ShareKUWAIT: The Public Authority for Housing Welfare (PAHW) signed a consultancy services contract on Monday to develop three residential sites in accordance with Law No 118 of 2023, which facilitates the establishment of companies to develop cities and residential areas with an economic focus.
Minister of State for Municipal Affairs and Minister of State for Housing Affairs Abdullatif Al-Meshari described the agreement as a pivotal step in implementing the real estate developer model, marking a shift in Kuwait’s housing care philosophy. He emphasized the government’s commitment to engaging the private sector in driving housing projects and offering sustainable, high-quality housing solutions that cater to the diverse needs of Kuwaiti families.
Speaking on the sidelines of the signing, Al-Meshari noted that implementing the new law in tandem with the existing housing welfare system would enable a smooth transition from the traditional state-driven housing approach to a partnership model with the private sector. He underscored that this transition aligns with Kuwait’s broader development policies, shifting the state’s role from direct service provider to regulatory and supervisory authority. The minister highlighted that the consultancy contract would serve as a pilot initiative to assess the effectiveness of the real estate developer system. PAHW will closely monitor all project phases to ensure optimal application of the law and promptly address any implementation challenges.
Regarding the locations of the three new residential areas, Al-Meshari stated that authorities carefully selected strategic sites near developed urban zones to encourage citizen interest. He noted that site evaluations are ongoing and affirmed PAHW’s commitment to providing diverse housing options that reflect the varied needs of Kuwaiti families. Looking ahead, Al-Meshari revealed that future housing projects would extend beyond traditional Kuwaiti family units to include other eligible groups, such as women, single women and single men. He emphasized that housing policy must be inclusive, offering tailored support to different categories based on their eligibility for housing welfare.
On the potential impact of the real estate developer system on property prices, Al-Meshari expressed confidence that introducing a competitive environment among investors would help stabilize supply and demand, mitigating inflation in residential property prices. He stressed that the system is a cornerstone of the government’s sustainable housing program, carefully designed to align with Kuwait’s long-term development goals.
Al-Meshari also highlighted the significant progress made in launching the country’s first real estate developer projects through extensive consultations with government bodies, private sector stakeholders and the Real Estate Union. He noted that real estate financing is a shared responsibility involving PAHW, the Ministry of Finance, the Public Investment Authority, and the Central Bank of Kuwait. Discussions with leading real estate development firms have yielded recommendations, some of which have already been implemented, with additional policies set to be introduced in the near future.
Regarding key development sites such as Nawaf Al-Ahmad, Al-Khiran, and Al-Sabriya, Al-Meshari announced that PAHW’s Board of Directors has approved the launch of design and infrastructure plans for these areas, which will collectively provide 150,000 housing units. He invited local and regional investors, along with real estate developers, to participate in the projects, citing promising investment opportunities that reinforce the private sector’s role in Kuwait’s housing development strategy.
Touching on labor cities, Al-Meshari affirmed that they form part of international agreements and are a government priority. He mentioned ongoing consultations with various stakeholders to integrate these projects into the private sector and assess their feasibility. Several labor cities fall under the jurisdiction of PAHW, the Ministry of Finance and other relevant entities. The newly signed consultancy contract will oversee the development of three residential areas under the real estate developer system, with an estimated total capacity exceeding 5,000 housing units. — KUNA
