Value of state real estate assets jumps 187 %

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KUWAIT CITY, Dec 21: The value of the state’s real estate assets jumped at the end of last year to reach about 47.120 billion dinars at the end of the last fiscal year, an increase of 187% compared to the estimated value of real estate assets during 2020/2021, which was valued at about 16.4 billion dinars, reports Al-Qabas daily. The state’s real estate assets include all lands and buildings owned by government agencies, whether inside or outside the State of Kuwait. The movable assets after the inventory of stores, workshops and personal covenants also witnessed an increase from 2.1 billion to reach 4.1 billion dinars.

Financial management
Thus, the state’s total movable and real estate assets reach 51.2 billion dinars, based on the figures issued by the final account of the state’s financial management for the last fiscal 2021/2022, compared to total assets of 18.6 billion dinars in the previous year. The reason for the record jump in the value of the state’s real estate property and assets is due to the revaluation of state property at its fair market price, with the aim of improving its utilization, which makes it an essential tributary of revenues in the general budget and pushes it to occupy the second place after oil revenues. Some time ago, the Ministry of Finance issued a decision to reinventory and evaluate the state’s real estate assets, noting that there is an accurate and comprehensive inventory of assets in every ministry or government department.

The ministry pointed out that a proper inventory leads to making correct financial decisions, and tightens control over actual assets and their conformity with records and the degree of its compatibility with the actual needs of business performance or production and the extent to which it shows the financial position of the state.

The reasons for re-evaluation of state assets to reflect their real value is due to a number of reasons, including:

■ Adding billions to the total government assets through reevaluation, which will help a lot in supporting Kuwait’s credit rating with international institutions, especially since about 30 billion were added to the assets.

■ An increase in the rate of inflation during the recent period, while the value of assets remained the same for a long time, which requires the necessity of re-evaluation at fair prices.

■ The desire to activate the partnership law between the public and private sectors, which requires an inventory and evaluation of real estate assets so that the way can be paved for conducting such partnerships.

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