Real Estate Sector in Kuwait: An Interview with Ali Haidar Khajah of Al Hamra Real Estate Company
Ali Haidar Khajah shares his outlook for 2021 and onward, and talks about investment opportunities in the real estate sector in Kuwait. He also gives an overview of Al Hamra Real Estate Company, as well as the company’s iconic mixed-use development and national landmark, Al Hamra Tower, located in the heart of Kuwait City.
Interview with Ali Haidar Khajah, Chief Operating Officer at Al Hamra Real Estate Company
What is the outlook for 2021 and onward, especially in light of the effects of the COVID-19 global pandemic, as well as investment opportunities in the real estate sector?
Given the current volatile climate, it’s been a rough time for everyone on a global front. If you look at the real estate industry as a whole, no two people will disagree that commercial residence apartments have been impacted the most at the moment. However, the low interest rate environment, flexible debt repayment options and easier access to funding, has benefitted the pure residential sector.
With every challenge, there are opportunities for growth as well. Mixed-use projects like Al Hamra drive more demand from different types of traffic, tenants and industries. In addition, leasing opportunities are growing such as the medical sector who are looking to expand but are proceeding with caution due to government regulations and are opting to wait until the situation improves.
Tell us about Al Hamra. What is your purpose?
Al Hamra Tower enjoys a 92% occupancy rate and has itself evolved into a vertical city that is now home to over 120 tenants who are some of Kuwait’s leading political, government, business and diplomatic figures.
Our purpose lies in providing the community individual experiences and staying consistent with our top of the line offerings in an agile world. Al Hamra is a mixed-use development where the retail space services the Business Tower. Located in the heart of Kuwait City, we are well-placed for specific lifestyle and premium choices through our shopping center, which as a destination provides an eclectic mix of dining options, brands, entertainment, forums, shows and on-the-go amenities. The Business Tower is considered an iconic national landmark that stands as the focal point of Kuwait’s business district. Our forward thinking approach led to the creation of a vibrant international business hub and modern office environment for the new age. Our facilities and resources support growth through state of the art workspaces, and IT & marketing solutions, in addition to easy access and convenient parking.
Owing to a diverse range of regional and global tenants that have attracted influential decision makers under one roof, networking opportunities are vast. Today, Al Hamra Tower is a thriving business community.
What distinguishes Al Hamra from the competition?
To reiterate, our philosophy is to deliver distinct value across 2 main spectrums – to accommodate the business community with added convenience as well as premium choices that will elevate their overall experience.
Our strengths fundamentally lie in the fact that we are a convenient and lucrative destination. Al Hamra adheres to a sustainable business model with a solid portfolio of diverse assets which includes the Business Tower that acts as an enabler for growth across different sectors and the shopping center that complements its lifestyle demands. As a result, the Tower enjoys a 92% occupancy rate and has itself evolved into a vertical city that is now home to over 120 tenants who are some of Kuwait’s leading political, government, business and diplomatic figures.
What is Al Hamra’s role in the development of Kuwait as a whole?
Diversification and adaptation are key here. Our trajectory for development is sustainable, simply because we have set a new standard in office and retail spaces. Since Al Hamra’s inception, we have progressed with the market and by branching out to growing industries with our high-quality offerings, we have raised the bar for what a class A office building should provide.
In line with the Kuwait 2035 vision that aims on transforming Kuwait into a regional and international trade hub, and becoming more attractive to investors, we have remained resilient in contributing to these objectives and successful in cultivating a business-friendly environment for all of our tenants, be it our current or prospective.
What are the key challenges for you to boost your business?
It is evident that there have been behavioural changes across almost every sector over the past year. However, with change, comes new opportunities – we have been able to forecast these trends and capitalise on emerging changes in ways others haven’t. We have invested in enhancing our shopping center services, continually adding an in-demand mix of consumer brands and concepts. To cite a recent example, when the pandemic hit followed by the lockdowns and curfews, we ensured our visitors and tenants were still able to access their favourite restaurants from our food hall through the virtual drive thru app.
What is your vision for the future of Al Hamra Real Estate Company?
Our vision is to remain impactful and supportive of the country’s fundamental needs. As a mixed-use development, we have aligned our plans to maintain a sustainable business model by adding more components in line with the Kuwait Vision for 2035 to raise the bar to welcome more international players.
We are looking to diversify our income and expand our portfolio as we foresee opportunities in the coming year across different sub-sectors of real estate – such as PPP projects, direct free hold developments which we plan to concentrate our efforts on. We feel there is an acceleration in that direction.
What is your personal inspiration to do what you do?
It is an honor to be part of a brand that is iconic and impactful – to play a leading role in the ongoing transformation and growth of what stands as the focal point of Kuwait’s business district today. Coming in to work every day with that sense of commitment and personal accomplishment is what drives me. I am proud to say that we have carved out a niche in the market, the region, as well as within the community.
ABOUT ALI HAIDAR KHAJAH: As Chief Operating Officer at Al Hamra Real Estate Company, Ali Haidar Khajah oversees Al Hamra’s operations, ensuring management’s overall adherence to the set strategy, with an aim to achieve operational excellence and quality financial performance and reporting. With his experience in real estate development and corporate finance, Ali has been instrumental in diversifying and expanding the portfolio of Al Hamra creating a sustainable business model.
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