By B Izzak
KUWAIT: The National Assembly on Wednesday passed a law to accelerate building homes for Kuwaitis a majority of whom wait for as long as 15 years to get a home amid skyrocketing prices and monopoly. The law calls to establish companies to build new cities and residential areas with the help of strategic foreign partners who will be allowed to operate without the need for a local agent. Only one MP objected to the law saying some of its provisions were not clear.
Minister of State for Housing Ammar Al-Ajmi welcomed the approval of the law but stressed a series of other legislation were needed to provide a fundamental solution of the housing problem. The government of oil-rich Kuwait has been using part of the oil windfall to build homes for citizens because the overwhelming majority of them cannot have their own houses due to extremely expensive prices of land.
A 1,000-square meter of land in Kuwait City and neighboring areas can be sold for more than KD 1 million. It is slightly cheaper in remote areas. Due to the slow process of building homes and the high cost, the waiting list has swelled to over 100,000 applicants and they must wait for 15 years to get the house. Citizens pay the price in easy, interest-free installments.
Ajmi, who is also an elected MP, acknowledged that the real estate sector is suffering from monopoly, adding that more legislations are needed to resolve the problem and reduce the waiting period. Several MPs praised the law, which needs another round of voting and the approval of the government to become effective, as a landmark achievement.
The Assembly also delayed the debate on two key political reform bills to create a high commission for elections and to amend the election law to allow political groups. The government said it will submit two draft laws of its own and all can be debated together.
The Assembly also debated reports by the state accounting watchdog, the Audit Bureau, on the performance of the budget and final accounts for 2021-2022 fiscal year. Officials of the Bureau presented their remarks on the budget performance, saying that some 74 financial violations have been recorded and undergone disciplinary actions.
They said that failure of some government departments to follow the right procedures to award contracts has led the Bureau to reject about 97 subjects. MPs said the Bureau is too important and must be more independent from the government and it must be kept away from political struggles and no one should interfere in its work.