The Kuwaiti National Assembly approved a law today, Thursday, allowing the government to establish companies in which both Kuwaiti and foreign private sectors will participate, specializing in creating residential cities and areas sold to citizens at reduced prices. The assembly approved the law authorizing the establishment of companies for the creation and economic development of residential areas.
The law aims to create an innovative executive mechanism to assist the government in fulfilling its housing care responsibilities for citizens by providing a "fair partnership" with the private sector to help address this issue. Deputy Abdulaziz Al-Saqabi, the rapporteur of the parliamentary housing committee that drafted the law, stated that there are 92,000 housing requests from Kuwaiti families pending at the Public Authority for Housing Welfare.
According to the parliamentary housing committee report, the capital of these companies will be in the form of public shares, with the share of the Public Authority for Housing Welfare and other government entities ranging from 6% to 24%, while the share of the best offer investor, whether a Kuwaiti or foreign company, will range from 26% to 49%. The remaining percentage, which will range from 25% to 50%, is designated for public subscription available to all citizens.
The capital of the companies established under this law will depend on the nature of the project, and the company's bylaws must comply with Islamic Sharia provisions.
