According to Isam Al-Sager, Vice Chairman and Group Chief Executive Officer of National Bank of Kuwait (NBK), the Gulf nation’s sizable pipeline of large-scale infrastructure and development is expected to sustain the momentum in project awards, which rose 61% year-on-year in 2025.
“Kuwait awarded more than 4 billion Kuwaiti dinars (USD 13 billion) worth of projects in 2025, reinforced by the passage of public debt law, which enabled renewed sovereign borrowing and led to the upgrade of the country’s sovereign rating to AA- by S&P Global,” Al-Sager told Zawya Projects.
“The outlook continues to be supported by a sizable pipeline of large-scale infrastructure and development projects estimated to be worth more than KWD 11 billion (USD 36 billion),” the official continued, while adding that the administration’s pledge to advancing its development agenda, especially in the absence of major political gridlocks, has reinforced the country’s commitment to financing “Vision 2035” priorities and advancing infrastructure development.
In January 2026, NBK’s Deputy Group CEO, Shaikha Al-Bahar, stated that the draft mortgage law was reaching its advanced stages, in parallel with the rollout of major tenders to develop three new residential cities by the Public Authority for Housing Welfare (PAHW) under a real estate developer model.
“These initiatives will strengthen private-sector participation and expand homeownership options, which should have a positive impact on banks’ loan portfolios,” she remarked.
In its recent economic update for Kuwait, NBK said PAHW has already launched prequalification for three large-scale residential development projects, signalling a strategic shift toward a long-term supervisory role, with development contracts structured over 30 years.
The designated sites for the real estate expansion include Al-Mutla (2.12 million square metres), East Sa’ad Al-Abdullah (1.02 million sqm), and West Sa’ad Al-Abdullah and Jaber Al-Ahmad (a combined 1.01 million sqm).
The move follows the introduction of the developer-led model and the appointment of consultants to masterplan the three residential zones exceeding 5,000 housing units.
According to NBK, Kuwait’s real estate market in 2026 appears positive, supported by potential further monetary easing and a series of legislative reforms, including allowing foreigners and foreign-listed companies, licensed funds and investment portfolios to own property (excluding private residences).
Then there are factors like the anticipated approval of the mortgage law and revisions to allocation mechanisms for units, and most importantly, the activation of the residential land monopoly law, which are expected to propel the industry further.