Foreign real estate ownership in Kuwait is set to be supervised via listed companies and investment funds.
In a significant move towards economic diversification and transparency, the Minister of Justice, Nasser Al-Sumait, has announced the submission of a draft decree aimed at regulating real estate ownership by foreign investors in Kuwait. The proposed decree, based on Decree-Law No. 7 of 2025, is part of Kuwait's broader efforts to combat money laundering and terrorist financing while also regulating financial and real estate activities.
Foreign investors will be able to manage their capital in real estate securities issued by listed companies or funds, as outlined in the draft decree. This move is expected to enhance Kuwait's appeal as an investment destination, attracting serious investors, stimulating capital inflows, and unlocking new investment opportunities, contributing significantly to state revenues.
The controls in the draft decree are designed to maintain market stability and align with financial sector regulations enforced by the Central Bank and the Capital Markets Authority. Listed companies and licensed real estate funds with foreign shareholders may own property, but not for private housing. Transfers of ownership to non-Kuwaitis in liquidation scenarios will be restricted unless legally justified.
The new rules aim to increase investor confidence, boost the efficiency of real estate resource allocation, promote sustainable economic development, prevent illegal ownership and speculative practices, and ensure that organized investment does not compromise social stability or housing availability.
The implementation of the decree is expected to strengthen the real estate sector's transparency and governance. GCC citizens will have ownership rights equal to Kuwaiti nationals under existing Gulf agreements. The draft decree, which includes five specific controls to regulate foreign investor participation in the real estate market, is expected to be submitted to the Council of Ministers for final approval.
The proposed decree has been reported by Al-Qabas daily and is aligned with Kuwait's economic diversification goals, supporting real estate as a regulated, transparent, and growth-oriented sector. The new rules are also expected to increase investor confidence, boost the efficiency of real estate resource allocation, promote sustainable economic development, prevent illegal ownership and speculative practices, and ensure that organized investment does not compromise social stability or housing availability.
Foreign investors will manage their capital in real estate securities, adhering to the regulations outlined in the proposed decree. This action aims to enhance Kuwait's appeal as an investment destination and contributes to increasing state revenues.
The draft decree includes five specific controls designed to maintain market stability, align with financial sector regulations, prevent illegal ownership, and ensure sustainable economic development while preserving social stability and housing availability.
