For the high social mobility in Kuwait many Kuwaitis chose to become entrepreneurs. One advantage the Kuwaitis have is the governmental support, as the government is trying to increase local business to improve the local economy. Bakhsh (2015) said about Kuwait “the country seeks to create a new generation of entrepreneurs, as part of its ambition to diversify its oil-dependent economy”. The governmental support of small businesses has made it easier for the Kuwaitis to start their own business. Luckily, my family took this chance to start their own property management business.
The property management business started when my family bought their first house. In 1999, my family was able to save enough my and get a house mortgage to buy a house. …show more content…
For a country with 90% of its income comes from oil production, Kuwait economy is mostly depending on oil prices. The Arab Spring and the increase in China’s demand for oil caused oil prices to increase. U.S Energy Information Administration (2012) said “The spot price of Brent averaged $111.26 per barrel, marking the first time the global benchmark averaged more than $100 per barrel for a year”. The high oil prices have strengthened the local economy, which impacted the prices of real estate. The prices of real estate were increasing for years. However, 2011 witnessed the highest increase in prices. Kuwait Financial House in their Local Real Estate Report (2011) said, “Prices of traded real estate investment increased by 33%”. Also, at this time Islamic banks where again allowed to trade in residential real estate, which highly impacted the real estate prices. The prices of real estate kept increasing until it reached it peak on the fourth quarter of 2015. Causing the monthly apartment rent to increase. Thus, my family had the highest profit in this year. Today real estate prices started to drop due to the low oil prices and regional conflicts. The economical and political difficulties Kuwait going through this year has lead many to sell their real estate investment and start investing in other …show more content…
Before the finical crisis, most of my family money was invested in either the stock market or on investment deposits. However, during the finical crisis they have lost a lot in their stock investment as the stock market dramatically dropped. Furthermore, banks have dropped their investment deposits interests. According to my mother (2016), banks have dropped their investment deposits interest from %8 to %2.5, which lead to a lower family income (personal communication, February 16, 2016). Therefore, they decided to invest their saving in a low risk and low time consuming business with good profit. Of course, property management was the best choice. Another reason for choosing property management is that most of my extended family members have invested in real estate. Some of them have built fortune form it. The expertise of my extended family has made it easier for my family to start a property management business. Furthermore, my father had a bittersweet experience with real estate. In 1986, my father inherited some money. At that time he had two choices either buy a property in Qurtuba, Kuwait, which was in the middle of the desert at that time, or buy two properties in Khafji, Saudi Arabia and he chose to buy two houses in Khfji. Today, the rice of the two properties has increased by 1.25% of their original price. However, the price property in Qurtuba has
The property management business started when my family bought their first house. In 1999, my family was able to save enough my and get a house mortgage to buy a house. …show more content…
For a country with 90% of its income comes from oil production, Kuwait economy is mostly depending on oil prices. The Arab Spring and the increase in China’s demand for oil caused oil prices to increase. U.S Energy Information Administration (2012) said “The spot price of Brent averaged $111.26 per barrel, marking the first time the global benchmark averaged more than $100 per barrel for a year”. The high oil prices have strengthened the local economy, which impacted the prices of real estate. The prices of real estate were increasing for years. However, 2011 witnessed the highest increase in prices. Kuwait Financial House in their Local Real Estate Report (2011) said, “Prices of traded real estate investment increased by 33%”. Also, at this time Islamic banks where again allowed to trade in residential real estate, which highly impacted the real estate prices. The prices of real estate kept increasing until it reached it peak on the fourth quarter of 2015. Causing the monthly apartment rent to increase. Thus, my family had the highest profit in this year. Today real estate prices started to drop due to the low oil prices and regional conflicts. The economical and political difficulties Kuwait going through this year has lead many to sell their real estate investment and start investing in other …show more content…
Before the finical crisis, most of my family money was invested in either the stock market or on investment deposits. However, during the finical crisis they have lost a lot in their stock investment as the stock market dramatically dropped. Furthermore, banks have dropped their investment deposits interests. According to my mother (2016), banks have dropped their investment deposits interest from %8 to %2.5, which lead to a lower family income (personal communication, February 16, 2016). Therefore, they decided to invest their saving in a low risk and low time consuming business with good profit. Of course, property management was the best choice. Another reason for choosing property management is that most of my extended family members have invested in real estate. Some of them have built fortune form it. The expertise of my extended family has made it easier for my family to start a property management business. Furthermore, my father had a bittersweet experience with real estate. In 1986, my father inherited some money. At that time he had two choices either buy a property in Qurtuba, Kuwait, which was in the middle of the desert at that time, or buy two properties in Khafji, Saudi Arabia and he chose to buy two houses in Khfji. Today, the rice of the two properties has increased by 1.25% of their original price. However, the price property in Qurtuba has