Kuwait turns to private sector as housing requests pile up over decades
Kuwait (Reuters) – Kuwait’s housing minister on Wednesday called on the private sector to help tackle a housing crisis, where demand is far outstripping the supply of new homes after decades of state management of the sector.
According to its constitution, the oil-rich state is responsible for assisting all Kuwaiti families in obtaining housing. However, it has struggled to meet rising demand and now many are forced to wait for years for accommodation.
The housing authority said requests have reached 105,000 and are rising at 3% annually, with demand seen at 197,000 by 2035, a presentation showed on Wednesday.
“The private sector today is a true partner in solving this problem, and the reliance now is on you,” Housing Minister Abdulatif Al-Meshari told a conference attended by hundreds of representatives from private real estate companies and local and foreign banks.
The government is currently restructuring the Public Authority for Housing Welfare, which for decades has been the executive arm for providing homes to its 1.5 million citizens.
“Now I will be the regulator, I will follow up with you, follow up on the projects and the quality, but the core of the matter is with you,” Al-Meshari said.
Kuwait last week opened pre-qualification for foreign and local private firms to develop three housing projects across four areas covering 4.15 million square meters (44.6 million square feet), under a real estate development law approved in 2023 and enacted this month.
The 30-year contracts cover design, financing, construction, operation and the sale of housing units to citizens, with four years for building and 26 years for investment, while non-residential assets will be transferred to the government.
Al-Meshari did not have estimates for the value of the projects.
The government is drafting a mortgage law to let banks and finance firms provide housing finance, which the minister said will be ready within weeks.
Kuwait is developing major cities, including Al-Khairan, Nawaf Al-Ahmad and Al-Sabriya, with about 185,000 housing units over 355 sq km, the housing authority said.
