On the 25th, Korea Land and Housing Corporation (LH) announced that the 'Abdullah New Town Pilot Housing Complex Investment Project' in Kuwait has returned to normal trajectory after resumption at the end of last year.

The Kuwaiti government is promoting the development of 'Abdullah New Town', investing approximately KRW 23.6 trillion to supply 43,000 housing units on a total area of 64.42 million square meters (three times the size of Bundang) located 30 km west of Kuwait City. Following the contract for the new town construction project management (PM) service in 2023, LH is pushing forward with the establishment of a pilot housing complex of 550 units on a 490,000 square meter site within the new town.

This project, which had been delayed due to the spread of COVID-19 and local legal and institutional inadequacies since the signing of a memorandum of understanding (MOU) between LH and the Public Authority for Housing Welfare (PAHW) of Kuwait in 2016, was resumed in November last year. The project gained momentum as the Kuwaiti government amended related laws, such as removing the mandatory use of Islamic finance, easing minimum site area requirements, and expanding mortgage loans.

LH plans to complete the feasibility study for the pilot housing complex by the end of this year, establish a joint venture (SPV) with the Kuwaiti government in 2026, and commence construction in 2027. Additionally, LH intends to hold investment briefings for domestic construction and financial companies within the year to explore joint entry opportunities.

The project management (PM) service for Abdullah New Town is serving as a bridgehead for the expansion of domestic companies into the Kuwaiti market. HanmiGlobal, which is jointly managing the project with LH, recently secured three construction management service contracts (worth approximately KRW 31 billion) ordered by the Public Authority for Housing Welfare of Kuwait. Additionally, discussions are underway with Samsung Electronics on 'smart home solutions' and with ISU Chemical on 'vertical farm-type smart farms'.

Kang Oh-soon, head of LH's Regional Balance Headquarters, stated, “We will proceed with the project without any setbacks, leveraging the close cooperation with the Public Authority for Housing Welfare of Kuwait that led to the law amendments and the resumption of the investment project,” adding, “We will strive to export K-housing culture overseas, starting with Kuwait.”

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