Al Futtaim Enters Kuwaiti Market with Launch of Kuwait Festival City

Dubai ∙ UAE-based Al Futtaim Investment Group has officially announced its entry into the Kuwaiti real estate market with the launch of Kuwait Festival City, a large-scale venture that reflects the company’s growing regional footprint.

This strategic move comes in the wake of Kuwait’s recently approved Real Estate Developer Law and proposed reforms to enable mortgage financing by local banks — developments designed to attract foreign investment and accelerate housing solutions for Kuwaiti citizens.

With more than 100,000 families currently on the national housing waitlist, the Kuwaiti government is turning to public-private partnerships to fast-track development. Al Futtaim’s entry represents one of the most high-profile endorsements of this new investment environment.

Long-Term Commitment to Kuwait

Al Futtaim’s new venture was established through the Kuwait Direct Investment Promotion Authority (KDIPA) and is licensed to operate across a wide range of activities, including residential and commercial construction, project management, and urban development.

The company will be headquartered in Kuwait and operate under a 99-year renewable license, according to founding documents.

Known for creating integrated city concepts, Al Futtaim brings decades of experience in delivering vibrant, mixed-use communities. The group has already developed five master-planned projects across 11.8 million square meters, comprising 29,000+ residential units that accommodate over 114,000 residents.

Its portfolio includes iconic destinations such as Dubai Festival City, Ski Dubai, Magic Planet, and VOX Cinemas, showcasing its expertise in blending retail, leisure, and housing.

Kuwait’s Real Estate Sector in Transformation

Kuwait is currently reimagining its housing model, moving from traditional public housing systems to a new framework that empowers private developers. The Ministry of Housing has designated three mega residential projects — Sabriya, Nawaf Al Ahmad, and Khairan — expected to deliver around 170,000 housing units.

Under the new policy, private developers will construct homes exclusively for eligible Kuwaiti citizens, with pricing aligned to mortgage-based financing models to ensure long-term affordability.

The upcoming developments will feature flexible housing types, from compact villas to large plots over 1,000 sq. meters, with investment horizons extending beyond 30 years.

Kuwait’s Investment Landscape Expands

Foreign direct investment into Kuwait is steadily gaining traction. According to KDIPA, foreign investment inflows totaled KD 206.9 million last fiscal year, raising the cumulative total to KD 1.74 billion.

In the past year alone, 16 new foreign companies from 12 countries established operations in Kuwait. Currently, 95 global firms are active in sectors such as IT, insurance, healthcare, and, for the first time, agriculture.

European companies make up nearly 60% of all foreign investment, followed by firms from Asia (28.5%), North America (9.5%), and Africa (1.9%).

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