KUWAIT: A real estate expert said hereon Sunday that the development plan approved by the government needs facilitation of of the procedures of funding by local banks in order to accelerate the launching of new projects in light of the financial crisis that has racked the country since 2008.
Chairman of the Board of Directors of Salhia Real Estate Company Ghazi Al Nafisi said in a press statement that the effects of the financial crisis may continue in light of the weakening of credit lines by local banks and non implementation of new projects for the real estate sector, which is suffering so far from the effects of the crisis.
Al Nafisi added that everyone is eagerly awaiting the practical and actual implementation of the development plan so that giant real estate projects can move and progress freely to achieve the vision of His Highness the Amir in the transformation of Kuwait into a financial and important trade center in the region.
He pointed out that a breakthrough on t he economic sector started to loom on the horizon after the ratification of the development plan as it would represent a quantum leap in Kuwait’s future, “especially as we are talking about 37 billion dinars in four years.” He expressed hope that the private sector would have a vital and influential role following the 2008 economic crisis in 2008.
Al Nafisi stressed that the banks’ continued cautious policy in financing projects during the past two years cast a shadow over the development plan after the scarcity of funding channels, which led to the suspension of several real estate projects undertaken by the private sector.
He said that the financing of development projects should be done through legal channels and local banks under the supervision and control of the central bank instead of thinking in the creation of a fund for financing or through a capital increase of Kuwait Fund for Development.
Source: Kuwait News Agency