'Real Estate Developer' Strengthens Private Sector Partnership to Implement Integrated Residential Cities

The system of legislative and executive reforms recently adopted by the government in the housing file represents a strategic turning point, as it transitions the country into a new phase of achieving urban sustainability, aligning with national objectives and meeting citizens’ needs.

The draft law on housing finance for eligible beneficiaries of housing care, approved by the Council of Ministers on September 22 last year, constitutes the latest legislative link in a series of government decisions aimed at ensuring sustainable provision of dignified housing for citizens.

The implementation of the housing finance law is expected to create additional financing instruments that support upcoming housing projects, reduce waiting periods for eligible beneficiaries, and stimulate the real estate sector.

Decree-Law No. 89 of 2025, amending certain provisions of Law No. 118 of 2023 concerning the establishment of companies for building or developing cities or residential areas and their economic development (the real estate developer), has enabled the Public Authority for Housing Welfare to diversify the forms of companies it establishes and their capital, in accordance with the nature of each project and based on feasibility studies specific to each project.

The real estate developer legislation, which officially entered into force in early August 2025, is one of the main pillars for developing the housing sector and a vital element in achieving sustainable housing care. Its role extends to contributing to the construction of integrated urban communities that meet citizens’ needs and aspirations.

The law aimed to enhance the private sector’s contribution to implementing housing projects, while granting real estate developers greater freedom to offer diverse housing products tailored to the varying needs and capacities of beneficiary families, across different sizes.

For more details:

- Qualification of 22 alliances comprising 41 companies to participate in three major projects

- Comprehensive housing reforms that move Kuwait to a new stage of sustainability

- The “Real Estate Developer” strengthens private sector partnerships to implement integrated residential cities

The system of legislative and executive reforms recently adopted by the Kuwaiti government in the housing file represents a strategic turning point, marking its transition to a new phase in achieving urban sustainability that aligns with the state’s objectives and meets citizens’ needs.

The draft decree-law concerning housing finance for eligible beneficiaries of housing care, approved by the Council of Ministers on September 22 last year, constitutes the latest legislative link in a series of government decisions aimed at ensuring the sustainable provision of dignified housing for citizens.

The implementation of the housing finance law is expected to create additional financial instruments that support upcoming housing projects, reduce waiting periods for housing care beneficiaries, and stimulate the real estate sector.

Minister of State for Municipal Affairs and Minister of State for Housing Affairs, Abdul Latif Al-Mashari, stated that the draft law comprises 15 articles, noting that Article 2 defines the scope of its application and its validity for purchasing a residential unit from a real estate developer or for constructing a government plot allocated by the Public Authority for Housing Welfare, in accordance with the conditions and controls set by the Authority for projects that have been implemented or are currently under implementation.

Article 4 of the law outlines provisions regarding supported or non-supported housing finance and its repayment mechanism, allowing for their combination according to the controls and procedures established by the Central Bank of Kuwait.

Decree-Law No. 89 of 2025, amending certain provisions of Law No. 118 of 2023 concerning the establishment of companies for the construction and economic development of cities or residential areas (the Real Estate Developer), has enabled diversity in the types of companies established by the Public Authority for Housing Welfare and their capital, in line with the nature of each project and based on feasibility studies specific to each project.

The legislation of the Real Estate Developer, which officially entered into force in early August 2025, is one of the main pillars for developing the housing sector and a vital element in achieving sustainable housing care. Its role extends to contributing to the construction of integrated urban communities that meet citizens’ needs and aspirations.

The law aimed to enhance the private sector’s contribution to implementing housing projects, while granting real estate developers greater freedom to offer diverse residential products according to the varying needs and capacities of beneficiary families and in different sizes.

Furthermore, the law enabled (Housing Welfare) to set controls, standards, and technical specifications for buildings, suburbs, areas, and neighborhoods for each project individually, to achieve design integration and quality of life in these projects.

The government’s announcement regarding the imminent qualification of real estate developers for three investment opportunities in the first phase of the Real Estate Developer program, in accordance with the law’s provisions, represents a fundamental cornerstone in supporting urban growth and enhancing the capacity to overcome challenges facing the housing file.

