The project to build the new cities, which will cover more than 300 hectares (740 acres) in total, is the first to be implemented under a new real estate development law that opens Kuwait's housing sector to private investment.

Oil-rich Kuwait is struggling to meet housing demand among its 1.5 million citizens, and 100,000 people are currently on a government waiting list for a home, with some waiting years. The state provides housing for all Kuwaiti families.

The projects would be developed under a 2023 law which allows the government to set up joint companies with local and foreign private partners to build new housing to sell to Kuwaiti citizens, the government said in the Official Gazette.

The 30-year contracts, including a four-year construction period, will cover design, financing, building, operation, maintenance and the sale of residential units, with non-residential assets to be transferred back to the government, the announcement said.

The new cities, located to the north and west of the capital Kuwait City, are called Al Mutla'a City, East Saad Al Abdullah City and West Saad Al Abdullah City.