The new Anti-Monopoly Land Law is expected to curb land speculation, although the full effects will take time to materialize. By preventing monopolistic practices, the law targets traders who hold vast, undeveloped land for long periods to artificially inflate prices. This practice severely impacted many Kuwaiti families, forcing them into prolonged waits for housing or to allocate more than half of their income to rent.
The current measure is vital for price control, but remains inadequate unless other legislation, such as the Residential Building Law, is amended as well. This law is crucial for narrowing the gap between purchasing power and actual income. Before this, land prices per square meter reached KD2,000 in some areas and an astonishing KD10,000 in investment areas. Meanwhile, the soaring prices of residential land, which reached KD1,000 to KD1,500, triggered a major crisis. This crisis is marked by exorbitant rents for commercial and residential properties, consequently fueling the inflation rate and placing a heavy burden on Kuwaiti families and the residents. Although citizens are entitled to housing welfare, the protracted waiting times—a result of slow allocation procedures or infrastructure project delays— created an opportunity for land speculators.
These speculators are exploiting the situation by aggressively hiking both land prices and rental fees. This new law is significant because it mandates the Public Authority for Housing Welfare (PAHW) to provide housing within two years of housing grant application submission. This is a dramatic change, considering that official statistics from last year showed a 10-year waiting period, with tens of thousands of pending applications. A critical question arises: Are all these pending applications truly eligible? Ultimately, housing welfare is a deeply complex issue affected by multiple factors.
A comprehensive review of the existing laws governing this matter is necessary. This review should address the convoluted process of land allocation involving oil companies, PAHW, Kuwait Municipality and State Property Authority, as this intricate relationship is a key source of infrastructure project delays. Hence, the Anti-Monopoly Land Law is designed to achieve two main goals: first is to interrupt the pattern that historically blocked citizens from securing housing, and second is to foster economic growth by delivering affordable housing units and new investment opportunities. The proposed high, progressive fees on monopolized land are designed to deter land speculation. Since the legislation cannot be circumvented, monopolists will be compelled to either develop the land by constructing apartment buildings or selling their plots, thereby, increasing the overall land supply.
This measure is vital, because the proportion of young people needing housing assistance is consistently rising. By curbing land prices and significantly reducing the waiting period for housing aid, this legislation provides a scientific, legal and financial solution. It guarantees that young families can secure housing units or apartments at affordable rental rates, ultimately offering them substantial relief while preventing housing deprivation. Furthermore, the proposed law aligns with Gulf legislative trends. In some countries in the region, increased fees on vacant land successfully curbed monopolies.
Meanwhile, other nations stimulated the economic cycle by easing property ownership for non-citizens and simultaneously advancing housing projects for citizens. Overall, this law is a positive step, supporting the strategic goal of the State to guarantee the citizens’ welfare.
