KUWAIT CITY, Nov 25: After being limited to the residential sector initially, the Ministry of Commerce and Industry launched the final version of the electronic real estate broker system project yesterday, which now covers all real estate sectors. This includes investment, commercial, and heir contracts, as well as integration with the platform of the Public Authority for Minors Affairs (PAMA). The system also activates notifications for parties via the Sahel app, and authenticates the “My Identity” app. During a press conference in the presence of ministry’s Undersecretary Ziad Al-Najem and the Acting Director General of the Public Authority for Civil Information (PACI) Jaber Al-Kandari, the Minister of Commerce and Industry Khalifa Al-Ajeel stated that the electronic system will provide accurate pricing information for traded properties, and will also strengthen efforts to combat money laundering in the real estate market, an issue that has adversely affected the sector Al-Ajeel emphasized that the entities associated with the electronic real estate broker system are regulatory bodies, not participants in the real estate market itself. He stressed that these entities work to ensure high transparency when publishing information for market participants.
Accurate and Realistic
Data Al-Ajeel explained that providing sufficient data would allow the market to self-regulate based on accurate and realistic information. The currently available data may be incomplete and inaccurate because the paper registry is not centrally transmitted to the relevant authorities. The electronic ledger will address this gap by creating a comprehensive database of all concluded transactions. Current data and studies on the real estate market do not reflect the exact details of the concluded transactions, which creates a gap in the sector. Launching the electronic ledger is just the first step, with further developments to follow, which will be announced once completed. The launch of the electronic ledger is a step aimed at developing the real estate market by streamlining procedures and reducing the documentary cycle, ultimately improving the local business environment. The new system will begin operating on December 2, while the paper books will be discontinued on January 1. The minister affirmed the importance of this transition to eliminate paperwork as part of the ministry’s efforts to enhance its services through digital channels, adding that the total number of real estate registries registered with the ministry is 2,051.
Paper and Electronic
Al-Ajeel stated that the electronic real estate broker project offers several important advantages, most notably the transition from the paper registry to an integrated electronic application. This shift will eliminate the need for paper transactions and traditional signatures, with all procedures now carried out electronically simply and efficiently. He explained that the new system will help streamline real estate procedures by providing an electronic platform that facilitates the completion of transactions without the need to visit various entities. It also will reduce the documentary cycle by replacing paper-based procedures with reliable digital alternatives. The new system will also help verify the accuracy of data and documents, including civil number details through PACI, as well as property ownership and descriptions by linking the system with the Kuwait Municipality and the Kuwait Fire Force.
Enhancing Transparency and Credibility
Al-Ajeel stated that the system will also enhance transparency and credibility by accurately listing real estate transactions and trading values, and ensuring the proper documentation of property ownership. It will also play a key role in preventing fraud and forgery, and ensuring the authenticity of contracts through electronic authentication via the Sahel app. The system will also provide a central database that will allow relevant authorities to better monitor the market. He affirmed that the ministry plans to activate an automatic link with the Ministry of Electricity, Water, and Renewable Energy through the system to issue clearance certificates for the concerned parties for streamlining real estate transaction procedures.
During the conference, Al-Ajeel explained that Kuwait has witnessed various stages in the real estate investment process, from what is known as Al-Adasania to the current broker’s registries. One of these stages experienced a halt in the development of the mechanisms for buying, selling, and trading real estate, which hurt many elements of the real estate market. The main issue was the extreme delay in real estate transactions, which used to take more than a month and a half. This inefficiency hindered transactions and stunted investment in the real estate sector. Through discussions and meetings held throughout those periods, the Ministry of Commerce and Industry identified the primary issue, which was the outdated and inefficient real estate broker’s contract.
Real Estate Trading
Al-Ajeel went on to explain this move, while it may appear formal, will have a significant impact on real estate trading operations. The process of transferring property ownership, which previously took up to 45 working days, has now been significantly shortened. This step is being implemented in line with the directives of His Highness the Amir and His Highness the Prime Minister to improve the business environment. In response to a question about potential system malfunctions, Al-Ajeel acknowledged that electronic systems and services may experience technical issues. However, he reassured that the data will remain unaffected and will be securely stored by the relevant authorities. He emphasized that PACI is responsible for this aspect, and the electronic ledger is considered part of the extensive data they maintain.
Al-Najem: We Are Continuing to Develop the Market
In this regard, the Undersecretary of the Ministry of Commerce and Industry Ziad Al-Najem urged all real estate market dealers to provide their feedback and suggestions on the new system so that it can be continuously developed. He said the electronic real estate broker’s ledger will provide a comprehensive view of the property’s status by linking it to several relevant authorities, including the Ministry of Justice, Kuwait Municipality, the Public Authority for Civil Information, the Kuwait Fire Force, and the Ministry of Commerce and Industry. Al-Najem emphasized that the electronic ledger will enable participants in the sale process to identify any violations, mortgages, or seizure operations before completing transactions. This development will resolve many of the problems previously faced by real estate dealers
Haider: Detecting Real Estate Violations
Head of the Real Estate Brokers Union Imad Haidar praised the efforts exerted by the Ministry of Commerce and Industry, and PACI to address the union’s demands and work on overcoming all obstacles. He highlighted the significance of the electronic real estate broker program, which links brokers with key authorities, including the Ministry of Commerce and Industry, PACI, Kuwait Fire Force, Kuwait Municipality, the Ministry of Justice, and the Real Estate Registration Department. This integration will help in expediting the completion of transactions. Haidar also highlighted the program’s ability to detect various types of real estate violations before contracts are finalized. He said it provides immediate access to important information related to real estate, such as reservations, mortgages, and relevant legal details, and prevents properties from being sold at multiple offices by blocking the transaction, adding that this plays a crucial role in limiting real estate fraud and ensuring secure property sales.
By Marwa Al-Bahrawi
Al-Seyassah/Arab Times Staff