Kuwait amends law on companies developing residential cities, economic zones

A new decree-law has been issued amending certain provisions of Law No. 118 of 2023, which governs the establishment of companies tasked with developing residential cities and areas and promoting their economic growth.

According to the amendment, Article 4 now authorizes the Public Authority for Housing Care to bear part of the costs related to infrastructure, public buildings, and residential care units — based on a verified economic feasibility study.

The article also firmly states that any change in the financial obligations borne by the PAHW after a contract has been awarded, whether an increase or decrease, will be deemed absolutely null and void, reports Al-Rai daily.

Meanwhile, Article 5 of the amended law allows the institution to offer residential or non-residential development areas for investment. It is also empowered to define investment models in accordance with the outcomes of feasibility studies.

Additionally, the law underscores the importance of removing obstacles that may hinder private sector participation in the implementation of these projects.

The legal changes reflect Kuwait’s broader efforts to encourage public-private partnerships in the housing and urban development sectors while ensuring that financial accountability and investment transparency are maintained.