Kuwait has invited local and international companies to bid for contracts to develop three new cities as part of a major effort to address the country’s growing housing shortage. The announcement marks the government’s first step in implementing a landmark real estate law passed last year, which opens the housing sector to private and foreign investment.

The three projects are Al Mutla’a City, East Saad Al Abdullah City, and West Saad Al Abdullah City. They will be located north and west of Kuwait City and will cover more than 300 hectares in total.

Under the terms of the 30-year contracts, which include a four-year construction phase, developers will be responsible for the design, financing, construction, operation, and maintenance of the residential units. Non-residential assets will later be transferred back to the state.

Kuwait, which provides housing for its 1.5 million citizens, is grappling with rising demand that has left about 100,000 people on a government waiting list, some for years.

Officials hope opening the door to joint ventures with private developers will speed delivery, boost housing supply, and ease pressure on the state.

The projects represent a significant policy shift in a country where the government has traditionally controlled the housing market.