Kuwait Finance House (KFH) Chairman Hamad Abdulmohsen Al Marzouq took part in the Third Gulf Housing Week, held under the theme “Real Estate Development for Sustainable Housing". The event served as a platform for exchanging insights and exploring best practices and policies that support sustainable housing development.

The conference was attended by Kuwait Minister of State for Municipal Affairs and Minister of State for Housing Affairs, Abdullatif Al-Meshari, Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Al-Fassam, along with a distinguished cohort of specialists from Kuwait and housing officials from the Gulf Cooperation Council (GCC) countries.

Speaking during a panel discussion titled “Aspirations for Real Estate Financing in Kuwait,” Al Marzouq emphasized the importance of the Real Estate Developer Law in driving housing and urban development. He also highlighted the critical role of private sector initiatives in advancing the housing sector.

He called for an integrated system for reassessing housing welfare, adding that the real estate financing should be directed towards a segment in need of purchasing a household.

“Increased land prices have rendered even high-income earners unable to afford a house,” remarked Al Marzouq.

Speaking about the capacity of the banking sector, Al Marzouq confirmed that banks have sufficient liquidity to meet the demands of the real estate projects funding. “Currently, banks hold over KD 5 billion in liquidity, with established financial positions that enable credit expansion,” he added.

He noted that sovereign funds are willing to invest in Kuwait, especially with the presence of a prudent legal system in the country that protects foreign investors’ assets and interests.

Real Estate Developer

Al Marzouq explained that the Real Estate Developer Project aims to engage the private sector, represented by real estate development firms, in implementing large-scale plans. “This approach will create a partnership between developers and banks to realize the project's objectives,” he indicated. “The government will allocate lands for the housing projects, while developers will carry out the execution through financing from banks structured according to each project’s scale.”

Project Objectives

Al Marzouq outlined the objectives of the Real Estate Developer Project, saying that it offers diverse housing alternatives tailored to family needs, and delivers high-quality projects to ensure efficient urban environment. “In addition to reducing time and cost, this project also enhances the sustainability of the government’s budget, involves the private sector to expediate implementation phase of the housing plans and mitigate the financial burden on the country.”

He noted that as of April 2025, there are approximately 101,604 accumulated housing requests. The Public Authority for Housing Welfare (PAHW) is working on delivering 210 thousand housing units, including:

• South Saad Al-Abdullah and South Sabah Al-Ahmad cities: both will provide around 44 thousand units once completed in 2028.
• Khiran, Nawaf Al-Ahmad and Sabriya cities: PAHW is seeking to deliver over 170 thousand plots in these cities.

Al Marzouq added that liquidity shortage has delayed major housing projects for cities such as Nawaf Al-Ahmad, Khiran, and expansions of South Saad Al-Abdullah and Sabriya, which have not been included in the PAHW’s 10-year plan due to lack of allocated budgets.

Regarding the role of financial institutions and banks in real estate financing, he estimated that Kuwait’s housing and infrastructure projects will require around KD 25 billion over the coming years. This includes infrastructure, construction financing, and related support, while the current public budget allocates KD 500 million for housing projects.

He added: “Projects such as South Sabah Al-Ahmad, and South Saad Al-Abdullah alone require around KD 6.7 billion in 5 to 10 years. Kuwait Credit Bank is expected to demand around KD 15 billion to cover housing financings up to year 2035. These figures indicate a financing gap.”

Al Marzouq confirmed that banks will play a crucial role in financing housing projects through funding real estate development firms. This will positively impact the banking sector, given that real estate portfolio in Kuwaiti banks accounts for nearly 20% of the total financing portfolio.

 “The mortgage law is expected to enable commercial banks finance citizens households, thereby offering financing flexibility for housing welfare beneficiaries.”

“The government is working on adopting the real estate financing and mortgage law to promote financing sustainability and regulate the real estate market,” noted Al Marzouq.

He highlighted the various benefits expected, including social benefits such as family stability and improved quality of life, in addition to the economic gains like stimulating the local economy, expanding the production base, revitalizing the real estate and construction sectors, reducing the overall financial burden on the state, as well as attracting private investment. As for developmental returns, they include the growth of new urban areas, contributing to the achieving Kuwait Vision 2035, and strengthening economic security.