Kuwait Changes Expats' Property Ownership Rules

Kuwait has made a significant move to attract more foreign investment with the issuance of Decree Law No. 7/2025. This law amends provisions of Decree Law No. 74/1979, which previously regulated property ownership for non-Kuwaitis. Real estate and investment experts are already praising the change, believing it will have a positive impact on the country’s real estate sector, economy, and job market.

The key aim of the law is to stimulate economic and social growth. By relaxing property ownership rules for non-Kuwaitis, the move is expected to attract more foreign investments, benefiting the local economy and offering more job opportunities for Kuwaiti citizens.

Real Estate Union Applauds the Decision

The Real Estate Union has expressed strong support for the amendment, highlighting its importance in keeping up with the rapidly changing economic landscape. The union pointed out that the previous regulations were no longer aligned with the evolving needs of the economy. As a result, companies listed on Boursa Kuwait were facing challenges. Specifically, foreign owners in these companies were unable to buy, sell, or transfer real estate due to restrictions imposed by the old laws.

According to Ibrahim Al-Awadhi, head of the union, these restrictions created a barrier for companies, especially those in real estate, preventing them from fully engaging in commercial activities as stipulated in their founding contracts. The new law aims to resolve this issue and prevent further complications, ensuring smoother business operations moving forward.

 

 

 

 

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Solving Longstanding Issues

The real estate sector, particularly companies listed on Boursa Kuwait, faced disruptions for the past five years due to the previous regulations. Foreign owners within the companies’ shareholder structures were the main reason for this limitation. With the new law in place, these companies can now freely buy and sell real estate and carry out property transactions, offering them the flexibility they need to grow and expand their business.

Experts believe this law will have far-reaching effects, providing a much-needed boost to the real estate market. It’s expected to generate increased foreign interest in the Kuwaiti property market, which will, in turn, foster a competitive business environment and drive the overall growth of the real estate industry.

A Step Forward for Foreign Investment

This change marks a significant step forward in Kuwait’s efforts to encourage foreign investment. The law aligns with the government’s broader goal of attracting international capital, allowing foreign investors to participate in more diverse investment opportunities within the country. For real estate companies, this opens up new avenues for growth and property ownership, potentially leading to a more vibrant, dynamic market.

In conclusion, the recent amendment to the property ownership law is a positive development for Kuwait’s real estate sector. It aims to address long-standing issues, boost foreign investment, and support the broader goals of economic and social growth. This progressive step is expected to have a lasting impact on the local economy and real estate market for years to come.