Kuwait moves to boost investment in historic and cultural properties

Al-Saleh indicated that traditional valuation methods, including market comparison, cost and income approaches, may not be sufficient on their own to establish the value of unique historical landmarks. He cited the Kuwait Towers and Beit Al-Qurain as examples, noting that their value cannot be measured solely by their size or location. Rather, their significance is rooted in their place in the country’s national memory, particularly Beit Al-Qurain’s association with the Kuwaiti resistance during the 1990 Iraqi invasion. Al-Saleh revealed that the bank has developed a digital platform known as the “Real Estate Memory Database,” which contains more than 75,000 documented property inspection records covering the period from 1983 to 2026. The database includes information on building age, construction costs, air conditioning specifications, land values and depreciation. He noted that the bank’s real estate department has assessed projects with a combined market value of approximately KD 2.6 billion and conducts nearly 21,000 real estate appraisals annually.

Al-Saleh expressed his aspiration to expand the bank’s expertise to include the valuation of heritage buildings and sites in cooperation with specialized organizations. As part of its professional development efforts, Al-Saleh announced a strategic partnership with RICS to train and qualify national talent in accordance with leading international professional standards. The partnership includes specialized training programs covering the valuation of historic and heritage buildings, public-private partnership projects, and hotel and hospitality developments.

These also include heritage properties repurposed as boutique hotels and tourist facilities. He explained that the bank continues to invest in developing national talent through its partnership with Kuwait University. Specialized workshops conducted under the partnership have trained more than 300 students, while approximately 50 students have benefited from field training opportunities in cooperation with the College of Administrative Sciences.

The bank has launched the “KIB Real Estate” application, which enables the entire real estate valuation process to be completed electronically, from submitting an application to receiving the final report. The bank is preparing to launch another application, “Value Now,” in early 2027. Designed specifically for real estate valuation offices, the platform will provide technological solutions to help them expand their operations and keep pace with digital transformation. Meanwhile, Virti Ramsden stressed the importance of complying with international professional standards, particularly the RICS Red Book, while selecting an appropriate valuation methodology based on the property’s nature and purpose. These methods include market comparison, residual valuation, discounted cash flow and depreciated replacement cost. She revealed that several factors infl uence the final valuation of heritage properties, including their historical and architectural significance, association with prominent figures and events, legislative restrictions, and restoration and maintenance costs. Ramsden cited a British study showing that properties located within designated heritage conservation areas sold for up to 23 percent more than comparable properties outside those areas.

This, she noted, demonstrates that heritage protection can enhance property values rather than necessarily diminish them. She stressed the importance of consulting construction engineers, surveyors, legal specialists and urban planning experts, as well as preparing accurate technical and financial reports before conducting property valuations. Ramsden explained that heritage properties are assets subject to market forces. Determining their fair value requires a combination of reliable evidence, specialized knowledge and objective professional assessment. This approach is essential to preserving historical treasures while transforming them into sustainable economic opportunities. In addition, Engineer Jaber Al- Qallaf said the main challenge lies in changing the traditional perception of historic buildings from assets that require spending and maintenance into productive assets capable of generating sustainable economic and social returns. He explained that NCCAL is working to position the creative economy as a bridge between the public and private sectors by transforming cultural assets into projects involving tourism, arts, design, architecture and creative industries.

Al-Qallaf noted that such initiatives generate value beyond direct commercial returns, contributing to improvements in the urban environment, strengthening national identity and enhancing Kuwait’s image. He explained that NCCAL is collaborating with the Ministry of Finance, the Civil Service Commission (CSC) and the Fatwa and Legislation Department to prepare a draft decree-law dedicated to creative industries. The proposed legislation aims to provide the necessary regulatory fl exibility to establish partnerships with the private sector, attract creative talent and support the development of their potential. There are several projects currently being developed by NCCAL, most notably the redevelopment of Al-Mubarakiya School as a productive asset focused on design, alongside studies into investment opportunities for Fahad Al-Salem Palace, located opposite Al- Amiri Hospital. Other initiatives include transforming the area between Al-Qibliya School, the National Museum and the Kuwait National Library into an integrated cultural and architectural destination.

Al-Qallaf also pointed to plans to reprogram the Sabah Al-Ahmad Cultural Center in Sabah Al-Ahmad City and develop a new business model for Beit Al-Othman, transforming it from a traditional museum into a hub for cultural and creative industries. He also highlighted plans to revitalize Souq Al-Safafeer and transform it into a hub for traditional crafts and creative manufacturing. Al-Qallaf noted that the strategy also involves reassessing the role of approximately 56 public libraries and transforming them into cultural and social centres integrated with schools, youth centres, parks and other elements of the local community. The speakers agreed that successfully repurposing historic buildings requires addressing several challenges, including funding constraints, limited public awareness and a shortage of specialized expertise. They also stressed the importance of developing clear operational models and effective management strategies to address risks, restoration expenses and ongoing maintenance costs.