February 21, 2023 real estate

National Real Estate refuses to evacuate and hand over Souq Sharq

Negotiations between officials from the Ministry of Finance and the National Real Estate Company are ongoing, amid a heavy police presence, in an attempt to enforce the administrative decision to evacuate Souq Sharq and hand it over to the Ministry of Finance. However, the company’s representatives have objected to the eviction, claiming that their contract is still valid and has not yet expired.

According to a report by Al Qabas, the company has disclosed on the Kuwait Stock Exchange website that the contract was renewed earlier, with the approval of the Ministry of Finance – the State Property Committee. It was mentioned that in the meeting held on 12 August 2020, the committee agreed to extend the contract for another twenty years, with the company agreeing to pay the rental value of the project until 2024. The Ministry received the payment without any objection or reservation.

The company has filed a case requesting proof that the rental relationship has been extended for another twenty years, and the case is still pending in court. The company has indicated that it will appeal the administrative decision to cancel the contract, claiming that it violates the law in multiple ways. The company has clarified in its disclosure that if the decision is implemented and the company does not obtain a ruling to cancel it, this will have implications on the company’s financial statements, represented in the cessation of project revenues. It is expected that the net revenues that the company will lose if the decision is not canceled will amount to 5 million dinars.


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