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Al Kout-Fahaheel Waterfront
Al Fahaheel, Kuwait
Project Type: Lifestyle/Entertainment/Specialty Center
Volume 39 Number 13
July–September 2009
Case Number: C039013
PROJECT TYPE
Built around the old Fahaheel fishing harbor, Al Kout-Fahaheel Waterfront is a 24hectare (59-ac) retail and entertainment center that has transformed the
waterfront into an accessible, vibrant, and public space that draws visitors from all
over Kuwait. The product of a public/private partnership, the project comprises
more than 17,000 square meters (182,986 sq ft) of retail space along two piers;
two marinas; and a beachfront promenade with public amenities. The Al KoutFahaheel Waterfront is the first phase of Madinat Al Fahaheel, a 300,000-squaremeter (3.2 million-sq-ft) mixed-use development.
LOCATION
Inner Suburban
SITE SIZE
59 acres/24 hectares
LAND USES
Open Air Center, Market, Cinema, Restaurants, Linear Park, Marina, Beach
KEYWORDS/SPECIAL FEATURES
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Public/Private Partnership
Waterfront Location
Waterfront Development
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Redevelopment
WEB SITE
www.tamdeen.com/tamdeen/index.php?/projects/al-kout-fahaheel-waterfront.AM
DEVELOPER
Tamdeen Real Estate Company
Kuwait City, Kuwait
965 1882233
www.tamdeen.com
INITIAL CONCEPT/MASTER PLANNER
Cambridge Seven Associates
Cambridge, Massachusetts
617-492-7000
www.c7a.com
ARCHITECT, LANDSCAPE ARCHITECT, AND INTERIOR DESIGNER
Dar Al Omran
Amman, Jordan
962 6 5604200
www.daralomran.com
LOCAL CONSULTANTS/ENGINEERS
Gulf Consult
Safat, Kuwait
965 2484 3565
www.gulfconsult.net
Pan Arab Consulting Engineers
Safat, Kuwait
965 2266 9600
www.pace-kuwait.com
Option One International
Safat, Kuwait
965 2433 2428/9
www.option-1.org
OHA Engineering Consultants
Kuwait City, Kuwait
965 2429930/1/2
www.daroha.com
GRAPHIC DESIGNER
Arrowstreet
Somerville, Massachusetts
617-623-555
www.arrowstreet.com
LIGHTING CONSULTANT
US Lighting Consultants
New York, New York
212-673-3210
www.us-lighting.com
WATER FEATURES
Crystal Fountains
Toronto, Ontario, Canada
905-660-6674
www.crystalfountains.com
MARINE CONSULTANT
Mouchel Middle East Limited
Dubai, United Arab Emirates
971 4 2828144
www.mouchel.com
GENERAL CONTRACTOR
Ahmadiah Contracting and Trading Company
Kuwait City, Kuwait
965 24814477
www.ahmadiah.com
RETAIL CONSULTANT
SQ. FT. Consulting
Dubai, United Arab Emirates
9714 339 7981
www.sqftconsulting.com
LEASING COMPANY
Tamdeen Shopping Centers Co.
Safat, Kuwait
965 23930100
www.tamdeen.com
GENERAL DESCRIPTION
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Al Kout-Fahaheel Waterfront, in Fahaheel City in the Ahmadi Governate of Kuwait, is an example of a build,
operate, and transfer (BOT) model—a public/private partnership in which a private developer receives a concession
from a public entity to finance, design, construct, and operate a development, often on public land. The project
consists of three major components: Twin Piers, North and South, which flank the project’s inner harbor and offer
in excess of 17,000 square meters (182,986 sq ft) of rentable retail space; two marinas, one for recreational boats
and a second one for fishing boats; and a beachfront promenade, extending 1.6 km (1 mi).
The project was developed through a partnership between Tamdeen Real Estate Company and the Kuwaiti Ministry
of Finance, the landowners. A public shareholding firm listed on the Kuwaiti Stock Exchange, Tamdeen Real Estate
Company was established in 1982 to develop large-scale shopping and leisure centers.
THE SITE
Fahaheel City, 40 kilometers (25 mi) south of Kuwait City, has a population of about 500,000 people, many of
whom work in the oil industry. Al Kout-Fahaheel Waterfront lies along the Fahaheel coastal road, proximate to oil
refineries and to Fahaheel’s residential and commercial district, built mostly during the 1970s and 1980s.
