Construction adjustments apply solely to the former free zone, according to local government declarations
News Article: Flexible Construction Amendments in Service Sector 16 of Kuwait
In a significant move for the construction industry in Kuwait, the Service Sector 16, formerly known as the Free Zone, has seen a series of amendments that offer more flexibility, particularly for hotel development and underground space utilisation.
The most notable change is the allowance for hotel construction to exceed the plot area by 50%, meaning hotels can now be built with a total floor area equal to 1.5 times the size of the land plot[1][2][3][5]. This is consistent with the previous percentage allowance.
Another key change is the permission for multiple basement levels in buildings within Sector 16, providing increased underground space for parking or other uses[1][2][3][5].
The maximum building coverage across the ground, mezzanine, and first floors has been set at 130% of the plot area, regulating the extent of horizontal and vertical construction on these floors combined[1].
It's important to note that these amendments apply only to Service Sector 16. The changes do not extend to the nearby areas of Shuwaikh or Al-Rai, which continue to operate under their existing regulations[1][2][5].
The former Free Zone was transferred to the Public Authority for Industry and was reclassified as Service Sector 16. The area now aligns its zoning and building regulations consistently with those of Shuwaikh and Al-Rai, but it retains distinct amendments under this ministerial decision[1][5].
Muhammad Al-Mutairi, who is the Capital Governorate Municipality director and also the head of the building regulations study committee, has been instrumental in overseeing these changes[2]. The specific details of these regulations are currently under the study of the building regulations committee.
In summary, the amendments to Service Sector 16 allow for more flexible construction, especially enabling hotel developments with greater basement capacity, while remaining restricted to this specific sector and not affecting neighboring areas[1][2][3][5].
Sources: [1] Al-Rai Daily Newspaper, 2022. [2] Arab Times, 2022. [3] Kuwait Times, 2022. [4] Al-Qabas Daily Newspaper, 2022. [5] Al-Jarida Daily Newspaper, 2022.
In the revised Service Sector 16 of Kuwait, amendments have been made to facilitate financing for hotel development since the allowance for construction now extends beyond the original land plot by 50%. This flexibility in the industry could attract more financial investments in the hotel sector. The amendments also permit multiple basement levels in buildings, which could potentially create additional spaces for investment, such as parking facilities or additional commercial spaces, within the sector's financial scope.
