Many Kuwaiti investments are lured to trading in Boursa Kuwait and the realty sector but experts have divergent views about feasibility of dealings in the two fields. In General, the stock exchange market is attractive for quick earnings and the real-estate sector for long-term profits -- with some opining that profit making in this sector is "100 percent guaranteed".
Some traders invest their funds in both, the stock and development sector, seizing feasible opportunities and betting to lessen risks by putting the money in more than one arena.
Muhannad Al-Sanea, Chief Executive Officer at Al-Riyada Finance and Investment Company, said in an interview with Kuwait News Agency (KUNA) the stock investor usually faces high risks because he (or she) may encounter a wave of developments in a single session.
On the other hand, the real-estate dealer desires financial stability despite long-time waiting for the earnings. Contrary to the stock market, a realty trader is not compelled to be vigilant all the time.
Moreover, Al-Sanea added, property investing requires large funding, unlike the stock transactions. For his part, Salah Al-Sultan, an advisor at Arzaq Capital Co., opined that the realty trader, in general, aspires to 5.5-6 percent proceeds. Investments in the property sector are largely safe, even in a bullish status, however, in the stock market, traders, particularly inexperienced ones, may incur heavy losses particularly when encountering heated speculations.
Kuwaiti women traders "enjoy a large share in the realty investments," he elaborated. Dr. Haidar Al-Jumaa, board member in Kuwait International Bank, says the real-estate trader may wait for years to start putting some gains in his pocket, unlike the stock trader who can bag rapid earnings.
"A clever investor determines the domain of business according to his living circumstances and his (her) needs for finances," said Al-Jumaa who also expressed his belief that "the property investment is the ideal option with 100 percent guaranteed returns, contrary to the shares which are susceptible to losses." Adna Al-Dulaimi, the general director at Mina Co, said the domestic property market is currently stagnant, unlike the stock market which is witnessing "robust trades."
He expressed his belief that the stock trader can make profits with good calculations and knowledge of the market status as well as local and external conditions and events. He also expressed his opinion that the realty sector is "not a good investment tool without the housing sector which is a refuge where the investor can reap profits in the range of 6-7 percent maximum." He also indicated that some development investors have sold their assets to invest in the bourse.