‘Set up companies to build, manage modern cities’

04/08/2025

‘Set up companies to build, manage modern cities’

Public Authority for Housing Welfare

KUWAIT CITY, Aug 4: Decree-Law No. 89/2025 has been officially issued to amend certain provisions of Law No. 118/2023 concerning the establishment of companies to develop and economically manage cities or residential areas.

Article 2 stipulates that the Public Authority for Housing Welfare (PAHW), under this law, is required to establish companies with varying structures and capital based on the nature of each project and, under economic feasibility studies, to develop an integrated residential city or multiple residential areas on lands allocated to PAHW.

Article 4 states that, based on the economic feasibility study, PAHW may cover part of the costs for constructing and completing infrastructure, public buildings, and residential care units. Any amendments to the financial obligations borne by PAHW, whether increases or decreases, after the contract award are deemed null and void.

Article 5 clarifies that PAHW may offer residential or non-residential cities and areas, and determine investment patterns based on the results of economic feasibility studies, ensuring the removal of any obstacles preventing the private sector from contributing to the implementation of its projects.

Article 11 stipulates that companies constructing cities or residential areas, after coordination with PAHW, shall display residential unit products in each completed residential area in a way that ensures a variety of options for those entitled to housing care, per the priority system organized by Law No. 47/1993. The available options shall include:

1. Residential plots

2. Prefabricated houses

3. Prefabricated residential apartments

4. Various residential products such as attached villas, residential complexes with multiple uses, closed compound complexes, and duplexes The article continues, “The company’s board of directors shall determine how to allocate these options within the residential area to be developed, after PAHW’s final concept is approved, based on the feasibility study and the nature of the project.

Implementation must adhere to the technical specifications agreed upon with PAHW, using a number of models specified in the contract, and offering different unit sizes.” Article 29, Clause 1, specifies the amount of bank and insurance guarantees required from the company, proportional to the cost of the projects assigned to it, to protect the rights of beneficiaries and shareholders.

It also replaces the phrase “establishing cities or residential areas” with “establishing cities.”

The decree mandates PAHW to establish controls, standards, and technical specifications for buildings, suburbs, areas, and neighborhoods, encompassing all project components including residential, investment, industrial, craft, service, commercial, or similar.

Article 32-bis states that PAHW may apply the provisions of this law to all cities and residential or non-residential areas, or to parts of cities developed by PAHW, or to specific lands designated by its board of directors.

By Mohammad Al-Enezi Al-
Seyassah/Arab Times Staff