Al Futtaim launches new real estate venture in Kuwait: UAE-based Al Futtaim Investment Group is making its foray into Kuwait with the launch of Kuwait Festival City, Gulf News reports. The new venture was given the greenlight by the Kuwait Direct Investment Promotion Authority (KDIPA) and comes amid recent regulatory easing of real estate ownership laws in the country for foreign investors.

The plan: The new venture will focus on project management, and both residential and non-residential builds. It will be headquartered in Kuwait under an initial 99-year contract.

Easing up on the regs: The move comes hot on the heels of amendments to Kuwaiti legislation earlier in February, which opened up real estate market access for foreigners, AGBI reported. Previously, only Kuwaiti nationals could own property but now KDIPA-licensed entities, as well as ones listed on its stock exchange, can hold real estate assets as well following the updates. The efforts will allow more private developers into the country's housing sector, which was traditionally dominated by government-backed developers.

The demand is there, with at least 100k families awaiting housing. The Kuwaiti government is actively seeking public-private partnerships — piquing the interest of major regional developers — and a new public debt law could allow it to spend more on large housing and infrastructure projects . The Kuwaiti Housing Ministry has already identified three large residential projects, expected to provide around 170k housing units, that will engage developers for unit delivery.

A mortgage law is also in the pipeline, which would allow commercial banks to provide real estate loans, AGBI reported elsewhere. Currently, only the state-backed Kuwait Credit Bank (KCB) can hand out loans for real estate. The reforms would line lenders up for a windfall, and allow them to foreclose on defaulters — boosting cashflow.

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