Kuwait Entertainment City targets Gulf tourism rivals

Alamy/David Pearson

• $660m plan for 900,000 visitors
• Kuwait tourism lowest in GCC
• Sector plans 4,000 jobs

Kuwait Investment Authority taking over a planned Entertainment City development in the nation’s capital is the latest sign of an upturn in its commercial real estate sector, according to experts.

Authorities first announced the nearly $660 million (KWD 200 million) project in October 2019, then relaunched it in May 2023. A study at the time predicted the project would receive more than 900,000 visitors annually by 2030.

The Ministry of Finance last week secured clearance to transfer management of the development, which sits along Kuwait City’s north coast in a district called Doha, from the central government to its sovereign wealth fund the Kuwait Investment Authority (KIA).

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“KIA’s assurance to launch the project in six months and recent broader pick up in momentum in Kuwait’s projects and initiatives offer cause for hope,” says MR Raghu, chief executive of Marmore Mena Intelligence, a research subsidiary of Kuwait Financial Center.

Logistics-related real estate deals nearly doubled in Kuwait in the first six months of 2024, just as data suggested a surge in new business orders from overseas would lead local firms to ramp up hiring. 

According to Raghu, tourism contributed nearly 6 percent of Kuwait’s gross domestic product last year, approximately half of what it does in the UAE and the lowest share across GCC countries.

Meanwhile, outbound travel from Kuwait in 2019, before the pandemic, was 12 percent of GDP.

“These numbers indicate the potential for growth in tourism in Kuwait. Projects like Entertainment city, which is expected to contribute KWD85 million to the country’s GDP and provide 4,000 jobs by 2035, would boost the sector’s growth, facilitating economic diversification,” he says.

Entertainment City is being built on the site of a previous namesake development that had been operational since 1984. It closed in 2016 and was fully demolished by 2020. 

The new project is expected to feature indoor and outdoor amusement and water parks, athletic facilities, gaming centres and other structures.

• Large deals drive Qatar and Kuwait real estate in Q2 
• Kuwaiti businesses struggling to meet demand as orders surge
• Logistics deals keep Kuwaiti real estate ticking over

The Sheikh Jaber Al-Ahmad Cultural Center, also known as the Kuwait Opera House, and the South Subahiya amusement park are among the nation’s current entertainment offerings.

Seasonal options are Winter Wonderland and Green Island, the Arabian Gulf’s first artificial island off of Kuwait City’s promenade, according to Raghu. 

Other GCC countries are building similar attractions to meet rising numbers of visitors and the tourism industry’s potential.

Qatar in July announced its own entertainment-focused development, the $5.5 billion Simaisma Project on the outskirts of the capital Doha.

Bahrain, meanwhile, is betting on sports facilities and event-related tourism to remain competitive in an increasingly sophisticated regional landscape. 

According to Anshuman Magazine, CBRE’s chief executive for the Middle East and Africa, Kuwait’s new effort to boost the tourism sector’s revenue share in line with other Gulf countries is “a welcome move”.

“Kuwait’s entertainment offerings are limited compared to other GCC countries,” says Magazine.

“This project will represent a substantial upgrade, aligning with the government’s vision to reduce dependence on oil revenues and develop a more sustainable economy.”