World Report

Foreign investors are responding to private sector-friendly invitations to take on new challenges in the economy

Khaled A. Al-Bisher, Vice-Chairman and Managing Director of Tijara:

“We believe in diversification.”

one of the Kuwaiti economic sectors has benefited from the recent increase in security in the country more than the construction industry. Previously hesitant to invest in domestic real estate and infrastructure, Kuwaitis are now fuelling a building boom and the government’s pro-private sector stance is opening up new opportunities for private sector participation in large public housing projects and new urban development. New infrastructure projects, including the construction of a state-of -the-art container port on Bubyian island, the Subbiya bridge, and the development of Failaka Island are also underway. Consequently, a direct invitation to the private sector to bec-ome involved in a number of build-operate -transfer (BOT) projects has been issued. Alth-ough local competition is stiff, one way for British contractors to take advantage of burgeoning opportunities in the country is through joint ventures with local contractors, as well as through project management and subcontracting deals, all of which are being encouraged by the government.

Foreign investors are spoilt for choice when looking for strong Kuwaiti partners. The country has such world-renowned companies as the Kharafi Group, a completely integrated Grade A international contractor and a Fortune 500 company with diversified interests. Kharafi is also a major investor in construction group Costain UK. The Tijara Real Estate and Investment company, with a share capital of £68 million and a presence in regional and international markets, including the 60 million Vicarage Gate project in central London, is another good choice. Tijara Vice-Chairman and Managing Director Khaled A. Al-Bisher says (INTERVIEW), “In real estate, we have residential, commercial, resort and industrial investments, and we have a history of designing innovative housing solut-ions.” Mr Al-Bisher says that Tijara is now completing a large residential project in Jabriya and is set to begin another in Mahbola, while future plans include the construction of a commercial building and a new hotel. Tijara will announce new BOT projects this year. Mr Al-Bisher comments, “We consider ourselves one of the leading real estate and investment companies in Kuwait. We believe in diversification and will continue to undertake projects abroad. In the meantime, we have various projects in the pipeline here in Kuwait, including BOTs with international firms.”