KIPCO plans $5bn mixed-use development in Kuwait

14 September 2015 (Last Updated September 14th, 2015 18:30)

Kuwait Projects (KIPCO) intends to invest $5bn in a real estate scheme planned for the outskirts of the country's capital.

Kuwait Projects (KIPCO) intends to invest $5bn in a real estate scheme planned for the outskirts of the country's capital.

KIPCO vice chairman Faisal al-Ayyar was cited by local newspaper al-Qabas as saying that the property project will span across 380,000m² in the al-Daiya region.

The scheme will involve residential and commercial builds, along with infrastructure developments such as roads, parks, walkways and electricity.

"The project is considered the largest and most important in Kuwait, especially in the real estate sector."

This project will be implemented by a unit of KIPCO, United Real Estate, in co-ordination with other, unnamed partners.

KIPCO, a private sector investor, aims to submit its plans for regulatory approval soon. Project implementation is expected to start by the end of the year.

al-Ayyar was quoted by Reuters as saying: "The project is considered the largest and most important in Kuwait, especially in the real estate sector."

KIPCO expects Kuwait Government support for the development, as its previous bids for Abdullah al-Ahmed Street were cancelled by parliament around ten years ago.

The firm has other investments in process, including some in the high-risk markets of Egypt, Syria and Iraq.

The firm recorded a net profit of KD25.4m ($84.1m) in the first six months of this year, which is a 17% increase on the KD21.7m ($71.8m) profit from same period in 2014.