The Wafra Real Estate Company, the real estate arm of the Public Institute for Social Security, is studying the possibility of investments on Failaka Island through the development of the marine tourist park complete with all facilities, including chalets, infrastructure and logistics to serve it.
Informed sources told a local Arabic daily that the Wafra Real Estate will conduct a feasibility study especially as it intends to develop its project on the island on a world-class model that simulates the best similar projects in the world, while preserving and renovating the historical and social identity of the island.
The sources confirmed that the PIFSS investment in Failaka aims to maximize the institute’s revenues from generating assets that reflected positively on the salaries of retirees, pointing out that PIFSS follows, in all its projects and investments, a strategy that balances between profitability, hedging and risk management.
The sources added that the Social Insurance Institution’s tendency to invest in “Sheikh Jaber Al-Ahmad Causeway Islands” or even in Failaka Island or any vital future projects in Kuwait is part of its role in the search for good investment opportunities, as well as in an effort to move the wheel of the local economy, both in terms of the tourism sector, contracting, construction or other related sectors.
A recent study stated that a government trend was to segregate and divide the tourist sites on Failaka Island from 2 to 4 parks as needed, with each park having a special character, serving various segments of clients (tourist park, family park, heritage park), a sanatorium park for physiotherapy or convalescence and recreation.
It is decided, according to the initial perceptions of the mechanism of launching the Failaka Island development project, that the project will be put up for rent for a period of 20 years in accordance with Article 17 of the State Property Law which stipulates that it is permissible to lease the state’s private real estate or movable property for a nominal fee or less than the same wage to a legal or natural person with the intention of achieving a purpose of public benefit, and the lease is based on the proposal of the Minister or the head of the competent authority or institution with the approval of the Council of Ministers.
Informed sources said that the ministerial committee supervising the follow-up of the implementation of major development projects headed by Deputy Prime Minister, Minister of Defense and Acting Minister of Interior Sheikh Talal Al-Khaled Al-Sabah is working in full swing to coordinate with the relevant authorities in the development of Failaka Island, in order to identify the current obstacles and develop quick solutions to complete them.
This will be done in coordination with the Municipal Council to set up a mechanism for the uses of the project in line with the ambitious government vision of the project, taking into account the positive returns that the private sector will develop and manage.
The government agencies related to the implementation of the project include “the General Secretariat of the Council of Ministers, the Fatwa and Legislation Department, the Ministry of Finance represented by the State Property Administration, the Kuwait Municipality, the Ministry of Works, the Ministry of Justice, the Ministry of Electricity and Water and other entities.”
