Kuwait Finance House (KFH) Acting CEO Emad Al-Thaqeb stated during an interview with CNBC Arabia that despite the negative impact of the global financial crisis on the Kuwaiti real estate sector, this impact remains less profound compared to the markets of other countries. He added that the real estate sector is still capable of attracting low risk investments, and predicted that the real estate will be part of major developmental projects, whether directly or indirectly. He went on to say that the performance of the investment real estate sector is promising, and explained that the good revenues achieved by this sector, despite poor performance of the bourse, makes it highly demanded by investors.
Moreover, he mentioned that the real estate sector can boost development in Kuwait, but some legislation need to be reconsidered, such as the BOT legislation, in order to establish a balanced partnership that has clear responsibilities and rights. He called for allowing non-Kuwaitis to own real estate; thus boosting the market, and also asked the government to grant larger pieces of lands to serious investors. He noted that such an initiative will encourage serious investors and will allow prices to regain their normal levels, especially since the total percentage of lands used in all kinds of constructions in Kuwait is less than 5% of total area of Kuwait.
Concerning the state of residential real estate after Laws 8 and 9, he mentioned that KFH had already received a verdict by the Court of Cassation to exempt it from those laws, which allowed KFH to be engrossed in performing its national and commercial roles in the market. However, fees were enforced and the case is currently being deliberated by the judiciary system.
Furthermore, he stated that sometimes investors resort to the real estate sector as an investment vessel, especially investment real estate, when the bourse slips.