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Kuwait is seeking private sector support to tackle a long-standing housing shortage caused by decades of state-led management. Current housing requests stand at 105,000 and are growing at 3% annually, with demand projected to reach 197,000 by 2035. The government is restructuring the Public Authority for Housing Welfare and inviting local and international firms to develop large-scale housing projects under 30-year contracts. A new mortgage law is also being drafted to facilitate housing finance. These measures aim to bridge the gap between supply and demand for citizens' housing.
Kuwait is increasingly turning to the private sector to address a persistent housing shortage that has grown over decades of state-led management. Housing Minister Abdulatif Al-Meshari highlighted that private developers now have a central role in meeting the needs of citizens, as government resources alone have not kept pace with rising demand. Advertisement
Under Kuwait's constitution, the government is responsible for assisting all Kuwaiti families in obtaining housing. Despite this mandate, many citizens face long waits for accommodation, reflecting the gap between demand and supply. The housing authority reported that housing requests have reached 105,000 and are increasing at 3% annually, with projections indicating that demand could rise to 197,000 by 2035.
At a recent conference attended by representatives from local and international banks and real estate companies, Al-Meshari said the private sector is now a true partner in resolving the issue. He explained that while the government will act as a regulator to monitor project quality and progress, the core responsibility for delivering housing lies with private developers.
In line with this approach, Kuwait recently opened pre-qualification for local and international firms to develop three housing projects across four areas, covering 4.15 million square meters (44.6 million square feet). These projects are being developed under a real estate law approved last year and implemented this month. Contracts are set for 30 years, including four years for construction and 26 years for investment, covering design, financing, construction, operation, and sale of housing units to citizens. Non-residential assets from the projects will eventually revert to government ownership. Al-Meshari did not provide estimates for the total value of these projects.
The government is also drafting a mortgage law that will allow banks and finance companies to provide housing loans. The minister stated that the law will be finalized within weeks, enabling citizens to access financing for homes more easily.
Kuwait is simultaneously developing major new cities, including Al-Khairan, Nawaf Al-Ahmad, and Al-Sabriya, where about 185,000 housing units will be built across 355 square kilometers. Al-Meshari emphasized that these initiatives are the first step in solving the long-standing housing shortage and that the ultimate goal remains to provide timely and adequate housing for all citizens.
Source Reuters
5th Jun, 2025
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