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.