These investment opportunities consist of three packages comprising 5,000 residential units in the cities of Al-Mutlaa, Saad Al-Abdullah, and Jabir Al-Ahmad.

In a new step to advance the Real Estate Developer project, the Public Authority for Housing Welfare announced at the end of last August the qualification of 22 consortia comprising 41 Kuwaiti and international companies to participate in the next stage of procedures for tendering three major housing projects, thereby supporting the acceleration of project implementation.

Acting Deputy Managing Director for Investment and Private Sector Projects at the Authority, Eng. Ahmed Al-Ansari, stated that the qualification of these consortia comes in implementation of the Council of Ministers’ directives, noting that this step contributes to the development of integrated housing projects that meet citizens’ needs and align with the state’s objectives in urban development.

The Public Authority for Housing Welfare had previously conducted detailed and comprehensive feasibility studies for the first projects to be implemented under the Real Estate Developer framework. The first three sites were carefully tested, and preliminary designs for these homes and areas were prepared to ensure the project’s viability.

During the second Kuwait Forum for State Development Projects (ENCON5), held in mid-June last year, Minister of State for Municipal Affairs and Minister of State for Housing Affairs, Abdul Latif Al-Mashari, affirmed that the housing file represents a fixed national priority and receives the attention and support of the political leadership.

Minister Al-Mashari stated that the work of the Public Authority for Housing Welfare has recently proceeded at a rapid pace in amending several important policies and laws.

The Government Coordinating Committee for Monitoring the Implementation of Services Related to Housing Projects, established by a Council of Ministers decision, is tasked with unifying efforts to implement all services related to housing projects, ensuring their completion according to the best sustainability standards and accelerating their implementation pace.

The committee is responsible for taking all measures and procedures that would accelerate the completion of projects related to the housing sector in the country, removing any obstacles that may arise in this regard, coordinating among entities to formulate joint plans and mechanisms for providing, operating, and maintaining services related to existing and future residential cities and suburbs, and designating the entities responsible for taking over buildings or services belonging to government entities, in accordance with the time schedules of various housing projects and monitoring each entity’s efforts in this regard.

The committee includes eight government entities in its membership, including the Ministries of Finance, Public Works, Electricity, Water, and Renewable Energy, and Transport, as well as the Kuwait Municipality, the Public Authority for Agriculture and Fisheries Resources, and the Kuwait Credit Bank.

Concurrently, the Ministerial Committee for Monitoring the Implementation Status of Agreements and Memoranda of Understanding signed between the Government of the State of Kuwait and the Government of the People’s Republic of China continues to work on advancing the development projects included in the memoranda of understanding between the two countries, which cover cooperation in the field of housing development.

The memorandum signed with the Chinese side aims to expand the scope of mutual cooperation and create a long-term strategic partnership in the field of housing project development, enhance capabilities for developing integrated and advanced residential cities, and accelerate the pace of providing housing care to citizens.

The Council of Ministers directly monitors the work of entities in housing projects and supports them to ensure their ability to fulfill their assigned commitments.

Periodic reports issued by the Public Authority for Housing Welfare reveal that the Authority’s projects are witnessing notable progress in completion rates, amid the continued implementation of infrastructure and building works in several residential cities.

Government efforts aim to create approximately 170,000 residential units over the next ten years, distributed across several areas. These efforts place utmost importance on adopting new, more flexible, and efficient models that leverage global expertise and keep pace with economic and urban changes, while preserving the specificity of Kuwaiti society and the requirements of Kuwaiti families.

Kuwait has allocated two programs in its development plans for constructing cohesive infrastructure and creating environmentally harmonious residential areas. These programs include a series of policies, foremost among them building environmentally friendly cities based on green building principles, green infrastructure, and smart technology, in addition to improving land and facility management and creating sustainable alternatives to the current housing system.

Government directions focus on providing land, enhancing the administrative efficiency of housing projects, and improving implementation processes by activating the role of the private sector and ensuring the provision of high-quality living standards.