KUWAIT CITY, July 31: Despite optimism among some regarding the country’s economic recovery and development amidst recent sovereign political changes in the country and the successive government reforms aimed at enhancing control and oversight, experts and observers familiar with the situation assert that economic development requires more than mere hopes, and that optimism needs tangible indicators to substantiate it, which are currently lacking on the ground.

In response to Al-Seyassah’s question about the best investments in the country currently, some experts said the country, despite the changes in the current political situation, is still experiencing a state of uncertainty that hampers capital direction. Others stated that real estate investment remains the dark horse and the winning card in all times, making investment real estate a priority for economic development in the country.

In this regard, the economic expert Dr. Issam Al-Tawari said, “It is difficult to talk about economic development at present. Despite the successive political changes, we are still living in a state of uncertainty. There is not enough liquidity to trade on the stock exchange, and real estate prices are gradually declining. Hence, when we talk about economic movement, there must be projects that support it on the ground. There is no magic wand that we can move to make the economy move. We are still in a transitional phase. The Tender Committee was appointed less than a month ago after being suspended for a long time. It is currently trying to complete the delayed contracts and projects. The road therefore is long and we are still at the beginning of the line.

Optimism
There is a state of optimism among many during this period, but reality says something else. This is because development needs more than wishes; it needs implementation and action, and we are still at the beginning stage. This view is not pessimistic but realistic in the first place The current indicators reflect the decline in stock market trading and real estate trading. The price of oil is not in our hands but in the hands of the market. The leadership positions are in the process of being filled, as all positions are currently under the item of “assignment”.

We have not seen leaders in their original form yet. There is pressure on the government to achieve, but I notice that the best team in the government currently is the first row represented by the ministers. The leaders and officials below them are not as efficient, because most of them were appointed to appease the sects and families.

Their personal interest does not align with changing the previous situation.” Dr. Al-Tawari emphasized the necessity of thoroughly evaluating ‘Jahra Corniche Waterfront Project’ Al-Farsi outlines details of multi-use project current leaders and officials across all state ministries. He cited Saudi Arabia’s example from seven years ago, where they replaced top officials and subsequent tiers, including recently appointed ones whose incompetence was proven, with competent individuals. He said, “This kind of reform, unfortunately, is lacking in our current context.” Dr. Al-Tawari went on to say, “We need a comprehensive screening, otherwise the train will not move.

Some deliberately obstruct change to achieve private interests at the expense of the general renaissance and development in society”. The real estate expert Abdulaziz Al-Dughaishim, who holds a more optimistic view, said he believes the investment real estate sector is rising, and the demand for it is constant, due to which it is considered one of the best proposals for financial investment at present”. He highlighted a decrease in residential real estate prices by 10 to 15 percent compared to the increase in the demand for investment real estate, as “the increase in offers is always met with a decrease in prices”.

Al-Dughaishim explained that certain types of real estate have been affected while others remain stable. Demand for commercial and investment properties continues, particularly in prime locations, but residential, industrial, and chalet real estate have notably suffered. Real estate investment is currently the best option, offering returns with bank financing and minimal risk. Real estate values may fluctuate but generally hold steady or appreciate over time, with losses typically incurred by those who violate regulations. In essence, real estate investment is “as robust as a pedigreed Arabian horse”.

Contrary to the belief that gold is among the most reliable ways for investors to preserve their wealth amid the daily changes witnessed globally such as wars and epidemics, Al-Dughaishim stressed that gold prices fluctuate unpredictably. He indicated that gold price can rise one day and drop the next, likening its volatility to walking on a precipice, adding that investing in gold has its proponents, just as investing in real estate has its advocates. The General Manager of Al-Jun Real Estate Company Ahmed Bouabbas agreed with Al- Dughaishim about the preference for real estate investment. He said the investment sector ranked second in the number of deals and in the interest of traders in buying, after the residential sector, which is still ranked first in terms of the number and value of deals in July, adding that investment in the commercial sector came in third place.

By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff