Here’s Why Kuwait is Building Three New Cities

Kuwait has officially opened bidding for contracts to build three new cities aimed at reducing the country’s growing housing shortage. The government announced on Sunday that both local and international firms are invited to participate in the initial stage of the tender process.

Covering more than 300 hectares (around 740 acres), the cities will be the first projects developed under Kuwait’s new real estate law, which allows private sector involvement in housing construction. The initiative comes as more than 100,000 citizens remain on a government housing waitlist, with some families waiting years for state-provided homes.

According to the government’s notice in the Official Gazette, the projects will operate under 30-year contracts, including four years for construction. Private partners will be responsible for design, financing, construction, operation, and maintenance, while residential units will be sold to Kuwaiti citizens. Non-residential facilities will eventually revert to government ownership.

Planned Fee Increases Across Key Services

In a separate development, Kuwait’s Ministry of Commerce and Industry has unveiled a proposal to introduce or increase fees for 67 services, many of which were previously free.

• Establishing a company, once free, will now cost KD20, including for non-profit organisations.
• Temporary licences for showrooms, such as those for real estate or jewellery, will rise sharply from KD30 to KD500.
• Fees for altering company structures — including capital changes, dissolutions, and management updates — will go up by 25 percent.
• Professional licences, such as accounting, will rise from KD150 to KD200.
• Representation at general assemblies will increase from KD100 to KD125, while ration card fees will double from KD5 to KD10.

Officials said the changes are part of a broader effort to align service pricing with economic realities and cost evaluations.