• Real estate expert Sabeeka Mohammed Al-Bahar said that the Kuwait Free Zone is not a secondary project, but rather a true test of the country’s ability to transform its unique geographic location into added economic value. If it remains hostage to bureaucracy and multiple entities, it will remain a “missed opportunity.”
• Kuwait stands at a critical moment: either to remain within the circle of promises or to take decisive action, competing with Jebel Ali, Bahrain, and Qatar, and demonstrating that geographic advantages can be fully realized when properly managed, said Sabeeka Mohammed Al-Bahar.
Real estate expert Sabeeka Mohammed Al-Bahar, from the Sabeeka Al-Bahar and Imad Al-Faraj Real Estate Group, and a member of both the Real Estate Brokers Association and the Kuwait Real Estate Appraisers Association, said the Kuwait Free Zone is an integrated strategic hub that combines industrial production, logistics, and international trade, Al Jarida newspaper reported.
Al-Bahar explained that the Free Zone, recently reclassified as Service Sector 16, holds significant importance for the national economy. Located on the southern bank of Jaber Bridge and overlooking Kuwait Bay, it enjoys a prime position with direct sea views, adding to its development and investment appeal.
She stressed that the state must manage the Free Zone in a more advanced and coordinated manner, with government agencies working together to maximize its potential and translate it into tangible economic returns. “Location alone is not enough,” she said, noting that integrated management and strong infrastructure are essential to attract both local and foreign investment and to restore the zone’s role as a key strategic and commercial hub in Kuwait.
Al-Bahar added that the Free Zone offers Kuwait an opportunity to strengthen its role in regional and international trade. Its proximity to Shuwaikh Port and direct seafront access make it a natural gateway to Iraqi and Iranian markets. The zone also provides potential for developing advanced logistics services, warehouses, shopping centers, and hotels, enhancing its ability to attract high-quality investments, generate jobs, and boost state revenues.
Historical and administrative obstacles
Al-Bahar noted that despite its strategic location, the Kuwait Free Zone has struggled with accumulated challenges since 2006, when it was transferred to the Public Authority for Industry. Neglect by several government bodies, including the Ministry of Public Works and the Municipality, has worsened the situation. Key issues include:
• Deteriorating internal roads, with narrow and worn-out streets that hinder vehicle movement.
• The absence of a sewage network, forcing companies to cover all treatment and regulation costs themselves.
• A decline in essential facilities and services, reducing investors’ ability to operate efficiently. While investors have been required to pay rent since 2006, they have not been issued clear licenses authorizing the use of commercial spaces or subleasing them.
• Investors also cover electricity and water costs at standard government tariffs.
Access difficulties
Al-Bahar emphasized that entry to the free zone depends mainly on the Ghazali Bridge, while alternative routes overlap with heavy truck traffic from Shuwaikh Port, creating congestion and hampering logistics operations.
Poorly maintained internal roads and the absence of a unified plan for infrastructure management by the Ministry of Public Works further complicate transport. These obstacles limit vehicle access, disrupt trucking activity, and continue to undermine business efficiency.
Activity decisions
Al-Bahar said the decisions issued in 2025 gave the region a development boost by allowing construction ratios to increase to 150% for hotels and 130% for building coverage, while regulating parking spaces and specifying permitted activities, including: Commercial offices (minimum 150 m²), exhibitions, shops, and warehouses (100 m²), banking services (300 m²), health clubs (300 m²), hotels (10,000 m²) and restaurants and cafes, not exceeding 10% of the plot area, with facades at least eight metres wide
She noted that these standards create a balanced investment environment and enable optimal use of space, achieving higher economic returns. However, she added, they alone are not sufficient to transform the free zone into a true economic hub.
Elements of sustainable success
Al-Bahar emphasized that clarity in administrative procedures and licensing is critical to attracting investment and realizing the zone’s benefits. Key success factors include:
• Unified management and a single window for licenses linking all relevant government agencies (trade, labor, municipality, industry)
• Legislative stability, ensuring continuity of investment and allowing long-term planning
• Maintenance of internal roads and streets, along with improvements to electricity, water, and sewage networks
• Clearly defining permitted activities to optimize space use
She added that turning a free zone from potential to actual advantage depends on strategic location, unified management, clarity of activities, and legislative stability. Any deficiencies in these elements can turn investment opportunities into burdens, despite investors paying rent and operating costs.
Amid regional competition from Gulf free zones, administrative reform and infrastructure modernization remain prerequisites for ensuring the free zone becomes an effective economic platform, delivering desired returns and reinforcing Kuwait’s regional trade and logistics standing.
Gulf experiences – The clearest lesson
Al-Bahar said, “A comparison shows that the difference between Kuwait and its neighbors lies not in capabilities, but in administrative approach. In Jebel Ali, Dubai, investors receive their licenses within days through a unified electronic platform, making the region home to over 7,000 global companies.”
In Bahrain, free zones are designed for flexibility, featuring a single-window system that shortens documentation cycles. Their proximity to the Saudi market, combined with their unique advantages, makes them particularly attractive to investors.
In Qatar, free zones target specific sectors such as technology, logistics, and media. This specialization provides a clear identity, helping attract high-quality investment.
By contrast, Kuwait still questions the purpose of its free zone: Is it for trade, services, or industry? The lack of a clear identity has led to investor confusion and reluctance to commit significant capital.
Recent modifications
Al-Bahar noted that the 2025 decisions regarding Service Sector 16 provided a new urban boost, allowing construction ratios to rise to 150% for hotels and 130% for building coverage.
The regulations also defined parking standards and specified permitted activities, including commercial offices (minimum 150 m²), exhibitions, shops and warehouses (100 m²), banking services (300 m²), health clubs (300 m²), hotels (10,000 m²), and restaurants and cafes occupying no more than 10% of the plot, with facades at least 8 meters wide.
“These standards ensure a balanced investment environment and optimal use of space, maximizing returns,” she said.
However, Al-Bahar stressed that construction alone does not attract investment.
Investors prioritize clarity in procedures and permits over new buildings or restaurants. Without resolving issues such as single-window processing and automated licensing, the urban modifications risk falling short of converting potential advantages into actual economic gains.
Al-Bahar added that the Kuwait Free Zone is not a secondary project, but a true test of the country’s ability to turn its unique geographic location into tangible economic value. If it remains trapped in bureaucracy and divided oversight, it will continue to be a “missed opportunity.”
She noted that if its management is reformed under a clear vision, the zone could become a strategic platform, restoring Kuwait’s historical role as a hub for trade and regional connectivity.
Between these two paths, Kuwait stands at a critical moment: either to remain within the circle of promises or to take decisive action, competing with Jebel Ali, Bahrain, and Qatar, and demonstrating that geographic advantages can be fully realized when properly managed.
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