KUWAIT CITY, Sept 30: Real estate expert Khaled Al-Enezi emphasized that the real estate finance law represents a pivotal step toward addressing the housing issue by establishing a more sustainable financing mechanism. In an exclusive statement to the daily, he stressed that this mechanism could help shorten the waiting period for citizens to secure housing while increasing private sector participation in providing financing solutions. Al-Enezi explained that the law’s main feature is strengthening public- private partnerships and involving local banks and financing institutions in providing the liquidity needed for housing finance, thereby reducing reliance on traditional government channels.
Expanding the banking sector’s role would help alleviate the financing burden on the state budget, allowing more resources to be directed toward infrastructure projects and essential services. The law paves the way for more flexible financing alternatives and credit solutions that go beyond traditional government support, offering citizens a wider range of options tailored to their financial capabilities and housing needs, while also reinforcing the role of banks as partners in urban development.
The impact of real estate financing would extend beyond the housing sector to the national economy by stimulating banking credit activity and driving growth in the contracting, construction materials, and real estate development sectors. Al-Enezi noted that increased activity in these sectors would create new investment opportunities in the local market and boost liquidity and commercial activity, thereby supporting economic growth and enhancing the private sector’s contribution to development. Real estate researcher Abdulrahman Al-Hussainan affirmed that the Cabinet’s approval of the draft decree-law regarding real estate financing for those eligible for housing welfare marks a significant step toward resolving the housing problem, reports Al-Seyassah daily.
He noted that this move reflects the commitment of the political leadership and the government to prioritizing citizens’ needs and the stability of Kuwaiti families. Al - Hussainan explained that the close attention paid to the housing file by His Highness the Amir, Sheikh Meshal Al-Ahmad, combined with the government’s successive legislative and regulatory measures, demonstrates a clear understanding of the challenges facing citizens. It also highlights the need to shift from traditional solutions toward more flexible and sustainable tools for providing housing welfare.
Real estate financing initiative fits into this context by offering citizens more options for securing housing and enabling access to financing tools alongside state-provided housing welfare, thereby enhancing the housing system’s capacity to meet growing demand. Highlighting the scale of the challenge, Al-Hussainan pointed to the volume of housing applications. The latest statistics from the Public Authority for Housing Welfare (PAHW) show 108,086 pending applications as of June 15, 2026. This underscores the importance of pursuing multiple avenues rather than relying on a single tool to address the housing issue. He further noted that the increase in the number of applications compared with previous statistics confirms the ongoing need for solutions capable of accommodating the natural growth in demand for housing welfare.
Al-Hussainan explained that the project’s significance lies in the fact that it does not offer financing as a standalone solution. Rather, it integrates financing into a wider ecosystem involving the state, the Kuwait Credit Bank, commercial banks, financing entities, and real estate developers. This approach contributes to building a more comprehensive model for providing housing to citizens.
The availability of both subsidized and unsubsidized financing, along with the option to combine the two in accordance with Central Bank of Kuwait regulations, gives beneficiaries greater flexibility in choosing the mechanism that best suits their needs. Also, a repayment period of up to 25 years provides greater flexibility in managing financial obligations. Al-Hussainan emphasized that a main aspect of the project is enabling the purchase of residential units from real estate developers, alongside financing for the construction of government-allocated plots, indicating that this approach would strengthen the private sector’s role in delivering diverse housing products, thereby increasing supply and reducing waiting times.
He commended the government’s move to enhance the role of real estate developers and expand partnerships with the private sector. Al-Hussainan pointed out that the housing issue can no longer rely solely on the traditional model, given the rising number of applications and the need to provide housing units at a pace that keeps up with population growth and future demand. He noted that the government has already launched projects under the Real Estate Developer program as part of a strategy to increase private sector participation in housing provision. Al-Hussainan stated that the presence of a new generation of young ministers, foremost among them the Minister of State for Municipal Affairs and Minister of State for Housing Affairs, Eng. Abdullatif Al-Mishari, is a crucial factor in developing a realistic understanding of the needs of families and young people.
This is particularly important given that the housing issue is directly linked to family formation, living stability, and building a future. He stressed that officials’ close familiarity with these needs facilitates the introduction of fresh approaches to the housing issue, approaches that go beyond simply considering how the state provides housing to examining how it can be delivered with greater speed, efficiency, and quality, while offering options that align with the aspirations and evolving needs of Kuwaiti families. He affirmed that the development of legislation and financing mechanisms reflects a shift toward seeking practical, sustainable solutions that go beyond simply addressing the backlog of applications.
Al-Hussainan emphasized that the political leadership’s focus on the housing file, aligned with government action on both legislative and executive fronts, sends a clear message - citizen well-being and family stability are central to the formulation of housing solutions. He noted that the objective should not be limited to merely shortening the waiting list but should extend to building a sustainable housing ecosystem capable of meeting the needs of both current and future generations. Al-Hussainan pointed out that the real estate financing project also carries an economic dimension, as it can help revitalize broad sectors linked to real estate, construction, building materials, contracting, and engineering services, while also strengthening the roles of the banking and financing sectors and real estate developers within the national economy.
By Najeh Bilal Al-Seyassah/Arab Times Staff
