meed-logo

line1 line2 line3
SIGN IN / REGISTER

Kuwait real estate market dips

28 June 2023

Recovery and growth for GCC real estate

Kuwait’s real estate market recorded sales of KD714m ($2.3bn) in the first quarter of 2023, marking the lowest level since the third quarter of 2020, according to a report by National Bank of Kuwait (NBK). 

The downward trend is attributed to heightened valuations in the residential sector and rising borrowing costs, as well as uncertainty about reforms to utility subsidies and the allotment of plots and housing units.

The report also says there has been a decline in residential sales activity to KD363m, its lowest since the first quarter of 2020. The decrease has been primarily driven by lower transaction volumes, particularly in the Hawalli and Al-Ahmadi governorates, which accounted for 54 per cent of total residential sales. Rising returns on deposits and speculation about government reforms in the sector could also be contributing factors.

At the same time, the residential price index eased for the second consecutive quarter, with growth slowing to 8.4 per cent compared to the same quarter in the previous year. 

The NBK report also said that despite higher recorded valuations, particularly in Kuwait City and Hawalli, elevated prices seem to be deterring potential buyers.

The investment sector, encompassing apartment and apartment building sales, mirrored the residential trend, with a dip to KD254m. Despite a minor uptick in transaction volumes year-on-year, the slow recovery of the rental market and rising borrowing costs could be causing this downturn.

Commercial sector sales also declined by 5.8 per cent year-on-year to KD96m in the first quarter of 2023, although there was an increase in activity from the previous quarter. This was primarily supported by the concentration of sales in Jibla-Kuwait City, despite a quarterly transaction volume decline of 13.6 per cent.

Read more on the GCC real estate markets

 

 

https://image.digitalinsightresearch.in/uploads/NewsArticle/10965870/main.gif
Colin Foreman

Register for MEED's guest program now to access this article.

Click here to register
Exclusive from Meed
Related Articles
  • Safety and security matters

    3 April 2026

    Commentary
    Colin Foreman
    Editor

    Read the April issue of MEED Business Review

    Employment and investment opportunities in a low or no-tax environment have been key attractions for people and businesses located in the GCC for decades. Another crucial factor has been safety and security.

    That reputation has been tested by the missile and drone attacks that began on 28 February. Whether the GCC’s safe haven status has been damaged depends on perspective. 

    For some, the fact that attacks occurred fundamentally changes how the region is viewed. For others, the ability to absorb a serious shock, respond quickly, and keep daily life and businesses functioning demonstrates resilience.

    Any assessment of safety is also relative. Many people and businesses that relocate in the GCC do so not only for opportunity, but because of dissatisfaction elsewhere. Common reasons include limited economic prospects, high taxation, distrust in political leadership and concerns about personal safety. Even with the recent conflict, the GCC may still compare favourably for those considering these factors.

    There is no doubt that missile and drone attacks are extremely dangerous, and the fear of further incidents can linger. Even if attacks are infrequent, the uncertainty matters. It can influence personal decisions, travel advice, and the cost of insurance and risk management. These perceptions will shape the region’s attractiveness.

    Safety concerns vary. In many parts of the world, higher levels of crime are an everyday worry for residents and businesses. For some, the GCC may still feel like the better option, provided the current tensions do not become the new normal.

    How this question is answered will play an important role in how the region’s economies perform in the period ahead. If confidence returns quickly and the risk is seen as contained and manageable, investment and hiring will likely rebound faster than many expect. If uncertainty persists or escalates, the road to recovery will be a long one.

    READ THE APRIL 2026 MEED BUSINESS REVIEW – click here to view PDF

    Economic shock threatens long-term outlook; Riyadh adjusts to fiscal and geopolitical risk; GCC contractor ranking reflects gigaprojects slowdown.

    Distributed to senior decision-makers in the region and around the world, the April 2026 edition of MEED Business Review includes:

    > GCC CONTRACTOR RANKING: Construction guard undergoes a shift
    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250747/main.gif
    Colin Foreman
  • Saudi forecast remains one of growth

    3 April 2026

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16250096/main.gif
    MEED Editorial
  • Oman’s Nama PWP tenders consultancy contract

    3 April 2026

    Oman’s Nama Power and Water Procurement Company (Nama PWP) has opened a tender for the provision of environmental, social and governance (ESG) reporting consultancy services.

    The tender seeks proposals from interested parties to support the utility in assessing its ESG maturity and identifying gaps against the Oman Investment Authority’s ESG guidelines.

    The deadline for firms to submit offers is 10 May.

    According to the tender notice, the selected consultant will develop the required ESG policies, strategy, report and implementation roadmap.

    Nama PWP, part of Nama Group, said the scope of work is intended to support the company’s wider ESG framework as it continues to procure new power and water capacity in Oman.

    The utility also recently opened a tender seeking proposals from qualified law firms to provide legal consultancy services in Oman.

    The selected firms will be included on a panel and engaged on an as-needed basis. They will deliver legal advisory services across a range of matters relevant to Nama PWP’s business.