Al Kout-Fahaheel Waterfront is the first completed phase of Madinat Al Fahaheel, a 300,000-square-meter (3.2
million-sq-ft) mixed-use development built around the old Fahaheel fishing harbor. In addition to Al Kout-Fahaheel
Waterfront, the development includes Al Manshar Towers and Complex, which started operations in December
2006; Al Manshar Rotana Hotel, opened in April 2007; and a proposed Al Manshar Office Tower and Multipurpose
Hall, as well as a multistory garage.
DEVELOPMENT PROCESS
In keeping with a national policy initiated during the 1970s to establish an accessible, vibrant, and public
waterfront along Kuwait’s coastline, the municipality of Kuwait City invited developers, in 1998, to submit concept
proposals for the design of the 1.6-kilometer (1-mi) Fahaheel waterfront, to be operated under a BOT program
agreement. The terms of the BOT included the following:
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total maximum gross leasable area of 17,200 square meters (185,139 sq ft);
lease term for a period of 20 years, with a renewal option after 20 years with new lease conditions;
minimal disturbance to the waterfront;
stringent protection of the environment;
continual operation of the existing harbor and fish markets during construction;
space for government buildings, offices, etc.;
a blend of commercial, cultural, and recreational activities;
modernized fishermen’s harbor, fully equipped to support commercial boats and leisure crafts;
generous parking that is depressed in order to preserve a clear view of the sea; and
public amenities along the coastline.
The winning master plan was the result of a collaboration among Tamdeen Real Estate Company and a joint
venture between the local Kuwaiti firm Gulf Consult and the U.S. architecture firm Cambridge Seven Associates.
The master plan envisioned an accessible beachfront framed by a 1.6-kilometer-long (1-mi-long), palm tree–
shaded promenade, punctuated by landscaped land piers perpendicular to the coastline. A new harbor, containing
twin building piers that would house the retail and entertainment outlets, crossed the promenade on axis with Al
Dabbous Street, the major commercial avenue of Fahaheel. A 70-meter-diameter (229-ft-diameter) Ferris wheel,
overlooking a freshwater lagoon between the pier buildings, was planned at the terminus of the axis and provided
a new landmark for the waterfront.
Having won the concept design competition in November 1999, Tamdeen approached Dar Al Omran, a
multidisciplinary planning, architecture, and engineering consulting firm based in Jordan, to participate in the
design process and relate the development to Kuwait’s culture and history. Dar Al Omran was established in 1979
with a commitment to contemporary design solutions that are compatible with local environments and derived
from the heritage of the region. Over the past four decades, the company has completed several projects
throughout the Arab world that have won local and international awards, including the 1995 Aga Khan Award for
Architecture for the design of the Great Mosque of Riyadh and the redevelopment of the Old City Centre.
Dar Al Omran proceeded to design the pier buildings, in addition to making two major changes to the original
master plan proposed by Cambridge Seven Associates. The first was replacing the Ferris wheel—due to technical
difficulties—with a lighthouse tower (Al-Manara), which Dar Al Omran’s architects felt was a better fit in the local
context; and second, adding the musical dancing fountains in the lagoon between the pier buildings.
The design approval process was relatively free of contention. Tamdeen negotiated the ten-meter (33-ft) height
limit imposed by the municipality to allow for the lighthouse tower and the domes, cubes, and octagons, above the
main lobbies, pavilions, and main entrances, which all go above ten meters (33 ft).
FINANCING
The total investment of approximately $75.9 million was financed through 25 percent equity and 75 percent debt.
The equity part came from Tamdeen’s internal cash resources, while the debt portion was financed through
medium- to long-term loans in local currency from the National Bank of Kuwait. The loans were granted against
the mortgage of investment properties, with an average interest rate of 6.8 percent and a debt-coverage ratio on
long-term loans of 3:1. Tamdeen Real Estate Development Company anticipates an internal rate of return of 11
percent on Al Kout-Fahaheel Waterfront.
PLANNING
The twin piers, which are the main shopping attractions of Al Kout-Fahaheel Waterfront, have been positioned to
function as an extension of Al Dabbous Street into the sea. Since the program of activities was dictated by the
municipality, the development team chose to separate the fish, meat, and vegetable markets, located in the south
pier, from the entertainment and shopping outlets, located in the north pier, given the different spatial
requirements of these activities.
