The National Assembly.

By B Izzak

KUWAIT: MP Marzouq Al-Khalifa yesterday submitted a draft law calling to put a cap on rents in so-called modern areas in a bid to prevent a rapid rise in rents. The bill proposes that rents in the Capital and Hawalli governorates must not be more than KD 2.5 per square meter, and not more than KD 2 per square meter in the governorates of Farwaniya, Jahra, Ahmadi and Mubarak Al-Kabeer.

The proposed rates apply only to private homes in model areas, which are mostly inhabited by Kuwaiti families, some of whom lease out part of their homes. The bill does not include so-called investment or commercial buildings spread out in many areas and rented out mainly to expatriates.

The lawmaker said the current law has failed to stop a sharp increase in rents of private homes, which has become a business, strongly affecting the income of Kuwaiti families renting apartments in model areas. The bill must be approved by the National Assembly and accepted by the government to become law.

Meanwhile, the National Assembly's legal and legislative committee yesterday approved a draft law calling for the establishment of a public shareholding company under the name Kuwait Solar Energy Company. The legislation comes as part of Kuwait's drive to expand renewable energy projects, mainly existing solar energy plants in the western Kuwaiti desert.

In other developments, Prime Minister-designate HH Sheikh Sabah Al-Khaled Al-Sabah yesterday held talks with parliamentary groups and lawmakers in his bid to form the new Cabinet. Sheikh Sabah submitted the resignation of his Cabinet last month and was asked to form the new government. Sheikh Sabah met with lawmakers from the Mutairi and Awazem tribes and several Shiite MPs. He is expected to continue his consultations before announcing the new Cabinet.