Kuwait’s URC Secures $122.8M Financing for Souq Sharq Waterfront Expansion

KUWAIT CITY, KUWAIT - United Real Estate Company (URC), the real estate arm of KIPCO, has secured approximately $122.8 million in Islamic banking finance to support the construction and development of Phase 3 of the Waterfront Real Estate Project at Souq Sharq in Kuwait City’s Sharq district.

The financing supports one of Kuwait’s notable waterfront development initiatives and reflects continued investment activity within the country’s public-private partnership real estate sector.

The project was awarded to URC by the Kuwait Authority for Partnership Projects in February 2026 as part of the wider Souq Sharq waterfront expansion strategy, according to a Zawya report.

In a disclosure published on Boursa Kuwait, URC stated that the financing package consists of approximately $80.8 million in non-cash facilities with a tenure of 17 years, alongside an additional $42 million cash facility extending over a 10-year period. Both facilities were provided by a local bank under Islamic financing structures.

The financing arrangement is expected to support the next phase of construction and infrastructure delivery within the waterfront development, which forms part of Kuwait’s broader efforts to enhance mixed-use, retail, hospitality, and public waterfront destinations.

Souq Sharq remains one of Kuwait City’s most recognisable waterfront commercial and leisure destinations, combining retail, dining, marina, and entertainment components along the capital’s coastline.

The latest financing announcement comes as URC continues to navigate a mixed financial performance environment during the first quarter of 2026.

Earlier this month, the company reported operating profits of approximately $22.8 million for Q1 2026, representing an 11% increase compared to around $20.6 million during the same period last year.

However, URC’s net profit declined 8% year-on-year to approximately $6.8 million, compared to around $7.5 million recorded in the first quarter of 2025.

The company remains one of Kuwait’s largest listed real estate firms and continues to maintain a diversified portfolio spanning commercial, hospitality, residential, retail, and mixed-use developments across the region.

The Souq Sharq waterfront expansion also highlights the continued role of public-private partnerships in advancing strategic urban development projects across Kuwait, particularly within tourism, retail, and lifestyle-focused infrastructure sectors.