The Law on the Establishment of Companies for the Construction of Towns and Residential Areas and Their Economic Development

Introduction

The Law on the Establishment of Companies for the Construction of Towns and Residential Areas and Their Economic Development came into force in Kuwait, and it was published today in the Official Gazette under No. 118 of 2023.

The new law provides that the State Housing Welfare Authority will create publicly traded companies in which the percentage of ownership and their subscription dates vary depending on the nature of the project and in accordance with the business case.

Capital and Ownership

According to the new law, the capital of each company created is determined depending on the cost and nature of the project, as well as its economic justification, and the shares of each joint-stock company are distributed as specified in article five of this law.

Public Subscription and Project Plans

The Housing Welfare Authority, before announcing a public subscription in these companies, undertakes to prepare a business case and publish its summary for the project company to be established, as well as plans for the cities or residential areas that will be subject to implementation.