Kuwait Real Estate Company's profits jump 44% to 7.3 million dinars in the first half

Kuwait Real Estate Company, one of the leading firms in the investment and real estate development sector, announced its financial results for the period ended June 30, 2026. The results demonstrated continued strong financial and operational performance, reflecting the robustness of its business model and the effectiveness of its strategic execution, despite regional challenges and fluctuations.

The company recorded net profits of 7.3 million Kuwaiti dinars, or 5.64 fils per share, compared to 5.1 million dinars, or 4.55 fils per share, during the same period last year, representing a 44% growth.

Revenues recorded exceptional growth of 84%, reaching 36.4 million dinars, up from 19.8 million dinars in the first half of 2025. This increase was driven by the continued recognition of revenues from the "Al Teeh Hills" project in the Emirate of Sharjah, based on the percentage of completion.

Total assets of the company rose by 21.2% to reach 562.6 million dinars, while shareholders’ equity increased by 34% to 226 million dinars. This highlights the company’s strong financial position and its ability to support growth and navigate changes, thereby enhancing its resilience and ensuring long-term performance sustainability.

On a quarterly basis, revenues in the second quarter alone grew by 22.6% to reach 12.6 million dinars, compared to 10.3 million dinars in the same period last year.

Ibrahim Saleh Al-Dharban, Chairman of the Board, emphasized that these results reflect the strength of Kuwait Real Estate Company’s business model, which is built on diversification, flexibility, and investment discipline. This approach enhances the company’s ability to adapt to economic and regional changes and capitalize on opportunities across various market cycles.

He noted that, leveraging its extensive experience in the region, the company continues to strengthen its position in strategic markets by executing ongoing projects while simultaneously pursuing new investment opportunities. These efforts diversify its real estate portfolio geographically and sectorally, boosting competitiveness and ensuring sustained value creation for shareholders in the long term.

For his part, Talal Jassem Al-Bahar, Vice Chairman and Chief Executive Officer, stated that the second quarter marked a pivotal stage in the company’s project pipeline, with significant progress achieved in several strategic projects. This progress enhances their readiness for upcoming phases and paves the way for gradual positive impacts on operational and financial performance. He clarified that these results reflect the company’s efficiency in managing and executing its projects, as well as its commitment to adhering to the highest standards of quality and operational discipline.

Regarding local projects, the Workers’ Housing project in Subhan continued to show notable progress, reaching an overall completion rate of approximately 98%. Spanning 40,000 square meters, the project is one of the company’s strategic initiatives in Kuwait and is expected to be completed and handed over in the near future, supporting future operational revenue growth.

Turning to the United Arab Emirates, the "Al Teeh Hills" project in Sharjah, one of the company’s largest development initiatives, continued to advance according to the approved execution plan. During the second quarter, deep infrastructure works were completed at 99.6%, while infrastructure construction continued alongside the awarding of several key execution contracts, notably the electrical works contract and the construction contract for the structures of 1,100 precast villas, paving the way for the project to move into subsequent construction phases.

In Dubai, the "Domus 5" project continued to make significant progress, reaching a completion rate of approximately 91%. The project has entered its final execution stages, with finishing and preparation works ongoing in preparation for completion and handover in the near future.

Reflecting its continued expansion in the UAE, the company announced during the period the acquisition of a 66.6% stake in a land plot in the Emirate of Abu Dhabi, in partnership with EVO Hotels & Resorts. This acquisition paves the way for the development of a new project to be added to its portfolio, supporting its long-term growth trajectory.

In the United States, the company continued to enhance the performance of its investment portfolio through the active management of its operational assets. This coincided with the completion of the exit from the "501 First Residences" project in Miami following the completion of development and handover works. Additionally, the company made progress in developing investment opportunities in Savannah, Georgia, as part of its strategy to expand in the Single-Family Rental (SFR) sector and capitalize on the growth opportunities present in the U.S. market.

Concluding his remarks, Al-Bahar affirmed that the company’s achievements during the first half of the year reflect its ability to execute with discipline and translate plans into tangible results. He indicated that the upcoming phase will focus on completing ongoing development projects, enhancing the contribution of income-generating assets, and continuing to build an investment portfolio capable of achieving growth across various market cycles.