Kuwait opens property market to expats under new ownership reforms

Dubai: Kuwait has introduced sweeping reforms to its property ownership laws, granting expatriates new rights to own real estate under specific conditions, according to a Cabinet decree published in the official gazette Al Kuwait Al Youm.

The decree, which amends the 1979 law on non-Kuwaitis owning property, introduces key changes aimed at regulating the real estate market and promoting economic stability.

Among its provisions, Arab nationals who inherit property in Kuwait will now have a two-year window to sell it. If they fail to do so within this period, the government will enforce a compulsory sale, unless an exemption is granted. However, expatriates who inherit property from their Kuwaiti mothers will be fully exempt from any restrictions on ownership or sale.

The amendments also open Kuwait’s real estate sector to companies listed on the stock exchange, allowing them to own property while imposing restrictions on share distribution to ensure compliance with regulations.

Additionally, licensed investment entities can now own properties as long as they are used to support business operations or employee housing, rather than for speculative trading.

The legal overhaul, Law No. 7 of 2025, represents a major shift in Kuwait’s property ownership framework, which has historically restricted real estate ownership to Kuwaiti nationals, GCC citizens, and diplomatic entities under strict conditions.

According to the explanatory memorandum accompanying the decree, companies with foreign partners were previously barred from owning property, and any property held by such firms had to be sold within a year. The new law removes these restrictions, allowing certain real estate funds, investment portfolios, and listed firms to acquire property under regulated conditions.

"The real estate market plays a vital role in Kuwait’s economy, and these reforms aim to enhance investment opportunities while ensuring market stability," a senior official from the Ministry of Commerce and Industry said.

Despite the expanded property rights, strict controls remain in place to prevent real estate speculation. Companies and investors acquiring property must demonstrate that the real estate serves an operational purpose, rather than being used for high-risk trading or flipping. The decree also mandates that any real estate assets held by non-Kuwaiti investors must comply with new regulatory oversight, ensuring that ownership remains aligned with national economic objectives.

Additionally, while non-Kuwaitis can now own shares in listed companies that hold property, regulations will ensure that property-based dividends and asset distributions remain exclusive to Kuwaiti shareholders, with foreign investors receiving only cash compensation in case of liquidation.