Kuwait’s ongoing housing crisis has placed a heavy financial strain on the state, with over 173 million dinars being spent annually on rent allowances. Real estate experts are now urging the government to collaborate with the private sector as part of new reform initiatives, which they believe could significantly reduce this financial burden.

In a recent interview with Al-Seyassah, Dr. Salah Bursali, Chairman of the Kuwait Contracting Companies Union, highlighted the private sector's potential to address the escalating housing crisis. With over 96,000 pending housing applications in 2024, the state is currently shouldering a substantial financial load, paying out 14.447 million dinars per month in rent allowances.

Dr. Bursali emphasized that the private sector is well-equipped to manage and mitigate the housing shortage, citing its substantial financial resources and capabilities. He called for swift amendments to existing laws that limit private sector involvement, arguing that empowering local companies could expedite the process of providing housing for citizens, which currently can take over 15 years.

The number of pending housing applications has been steadily increasing, from 4,456 in 2017 to a projected 10,000 annually within the next five years. Despite the COVID-19 pandemic, the demand for housing has continued to rise, exacerbating the crisis and increasing the financial pressure on the state budget.

Dr. Bursali expressed frustration with the current practice of awarding housing projects to foreign companies, arguing that local companies have the capacity to manage these projects if given the chance. He pointed out that Kuwaiti contracting companies, already active in building residential cities in other Gulf countries, are eager to invest in similar projects within Kuwait. By involving local companies, the state could stimulate the real estate market and reduce reliance on foreign contractors.

Qais Al-Ghanim, Chairman of the Real Estate Residents Association, echoed these sentiments, emphasizing that the local private sector is fully capable of partnering with the government to resolve the housing crisis. He pointed out that the private sector had previously developed areas like South Surra and questioned why it has not been allowed to participate in more recent projects.

Despite the potential benefits of involving the private sector, challenges remain. Al-Ghanim noted that many citizens prefer to own land rather than apartments, which complicates efforts to promote apartment systems as a solution to the housing crisis. However, Khaled Al-Anzi, head of the Mutlaa Residents Committee, suggested a potential solution: the state could provide land to citizens and then entrust the private sector with the construction. This approach could significantly alleviate the financial burden on the state while speeding up the provision of housing.

As Kuwait continues to grapple with a housing crisis that has persisted for decades, there is growing consensus among experts that immediate reforms are necessary. Empowering the private sector could be a key step in reducing the state’s rent expenditures and providing much-needed housing for its citizens. With the government now under the leadership of His Highness Sheikh Ahmed Al-Abdullah, there is renewed optimism that these long-standing issues will finally be addressed.