Last week, Kuwait’s National Assembly passed the law on the establishment of housing cities, which was widely accepted and met with a lot of enthusiasm by a large segment of citizens and interested parties. Many politicians considered it a valuable achievement and proof of the fulfillment of some electoral promises.

Without a doubt, the law is a step in the right direction and a valuable opportunity for the government and the private sector to get out of the stalemate and monotony and to try to launch constructive cooperation between the two sectors that benefits citizens. It should be emphasized that no one claimed that the law offers a comprehensive solution to the housing problem or magically overcomes the phenomenon of the frantic rise in residential real estate prices in the State of Kuwait.

The reader’s reaction shows that the law did not live up to the ambition of the private sector. In its current form, it does not allow the free market to contribute directly to the provision of housing products according to the mechanisms of supply and demand. However, global experiences have proven that free market mechanisms lead to greater economic growth and provide wider alternatives for consumers at competitive prices for all types of goods, including housing goods.

However, after decades of political tensions, the Kuwaiti legislator was keen to take into account the nature of the local political system and took into account the citizen’s suspicion of the practices within the business and financial spheres. Accordingly, the law opened the way for international companies to compete with local companies to enhance competition and benefit from international experiences. The law also limited participants to public shareholding companies, and the subscription to them should be public, and the percentage of investors should not exceed 49%. These conditions are intended to reassure citizens by ensuring strict restrictions on private sector practices.

Despite the limitations of the law and the additional restrictions that the executive regulations of the law may set, the real challenge remains for the private sector to take the initiative to take advantage of this opportunity and to provide creative solutions that contribute, even in a small way, to solving aspects of the obstacles to the implementation of cities and residential suburbs. The private sector can only prove its seriousness and efficiency through the success of its initiatives and the provision of housing products that surpass the traditional model to which Kuwaiti citizens are accustomed.

This law is a small step in the right direction, but it does not address the root of the housing problem, which is to change the urban consumption pattern to which Kuwaiti citizens are accustomed. Thenumericalgrowth of the populationof the State of Kuwaitand the limitedrevenues of the Statedoesnotallowfor the continuation of the successiveexpansionandtheencouragementofextensivespendingonhousingunits.

The model of total dependence on central state institutions to continue providing housingcareto100%ofcitizensisillogical and economicallyunhealthyinthelongrun.

From an urban planning point of view, the law does not meet the ambitions of professionals. The continuous expansion of the urban area at an unsustainable pace continues to spur the state budget to provide services, utilities, and facilities. Additionally, the establishment of a housing unit model of 400 square meters per Kuwaiti family is still encouraged. This model is universally exceptional and does not correspond to the diverse nature of human beings and their changing needs.

The law will not change the urban reality, nor will it create smart or environmentally friendly cities for us. We will not see advanced roads, efficient public transportation, and pedestrian and bicycle paths, nor will good public spaces, parks, or unique architectural buildings.

But at best, the law will stimulate the private sector, unlock investment and commercial opportunities, and speed up the completion of housing projects. This is a significant achievement and a step towards further positive transformation in addressing the housing issue.