market, required further revamp and increasing in the number of gas stations in Kuwait. In the same regards, the number of driving licenses is increasing by 6.1%.

NUMBER OF GAS STATIONS Then, the total number of active gas stations in Kuwait is around 125, distributed between all Kuwait's regions. This number is so low, comparing with the total visitors for the station. The study approve that, there are around 1,850 visitors for each gas station in Kuwait per day!!. This huge number of visits confirms the existence problem in traffic between the roads. Then the study mention that 52% of the gas stations are located are located in the Capital and Al-Ahmadi regions (while they constitute only a proportion of 33.4% of the size of the population).

COMPETITORS

In Kuwait, there are three gas station companies which are compete between each of them - the companies are Kuwait National Petroleum Company-KNPC, OULA co. and SOOR co. The first company- KNPC- is 100% related and managed by Kuwait's government, while the second two are related to the private owners. Each of the three companies has 33% of the total number of as station.

One of the main objective - for this study- is to evaluate the market share for such market, which illustrate that the market share for the three companies are as follow, KNPC has 35.2% of the total market share, OULA has 32.4% and SOOR has 32.3%. As per 2009.

SERVICES Finally, the concept of the business world today stems directly from the need for basic market (customers), so the companies must compete to take the initiative to achieve those needs - which have been mentioned in this report from the expansion of horizontal stations, the development of the plants, the creation of a new production line, to provide additional services competitive, and others - in order to maintain market share and even increase that figure - in order to remain in this promising market.