Gulf investors in sector targeted
KUWAIT CITY, July 30: Legal Affairs Department in the Ministry of Commerce and Industry is reviewing laws that oblige Gulf investors who are geared up to establish real estate companies in Kuwait to mortgage properties they own in their home countries to make it possible for relevant authorities to liquidize all or part of those properties in case citizens are subjected to illegal procedures that require the companies to refund their money.
Sources explained that the ministry will seek support of a consortium of legal specialists in reviewing items of the agreement signed between the ministry and the real estate companies to signify commitments of each party and value of the mortgaged real estates with copies of the ownership contracts.
Meanwhile, sources said Real Estate Department is putting a specific mechanism in place to compel real estate developers to provide detailed plans for international projects floated by the companies and to provide documents proving ownership of the floated real estate.
The documents should be stamped by the embassies of the concerned countries where the property will be floated while designating local and overseas banks to deal with. They pointed out that Real Estate Department requires the real estate company and the client to deal directly with the concerned official in the ministry in case of dispute.
Meanwhile, the ministry is studying the possibility of suspending licenses for engaging in time-sharing (a form of hybrid ownership that grants the right to occupy a unit of real estate such as condominium or vacation home) because experts see this type of real estate investment as having many negative aspects. Sources noted the next period will be witness to numerous international real estate exhibitions in an entirely different way under the auspices of the Ministry of Commerce and Industry to reinstate trust in real estate sector.
By Rabab Al-Jawhari Al-Seyassah Staff