Capital standards report that "the real estate sector in Kuwait experienced unparalleled growth during 2000–2007. Post 2007, however, the performance of the sector has remained lackluster." The contribution of the sector to GDP in Kuwait has been roughly 3.7%.
Furthermore, Capital standards says that 3 major segments private residential real estate, investment properties and commercial properties contribute (53%, 28% and 15%) to Kuwait's total transaction value. Residential real estate has been the least touched by the crisis fueled by the demand from the growing local population. Currently, there are at least 90 000 application pending under the housing scheme of the government.
The residential real-estate will continue to suffer from lack of supply as per Law no.8 stipulating that only 3-4% of the land in Kuwait can be put to residential properties. The commercial real estate will continue to head downward as more office space is poised to hit the market. Kuwait Stock Exchange (KSE) has 50 listed companies operating predominantly in real estate sector, 14 of which claim to be Shariah compliant, says Capital standards.
The industry is heavily indepted as a result of the events. Majority of real estate companies in Kuwait are owned or co-owned by the large Kuwaiti investment holdings. For the list of construction and contracting companies click here.
Top Real Estate Companies in Kuwait
Salhia Real Estate
Ghazi Fahad Alnafisi| Chairman
Salhia Real Estate Company, the highest revenue grosser in Kuwaiti real estate industry, has a long operating history dating back to 1974. SREC is engaged in development, leasing and management of real estate properties and care home operations..
Assets: USD 745 million (2010)
Commercial Real Estate Company- Al Tijaria
The Commercial Real Estate Company, KSCC Al-Tijaria has been in business for over 35 years, it was established on 4/2/1968. The main activities of CREC include purchase, leasing and sale of real estate property, construction of buildings & roads and establishment of real estate funds and portfolios, in Shariah compliant manner. Sheikh Salem J. Al Sabah owns 46% stake in the company according to Gulf Base.
Assets: USD 1.4 billion (2011)
National Real Estate Company
Jamil Sultan Al-Essa | Chairman
It was founded with a capital of KD5 million, NREC has developed into one of the largest real estate companies in Kuwait with assets and capital now exceeding KD566 million (US$ 2,058 Million) and KD81 million (US$ 296 Million), respectively, to become one of the most reputable and actively traded companies in the KSE. Major owners include (The Sultan Center K.S.C. 30.52%. - Sultan Family)
Assets: USD 2.085 billion
Mazaya Real Estate Company
Rashid Yaqoub Al-Nafisi | Chairman
Mazaya is considered as one of the most distinguished real estate development companies to position itself in the Middle East market with numerous impressive projects. Mazaya came about through a high investment idea and prevailed in creating and maintaining trust of big investors in the Kuwaiti market and abroad
Assets: USD 1,2 billion
United Real Estate Company
Tariq AbdulSalam | Chairman
United Real Estate Company (URC) is one of the largest Real Estate firms in Kuwait with an asset base of KD 323,270,000 as of 2009 financial. It has operations in Kuwait and across the Middle East region through a mix of fully-owned properties, subsidiaries and through investment arms. The company manages numerous commercial, business and residential properties as well as regionally-renowned resorts. As part of its expansion strategy, URC aims to continually search for new, innovative and profitable projects. URC is the Real Estate arm of Kuwait Project Company KIPCO, one of the largest diversified holding companies in the Middle East and North Africa with assets under management of US$ 23 billion.
Assets: USD 1,1 billion
Mohammed Abdulaziz Al-Shaya | Chairman
Specalized in construction of Malls. Majority owners is M.H. Alshaya ( Alshaya currently manages over 55 international brands and owns and operates over 2,200 outlets in 19 countries across the Middle East and North Africa, Russia, Turkey and Europe, employing approximately 28,000 people )
Assets: USD 921 million
Tamdeen Real Estate Company
Mohammed Jassim Al Marzouq | Chairman
Since its inception, TAMDEEN GROUP has rapidly become Kuwait's outstanding property developer, a name to be reckoned with throughout the entire region. As the parent organization, TAMDEEN REAL ESTATE Company was originally established in 1982 and recently rebranded as 'TAMDEEN GROUP' to reflect the dramatic changes in its corporate structure since its initiation. Projects: 360 Mall etc..
Assets: USD 921 million
ALARGAN International Real Estate Company
Khaled Khudair Al-Mashaan | Chairman
Established in 1994, ALARGAN is a pioneer in affordable residential developments and commercial outlets within the GCC region and has grown from a family-owned business into a publicly listed company on the Kuwait Stock Exchange, with approximately US$ 2.4 billion in assets under management.
Assets: USD 381 million
Action Real Estate Company (AREC)
Ali Abu Hadida | Chairman
From modest beginnings, Action Real Estate Company K.S.C.C. also known as AREC has decisively positioned itself as one of the most reputable players in the highly competitive real estate industry, gaining in a short time frame a reputable name in the market. Ownership: Action Group Holdings.
Abyaar Real Estate
Abyaar Real Estate Development is a major real estate developer operating across the Middle East region, and providing high quality real estate properties renowned for their modern designs and selected prime locations. Originally established in 2002 as a limited liability company, Abyaar’s legal status was changed in 2005 into a shareholding company with a capital of KD 35 million, pursuant to a strategic partnership between Kuwait’s Aayan Leasing and Investment Company and Al Rashdan Group.