Oct 26, 2023

Advantages of Kuwaitis' Investments in Türkiye

396 devloper Advantages of Kuwaitis'  Investments in Türkiye

Kuwaitis' Investment in Türkiye

The relationship between Türkiye and Kuwait is characterized by political stability, which was translated into bridges of close economic and political relations. This facilitated the investment operations of the citizens of both countries, through a wide range of economic packages that were signed between Türkiye and Kuwait during the last decade.

In this article, we will learn about the advantages of Kuwaiti investment in Türkiye.

Close Relationships and Safe Investments

One of the most important advantages of Kuwaitis' investments in Türkiye is the close relations between both countries. These relations provided many advantages to Kuwaiti investors in Türkiye, which is now classified as one of the most stable investment countries on the economic level.

In this context, the Turkish Ministry of Foreign Affairs published a detailed report on the occasion of the 50th anniversary of the diplomatic relations establishment between Türkiye and Kuwait in 2014; referring to the multidimensional relations that are based on common cultural and historical ties.

The existing bilateral relations between the two countries have also gained another impetus through the high-level visits that took place in recent years, and the many agreements that were signed during them.

In this context, five visits were made at the level of the two countries' presidents in 2017, in addition to a visit made by Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Emir of Kuwait, to Türkiye in 2018, to participate in the emergency summit of the Organization of Islamic Cooperation that was held in Istanbul on the events of Jerusalem. Marzouq Ali Al-Ghanim, Speaker of the Kuwaiti National Assembly, visited Türkiye in the same year to participate in the inauguration ceremony of Recep Tayyip Erdogan as President of the country. Likewise, the Speaker of the National Assembly paid a visit to participate in the third meeting of Speakers of Parliament in Eurasia, which was held in the same year in Antalya.

On the other hand, the meetings of the fifth round of political consultations between the foreign ministries of the two countries were held in 2018 in Kuwait, co-chaired by Ambassador Sedat Önal, Permanent Representative of Türkiye to the United Nations, and Walid Al-Khubaizi, Assistant Minister of Foreign Affairs of Kuwait for European Affairs.

Economic and Commercial Relations

The volume of trade exchange between the two countries reached more than $678 million in 2018; exceeding the volume of trade exchange for past years. At the present time, more than 300 companies operate in Türkiye with Kuwaiti capital. These companies made investments in the country amounting to $1.7 billion; as such companies are active in the financial, real estate, commercial, and industrial sectors in general. Likewise, the value of Kuwaiti tenders awarded to Turkish companies amounts to $6.5-7 billion in current years.

Kuwaitis prefer to invest in the real estate field and buy real estate in Türkiye, as they purchased 1691 properties in Türkiye in 2017. Also, Kuwaitis are increasingly interested in tourism in the country with the number of Kuwaiti tourists visiting dramatically increased.

In addition, and in parallel with the prevailing positive atmosphere in terms of the existing political and economic relations between the two countries, Kuwaitis, holders of public passports, were exempted from entry visas to Türkiye in 2017. This contributed to the increase in the number of Kuwaiti tourists coming to the country. In this context, the number of Kuwaiti tourists coming to Türkiye reached 20.000 in 2010 and 180.000 in 2016, as well as 300.000 tourists at the end of 2018; according to the Turkish Statistical Authority.

Turkish exports to Kuwait provide many services and goods as well, as it exports well-known Turkish carpets, floor coverings, iron, steel, land machinery, accessories, machinery, spare parts, and textiles. As for Turkish imports from Kuwait, they consist of crude oil, petrochemical products, organic chemical products, and plastic materials.

Growing Investment Confidence

Türkiye Ambassador to Kuwait, Ayşe Hilal Sayan Koytak, expressed her happiness at the 31.5% increase in bilateral trade volume for the year 2021 compared to the previous year. The trade volume amounted to $801 million, which put Türkiye in a position to achieve a trade surplus. Likewise, the country's exports, which amounted to $457 million in 2017, increased by 51% by the end of 2021 to reach $692 million.

Also, the ambassador mentioned that the Turkish foreign trade surplus, which amounted to $219 million in 2017, had increased to $583 million at the end of 2021. In the same period, the Turkish state's share in Kuwait's total imports increased from 1.5% to more than 5%. The increasing Turkish trend in exports also continued in 2022. The country's exports to Kuwait also increased by 30% to reach about $202 million.

Reasons for Real Estate Investment in Türkiye

Many reasons have always motivated investors to pump their money into the Turkish real estate market. These reasons have always been attractive to them and the following highlights some of these reasons:

  • Türkiye's picturesque nature and the presence of many temples, museums, mosques, and mountain peaks, in addition to commercial and shopping markets.
  • The stability that Türkiye enjoys on the social and political levels.
  • The unique future of the Turkish economy in light of the rapid growth it is witnessing at the present time.
  • Türkiye's Islamic character, which is evident in cities and villages, with the high morals possessed by Turkish citizens.
  • Easy laws that preserve the rights of foreigners and make them able to own property in the country through simple procedures.

Tips for Real Estate Investment

Homeland Real Estate recommends choosing a reliable real estate broker because it is the only one capable of providing guaranteed real estate advice with the broker's familiarity with the Turkish real estate market. Also, many tips can be given to investors who are about to invest in Türkiye in the real estate field, including:

  • The Suitable Location: Choosing an active and profitable location in one of the promising areas helps in the success of the real estate project; especially, in places that witness a rise in real estate prices.
  • Investing in Finished Projects: It is better to invest in ready-made real estate, as this helps in evaluating the real estate and detecting defects in it that do not appear on the map, with the possibility of ensuring compliance with the plans and ensuring correct implementation, in addition to determining the extent of the possibility of financial investment in it.
  • Investing within Your Financial Ability: Investors must invest as much as their financial ability; since real estate investment is characterized by a long term and investors must study their financial situation well and determine the capabilities they possess.
  • Distribution of Investment: It is also better to distribute the investor’s real estate portfolio as much as possible, in terms of the property type, whether it is a store or an apartment, in addition to diversifying the purchase locations. This would increase the probability of profit and put the investor in a safer position in the event of market volatility.

Therefore, as the Homeland Real Estate Company team, we are ready to provide free real estate consultations to fulfill your desire to own a distinguished property. Do not hesitate to contact us at +905377793006.