The project’s relationship to the Arabian Gulf has been strengthened through several gestures:
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Beautifying the 1.6-kilometer (1-mi) beach promenade through landscaping and the addition of facilities
such as basketball courts, vendors, prayer halls for men and women, showers, and washroom facilities;
Positioning the two marinas at either end of the project, a northern one for recreational boats and a
southern one for fishing boats, which includes protected moorings, slips, and servicing for boats;
Offering a direct view of the dancing fountains in the inner harbor and the Arabian Gulf from outdoor
terraces and sidewalk cafés along the piers and the watchtower (Al-Manara) at the tip of the northern
pier;
Minimizing the visual impact of the two parking lots along the waterfront, by sinking the lots one meter
(3.3 ft) below the road level and using trees for shading. The parking lots could not be placed in a
separate structure or underground due to cost considerations; and
Providing several access points to the pier buildings that maintain a porous relationship between indoor
and outdoor spaces.
Moreover, the lagoon—covering an area of approximately 15,000 square meters (161,459 sq ft) between the two
piers—has become one of the main site attractions, drawing people from all over Kuwait. The lagoon’s water
feature showcases hundreds of custom nozzles producing fog spray, dramatic water heights up to 45 meters (147
ft), and surging effects to re-create the noise of the surf. Throughout the day, there are three shows and in the
evening the water is lit and attracts crowds to nine different water feature shows choreographed to composed
music.
DESIGN
According to Al Kout-Fahaheel Waterfront’s chief architect, Wael AlMasri, the articulation, activities, and material
used in the two piers were inspired by the old marketplaces in Kuwait and the bazaars of Isfahan, Aleppo, and
Istanbul. Architectural elements from these marketplaces and bazaars were reinterpreted and reintroduced to
serve the project’s contemporary setting.
In this regard, the north pier is composed of a number of interlinked spaces, characterized by their winding nature,
offering shifting perspectives that evoke memories of regional bazaars. A grand central bazaar consists of a long
shopping passage with natural light coming from small skylights in the roof and upper-floor shopping galleries
overlooking the bazaar. Although it is a shopping passage, the architect envisioned the grand central bazaar as a
destination in itself: as a place for people to meet, visit the shops surrounding it on both sides, or relax in the
designated areas for seating or the cafés within its boundaries. The bazaar is connected to an octagonal domed
entrance space at each end, leading to an escalator court and a cineplex, housing four cinemas with a 1,000seating capacity, at the western end. A second escalator court and a group of anchor stores occupy the eastern
end.
In addition, the north pier mall includes an outdoor coffee shop district with views of the inner lagoon, the
aforementioned dancing fountains, the south pier, and the open sea. This area, with its movement and activity, is
intended to evoke the images and atmosphere of the coffee- and teahouses that used to dot the seafront of
Kuwait.
The south pier consists of a central spine that connects a supermarket at one end, to a series of markets, including
vegetable, meat, and chicken stands, and culminating in a fish market and auction hall, celebrating the fish trade
that historically gave significance to the city of Fahaheel. The markets include stalls and shops grouped along
several passages branching out from the central spine. This pier’s architecture is characterized by its historical
references to Kuwait’s older markets with their exposed trusses, corrugated roofing, clerestory windows, and
skylights.
To provide shade and comfort and to create a play of light and shadows, the architect employed throughout the
project architectural elements that have historically been used in Kuwait such as arcades, screens, pergolas, and
mud-colored walls.
CONSTRUCTION
Construction of the project began in 2002 and was completed in three phases. The first phase included dredging,
land reclamation, and revetment work and took about one year to complete. The reclaimed area comprises the two
piers and part of the parking lots on both sides of the piers.
The second phase, which took six months, consisted of demolishing the existing structure that had housed about
35 meat, chicken, and vegetable stalls, and relocating existing underground services, such as water and oil pipes,
to clear the site for construction. Throughout the construction process, the stalls were housed in temporary
structures that were relocated on site according to the construction schedule. Furthermore, the fish market was in
operation until the construction team shifted it to the new location in the South Pier.
Finally, the third phase, completed in 30 months, included all the site work that was done above ground, including
construction of the building piers and the landscaping.
