Kuwait Real Estate News
Kuwait lacks investment laws, says Al-Wazzan
Growing number of construction activities and the booming real estate works in the Gulf region, although could attract huge foreign investments, the delay in issuing investment laws, is the biggest serious obstacle that Kuwait is facing at present.
The Chairman of Kuwait International Bank and member of KCCI (Kuwait Chamber of Commerce and Industry), Abdulwahab Mohammed Al-Wazzan, when speaking during the occasion of the visit of a Brazillian delegation, said that continuous constructions in the Gulf have been drawing numerous foreign companies to invest in the realty and construction sectors in the region, particularly in the UAE, Kuwait and Saudi Arabia.
In Kuwait there is still a demand for 70,000 housing units, and the additional influx of expats into the region, increases the need of even more number of residential units, and therefore further construction works.
According to industry reports, the construction industry in Kuwait has been estimated at $4billion in value, and could benefit from about $11billion of future investments, as per industry reports. However, issuing proper investment laws which await parliamentary approval for years is what businesses in Kuwait are waiting for.
There is also scarcity of plots for suitable development, and 90 percent of land in Kuwait is owned by the government, which is a major reason for the fuelling property prices. This is a pressure element. The land prices have increased considerably in recent days, and this in turn has reflected on rents, which are also hiking. If the government can supply land to build the required residential units, the prices will go down and the youth could afford the housing cost.
Privatization is another demand by the Kuwait’s business and private sector. Al-Wazzan emphasized that privatization should exist, particularly in sectors such as transportation, telecommunication, postal services, education and health.
However, till date, there has not been any law. The Parliament will have to introduce a law regarding privatization, and they need to choose what needs to be privatized, explained al-Wazzan.
Social Bookmarking
Read more news
> Property markets in GCC region to remain pressurized in 2012
> Kuwait property sector gathers pace following summer slowdown
> Kuwait realty sector post profits
> Kuwait records decline in expat count
> KAMCO report reveals positive indicators for Kuwait realty sector
> Majority of Kuwaitis investing in Dubai properties
> Latest Kuwait property sales report indicates improvement in the sector
> Increased demand for properties in Kuwait realty sector
> Property experts seek private sector support to develop housing sector
> KFH launches promotional campaign to finance residential real estate