Housing File Enters New Phase: Reform Package Strengthens Partnership with Private Sector

The system of legislative and executive reforms recently adopted by the Kuwaiti government in the housing file represents a strategic turning point, marking the country’s transition to a new phase in achieving urban sustainability that aligns with national 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 will 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, Abdul Latif Al-Mashari, stated that the draft law comprises 15 articles, noting that Article 2 defined 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 regulations set by the Authority for projects that have been implemented or are currently under implementation.

Article 4 of the law outlined provisions regarding subsidized or unsubsidized housing finance and the repayment mechanism, allowing for their combination in accordance with the controls and procedures established by the Central Bank of Kuwait.

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

The legislation on real estate developers, 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.

Furthermore, the law (Housing Welfare) enabled the establishment of controls, standards, and technical specifications for buildings, suburbs, areas, and neighborhoods for each project individually, to ensure 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, represented a fundamental cornerstone in supporting urban growth and enhancing the capacity to overcome challenges facing the housing file.

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

Acting Deputy Managing Director for Investment and Private Sector Projects at the Authority, Engineer Ahmed Al-Ansari, stated that the qualification of these consortia comes in implementation of 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 evaluated, and preliminary designs for these homes and areas were prepared to ensure the viability of the projects.

Minister Al-Mushari stated that the Public Authority for Housing Welfare has been working at a rapid pace in recent periods to amend certain important policies and laws.

The committee is tasked with taking all measures and procedures that would expedite the completion of projects related to housing in the country, removing any obstacles that may arise in this regard, and coordinating among relevant entities to develop joint plans and mechanisms for providing, operating, and maintaining services related to existing and future residential cities and suburbs. It also designates the entities responsible for taking over buildings or services belonging to government entities, in accordance with the timeframes of various housing projects, and follows up on the efforts of each entity in this regard.

In parallel, 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 to accelerate the development projects included in the MoUs between the two countries, which encompass cooperation in the field of housing development.

The Cabinet directly monitors the work of entities involved in housing projects and supports them to ensure their capacity to fulfill their assigned obligations.

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 housing cities.

Government efforts aim to create approximately 170,000 housing units over the next ten years, distributed across various regions. These efforts place paramount importance on adopting new, more flexible, and efficient models that leverage global expertise and keep pace with economic and urban changes, while preserving the distinctiveness of Kuwaiti society and the needs of Kuwaiti families.

Kuwait has allocated two programs in its development plans to construct cohesive infrastructure and create 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, as well as improving land and facility management and creating sustainable alternatives to the current housing system.

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