Kuwait Seeks Private Sector Help to Solve Housing Shortage

Post by : Monika

Kuwait, a small but wealthy country in the Middle East, is facing a serious housing problem. Many Kuwaiti families are waiting for homes, and the government has struggled for decades to meet the demand. The constitution of Kuwait guarantees that the state should provide housing for all Kuwaiti citizens. However, the country has not been able to fully meet this promise.

The Number of Pending Housing Requests

As of September 2025, more than 105,000 housing requests are pending with Kuwait’s Public Authority for Housing Welfare (PAHW). The number of requests grows by about 3% every year.

Experts warn that if this trend continues, the number of housing requests could almost double to 197,000 by 2035. This growing list shows how serious the housing shortage has become. Many families are forced to live in temporary accommodations or rent expensive private apartments because public housing is limited.

Government’s Long-Term Efforts

The government has been responsible for providing housing for Kuwaiti citizens for many decades. The Public Authority for Housing Welfare was set up to manage and oversee the distribution of housing units. In the past, the government constructed housing units and distributed them to citizens based on priority lists. However, in recent years, it has become clear that the government alone cannot keep up with the growing demand.

Housing Minister Abdulatif Al-Meshari recently stated that relying only on the government to provide homes is no longer sustainable. He highlighted the need to involve the private sector in solving the housing crisis. According to the minister, “The private sector today is a true partner in solving this problem, and the reliance now is on you.”

Involving the Private Sector

The government is now turning to private real estate companies and banks to help solve the housing problem. Private companies will play a major role in designing, financing, building, and maintaining new housing projects. The government’s role will shift to overseeing these projects and ensuring they meet the needs of citizens, rather than being the main builder.

This approach marks a major change in Kuwait’s housing policy. By involving the private sector, the government hopes to accelerate housing construction and meet the increasing demand more effectively. Private companies bring expertise, funding, and management skills that can help build new homes faster and more efficiently.

New Housing Projects

To address the housing shortage, the government has recently invited bids from local and international companies to develop three major housing projects. The total area of these projects is 4.15 million square meters (44.6 million square feet). The projects include residential buildings, as well as public facilities and infrastructure necessary for a complete community.

The contracts for these projects will last for 30 years. The first four years will be focused on construction. The remaining 26 years will cover the operation and management of the housing units. At the end of the contract period, the government will take control of non-residential buildings, including schools, health centers, and commercial facilities.

Mortgage Law to Support Citizens

In addition to involving private developers, the government is also working on a new mortgage law. This law will allow banks and financial institutions to provide loans to citizens who want to buy homes. Once approved, the law will make it easier for families to afford housing and encourage private developers to invest in new projects. The mortgage system is expected to increase homeownership among Kuwaitis and reduce pressure on government-built units.

Plans for New Cities

Kuwait is also planning to build entirely new cities to provide more housing for its citizens. The three planned cities are Al-Khairan, Nawaf Al-Ahmad, and Al-Sabriya. Together, these cities will offer about 185,000 housing units. They will also include schools, hospitals, and other public facilities.

The new cities aim not only to provide homes but also to create modern, sustainable communities. These projects will take years to complete, but they represent a long-term solution to the housing crisis. By planning entire cities, the government hopes to ensure that citizens have access to all necessary services within their communities.

Challenges Ahead

Even with these new projects and private sector involvement, challenges remain. The demand for housing is growing faster than the supply. It will take time to build enough homes to meet the needs of all Kuwaiti families.

Working with private companies also introduces new challenges. The government must carefully manage contracts and ensure that companies meet deadlines and quality standards. Effective collaboration between the public and private sectors is essential to make these projects successful.

Additionally, while mortgage laws and financial support can help citizens, not all families may be able to afford loans immediately. The government will need to monitor affordability and provide additional support to lower-income families.

Importance of the Private Sector

The involvement of private companies is a major step in solving Kuwait’s housing problem. Private companies can bring new ideas, technology, and efficiency to large-scale projects. They can also provide funding that the government may not have, speeding up construction and improving the quality of homes.

The private sector’s participation can also create jobs and stimulate economic growth. Construction projects require workers, engineers, and managers. Local businesses will benefit from the increased demand for materials and services.

Expected Impact on Citizens

If the housing projects and new mortgage law are successful, many Kuwaiti families will finally be able to own their homes. Waiting times for housing may decrease significantly, and citizens will have access to modern, well-planned communities.

These projects are also expected to improve the quality of life for citizens. Access to schools, hospitals, and recreational areas within these new housing communities will enhance living standards.

Government Oversight and Regulation

While private companies will handle most construction and management, the government will still play a crucial role. It will regulate pricing, quality, and access to ensure fairness. The government will also monitor mortgage systems to prevent exploitation and make sure that loans remain affordable for citizens.

The government’s oversight is essential to maintain trust and ensure that all citizens benefit from the housing programs.

Long-Term Vision

Kuwait’s long-term plan focuses on sustainable growth and modern living standards. By building new cities, involving private companies, and implementing mortgage support, the government aims to solve the housing problem not just for today but for the future.

Experts believe that these measures can significantly reduce the backlog of housing requests over the next decade. They also hope that Kuwait will be able to provide homes for future generations without relying solely on government construction projects.

Kuwait faces a major housing challenge, with more than 105,000 pending requests. For decades, the government alone could not meet the demand, leading to long waiting times and pressure on public housing systems.

Now, by involving the private sector, launching large housing projects, implementing new mortgage laws, and planning new cities, Kuwait is taking steps to address this crisis. While challenges remain, these initiatives offer hope that citizens will soon have access to modern, affordable homes.

The combination of government oversight and private sector expertise is seen as the best path forward. With careful planning and collaboration, Kuwait could resolve its housing shortage and improve living conditions for thousands of families in the coming years.

Kuwait housing crisis Public housing Kuwait Private sector housing projects