Wednesday, July 26 2006 14:57 Hrs (IST) - World Time -

Kuwait City: Kuwait's real estate sector scored a notable growth in 2005 as a result of hiking oil prices, according to a report by the Kuwait-based Global Investment House.

The report released on Tuesday said that the real estate sector, achieving 1.14 billion Kuwaiti dinars (about $3.88 billion) in 2005, contributed 4.8 percent to Kuwait's total GDP growth in 2005, an increase of 1.14 percent compared to that in 2004.

Meanwhile, the construction sector's contribution to GDP increased by 13.2 percent in 2005 with a total value of 455 million dinars (about $1.55), said the report.

The report attributes the real estate sector's rapid growth in 2005 to high oil prices, the increase of Kuwait's population in addition to the diversification of investment.

It also noted that the real estate sector was one of the most vital elements of Kuwait's domestic economy, expecting private investment in this sector to reach 2.3 billion dinars (about $8 billion) in the next five years.

Driven by massive petrodollars, the real estate sector has boomed in Kuwait in recent year.