Kuwait - S2 for Development of Lands and Real Estate Company, a subsidiary of Agility Public Warehousing, one of the world’s leading logistics companies, today (March 17) broke ground on South Village, the new logistics and crafts area in Sabah Al Ahmad City, in Kuwait.

The project was awarded to S2, one of the largest private owners and developers of warehousing and light industrial parks in the Middle East, by Public Authority for Housing Welfare (PAHW) in September last year.

As per the deal, 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 sq m.

The ceremony,, held under the patronage of Mubarak Zaid Al Arou, the Minister of State for Housing and Urban Development, at Sabah Al Ahmad City was attended by senior officials from PAHW and other government authorities.

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 pointed out that PAHW, through its work with the private sector, had achieved its objective of activating Public Private Partnerships (PPP) and 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, stated Bin Naji.

She said this project will have a direct, positive impact on individuals and society as it will provide them homes, creating jobs and add 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," she stated.

Speaking at the ceremony, S2 General Manager Abdullatef Al Ateeqi said this event underscores the importance of PPPs 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," he added.

It 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.

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