Kuwait Solves Housing Crisis by Establishing Real Estate Development Companies

The Kuwaiti National Assembly approves two laws that contribute to solving the housing crisis (Asharq Al-Awsat)
The Kuwaiti National Assembly approves two laws that contribute to solving the housing crisis (Asharq Al-Awsat)
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Kuwait Solves Housing Crisis by Establishing Real Estate Development Companies

The Kuwaiti National Assembly approves two laws that contribute to solving the housing crisis (Asharq Al-Awsat)
The Kuwaiti National Assembly approves two laws that contribute to solving the housing crisis (Asharq Al-Awsat)

Kuwait’s National Assembly on Wednesday approved the proposal to amend the Public Authority for Housing Welfare Law in its first reading with 48 votes in favor and one against. The bill mandates the authority to establish shareholding companies that will implement housing projects in partnership with private and huge international companies.

The establishment of these cities or residential areas would be done through public joint stock companies and other companies in accordance with a fair partnership with the private sector specialized in this field. Citizens will also be involved in the investment process.

Kuwait’s public authority for housing welfare is committed – according to law provisions - to establish public joint stock companies for building an integrated residential city or a residential area or more on the lands allocated to the institution.

The law stipulates that the provision and distribution of real estate unit products shall be in accordance with the priority of registering housing applications, as well as giving priority to those eligible for housing care when companies sell housing alternatives located in lands not designated for residential care.

The law prohibits citizens from buying more than one real estate unit of any kind. This is to preserve the access of all those who are eligible for housing welfare to their constitutional entitlement to obtain a home.

Minister of State for National Assembly, Housing and Urban Development Affairs Ammar Al-Ajmi affirmed this bill is the fruit of cooperation between the government and the parliamentary Housing Affairs Committee to combat real estate monopoly and stop the transformation of private houses into investment buildings.

“Today we have taken a big step towards addressing the housing issue,” said Housing Affairs Committee Chairman MP Hassan Jawhar.

He added that the adoption of the law “will be the beginning of the desired housing reform.”

During the discussion of the proposal, MP Abdullah Al-Mudaf – one of the proponents of the bill – explained that it is one of the laws that represent a legislative package to radically solve the housing issue.

He said that the bill pushes in the right direction to achieve several factors, the most important of which is the provision of housing care for citizens.

MP Hamdan Al-Azmi pointed out the bill has no clear stipulation on the participation of foreign investors. Nevertheless, he praised the bill; affirming that it is urgently needed since the government failed to address the housing issue.



Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)
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Saudi Arabia Implements Real Estate Regulations to Stabilize Riyadh’s Market

The Saudi capital, Riyadh (SPA)
The Saudi capital, Riyadh (SPA)

Amid rapid growth in Saudi Arabia’s real estate sector, fueled by the country’s economic diversification strategy, Crown Prince Mohammed bin Salman has introduced a series of regulatory measures in Riyadh. These steps aim to balance the capital’s real estate market, demonstrating the leadership’s commitment to providing sustainable and effective solutions for challenges in this vital sector.

Experts told Asharq Al-Awsat that rising property prices remain one of the biggest challenges in the real estate market. According to the General Authority for Statistics (GASTAT), the Real Estate Price Index increased by 3.6% in Q4 2024—the highest quarterly growth in six quarters—mainly driven by the residential sector, which accounts for 72.7% of the index.

Several factors are contributing to rising prices, including high demand for housing in major cities, large-scale development projects attracting investment, and improvements in infrastructure that increase property values.

Following an in-depth study by the Royal Commission for Riyadh City and the Council of Economic and Development Affairs, the Crown Prince’s directives focus on increasing housing supply and regulating market fluctuations to ensure fairness and stability.

Key Real Estate Measures

The newly announced policies include lifting restrictions on real estate transactions and development in several areas of Riyadh, covering 81.48 square kilometers. To meet housing demand, authorities plan to allocate between 10,000 and 40,000 residential plots annually over the next five years, with a price cap of SAR1,500 per square meter. Priority will be given to married citizens and individuals over 25 who do not own property, with applications processed through a new digital platform developed by the Royal Commission for Riyadh City.

To prevent speculative trading, new regulations restrict the sale, leasing, or mortgaging of land for ten years, except for construction financing. If a project is not completed within this period, the land will be reclaimed at its original purchase price.

Minister of Municipal, Rural Affairs, and Housing Majid Al-Hogail emphasized that these measures will help balance supply and demand while also revising the White Land Tax program to encourage property development. He also confirmed a comprehensive review of rental regulations, with amendments expected within 90 days.

Strong Demand for Real Estate

A report by JLL, a global real estate services firm, highlighted that despite a slowdown in construction projects across the Middle East and Africa in 2024, Saudi Arabia remained a strong performer. The Kingdom accounted for SAR29.5 billion in construction contracts, with significant activity in the hospitality, mixed-use, and entertainment sectors. The residential sector also performed well, with SAR7.9 billion in awarded contracts.

As Saudi Arabia prepares to host major global events, it may face challenges related to capacity and rising costs between 2025 and 2028. However, the government is addressing these issues by localizing industries, expanding infrastructure investments, accelerating digital transformation, and implementing regulatory reforms, with a focus on renewable energy and sustainability.

JLL’s Head of Projects and Development Services in Saudi Arabia, Maroun Dib, noted that strategic projects under Vision 2030 will continue attracting massive investments, creating expansion opportunities in the real estate sector. He added that major events like the FIFA World Cup and Expo will drive significant capital inflows, strengthening infrastructure development and setting the real estate sector on a solid growth trajectory beyond 2025.

Speaking to Asharq Al-Awsat, Khaled Al-Mobayed, CEO of Manassat Real Estate, stressed the importance of increasing housing supply to meet growing demand. He warned that failing to do so could lead to rising rental prices. Al-Mobayed suggested that expanding real estate development into smaller cities near major urban centers could ease pressure on large cities while providing affordable housing options.

Riyadh’s hospitality sector is experiencing rapid growth, driven by business tourism and international events. Average hotel room rates rose by 13.3% in 2024 to SAR239 per night, with 2,312 new hotel rooms expected in 2025. In Jeddah, religious and leisure tourism remains strong, supporting long-term growth despite minor market fluctuations.

Meanwhile, the retail sector in Riyadh is shifting toward experiential shopping, as consumers seek entertainment-driven retail experiences. Traditional shopping malls—especially enclosed malls—are facing declining occupancy rates. While large malls saw a 1.8% increase in lease rates in Q4 2024, community malls experienced stronger growth at 5.5%, whereas regional malls declined by 9.3%. A similar trend is visible in Jeddah, highlighting the need for more diverse and interactive retail spaces.

Industrial and Logistics Sectors on the Rise

Rising rental rates in the industrial and logistics sectors in Riyadh and Jeddah indicate strong market demand, fueled by economic diversification and the growth of e-commerce.

Additionally, the data center sector is rapidly expanding, driven by 5G technology and artificial intelligence. Riyadh, Dammam, and Jeddah now rank third in the Middle East and Africa for operational co-location data centers, contributing 12.6% of the region’s total IT capacity (1,050 megawatts) by the end of 2024. This positions Saudi Arabia for further digital infrastructure expansion.