KUWAIT: Kuwait has invited local and international companies to bid on contracts for three major housing cities, marking the first projects under recently amended housing legislation.
The developments, covering more than three million square meters, come as Kuwait seeks to ease a long-standing housing shortage for its 1.5 million citizens. About 100,000 people remain on the government’s housing waiting list, with some families waiting more than 17 years for a home.
The projects are being implemented under Decree Law No 89 of 2025, which amends key provisions of the 2023 legislation that first established a framework for private-sector participation in residential city development. The amendment gives the government greater flexibility in project structure, allows a wider variety of housing options—such as apartments, duplexes, villas, and gated communities—and introduces a financial safeguard ensuring that once the government commits funding, it cannot change that amount.
“The new law is designed to unlock private capital, accelerate housing delivery and improve the financial sustainability of state-backed development,” the explanatory note said.
Contracts for the three cities — Al-Mutla’a City, East Saad Al-Abdullah City, and West Saad Al-Abdullah City, all north and west of Kuwait City — will run 30 years, including a four-year construction period. They cover design, financing, construction, operation, maintenance, and sale of residential units. Non-residential assets will revert to the government at the end of each contract.
Investors, whether Kuwaiti or foreign, will hold 26 percent to 49 percent of each project, government entities 6 percent to 24 percent, and the remainder will be offered to citizens via public subscription. Companies must have at least ten years of experience in large-scale residential or mixed-use projects to qualify.
