Private sector to play bigger role in housing projects under new legal reforms
Law offers wider range of housing options that cater to diverse needs of Kuwaiti families
The recent amendments to the Housing Cities Construction Companies Law (Law No. 118 of 2023) are aimed at offering a wider range of housing options that cater to the diverse needs of Kuwaiti families. At the same time, the changes are designed to enhance the law’s appeal to the private sector by encouraging broader participation in its implementation, thereby expanding the choices available to citizens.
Government sources told Al-Rai that one of the key amendments approved by the Council of Ministers last Tuesday involved revising Article (2). The revision allows for the establishment of companies based on the nature and feasibility of each individual project, without mandating a specific company structure, legal form, or capital size.
Following this amendment, Articles (3) and (6) were removed, with the regulation of company capital and public subscription procedures — where applicable — now falling under existing laws governing such matters.
Article (5) was also amended to ensure that company shares are determined based on project feasibility studies and the willingness and capacity of government entities to participate in each project on a case-by-case basis.
The sources noted that Article (11) was revised to allow developers greater flexibility in offering a variety of housing products that align with the different financial capabilities and preferences of beneficiary families across various regions. This change shifts the risk of market demand to the real estate developer, who is expected to conduct thorough market research to ensure housing units are competitively priced and well-matched to the needs of eligible families.
Additionally, Articles (10) and (19) were repealed. Their contents will now be covered under executive regulations, allowing for greater legal clarity and flexibility in implementation.
The following two new provisions have been introduced:
- Article (31 bis): This article mandates that the Authority develop standards, controls, and technical specifications for buildings, suburbs, neighborhoods, and all project components—whether residential, commercial, industrial, craft-based, service-oriented, or investment-focused.
- An additional paragraph to Article (32): This clause allows the Corporation to apply the provisions of the law to all residential and non-residential cities or areas, or to specific plots of land as determined by the Corporation’s Board of Directors.
The sources clarified that this addition aims to empower the Corporation to implement such projects across all lands allocated to it, whether intended for residential care or other uses.
