Kuwait Sets New Limits on Foreign Real Estate Ownership

Kuwait City – July 17, 2025 - Kuwait has introduced a draft override decree under Decree‑Law No. 7/2025 to reinforce rules on property ownership by foreigners. The measure aims to balance investment growth with market stability and demographic control.

Regulating Foreign Ownership

The decree allows companies listed on Boursa Kuwait that include non-Kuwaiti shareholders, and licensed real estate funds with non-Kuwaiti participation to own property, provided real estate dealings are inherent to their corporate objectives.

Non-Kuwaiti investors, including listed companies, funds, and licensed investment portfolios, are barred from engaging in transactions involving privately designated residential properties, such as buying, selling, mortgaging, or transferring unless specific legal exceptions apply.

Inheritance Transfers Restricted for Non-Kuwaitis

If a listed firm or fund holding property liquidates, non-Kuwaiti shareholders are prohibited from receiving property transfers in kind, they may only receive cash proceeds, unless specified exceptions are granted by law.

The decree preserves property ownership rights for citizens of GCC countries, treating them the same as Kuwaiti nationals with regard to all legal provisions.

Strategic Objectives

Minister of Justice Counselor Nasser Al‑Sumait explained that the decree aligns with broader goals: organizing the real estate sector, attracting structured investment, and ensuring residential stock is not diverted solely for speculative or commercial uses. The draft is currently pending Cabinet approval and will take effect upon official publication.

These changes matter because they ensure foreign investors can participate only through regulated entities, which helps curb unchecked speculation in the real estate market. Stricter controls on residential properties safeguard these assets for their intended use, reducing the risk of misuse. Additionally, clearer regulations regarding inheritance, liquidation, and fund ownership enhance legal transparency, strengthening investor confidence and promoting stability within the sector.