The Kuwaiti National Assembly unanimously approved, Thursday, a law that allows the government to establish companies with the participation of Kuwaiti and foreign private sectors, specialized in establishing cities and residential areas.
The National Assembly approved in a special session a bill allowing the formation of companies specialized in the construction of new residential cities and referred it to the government.
Minister of Justice and Minister of State for Housing Affairs Faleh al-Rqubah said that approving the law will accelerate the pace of processing the housing applications.
During the Assembly’s discussion, the Chairman of Housing and Real Estate Affairs Committee, Hasan Johar, explained that the law is based on establishing joint stock companies to build new housing cities designated for housing care.
Johar elaborated that the aim is to create a partnership between the government, the citizens, and the investor in a way that guarantees benefit-sharing and earnings.
He recalled the benefits of such projects, noting that housing represents the third highest national income in Saudi Arabia, with increased profits.
The law focuses on preparing the infrastructure for mega projects in three cities to accommodate 100,000 housing units and guarantees the completion of all services, according to the official.
In turn, the committee's rapporteur, Abdulaziz al-Saqobi, said there were 92,000 housing requests expected to reach 220,000 in 20 years.
Saqobi explained that residential real estate prices are skyrocketing, and according to some reports, their increase rate reached 19.5 percent in 2020/2021.
He indicated that there are more than 25,000 vacant lands in private housing, 15,000 monopolized by 146 people, negatively affecting Kuwaiti families.
The National Assembly finished discussing the report of the Parliamentary Housing and Real Estate Affairs Committee regarding proposals for laws on establishing companies to establish cities or residential areas and develop them economically.
The Assembly unanimously agreed on the new law enacted by the Housing Committee two weeks ago. It includes 40 articles divided into six chapters.
Before announcing the Initial Public Offering (IPO), the Public Authority for Housing Welfare must publish a summary study of the economic feasibility of the project company to be established and the plans for the cities or residential areas.
It must include the urban planning approved by the Corporation, the number of housing units to be completed, the various facilities to be established in each sector of the city or region, and the capital of each company based on the provisions of the law.
Under the law, the authority guarantees the safety of cities and residential areas, extending to ten years.
