25 Dec Subsidized Building Materials in Kuwait: A Step Towards Supporting the Contracting and Construction Sector
The Kuwaiti government recently announced its excellent support for the construction sector by providing subsidized construction materials in Kuwait. This government support aims to reduce costs for contractors and real estate developers, thus accelerating the pace of implementation of construction projects across the country.
Subsidized construction materials in Kuwait include basic materials indispensable in the construction field, such as cement, reinforcing steel, and ready-mix concrete. This support helps reduce the costs of construction projects, especially in residential projects that have suffered from high prices of construction materials in recent years.
The Ministry of Commerce, under Resolution No. 222 of 2024, seeks to support citizens by providing construction materials at subsidized and reduced prices and to enhance the role of local suppliers and national industries. This decision contributes to protecting public funds by regulating support and controlling prices, which enhances fair competitiveness and directs subsidized construction materials in Kuwait to those who deserve them. It also aligns with achieving the requirements and goals of sustainable development in the construction sector by stimulating local production and reducing dependence on imports.
Details of the disbursement of subsidized and reduced-price construction materials in Kuwait
The new decision includes amending the “Air Conditioning” item, allocated at 5,000 dinars, as its value increased by 20% to become 6,000 dinars. The amount of ready-mix concrete, 8.5 thousand dinars, was also increased by 5.8% to reach 9,000 dinars after adding 500 dinars.
The ministerial decision came with new details related to the regulatory rules for disbursing subsidized and reduced-price construction materials in Kuwait, which include building new housing, demolition, and reconstruction, in addition to expansion, renovation, and housing purchase loans, as well as apartment purchase or renovation loans as follows:
1. Building a new home, demolishing it, or rebuilding it
Allocations for subsidized construction materials in Kuwait have been determined for beneficiaries who obtain loans from the Kuwait Credit Bank to build a new home, including reinforced steel, subsidized cement, insulation bricks, ready-mix concrete, market bricks, air conditioning, and aluminum, with a fixed support amount allocated for each material. In addition to other optional materials such as sanitary ware, ceramics and porcelain, waterproofing, electrical wires, and paints, the beneficiary can divide the support amount between two materials to suit him.
2. Loan for expansion, renovation, and housing purchase:
The allocations for subsidized materials for construction in Kuwait are determined for the beneficiary who obtains a loan from the Kuwait Credit Bank for expansion, renovation, and housing purchase, provided that the support amount is used in full without specifying specific quantities, according to the following:
Building area less than 100 square meters
If the building area is less than 100 square meters, the total subsidized materials for construction in Kuwait reach 5275 dinars. This support includes 5 tons of iron worth 850 dinars, 20 cubic meters of insulating bricks for 290 dinars, 2000 black bricks for 180 dinars, 300 bags of cement worth 255 dinars, and 60 cubic meters of ready-mix concrete for 1200 dinars. The support also includes 1500 dinars for air conditioning, 550 dinars for aluminum, and 450 dinars for optional materials such as sanitary ware, ceramics, porcelain, waterproofing, wires, electricity, and paints.
Construction area between 100 and 199 meters
For construction areas ranging between 100 and 199 meters, the total supported building materials amount to 8855 dinars. This support includes 10 tons of iron worth 1,700 dinars, 30 cubic meters of insulating bricks for 435 dinars, 4,000 black bricks for 360 dinars, 600 bags of cement for 510 dinars, and 120 cubic meters of ready-mix concrete at a value of 2,400 dinars. The support also includes air conditioning costs of 2,250 dinars, 600 dinars for aluminum, and 600 dinars for optional materials such as sanitary ware, ceramics, porcelain, waterproofing, wires, electricity, and paints.
Construction area between 200 and 249 meters
As for the construction area ranging between 200 and 249 square meters, the total supported materials for construction in Kuwait amount to about 11,625 dinars. This support includes 15 tons of iron worth 2,550 dinars, 40 cubic meters of insulating bricks at 580 dinars, 5,000 black bricks at 450 dinars, 700 bags of cement worth 595 dinars, and 150 cubic meters of ready-mix concrete at 3,000 dinars. The support also includes 3,000 dinars for air conditioning, 700 dinars for aluminum, and 750 dinars for optional materials such as sanitary ware, ceramics, porcelain, waterproofing, wires, electricity, and paints.
Building area between 250 and 299
The total support for a building area between 250 and 299 meters is 14,395 dinars. This support includes 20 tons of iron worth 3,400 dinars, 50 cubic meters of insulating bricks at 725 dinars, 6,000 black bricks at 540 dinars, 800 bags of cement at 680 dinars, and 180 cubic meters of ready-mix concrete at 3,600 dinars. The support also includes air conditioning costs at 3,750 dinars, 800 dinars for aluminum, and 900 dinars for optional materials such as sanitary ware, ceramics, porcelain, waterproofing, wires, electricity, and paints. Building area between 300 and 400
For a building area between 300 and 400 meters, the total supported building materials are 18,828 dinars, including 30 tons of iron at 5,100 dinars, 60 cubic meters of insulating bricks at 870 dinars, 8,000 black bricks at 720 dinars, 1,100 bags of cement at 935 dinars, 240 cubic meters of ready-mix concrete at 4,800 dinars, air conditioning support at 4,500 dinars, 900 dinars for aluminum, and 1,000 dinars for optional materials (sanitary ware, ceramics, porcelain, waterproofing, wires, electricity, and paints).
3. Supported building materials loan to buy or renovate apartments
Beneficiaries of the Kuwait Credit Bank loan to purchase or renovate apartments are granted total support of 4,200 dinars for the building materials mentioned below, provided a license is obtained from the Kuwait Municipality. The support amount must be used in full without specifying specific quantities.
Cement support of 400 dinars.
Support for health kits of 500 dinars.
Support for ceramics and porcelain of 500 dinars.
Support for electrical wires of 500 dinars.
Support for paints of 300 dinars.
Support for air conditioning of 1,000 dinars.
Support for aluminum (windows) of 800 dinars.
Support for waterproofing of 200 dinars.
4. Other cases
Allocations for subsidized construction materials in Kuwait are determined for the beneficiaries referred to in the second paragraph of Article 1 of Law No. 19 of 2014, provided that they have completed the black structure stage and have not previously benefited from construction materials by Ministerial Resolution No. 203 of 2014. The total amount is 10,500 dinars, distributed as follows:
Cement support of 500 dinars.
Support for health kits of 1,000 dinars.
Support for ceramics and porcelain of 1,000 dinars.
Support for electrical wires of 1,000 dinars.
Support for paints of 500 dinars.
Support for air conditioning of 5,000 dinars.
Support for water insulation of 500 dinars.
Support for aluminum (windows) of 1,000 dinars.
The Impact of Supporting Subsidized Construction Materials in Kuwait
According to data from the Ministry of Public Works, the support provided to subsidized construction materials in Kuwait has had a noticeable positive impact in reducing the total cost of housing projects. Many contracting companies have reduced costs by about 20% thanks to this support, which enhances the sector’s competitiveness and increases the speed of project completion.
It is worth noting that this support is not limited to large companies only but also includes small and medium-sized companies operating in the contracting sector, which enhances sustainability in this vital sector.
Conclusion
By supporting subsidized construction materials in Kuwait, the government seeks to ensure the continued growth of the construction and building sector, which will benefit the national economy and enhance the country’s ability to meet the needs of citizens for affordable housing. This step is a significant turning point in the construction industry in Kuwait and may open new horizons for the future in the real estate sector.
Frequently Asked Questions
What materials are used in construction?
Cement
Gypsum
Brick
Iron
Concrete
Sand
Glass
Ceramic
