Construction & Real Estate
From The Report: Kuwait 2025
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Kuwait’s construction and real estate sectors showed renewed signs of growing momentum in 2025. The Fourth Kuwait Master Plan 2040, the long-term national economic diversification plan that was launched in September 2023, underpins growth in both sectors as the government spearheads infrastructure mega-projects and the building of new residential cities. Kuwait is increasingly turning to the private sector and seeking public-private partnerships (PPPs) to fund housing developments and transport and renewable energy projects, with Chinese firms playing a more prominent role. Domestic labour shortages and elevated costs of construction materials create challenges. However, on the back of momentum gained in 2025, coupled with forecasted real GDP growth, new far-reaching reforms and projected rising private investment, the sectors are poised for future expansion.

This chapter contains interviews with Abdulatif Hamed Hamad Al Mishari, Minister of State for Municipal Affairs and Minister of State for Housing Affairs; and Abdulaziz Ghazi Alnafisi, CEO, Salhia Real Estate Company.

Articles from this Chapter

Overview

Master planning: New far-reaching reforms and projected rising private investment is facilitating future sector-wide expansion
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Kuwait’s construction and real estate sectors showed renewed signs of growing momentum in 2025. The Fourth Kuwait Master Plan 2040, the long-term national economic diversification plan that was launched in September 2023, underpins growth in both sectors as the government spearheads infrastructure mega-projects and the building of new residential cities. Kuwait is increasingly turning to the private sector and seeking public-private partnerships (PPPs) to fund housing developments, and transport and renewable energy projects, with Chinese firms playing a more prominent role. New legislation, notably Law No. 60 of 2025 concerning financing and…

Interview

Housing solutions: Abdulatif Hamed Hamad Al Mishari, Minister of State for Municipal Affairs and Minister of State for Housing Affairs, on urban expansion and sustainability measures
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Interview: Abdulatif Hamed Hamad Al Mishari, Minister of State for Municipal Affairs and Minister of State for Housing Affairs, on urban expansion and sustainability measures How is Kuwait’s housing sector adapting to the growing demand for affordable housing? ABDULATIF HAMED HAMAD AL MISHARI: Kuwait’s housing sector is undergoing a significant shift to respond more effectively to rising demand for affordable housing. The core of this approach is to move away from a fully government-led delivery…

Analysis

Digital foundations: Government mandates and mega-projects are accelerating the digital transformation of the sector
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Across the GCC, construction and real estate are undergoing a quiet but consequential shift as digital technologies move from pilot-stage experimentation to system-wide adoption. Long characterised by large-scale projects, fragmented supply chains and labour-intensive delivery models, the region’s urban environment is increasingly shaped by data-driven design, automated construction techniques and digital asset management. This transformation is being accelerated by government-led digitalisation agendas, the scale of ongoing mega-projects and the need to address persistent challenges around productivity, cost overruns and sustainability. Construction…

Interview

Urban revival: Abdulaziz Ghazi Alnafisi, CEO, Salhia Real Estate Company, on the rebound in commercial and high-end residential trends
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Interview: Abdulaziz Ghazi Alnafisi, CEO, Salhia Real Estate Company, on the rebound in commercial and high-end residential trends How has the projected rebound in commercial real estate occupancy rates in Kuwait City influenced investment and development strategies? ABDULAZIZ GHAZI ALNAFISI: There is a broader return of confidence to the market: tenants are re-engaging, businesses are expanding their physical footprints again and long-term leases are once more on the table. This kind of shift…