The government of Kuwait is preparing, through the Public Authority for Investment (PAI) and the Public Institute for Social Security (PIFSS), to pump ‘operational’ investments into the Kuwait Stock Exchange to benefit from the circulating liquidity boom, and then achieve regular returns within the framework of providing attractive alternatives and options for investment.
Informed sources told Al-Rai that there are about 3 strategic projects that are currently being researched in preparation for presenting them into the market in the form of investments, with a total value of approximately 300 million dinars, represented in offering state-owned properties through income-generating real estate funds (traded) (REITs) with an average capital of 100 million dinars for each of them, to own and manage income-generating real estate and real estate assets, pointing out that this comes in light of the strategy to develop government activities and providing operating models that attract capital.
The sources stated discussions are in the offing between PAI and PIFSS to develop an appropriate mechanism for the exploitation of affiliated and managed properties by the two sides by listing them under the umbrella of real estate funds, to be offered to retirees at first for subscription and then presented to the stock exchange as an investment model loaded with returns that can be traded on the screen officially for the public subscription on the principle of ‘supply and demand’.
The sources said the talks dealt with, within one of the three projects, the idea of exiting the PAI from the National Real Estate Portfolio, with a capital of 250 million dinars in favor of PIFSS, if it has sufficient desire to complete the process, provided that the assets owned by the portfolio (investment, residential and commercial real estate) would all be transferred to the corporation in preparation for its inclusion in the REITs.
