Kuwait Municipality assesses Jahra Corniche to identify its strengths and weaknesses

The Kuwait Municipality has identified 3 weaknesses and 3 threats facing the Jahra Waterfront Project, known as the “Jahra Corniche”, while listing the strengths and opportunities, stressing that the project aims to strengthen the economy.

The weaknesses mentioned in the book, a copy of which was obtained by Al Jarida, were limited manufacturing capacity, the large number of vacancies in housing, and bureaucratic restrictions that affect foreign ownership.

On the threat front facing the project, the letter signed by the Director of the Project Development Department and addressed to the Deputy Mayor stated that they are represented by the decline in financial markets, the existence of strong competition from neighboring markets, and the government’s reduction in the number of expatriates, which may affect demand.

What’s more is that the Municipality’s book stated that a SWOT analysis was conducted, strengths, weaknesses, opportunities, and threats, to assess the current status of the project in the local and international context of the Jahra Waterfront Development Project (Corniche).

Among the strengths are the availability of adequate and appropriate financing for projects, the presence of a consumer base of young people and citizens, and opportunities to expand the market for commercial projects.

Whereas regarding the opportunities, he said that the project is part of the government’s big plans to boost the economy until 2035, and increase the number of expatriates, which leads to increased demand for services, as well as for real estate projects too.

Regarding taking into account the opinions of specialists from economists and the private sector, the book stated that due to the importance of the Jahra Waterfront Development Project and its vital role in promoting economic and social development, several meetings and debates were organized with specialists and investors to discuss about the project.

He stressed the need to coordinate with the Investment Promotion Agency to work on marketing the project and attracting investors, discussing the support mechanisms available to investors, and explaining the advantages of the project and its impact on the local economy.

Furthermore, he continued saying that The global financial consultant Baker Tilly was commissioned to conduct a comprehensive feasibility study for the project.

It is a company with extensive global and local experience, operating in several sectors including auditing, taxes and consulting at the global level. It is present in many countries and provides various professional services locally.

Baker Tilly has a deep understanding of the Kuwaiti market and its needs, which enable it to provide specialized consultations, which are consistent with local laws and regulations.

Focusing about the estimation of the number of residents, also residents and workers, he said: The financial feasibility study for the project and the market study it contains include various statistics related to the project location and surrounding areas and statistics on the number of citizens and residents in the State of Kuwait.

Whereas about the expected number of visitors, the Municipality expected, according to a previously prepared study, that the number of visitors estimated in the market study would be about 861,692 visitors, and the total number of expected visits during the year will be 5,489,101 with the estimated number of visitors, in addition to 726,006 visitors from the surrounding area and 135,685 visitors from the rest of Kuwait.

More importantly, the number of direct job opportunities generated by the project will amount to about 2,500 job opportunities, and these opportunities include jobs in the fields of operation, management and various other services.

The Municipality said:

The Jahra Waterfront Development Project is a fully legal project, as all necessary procedures were followed to obtain the required approvals from the competent authorities represented by the Ministry of Finance, and the necessary approvals were obtained from them, which ensures the project’s compliance with financial standards and government budgets.

The project obtained the approval of the Supreme Council for the Environment and the Public Environment Authority, which ensures compliance with the environmental standards required to protect the environment surrounding the project. In addition, the approval of the Partnership Projects Authority was also obtained.

Municipal conditions for project approval

The Municipality’s submission of the comprehensive study of the Jahra Corniche project came in response to five conditions set by the Municipal Council in one of its sessions.

These were namely; a feasibility study, an analysis of the strengths, weaknesses, opportunities and threats of the project, taking into account the opinions of economic specialists and the private sector, estimating the number of residents, residents and workers, and providing a legal opinion.