    The deadline for firms to submit offers is 21 April.

    In March, the state utility released its latest seven-year plan outlining rapid expansion of solar and wind projects.

    It expects the renewable energy share of Oman's power generation mix to increase steadily across the period, reaching 16% in 2028 and 21% in 2029 before rising to 30% in 2030. This compares to about 4% in 2024.

    The pipeline includes a series of large-scale independent power projects (IPPs) scheduled for delivery between 2027 and 2031.

    Solar photovoltaic (PV) capacity in the sultanate is projected to rise from 1.54GW in 2024 to 23.26GW by 2031. Wind capacity is expected to grow from 120MW to 6.75GW, 

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16249021/main.jpg
    Mark Dowdall
  • Construction ramps up for $1bn Egypt phosphate project

    3 April 2026

     

    Construction activity is ramping up on the site of the $1bn phosphate complex project in Egypt’s Sokhna Industrial Zone, according to industry sources.

    Workers were first deployed at the site in February and construction is ongoing, sources said.

    In November, Egypt’s Prime Minister Moustafa Madbouli attended the signing ceremony for the establishment of the complex.

    The contract was signed between Egypt’s Elsewedy Industrial Development and China’s Kunming Chuanjinnuo Chemical Company (CJN).

    The project is being developed on a site covering 905,000 square metres and will be implemented across three consecutive phases, with an estimated total investment of $1bn.

    Under current plans, a substantial portion of the complex’s output will be allocated to export markets in South Asia, the Middle East, Africa and South America.

    The first phase is scheduled to start commercial operations in 2028.

    This stage is focused on increasing the value-added content of Egyptian phosphate ore through the production of phosphoric acid along with diammonium phosphate (DAP) and triple superphosphate (TSP) fertilisers.

    The second phase, set to launch in 2029 and operate commercially by 2031, will expand into high-purity phosphate chemicals, including purified phosphoric acid (PPA) and monopotassium phosphate (MKP).

    The third phase, beginning in 2032 with commercial operation targeted for 2034, will shift toward new-energy materials, particularly those used in electric-vehicle battery production.

    Key outputs will include lithium iron phosphate (LFP) and lithium dihydrogen phosphate, supporting Egypt’s emergence as a growing hub for advanced battery materials and green-energy technologies.

    The project also includes establishing a specialised research and development centre focused on advancing phosphate-based chemical technologies.

    The centre will promote industrial localisation, support technology transfer, and strengthen Egypt’s scientific and technological capabilities in high-value chemical manufacturing.

    MEED’s March 2026 report on Egypt includes:

    > COMMENT: Egypt’s crisis mode gives way to cautious revival
    > GOVERNMENT: Egypt adapts its foreign policy approach
    > ECONOMY & BANKING: Egypt nears return to economic stability
    > OIL & GAS: Egypt’s oil and gas sector shows bright spots
    > POWER & WATER: Egypt utility contracts hit $5bn decade peak
    > CONSTRUCTION: Coastal destinations are a boon to Egyptian construction

    To see previous issues of MEED Business Review, please click here

     

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16240318/main.jpg
    Wil Crisp
  • Saudi Arabia seeks firms for food testing labs PPP project

    2 April 2026

    Saudi Arabia’s Ministry of Municipalities & Housing, in collaboration with the National Centre for Privatisation & PPP (NCP), has issued an expression of interest (EOI) notice for a contract to develop and operate municipal food safety laboratories under a public-private partnership (PPP) framework.

    The project will be delivered on an equip, operate, maintain and transfer basis, with a contract duration of five years.

    The EOI was issued on 1 April, with a submission deadline of 15 April.

    The project scope covers the equipping, operation and maintenance of municipal food safety laboratories across five municipalities: Hafr Al-Batin, Northern Borders, Tabuk, Qassim and Al-Ahsa.

    Key objectives include upgrading laboratory equipment, expanding chemical and microbiological testing capacity for food and water products, and enhancing testing accuracy to support laboratory compliance across the value chain. The project also aims to ensure effective knowledge transfer and a structured handover to the relevant municipalities at the end of the contract term.

    NCP said in a statement: “The project is intended to strengthen public health and safety standards for citizens and residents of the kingdom in alignment with Saudi Vision 2030, while developing the municipal monitoring ecosystem, optimising food and water testing services, and enabling private sector participation in accordance with global best practices.”

    In October last year, NCP highlighted the scale and diversity of opportunities in the kingdom’s PPP pipeline.

    “At the moment, we have around 200 projects in the pipeline with a total value of roughly $190bn,” said Salman Badr, executive vice president – infrastructure advisory, NCP, during a MEED webinar.

    The projects are spread across 17 sectors. “We have a very sizable programme, and it reflects the breadth of the kingdom’s transformation agenda,” he said.

    NCP was established in 2017. It serves as the central authority and catalyst for designing and implementing privatisation and PPP projects across the kingdom.

    https://image.digitalinsightresearch.in/uploads/NewsArticle/16236864/main.gif
    Yasir Iqbal