The local Kuwait Projects Company (Kipco) has announced the development of a $5bn major real estate scheme near Kuwait City.

In an interview with a local newspaper, the company vice-chariman Faisal al-Ayyar said that Kipco will develop a 380,000 square metre mixed use project that will be made up of residential and commercial space as well as associated infrastructure, such as connecting roads and electricity.

United Real Estate, a unit of Kipco, as well as other investors will be responsible for implementation said al-Ayyar.

Local media reports also say the company will submit its plans to regulators in the coming days with the implementation of the project expected before the end of the year.

In July, Kipco reported a 17.5 per cent rise in its second quarter net profit to KD13.4m ($44.2m).