MARKETING
Tamdeen Real Estate Company typically allocates 2 percent of the development’s total annual revenue of the
development for marketing. The marketing strategy for Al Kout-Fahaheel Waterfront focuses on the integration of
public relations, above-the-line and below-the-line advertising, promotions, and special events throughout the
year. For example, Tamdeen sponsors an annual shopping festival at the Al Kout-Fahaheel Waterfront in
December, and during the 2008 month of Ramadan, Tamdeen sponsored an event titled “Fun Nights at Madinat Al
Fahaheel for the Disabled,” in association with the Ministry of Social Affairs, which consisted of weekly events and
one larger event during the last week of Ramadan.
Moreover, Al Kout-Fahaheel Waterfront has hosted a number of events in the past, including the Red Bull 4x4 rally
race, the Kuwait Boat Show International 2007 and 2008, concerts, and carnivals, in addition to exhibits that
further integrate the development into the local community, such as exhibits by individual artists and local
government entities.
TENANTS AND MANAGEMENT
The Al Kout-Fahaheel Waterfront primary target market includes families who reside within a 20-kilometer (12.4mi) radius, as reflected in the development’s tenant mix. The north pier shopping center is 100 percent occupied
by 134 outlets specializing in apparel and fashion, food and beverages, cosmetics, accessories, jewelry, gifts, and
personal services, in addition to the cineplex.
On the other hand, the south pier is only 51 percent occupied by 292 outlets, as of October 2009, including
wholesale shops; stalls selling vegetables, fish, and meat; and a supermarket. The low occupancy rate is due to
the fact that the area allocated to market outlets and stalls in the south pier was determined by the municipality of
Kuwait. As evidenced by the low occupancy rate, the allocated area proved to be more than the needed capacity
for this location. Accordingly, Tamdeen Real Estate Company recently obtained approval to transform into coffee
shops some of unused areas overlooking the lagoon.
According to Tamdeen, little effort was needed to appeal to tenants, who were eager to secure a space in Al KoutFahaheel Waterfront given that it is the only new shopping center in the area. Average rent at the development is
KD220 per square meter (KD20.44 per sq ft) per annum, including a service fee amounting to 2.5 percent of rent
to cover cleaning and security.
Most of the maintenance contracts, such as cleaning, security, and general maintenance, in Al Kout-Fahaheel
Waterfront are outsourced from different local services companies all managed and supervised by a center
manager and an operations manager.
EXPERIENCE GAINED
If given a chance to redo the project, the members of the development team would:
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Reduce the area allocated for the fish, meat, chicken, and vegetable markets in the south pier, as
explained above.
Build a larger marina. The marina proved to be very popular with owners of leisure boats due to the
proximity of Al Kout to the southern islands of Kuwait. Had this success been anticipated, the company
would have built a larger marina and clubhouse, which would have been economically very rewarding.
Build a larger indoor children’s entertainment area. The outdoor areas around the lagoon are well used
throughout the year, excluding the peak summer months. During these two to three months of intense
summer heat, a larger indoor recreational area especially for children would have provided an alternative.
Increase the size of the parking area. The demand for car parking surpassed the developer’s expectations
and is putting pressure on the available parking spaces. The demand for parking is due to the
development’s success and to the fact that the parking is free of charge, making it a top choice of visitors
to the area.
Use more sophisticated green building technology. At the time that Al Kout-Fahaheel Waterfront was being
constructed, recycled material, water-efficient fixtures and fittings, and solar systems were not readily
available in Kuwait. Therefore, in an attempt to conserve energy, the development team relied on thick
walls to reduce heat transfer, skylights that open for natural ventilation, and a variety of shading
structures. In addition, the development makes use of local plants that are low in water consumption and
have limited use of grass, relying instead on a grid of gravel and grass, thus contributing to minimizing the
pollution at the coastline where this project is constructed.
Al Kout-Fahaheel Waterfront is an interesting, innovative, and important development for several reasons:
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The development has transformed the waterfront into a focal point for Fahaheel and southern Kuwait,
offering new shopping, entertainment, and recreational facilities.
By offering venues for external leisure and entertainment activities, the project bridges the indoors and
outdoors, thus distinguishing it from many other malls in the region, which offer internalized experiences
that ignore the external environment.
It bolsters the local fishing industry by providing improved fishing boat facilities—modern moorings,
loading areas, and trailer parking along with a new Fishermen’s Club.
