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Lack of investment opportunity in Kuwait prompts investors to expand abroad
Although property sales in Kuwait saw a 50 percent growth in value during the peak of summer, it is still considerably lower than a year ago, states a new report.
The figures from the National Bank of Kuwait reveal that property sales in July saw an increase in value by 50 percent from the previous month.
The report attributes the increase to the number of residential units sold, which grew by 82 percent, while the number of commercial and investment units sold during the month remained virtually the same.
The average volume of sales in the sector during the first seven months of the year was down by 25 percent, while that during the corresponding period of last year and the number of deals struck during July was 28 percent lower than in 2007.
This is a trend which is prompting major investors to seek investment, diversification and expansion outside Kuwait.
The National Real Estate Company in Kuwait is considering moving into markets in South Africa and Syria, and also sale of Islamic bonds earlier this year. Apart from a $1.3bn project in Abu Dhabi, it plans to develop a free trade zone in Northern Iraq and also is investing $1.12bn in Egypt property sector, while also managing a free trade zone in Egypt.
According to the company Chief Executive Khaleel al Abdullah, there are not much investment opportunities within Kuwait. Hence, during the coming years, the company plans to enter Algeria, Djibouti, South Africa, and Syria, and the company is already in talks with private companies there to purchase land.
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