Kuwait's Housing File Enters New Stage of Sustainability and Meeting Citizens' Needs

- The Mortgage Financing Law provides additional tools to support upcoming projects... and the "Real Estate Developer" enhances the private sector’s contribution to implementing housing projects

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

- Creation of approximately 170,000 housing units over the next ten years

The system of legislative and executive reforms recently adopted by the Kuwaiti government in the housing file represents a strategic turning point, moving the country into a new phase of achieving urban sustainability that aligns with national objectives and meets citizens’ needs.

The draft decree-law on mortgage financing 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 Mortgage Financing Law is expected to create additional financial instruments to support upcoming housing projects, reduce waiting times for housing care beneficiaries, and revitalize the real estate sector.

State Minister for Municipal Affairs and State Minister 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 housing unit from the 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 stipulated the provisions regarding subsidized or unsubsidized mortgage financing 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 creating cities or residential and development areas (the Real Estate Developer), has 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 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 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.

The investment opportunities consist of three packages comprising 5,000 housing units in the cities of (Al-Mutlaa), (Saad Al-Abdullah), and (Jaber 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 launching three major housing projects, thereby supporting the acceleration of project implementation procedures.

Ahmed Al-Ansari, Acting Deputy Managing Director for Investment and Private Sector Projects at the Public Authority for Housing Welfare, stated that the qualification of alliances is being implemented in accordance with Cabinet 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 by real estate developers. The first three sites were carefully evaluated, and preliminary designs for these homes and areas were prepared to ensure the project’s viability.

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

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

The Governmental Coordinating Committee for Monitoring the Implementation of Services Related to Housing Projects, established by Cabinet 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 expedite the completion of housing-related projects in the country and remove any obstacles that may arise in this regard. It also coordinates between entities to develop joint plans and mechanisms for providing, operating, and maintaining services related to existing and future residential cities and suburbs, designating the entities responsible for taking over buildings or services belonging to government entities in accordance with the timelines of various housing projects, and monitoring each entity’s efforts in this regard.

The committee comprises eight government entities, 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.

In parallel, the Ministerial Committee for Monitoring the Implementation Status of Agreements and Memoranda of Understanding (MoUs) signed between the Governments of the State of Kuwait and the People’s Republic of China continues to work to advance the development projects included in the MoUs between the two countries, which encompass cooperation in the field of housing development.

The MoU 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 welfare to citizens.

The Cabinet directly monitors the work of entities involved 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 significant progress in completion rates, amid the ongoing 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 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 characteristics of Kuwaiti society and the needs of Kuwaiti families.

Kuwait has allocated two programs within its development plans to construct cohesive infrastructure and create environmentally harmonious residential areas. These programs encompass a range of policies, foremost among them the construction of eco-friendly cities based on the principles of green buildings, green infrastructure, and smart technology, as well as the improvement of land and facility management and the development of sustainable alternatives to the current housing system.

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