Construction Week's Top 50 GCC Developers 2018: Kuwait
Kuwait's top five real estate developers have been named. Find out who they before Construction Week publishes its list of the Top 50 GCC Developers 2018
Kuwait is the GCC’s third-largest spender on construction projects, behind pacesetters Saudi Arabia and the UAE. Ahead of Construction Week’s Top 50 GCC Developers 2018 list, which will be published in print on 29 September, 2018, CW rounds up the top five Kuwaiti property developers who have made an impact this year.
5. Khaled Al-Mashaan
Alargan International Real Estate Company
Since its formation in 1994, Alargan International Real Estate Company has cemented its position as a key player in Kuwait’s robust realty market.
Its portfolio of completed commercial, residential, and mixed-use projects spans four countries in the GCC, with a mix of finished buildings in Bahrain, Oman, Saudi Arabia, as well is its home market Kuwait.
Still leading Alargan today is founder and chief executive officer, Khaled Al-Mashaan, who has grown the business into a powerful developer that is listed on the Kuwait Stock Exchange.
Alargan's international portfolio boasts the Jeyoun residential development, a 20,000m² cluster of 82 townhouses located in Bu Quwah, Bahrain, and the ultra-exclusive members-only C Club in Kuwait.
4. Faisal Jamil Sultan Al-Essa
National Real Estate Company (NREC)
National Real Estate Company (NREC) is a stock market-listed developer and investment vehicle that has a prominent presence in the Middle East and North Africa.
Managing a portfolio worth $2bn (KWD605m) in Egypt, Kuwait, UAE, and other countries, NREC's latest financial results suggest the company is in good health. Half-year revenue for 2018 increased by 46% to $46.2m (KWD14m) thanks to income generated via rent from properties in Kuwait, Jordan, and Libya.
Its growth is impressive because, when the results were published earlier this year, NREC said it faced an ongoing restructure, as Faisal Jamil Sultan Al-Essa, vice-chairman and chief executive officer, and other company executives explored how to reduce company debt to below $330m (KWD100m).
3. Ahmad Kasem
United Real Estate Company
A mix of commercial and residential projects have been completed by Kuwait-headquartered United Real Estate Company since its formation in 1973. Its built assets include shopping centres and retail outlets, hotels, residential properties, and high-rise office buildings.
While the company remains a strong player in the industry, it has faced some financial difficulty this year, with a slight decline in half-year 2018 revenue compared with the same period a year earlier.
Its appetite for real estate development has not cooled, though. Construction contracts have been agreed, with the company confirming in June 2018 that it was "committed to future capital expenditure" with contracts worth $14.4m (KWD4.3m) awarded in 2018.
The company is currently development a duo of 40-floor skyscrapers, called the Hessah Towers.
2. Mohammed Abdulaziz Alshaya
With billions of dollars in paid up capital and a budding partnership with another developer, Kuwaiti stock market-listed Mabanee Company cannot be overlooked.
In February 2018, the developer entered into an agreement with the Sharjah Investment and Development Authority (Shurooq) to create a 65,000m² real estate project, which is set to transform the area of Mughaider in the UAE into a high-end shopping centre. The company has a strong track record for developing this type of amenity too, having spent more than $5bn on two malls in Saudi Arabia: The Avenues Riyadh and The Avenues Al Khobar.
Led by Mohammed Abdulaziz Alshaya, Mabanee's joint venture with Shurooq is an exciting development that shows what can happen when GCC developers collaborate.
1. Ibrahim Al Saq’abi
Al Mazaya Holding
Al Mazaya Holding is the leading property developer with a head office in Kuwait, where it manages its real estate empire from Safat Square, Kuwait City, with support from regional offices in cities such as Dubai.
Construction schemes under way in Kuwait, the UAE, and Oman, have helped to drive its H1 2018 net profit to $9.6m (KWD2.90m). In an update on its financial results, the developer revealed it was “working on full-fledged financial and technical business plans […] for developing residential cities in Jaber and Sabah Al Ahmad areas as part of the public-private partnership programme”, which is being implemented by the Public Authority for Housing Welfare.
In August 2018, Al Mazaya Holding received Phase 1 of Mazaya Residence in Muscat, an exclusive residential project, which had been completed by the contractor “in record time”, the developer said.