Leads development of digital logistics, crafts area in Sabah Al-Ahmad City

KUWAIT – March 17, 2022 – S2 for Development of Lands and Real Estate Company (S2), held a ground-breaking ceremony today for South Village, the new logistics and crafts area in Sabah Al-Ahmad City, under the patronage of His Excellency Mr. Mubarak Zaid Al-Arou, the Minister of State for Housing and Urban Development. 

The ceremony took place today in the presence of officials from the Public Authority for Housing Welfare (PAHW) and relevant authorities along with senior executives from S2. 

S2 will develop the first integrated logistics, crafts and services area in South Village, using world-class standards and deploying the latest technologies in a commercial and crafts area of 1.28 million square meters. The project was awarded to S2 by PAHW in September 2021 to develop and manage the commercial space, storage and warehousing facilities, and crafts area. 

PAHW’s General Manager congratulated the Board of Directors and expressed his appreciation to S2 for their efforts on the project. He said PAHW regularly reviews and updates its policies, and prepares and adjusts its plans to meet the demand for new housing areas, while also providing residents with necessary goods and services. 

Ms. Hadeel Abdullatef Bin Naji, Deputy Director General for Investment Affairs and Private Sector Projects at PAHW, said the ceremony was a culmination of the work on important feasibility studies related to the South Village investment opportunity, including approvals and commencement of the project. She said PAHW, through its work with the private sector, achieved its objective of activating Public Private Partnerships (PPP), shifting its role to that of organizer rather than designer, financier, and implementer of the project. This will advance the government’s development goals by shifting the administrative and financial burden from the public sector to the private sector, while maintaining the highest standards for the quality of the project, which is intended to attract foreign investment to Kuwait, she said. 

Bin Naji said the project will have a direct, positive impact on individuals and society by providing homes for citizens, creating job opportunities, and adding space for small and medium businesses, a vital and productive segment of Kuwait’s economy. 

The development of the integrated logistics and crafts area in Sabah Al-Ahmad’s South Village aims to enhance the logistics and crafts sectors in line with Kuwait's 2035 vision, which is intended to diversify the country’s economy and strengthen local industry through partnership with the private sector. 

Abdullatef Al Ateeqi, General Manager of S2, said: “This event underscores the importance of public-private partnerships in developing mega-economic projects that are national priorities. The South Village development will enhance the overall business environment, using private-sector expertise to bring world-class standards to large projects that serve Kuwait’s logistics and crafts sectors, which will in-turn contribute to lower costs on consumers. Today, I am happy to report that we are ahead of schedule on the project, with 5.9% of the first phase completed to date since last October.” 

South Village is a forward-looking government initiative that will create a new logistics and crafts center in the south of the country. The project is critical to Kuwait’s economic diversification and desire to offer private-sector incentives, support small businesses, create job opportunities, expand prosperity, and develop the country’s available land and resources. Technology and sustainability are an integral part of South Village’s strategy and are essential elements in the design of the village. 

Al Ateeqi added: “South Village will be the first logistics and crafts city that incorporates the latest technologies such as a district cooling initiative, a first of its kind in Kuwait, to help lower energy costs and reduce waste.”

South Village will adopt the smart solutions that help make services, logistics and crafts complexes secure, comfortable, efficient, and green. South Village will feature increased management efficiency, decreased operational costs, a better service experience, and stronger security while generating less energy waste. 

Bin Naji and Al Ateeqi expressed their gratitude to those who supported this project at PAHW, other government agencies, and key partners. Bin Naji also thanked the investment and private-sector teams, and the financial consultant, crediting them for working as one team with enthusiasm and showing they were up to the challenge.