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The new Entertainment City project, which is set to be relaunched within six months, will represent a significant upgrade and aligns with the government’s vision to reduce reliance on oil revenues and develop a more sustainable and diversified economy.
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The tourism sector contributed about 6% to Kuwait’s gross domestic product last year, the smallest share among Gulf countries. Foreign travel from Kuwait in 2019 amounted to 12% of GDP.
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Gulf countries are working to build recreational areas to meet growing local demand for entertainment, attract more visitors from abroad, and develop the region’s tourism sector
Experts noted that the Kuwait Investment Authority’s take on the new entertainment city project is a key sign of the improving commercial real estate sector in the country, as reported by Arabian Gulf Business Insight and Al Qabas newspaper.
The report stated that the project, worth 200 million dinars, was announced in October 2019 and relaunched in May 2023. Studies predict that the new entertainment city will attract more than 900,000 visitors annually by 2030. It also noted that the Ministry of Finance obtained approval to transfer the project’s management to the Kuwait Investment Authority.
M.R. Rago, CEO of Marmour Intelligence, a subsidiary of Markaz, was quoted as saying that the authority’s confirmation of the project’s launch within six months, along with the recent rise in project momentum, provides positive economic conditions for the country.
The report explained that the number of real estate transactions related to logistics services in Kuwait doubled in the first six months of 2024. It noted that the increase in new commercial orders from abroad would likely prompt companies to boost recruitment.
Tourism sector’s contribution
Rago highlighted that the tourism sector contributed about 6% to Kuwait’s GDP last year, which is nearly half of the tourism sector’s contribution to the UAE economy. However, the tourism sector’s share of Kuwait’s gross domestic product (GDP) is the smallest among Gulf countries. The report pointed out that foreign travel from Kuwait in 2019 amounted to 12% of GDP.
Rago said, “These figures indicate the growth potential of the tourism sector in Kuwait. Projects such as the Entertainment City are expected to enhance the growth of the tourism sector and facilitate economic diversification in the country.”
He added that expectations are that the new amusement park will contribute about 85 million dinars to the country’s GDP and create more than 4,000 job opportunities by 2035.
New Entertainment City to feature parks, sports facilities, and more
The report pointed out that the new Entertainment City project is expected to include recreational, water, and outdoor parks, sports facilities, game centers, and various recreational amenities such as restaurants and cafes. It noted that the Sheikh Jaber Center, which features an opera house, and South Al-Sabahiya Park are among the current venues offering entertainment shows in the country.
According to Rago, the recreational options available in Kuwait are usually seasonal, with notable examples being ‘Winter Wonderland’ and Algecira, the first artificial island in the Gulf.
The report stated that other Gulf countries are working to build similar recreational areas to meet growing local demand for entertainment, attract more visitors from abroad, and develop the region’s tourism sector. It pointed out that Qatar announced in July its own entertainment project, ‘Simaisma,’ worth $5.5 billion, on the outskirts of the capital, Doha.
He added that Bahrain is focusing on developing sports and tourism facilities to remain competitive in the increasingly dynamic regional tourism landscape.
Kuwait aims to boost tourism sector’s GDP contribution
The report quoted Anshuman Magazine, CEO of CBRE in the Middle East, as saying that Kuwait’s efforts to increase the tourism sector’s share of GDP, in line with other Gulf countries, are welcome steps.
He added that while Kuwait’s entertainment sector offerings are currently limited compared to other Gulf countries, the new Entertainment City project will represent a significant upgrade and aligns with the government’s vision to reduce reliance on oil revenues and develop a more sustainable and diversified economy.
