Kuwait Finance House (KFH) has announced that it will be financing the construction of 3,000 residential units in Bahrain.

KFH will be funding the Deerat al-Oyoun project in Diyar al-Muharraq in Bahrain, according to a statement on the KFH website.

The statement added “Supporting the construction of Deerat al-Oyoun indicates that KFH-Bahrain is a key shareholder in the Diyar al-Muharraq project along with other local participating banks.”

Diyar al-Muharraq is one of the projects being developed under the Mazaya programme by the private sector.

Many schemes under the housing ministry have received GCC funding, but with such financing likely to decrease the ministry has been exploring alternative financing solutions as it remains committed to developing 40,000 housing units within 10 years

Earlier this month, MEED reported that Bahrain’s government-owned Eskan Bank sent letters to international developers inviting them to form joint ventures (JVs) to develop 15,000-16,000 housing units in the country.

Housing minister and Eskan Bank chairman Basim bin Yacob al-Hamer told MEED in an interview on 31 May that letters have been sent to interested parties from the GCC, China, South Korea and Turkey.

Al-Hamer says the response from investors has been encouraging. “We have received very positive signs that they wish to participate in future projects,” he said.

The JV agreements will involve the government providing land as equity, with the developer and financiers funding the construction of the scheme. Eskan Bank will manage the project to ensure the housing units are sold correctly and transferred to the beneficiaries.