Kuwait is developing multiple housing projects to correct real estate prices in the capital
Kuwait’s Public Authority for Housing Welfare (PAHW) has invited firms to bid by 7 October for the contract to build 40 apartment buildings for the Sabah al-Ahmad City.
The firms that have been invited to bid for the contract include:
- Ahmadiah Contracting & Trading (local)
- Alghanim International (local)
- Arab Contractors (local)
- Al-Hamra Kuwait (local)
- Canar Trading & Contracting (local)
- Chongqing International Construction Corporation (China)
- Combined Group Contracting (local)
- KCC Engineering & Contracting (local)
- Khaled Ali al-Khorafi & Brothers (local)
- Kuwait Company for Process Plant & Contracting (local)
- Limak Insaat (Turkey)
- Mabani United Company (local)
- Nusaiba Building and General Contracting (local)
- Olin Insaat (Turkey)
- Real Estate Construction & Fabrication (local)
- Sai General Trading & Contracting (local)
- Sayed Hameed Behebehani & Sons (local)
- Shapoorji Pallonji (India)
- Sinohydro Corporation (China)
- United Gulf Construction (local)
- Wara Construction Company (local).
MEED understands the 40 buildings will host 720 apartments.
Situated approximately 65 kilometres south of Kuwait City, Sabah al-Ahmad City will have 107 apartment buildings, each rising from six to eight storeys high.
It is understood these buildings are not part of the public-private partnership (PPP) package planned for the Sabah al-Ahmad City.
PPP investment opportunities include:
- Residential units for lease, retail units, kids club and park
- Industrial area for light or medium industries, workshops for repair services and storage areas. The package includes the construction of four government buildings and labour accommodation.
Sabah al-Ahmad City is being developed on a total area of 4,000-hectares. It is envisaged to accommodate over 2,000 villas and a similar number of apartments, as well as 52 schools and 70 mosques upon completion.
Kuwait has other housing complexes planned including the $10bn-$15bn South Saad al-Abdullah New Town and the $3.6bn South al-Mutlaa City.
In addition to decongesting Kuwait City, the new residential projects are expected to help correct real estate prices, which have skyrocketed in recent years.
PAHW has also been seeking to involve the private sector in providing affordable housing for Kuwaiti families, thereby reducing upfront costs. The authority has a backlog of over 100,000 applicants, with an average waiting time of seven to 18 years.
In December 2016, Kuwait Municipality appointed a consortium comprising Dar al-Handasah and Perkins+Will - both part of Lebanon’s Dar Group - to draw up Kuwait’s 2040 masterplan.
The municipality is understood to have set up a development plan, in cooperation with the Kuwait Direct Investment Promotion Authority (KDIPA), that identifies key areas in the country where foreign firms will be allowed to operate with no local agents and permitted to own these areas with tax and customs exemptions.
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