Kuwait’s Souq Sharq Revamp Set to Boost Tourism and Economy: A New Step Toward Vision 2035 in the Gulf Region

Published on November 25, 2024

Efforts to enhance facilities like Souq Sharq, a market of historical and geographical significance, are being seen as a critical step toward fostering both economic and tourism development in Kuwait. Established 26 years ago on a 55,000-square-meter area, Souq Sharq serves as a prominent commercial hub and a vital landmark that demands modernization to align with its rich heritage and contemporary expectations.

Stakeholders are urging authorities to prioritize the redevelopment of such key sites to ensure they remain valuable cultural and trading hubs, while also reflecting Kuwait’s aspirations for economic progress and global competitiveness.

Souq Sharq’s Strategic Importance

Souq Sharq holds a unique place in Kuwait’s economic and cultural fabric due to its history and location. Economists and industry leaders recognize it as a critical facility that can drive growth if properly revitalized. They believe that Kuwaiti companies, with their extensive expertise, are well-positioned to manage and develop such projects. However, they emphasize the need for regulatory standards to ensure transparency, fairness, and the protection of all stakeholders involved, including the state, private entities, and citizens.

The redevelopment of Souq Sharq is being seen as an opportunity to transform it into a modern hub that aligns with Kuwait’s broader development goals, catering to the aspirations of both residents and visitors.

A Visionary Opportunity

Experts view Souq Sharq as part of a broader strategic opportunity for Kuwait to achieve its Vision 2035, which focuses on economic diversification and enhancing global competitiveness. Jassim Zainal, Vice Chairman and CEO of Arzan Financial Group for Financing and Investment, highlighted that Souq Sharq and similar facilities must evolve to match the standards of neighboring markets.

Zainal noted that the government has been taking positive steps that can be leveraged to modernize critical infrastructure. He stressed the importance of clear regulatory frameworks, which would not only ensure fairness and efficiency but also foster a competitive environment that benefits the state, businesses, and citizens alike.

Zainal proposed that redevelopment projects should be managed collaboratively, with responsibilities distributed among various companies based on services or project stages. He believes that such an approach would strengthen Kuwait’s market and enhance its overall economic landscape.

Enhancing Kuwait’s Competitive Edge

Mohammed Al-Ayoub, CEO of Gulf Investment House, emphasized that Kuwait’s main facilities, seafronts, and commercial outlets are valuable assets that hold immense potential for local and international investors. These assets, he argued, are essential tools for strengthening Kuwait’s position in the region and achieving its long-term development goals.

Al-Ayoub explained that Souq Sharq and similar markets require a developmental strategy that integrates the private sector under clear, competitive standards established by the government. This, he believes, will ensure that such facilities cater effectively to both citizens and expatriates while contributing to Kuwait’s economic progress.

He also underscored the capability of Kuwaiti companies to deliver high-quality services that reflect the nation’s esteemed regional and global status. To achieve this, Al-Ayoub called for the creation of a balanced business model that protects the interests of all stakeholders while enhancing public services and the country’s reputation.

Public-Private Partnerships as the Foundation

The development of facilities like Souq Sharq hinges on robust public-private partnerships (PPPs), according to Tariq Al-Othman, Vice Chairman and CEO of Tijara Real Estate Investment Company. Al-Othman pointed out that the public sector alone lacks the capacity to handle large-scale development projects, particularly in terms of operation and management. Similarly, private companies often require collaboration with the government or other entities to execute major initiatives successfully.

Al-Othman encouraged private sector players to propose innovative projects that add value to the state. He reassured that the government would support ideas that prioritize the welfare of citizens and the country’s economic goals.

He also proposed the formation of large real estate entities through PPPs, a strategy that has proven successful in neighboring countries. Al-Othman believes that these partnerships could elevate Kuwait’s domestic success while fostering international collaborations, ultimately contributing to the country’s global competitiveness.

As an example, he cited Kuwait’s oil sector partnerships, which have been managed effectively through private-sector expertise and government oversight. Al-Othman expressed optimism that a similar framework could be applied to real estate projects, enhancing Kuwait’s image and driving sustainable development.

Impact on the Travel and Tourism Industry

1. Boosting Tourism

Modernizing Souq Sharq has significant implications for Kuwait’s tourism sector. The market’s redevelopment would attract more international visitors, showcasing a blend of Kuwait’s historical heritage and contemporary innovations. By positioning Souq Sharq as a world-class destination, the country could strengthen its appeal to tourists seeking unique cultural and shopping experiences.

2. Creating Economic Opportunities

Revamping Souq Sharq would create jobs in construction, management, and retail sectors. Additionally, increased tourism activity would benefit small businesses, artisans, and local vendors, thereby fostering economic growth.

3. Promoting Kuwait as a Global Destination

With a strategic location and modern infrastructure, Souq Sharq could serve as a gateway for international tourists. Its redevelopment would align with Kuwait’s vision of becoming a global hub for trade and tourism, enhancing the country’s competitiveness on the world stage.

Global Implications for Travelers

The modernization of Souq Sharq aligns with global trends in destination development, providing travelers with more engaging and sustainable experiences.

• Enhanced Experiences: Visitors will benefit from upgraded facilities, modern amenities, and cultural showcases that reflect Kuwait’s rich history.
• Sustainable Tourism: Redevelopment efforts could incorporate eco-friendly practices, catering to the growing demand for responsible travel.
• Stronger Connectivity: Improved facilities would position Souq Sharq as a key node for regional and international tourism, attracting travelers from across the globe.

A Step Toward Economic and Tourism Excellence

The revamp of Souq Sharq symbolizes Kuwait’s commitment to enhancing its economic and cultural assets in line with global standards. By integrating public and private sector efforts, this initiative has the potential to transform the market into a model for sustainable and inclusive development.

As Kuwait continues its journey toward Vision 2035, projects like Souq Sharq will play a pivotal role in shaping the nation’s future. The integration of modern facilities, robust partnerships, and cultural preservation will ensure that Kuwait remains a leading player in the regional and global tourism landscape.