KIB hosts its first specialized panel discussion on the valuation of industrial plots and the impact of regulatory decisions

Kuwait International Bank (KIB) recently hosted its first panel discussion, titled “Valuation of Industrial Plots and the Impact of Regulatory Decisions,” as part of efforts to strengthen institutional collaboration and advance professional practices in the real estate valuation sector. The event was held in collaboration with the Kuwait Real Estate Valuers Association and Kuwait Finance House (KFH).

The panel discussion, held at the KIB Mubader Center, attracted a distinguished audience of specialists and professionals from the real estate sector. The organizing entities underscored the importance of this initiative in supporting the professional development of real estate valuation and strengthening integration between the banking and professional sectors, contributing to a more efficient and transparent business environment in the State of Kuwait.

Participants in the panel discussion agreed to expand the scope of joint collaboration in 2026 through the organization of a series of panel discussions and specialized forums, as well as the exchange of institutional and professional support. These efforts aim to promote the dissemination of professional knowledge, support the application of international valuation standards, and enhance the level of professional practices adopted by real estate appraisers licensed by the Ministry of Commerce and Industry.

The panel discussion addressed several core themes, foremost among them the nature of real estate ownership and its direct impact on valuation methodologies. The session clarified the distinctions between freehold ownership and usufruct rights, with particular emphasis on the unique characteristics of industrial plots, which operate under a usufruct framework and restricted-use regime aligned with activities approved by the Public Authority for Industry. These considerations have significant technical and professional implications for determining the fair value of real estate.

The session also reviewed valuation approaches for industrial plots in line with internationally recognized standards, including the sales comparison, cost, and income approaches. It highlighted the practical challenges of applying the comparison approach in light of limited transaction data, as well as the importance of strengthening the reliability of market data as a fundamental pillar of valuation accuracy. Participants also discussed the application of the income approach, including the analysis of operating expenses and variations in rental rates and capitalization yields based on the specific industrial activity assigned to each plot.

The panel also examined the regulatory and economic factors affecting the value of industrial-sector real estate in Kuwait, while clarifying the fundamental differences between usufruct contracts for industrial plots and public–private partnership (PPP) projects, and the respective implications of each for valuation and investment decisions.

Regulatory decisions received particular attention, with discussions focusing on their role in improving the business environment of Kuwait’s industrial sector. The session also emphasized the importance of compliance with regulatory requirements, Kuwait Municipality laws, safety and fire regulations, and environmental standards in safeguarding the industrial sector and reducing violations that could adversely affect the real estate market.

Commenting on the event, Eng. Fahad Al-Saleh, Senior Manager of the Real Estate Advisory and Digital Solutions Department at KIB's Real Estate Department, stated: “The Bank has always been at the forefront of organizing and sponsoring such forums and specialized panel discussions, driven by its belief in the importance of professional dialogue as a key tool for developing the real estate sector.”

Al-Saleh affirmed that KIB is committed to continuing joint coordination with partners from both the banking and professional sectors to launch specialized knowledge programs covering various real estate segments. These efforts aim to develop the real estate valuation profession, enhance investor confidence, and support the sustainability of the real estate market in the State of Kuwait, in line with international best standards and practices.

It is worth noting that this panel discussion forms part of a broader series of knowledge-based initiatives and events organized by KIB as part of its strategy to promote the exchange of expertise and strengthen specialized knowledge. These efforts reinforce the Bank’s role as an active partner in advancing Kuwait’s real estate and financial ecosystem, in line with sustainable development objectives and global best practices aimed at enhancing market efficiency.