Major Mixed-Use Development Approved Near Kuwait City CBD

Kuwait City's Municipal Council on Wednesday granted formal approval for the Al Murooj Gate masterplan, a mixed-use mega development slated for the periphery of the central business district. The project, proposed by Al Diwan Real Estate, is set to transform a cluster of underutilised lots on Fahad Al-Salem Street between Mubarak Al-Kabeer Street and the iconic Arraya Tower.

Strategic Urban Expansion in High Demand

The decision comes as developers and city officials scramble to address soaring demand for premium office and residential property near Kuwait City’s economic heart. Rents for grade-A office space around the CBD jumped nearly 10 percent in the past 18 months, reaching an average of KD 16.5 per square metre, according to figures from the Kuwait Economic Society. Al Murooj Gate’s location—directly south of Al Hamra Tower and a few hundred metres from Grand Mosque—offers immediate proximity to key ministries, financial institutions and retail destinations.

"We saw a critical need to reinvigorate this stretch, which has lagged behind the pace of new infrastructure across neighboring districts like Sharq and Dasman," a senior official at the Council’s Planning Department confirmed to The Daily Kuwait City by phone.

Details: New Homes and Modern Offices

The scheme will comprise three main towers: one for premium residences, a second for class A offices, and a third housing a boutique hotel with direct access to Souq Al Mubarakiya. Plans submitted in April indicate more than 480 residential units, diversified across one- to four-bedroom formats, and 44,000 m² of commercial space, all connected via landscaped plazas and food outlets. The anchor investor, Al Diwan Real Estate, is partnering with Turkish contractors Yapi Merkezi for the initial phases, aiming for a 2029 completion.

Beyond the high-rises, the project includes a 2,400-capacity underground parking facility and upgrades to the adjacent Ahmed Al-Jaber Street intersection, promised to ease notorious rush hour congestion. Kuwaiti firm SSH Design is overseeing masterplan supervision. Al Diwan Real Estate’s previous Midtown Mall, completed three years ago in Salmiya, fetched record retail rents in the first two quarters of 2025, setting expectations high for their new CBD venture.

The anticipated construction cost of KD 268 million (US$875 million) places it among the five largest real estate projects currently approved in the capital. "With the Supreme Planning Council prioritising inside-the-city densification versus edge sprawl, this fits the capital’s 2035 vision,” said a government document seen by this newspaper.

What to Expect for Buyers and Tenants

Sales of off-plan residential units are set to open by March 2027, with prices expected to start from KD 170,000 for a one-bedroom apartment according to early developer guidance. The offices are targeting regional finance houses and tech companies keen for a central base. For nearby residents and commuters, municipal planners stress phased road works will be staggered to limit lane closures on Mubarak Al-Kabeer Street and Fahad Al-Salem Street, especially during school terms.

Analysts from the Kuwait Chamber of Commerce anticipate that Al Murooj Gate will boost real estate values in the immediate area by 8 to 12 percent within three years of opening, with footfall to local venues such as Arraya Mall and Al Shaheed Park also projected to climb. The next milestone: a full environmental impact report due in October, with groundworks expected to commence before Ramadan next year.