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REH – Ali Al Kulaib

KUWAIT - Real Estate & Construction

Ali Al Kulaib

CEO, Real Estate House (REH)

Bio

Ali Al Kulaib joined REH, a subsidiary of Beyout Investment Group (BIG) Holding, in 2014 and serves as the CEO. Prior to REH, he was CEO of Commercial Real Estate Company (Al Tijaria) from 2002-2013. He also held the position of the chairman of the board of the Real Estate Trading Company, a member of the advisory committee for the Real Estate Center Fund, the chairman of the board of directors of the Commercial Market Complex Company, and a member of the board of directors of Majan Real Estate Development Company. He started his career at United Real Estate Company in 1995, starting as a real estate manager before becoming a director until 2000.

"In our commitment to diversifying our portfolio, we are taking strides to mitigate risk and capitalize on emerging opportunities."
REH has made great strides in diversifying its portfolio, expanding into commercial real estate, mixed-use developments, logistics and warehousing, and the hospitality industry in Kuwait.
REH outlined an ambitious roadmap in 2023. Can you provide an update on the progress and outcomes of related initiatives?

In our commitment to diversifying our portfolio, we are taking strides to mitigate risk and capitalize on emerging opportunities. Our core competency in residential real estate is now broadening to embrace new areas. In Kuwait, we are seeing a surge in demand for commercial space, driven by economic growth and the rising presence of multinationals. This has propelled us into the commercial real estate sector. Furthermore, we believe in the future of urban development and are investing in mixed-use projects. These developments, which blend residential, commercial, and retail spaces, are becoming increasingly relevant in modern cities. Additionally, the rise of e-commerce has spiked the demand for logistics and warehousing spaces, a market we plan to cater to in Kuwait. Our venture into the hospitality industry marks another bold move, where we are developing a portfolio of hotels in Kuwait. This expansion is fueled by our belief in the strong growth potential of the hospitality sector, given the rising number of tourists visiting the country. Expanding our footprint in the GCC region is also a key focus. The GCC region, known for its rapidly growing market and affluent population, presents immense opportunities. We are exploring project developments in various GCC countries, including Saudi Arabia, the UAE, and Bahrain, as part of our growth strategy.

The media notes that the local real estate sector market is thriving due to the central bank’s interest rate stability. What impact could this have on REH?

Rising interest rates are having a mixed impact on the rental real estate market. There is a positive and negative outcome. On the positive side, people will not buy now because it costs them too much. Hence, they will opt to rent for a certain period, which will create demand. It depends on the central banks. On the negative side, people will shrink their expenditure overall. The specific effects will largely depend on factors such as the interest rate environment, economic strength, and market dynamics. To succeed unique, one should be focused and smart enough to spot opportunities when the economy suffers. Companies must not stop investing just because of the economic climate.

Do you foresee any notable developments in the commercial and residential sectors?

We do indeed foresee notable developments. The commercial real estate sector in Kuwait is expected to stay robust, driven by economic growth and the influx of multinational corporations. We have other strategies to use our current properties and it depends on the age of the property which we need to filter. One project concerns a hotel. We have demolished and built a hotel instead of flats. We are focusing on all BOT projects. We won a government tender for a large piece of land in Al Mutlaa, the new city. It has 28,000 new houses, plus hospitals and a university. It is called Beyout Plus (M1 project). We signed the contract with the government and have everything ready. We are going to have warehouses, showrooms, retail, large parking facilities, and worker residences. This mixed-use project will take three years to complete from signing and is a 30-year concession. REH’s alliances with government and private entities have been crucial on our journey. Our involvement in projects like Souq Al Mubarkiya and Al Mutlaa, and our partnerships in technology and market expansion initiatives, are testaments to our collaborative approach.

What are the company’s plans for growth and expansion in the near future?

For future growth, REH is geared toward developing innovative products that cater to the evolving needs of diverse customer segments, including smart building technologies, residential products for young professionals and families, and commercial solutions for businesses of various sizes. Our strong financial base, experienced management, and commitment to innovation have securely set us up for continued success and expansion in the real estate market.

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