The project engenders a new sense of place in its surrounding urban context, while physically connecting
Fahaheel’s commercial district to the Arabian waterfront.
Shopping center and beach accessibility have been provided for the disabled and elderly, according to
international standards.
Facilities for the fishermen have been made available to facilitate easy and convenient sales of fish
brought in directly to the market.
PROJECT DATA
LAND USE INFORMATION
Site area (acres/hectares): 59/24
Gross building area (square feet/square meters): 430,556/40,000
Gross leasable area (square feet/square meters): 182,988/17,000
Number of levels: 2
Number of parking spaces: 1,335
LAND USE PLAN
Use
Area (Square
Feet/Square
Meters)
Percentage of Site
Buildings
12.4/5
21
Parking structures
13.4/5.4
23
Landscaped areas
18.6/7.5
32
Other
14.6/5.9
24
Total
59/24
100
Classification
Number of Stores
Total Gross
Leasable
Area
(Square
Feet/Square
Meters)
General merchandise
5
40,526/3,765
Food service
34
21,991/2,043
Clothing and fashion
40
41,651/3,869
Mobiles/communications services
3
608/56
Shoes
12
8,466/787
Accessories/eye glasses
10
3,482/323
RETAIL TENANT INFORMATION (North and South Pier)
Cosmetics/perfumes
13
5,113/475
Jewelry/watches
8
3,956/368
Gifts/specialty/book
5
3,724/346
Entertainment
2
44,855/4,167
Drugs
1
258/24
Personal services
1
328/30
Average length of lease: 5 years
Annual annual rent (per square foot/square meter): $75.45/$812.13
DEVELOPMENT COST INFORMATION
Site Improvement Costs:
$22,619,500
Construction Costs:
$40,062,400
Soft Costs:
$32,059,500
Civil/architectural:
$29,040,000
Project management:
$205,800
Construction management:
$583,100
Supervision:
$2,349,550
Total Development Cost:
$75,900,000
Annual Operating Expenses:
$1,758,097
Insurance:
$60,378
Maintenance:
$565,950
Janitorial:
$605,985
Utilities:
$140,146
Legal:
$2,058
Management:
$383,580
Total Investment Cost:
$78,890,000
DEVELOPMENT SCHEDULE
Planning started: 1998
Approvals obtained: April 2002
Construction started: June 2002
Leasing started: 2004
Project opened: February 2005
DRIVING DIRECTIONS
From Kuwait International Airport: Take the sixth ring road, then take the Fahaheel Expressway. Turn right turn
after crossing the Ahmadi Bridge. Drive straight to Al Dabboos Street.
Driving time: 30 minutes in nonpeak traffic.
Maysa Sabah, report author
Theodore Thoerig, editor, Development Case Studies
David James Rose, copy editor
Jamie McAfee, online production
This Development Case Study is intended to serve as a resource for subscribers in improving the quality of future projects. Data
contained herein were made available by the project’s development team and constitute a report on, not an endorsement of, the
project by ULI–the Urban Land Institute.
Copyright © 2009 by ULI–the Urban Land Institute
1025 Thomas Jefferson Street, N.W., Suite 500 West, Washington, D.C. 20007-5201
Al Kout-Fahaheel Waterfront is the first completed phase of Madinat Al Fahaheel, a 300,000-squaremeter (3.2 million-sq-ft) mixed-use development built around the old fishing harbor of Fahaheel, a
town 40 kilometers (25 mi) south of Kuwait City
The master plan of the 24-hectare (59-ac) Al Kout-Fahaheel Waterfront was developed by Tamdeen
Real Estate Company, Gulf Consult, and Cambridge Seven Associates.
Twin piers flank the project’s inner harbor and offer in excess of 17,000 square meters (182,986 sq
ft) of leasable retail space.
The lagoon’s water feature showcases hundreds of custom nozzles that produce fog spray, dramatic
water heights up to 45 meters (147 ft), and surging effects to re-create the noise of the surf.
The retail complex features two marinas—one for recreational boats and another for fishing vessels—
and a 1.6-km (1-mi) beachfront promenade.
Architecturally inspired by regional marketplaces and bazaars, Al Kout-Fahaheel Waterfront includes
food markets, al fresco dining, and a 1,000-seat cineplex.
Site plan.