Abdali Economic City project eyes billion-dinar investment

• The Abdali Economic Zone will be a smart city that integrates various sustainability and innovation elements into its design.

• Abdali Economic City promises valuable features for residents and investment opportunities, with the government prioritizing its swift completion.

• Abdali Economic City will feature warehouses, logistics services, investment housing, hotels, schools, healthcare, among others.

Sources indicate that the total cost of implementing the Abdali Economic City project could reach approximately one billion dinars, covering infrastructure development and other essential works for the city, according to Q8-Press.

Sources confirmed that, following the completion of the project’s feasibility study update and the acquisition of necessary approvals, including the latest decision on building requirements and specifications in the economic city, the project will be launched very soon.

The sources added that the project proposal file is currently with the Ministerial Committee for the Follow-up of agreements and memorandums of understanding with Beijing. Kuwait has a memorandum of understanding with China on cooperation in free zones and economic zones. As the project is ready to be presented to international investors, priority for its implementation will be given to the Chinese side, per the agreements.

The sources emphasized that the government is making significant strides towards completing the project, as it has been classified as a priority strategic initiative. They noted that the Kuwait Direct Investment Promotion Authority (KDIPA) has resolved the long-standing issues that kept the project stuck within government entities for years by finalizing all economic and financial studies and securing the necessary approvals for its presentation.

Building requirements

The municipality’s approval of the building requirements for the city is the most recent milestone achieved by the project. The decision covers the mixed-use residential-commercial building system as well as the system for storage and logistics buildings. Both systems specify building ratios, entrances, setbacks, building heights, floor levels, and parking facilities.

The Abdali Economic Zone is located in the north of the country, near the Iraqi border and adjacent to AbdaliFarms, about 90 kilometers from Kuwait City. This strategic location makes it well-suited to become a commercial gateway between Kuwait and the northern Gulf, primarily focused on export industries. It is envisioned as an integrated commercial and economic center, covering an area of approximately five square kilometers, with land allocated for various industrial, logistics, residential, and commercial activities.

Logistics hub

According to KDIPA, the Abdali Economic Zone aligns with Kuwait’s national vision to expand its northern region. It will serve as a logistics hub for the planned GCC railway project and Mubarak Al-Kabeer Port, offering significant opportunities across sectors such as trade, investment, industry, hospitality, housing, and storage.

Sustainability and innovation

According to the project’s feasibility study, the AbdaliEconomic Zone will be a smart city that integrates various sustainability and innovation elements into its design. These include strategically located cooling plants with a total capacity of 79,000 tons of refrigerants for surrounding areas, as well as systems for solid waste collection and treatment, smart street lighting, and many other innovative technologies.

Kuwait’s first smart city

Abdali Economic City is set to become Kuwait’s first smart city, offering valuable features for residents and promising opportunities for investors. As part of its commitment to technology and sustainability, the site will include numerous green spaces and incorporate smart systems throughout its infrastructure and road networks.

Commercial gateway

According to a study by KDIPA, the Abdali Economic Zone is designed to become an industrial, service, and logistics hub, facilitating trade between Kuwait, Gulf countries, Iraq, Eastern Europe, Central Asia, and beyond.

The Abdali Economic Zone will benefit from the following key characteristics:

• Strategic geographical location in the north.
• Proximity to the country’s main oil fields.
• Close to the upcoming Gulf railway route.
• Connectivity to Kuwait’s main road network.
• Integration with the large-scale northern economic zone development project, including the Mubarak Al-Kabeer Port, currently under construction on Boubyan Island.
• Connection to the global China Transcontinental Belt and Road Initiative, in which Kuwait is a participant.

Economic and social impact of the city

The study assessed the economic and social impact of the city, focusing on the creation of an integrated area with facilities and a variety of activities that meet all necessary requirements and services, including the following:

• Availability of eco-friendly designs promoting a sustainable lifestyle.
• Accommodation for about 35,000 residents.
• Creation of over 26,000 job opportunities.
• Construction of around 22,000 diverse housing units.

The project encompasses several components, including:

• Public services such as roads and infrastructure.
• Special housing to meet the needs of citizens.
• Warehouses and logistics services.
• Investment housing and investable villas.
• Mixed housing plots for multi-purpose buildings.
• Hotels, offices, retail, and entertainment facilities.
• Social services like schools, healthcare centers, and security centers.
• Eco-friendly gardens and open spaces in residential areas.
• Parks in investment housing areas.
• Medium and light industrial zones, including general industry and waste recycling.
• High-density collective housing units, including housing for single workers.