Majid Al Futtaim Enters Kuwait with Festival City Amid Housing Reform

UAE-based conglomerate Majid Al Futtaim has officially announced its entry into the market with the launch of Kuwait Festival City, a new mixed-use development. The move follows sweeping real estate reforms that, for the first time, open the Kuwaiti market to foreign property developers and lay the groundwork for private sector-led housing solutions.

This marks a landmark moment for both the developer and the country’s urban future. Kuwait Festival City is the first such initiative under new legislation allowing non-Kuwaiti real estate developers to operate locally under the Kuwait Direct Investment Promotion Authority (KDIPA) framework. The development has been registered as a 99-year licensed entity, providing Majid Al Futtaim with long-term presence and operational continuity.

A Timely Response to Housing Crisis

Kuwait is currently facing a housing deficit that affects more than 100,000 families, largely due to limited public housing stock and underdeveloped mortgage options. In response, the government has introduced a suite of regulatory reforms aimed at enabling banks to issue home loans and encouraging private developers to participate in the housing sector.

This shift is seen as a foundational pivot away from state-heavy housing programs, toward a model that integrates public-private partnerships. Majid Al Futtaim’s entry is widely regarded as a vote of confidence in this evolving framework and a signal to global developers that Kuwait is open for long-term, scalable real estate investment.

Kuwait Festival City: Vision for a New Urban Lifestyle

The project itself is expected to integrate residential, commercial, and lifestyle components in a master-planned environment that draws from the group’s track record across the region. Majid Al Futtaim has previously developed over 11.8 million square metres of mixed-use communities, hosting more than 29,000 homes and 114,000 residents across markets like the UAE, Egypt, and Oman.

While detailed plans for Kuwait Festival City have yet to be disclosed, the development is expected to bring the same integrated living model combining housing, retail, entertainment, and leisure. The group’s signature “Festival City” branding is already synonymous with high footfall destinations such as Dubai Festival City and Cairo Festival City, making this project a potentially transformative presence in Kuwait’s urban fabric.

An Inflection Point for the Market

The timing of the project could not be more critical. As the country grapples with its long-standing housing backlog, the entry of a developer with Majid Al Futtaim’s scale and expertise represents a turning point. It could pave the way for more international players to enter Kuwait, boosting competition, improving quality, and accelerating delivery of much-needed homes.

The developer’s presence is also expected to stimulate adjacent sectors such as retail, construction, and finance, while helping set new benchmarks in urban planning and community design within the Kuwaiti context.

Investor Outlook: Strong Signals Ahead

From an investment standpoint, the opening of Kuwait’s real estate sector adds a compelling new option in the GCC property landscape. The legal clarity offered by the KDIPA-backed model, combined with long-term population demand and strong household formation trends, provides a unique proposition for institutional and private investors alike.

As Kuwait Festival City breaks ground, it not only represents Majid Al Futtaim’s expansion strategy, but also Kuwait’s larger ambition to diversify its urban economy and address social needs through sustainable, high-quality development.