Kuwait’s vehicle auction market targets 2026 completion, still at 0%

• The vehicle auction project will turn the local market into a regional hub, driving economic growth, with car sales exhibitions planned to reduce their presence in residential areas and boost state revenues.

The project to build and operate the vehicle auction market aims to boost state revenues, provide a legal framework for brokers, and save time and effort for market participants, both sellers and buyers, according to Al Jarida newspaper.

Designed to meet the needs of the local market, the project will transform it into a regional hub serving the wider area and driving economic development. Additionally, part of the new facility will feature car sales exhibitions, helping to attract these events and reduce their presence in residential areas.

Kuwait’s vehicle auction project aims for world-class standards

The project, which is expected to be completed in 2026, is currently at a 0% completion rate. Regarding its progress, the Ministry of Trade, Commerce, and Industry has presented it as a public-private partnership aimed at implementation in a manner that surpasses previous experiences and is organized to world-class standards. The project is planned to include car showrooms and auction halls with the latest designs, along with automated systems and applications that will allow users to view and participate in remote auctions.

The Central Agency for Public Tenders approves offering process for major project

On July 7, 2020, the Central Agency for Public Tenders approved that the concerned entity would carry out the offering process according to the general practice method outlined in Article 17 of the Public Tenders Law. At that time, the Public-Private Partnership Projects Authority also announced that it was in the process of appointing an advisory body for the project.

It was noted that the land allocated for the project lacked the required services, and the Ministry of Trade,Commerce and Industry informed the authority that it was working on changing the site. The ministry was awaiting approval from the municipal council for the new allocation.

Site issues and feasibility study progress slow

In light of this, the authority awaited the report on the new site to proceed with the appointment of the advisory body. It noted that in the absence of an allocated site with the necessary services, the matter would be referred to the Supreme Committee for further action. The Competition Committee has been in place since March 6, 2019, but the preparation of the feasibility study for the project did not begin until August 2020.

Kuwait automobile auction project

On December 12, 2019, the Ministry of Trade, Commerce and Industry sent a letter to the Municipal Council titled “The Initiative for Launching the Kuwait Automobile Auction Project” and used car exhibitions.

The letter stated that “Given the significance of the car forest as a cornerstone in the system of marketing used cars in the State of Kuwait, and its considerable economic importance, it is crucial in promoting and achieving the vision of His Highness the Amir to transform Kuwait into a financial and economic hub.

The project is expected to bring about a qualitative shift with very positive impacts on both the economic and social aspects of the country. It will provide significant investment opportunities for Kuwaiti citizens and attract many regional citizens to engage with it, due to its ability to expedite sales and purchases at competitive prices.

Additionally, it is vital for enabling concerned state entities to tighten control over the market and its dealings, and to eliminate informal markets, which arose and spread due to the lack of an organized market.