The decision was to help develop the real estate industry, attract more foreign investments, and provide job opportunities for Kuwaitis.
Kuwait has made significant changes to its property ownership regulations, as per the Cabinet decision released in the official gazette Al Kuwait Al Youm. Kuwait is granting foreigners new rights to buy real estate but with certain restrictions.
The decree has made significant modifications to the 1979 law on non-Kuwait owning property to control the real estate market and promote economic stability.
The decision was to help develop the real estate industry and achieve economic and social development, which will benefit the local economy since it will attract more foreign investments and provide job opportunities for Kuwaitis.
The provisions state that Arab nations who inherit the property in Kuwait have a two-year window to sell it. If they fail to do so within that time, the government will impose a mandatory sale unless they grant an exemption.
However, there are no limitations on ownership or sale to foreigners who inherited the property from their Kuwaiti mothers.
The Real Estate Union said they took this decision due to the nature of their economic life, its variables, and the dynamics of changes it requires. Thus, this sterilization situation has harmed companies listed under Boursa Kuwait as per their founding contacts and systems. It prevented companies from owning real estate property and engaging in commercial activities.
It further stated that the decision would help resolve this complex and significant issue and prevent harm and grave consequences.
According to Ibrahim Al-Awadhi, the head of the union, the companies listed in general and real estate companies are unable to buy or sell real estate properties and transfer ownership of property through the Ministry of Justice’s Real Estate Registration Department since they have foreigners as part of their shareholder in the past five years.
He added that this creates an unjustified disruption in their job and causes a clash due to the previous laws, which also affected the State’s efforts to attract and encourage foreign investment for such types of investments.
The amendments also allow companies listed on the stock exchange to own properties in real estate while imposing restrictions on the distribution of shares to ensure that they comply with the regulations.
Additionally, licensed investment companies can now own properties used to support business activities or used for employee housing rather than speculative trading.
With the implementation of Law No. 7 of 2025, which represents Kuwait’s property ownership structure, there have been significant changes to real estate ownership, which traditionally restricted real estate ownership to Kuwaiti nationals, GCC citizens, and diplomatic institutions under strict conditions.
According to the explanatory memorandum accompanying the law, companies with foreign partners were restricted previously from owning any property, and whatever property they did own had to be sold within a year.
The new law has lifted these restrictions, allowing certain listed companies, investment portfolios, and specific real estate funds to buy real estate under regulated conditions.
A senior official from the Ministry of Commerce and Industry claimed that since the real estate market is crucial for Kuwait’s economy, these reforms help to increase investment opportunities in the region and maintain market stability.
Even when they expanded property rights, Kuwait has placed strict rules to prevent real estate speculation. Companies and investors purchasing real estate must show that they have used the properties for operational purposes rather than high-risk trading or buying an asset with a short holding period.
The law also requires that any real estate assets owned by non-Kuwaiti investors must comply with the increased regulatory control to ensure that ownership aligns with national economic goals.
Additionally, non-Kuwaitis can now acquire shares in listed companies that hold property, with regulations ensuring that property-based dividends and asset distribution remain restricted to Kuwaiti shareholders, with foreign investors receiving only cash compensation in the event of liquidation.
