KUWAIT, Sept 25 (Reuters) - Kuwait Projects Co KPRO.KW (KIPCO), the Gulf state's largest investment company, said on Sunday construction had begun on its $2 billion to $2.5 billion real estate project in Kuwait.

Banks will provide financing for half of the project, with KIPCO funding the remainder directly, said Tawfiq al-Jarrah, executive director of Hessah Al Mubarak Real Estate Development.

Kuwait's Burgan Bank BURG.KW will be among the main lenders to the project, he said at a press conference about the development.

(Reporting by Ahmed Hagagy in Kuwait and Hadeel Al Sayegh in Dubai; Writing by Tom Arnold; Editing by Mark Potter) ((Tom.Arnold@thomsonreuters.com; +97144536265; Reuters Messaging: tom.arnold.thomsonreuters.com@reuters.net))