Kuwait Opens Closed Doors for Real Estate Investments

Kuwait has recently issued crucial legal amendments that have transformed the existing legal framework regarding non-Kuwaitis’ property ownership within the state. Through this step, the Kuwaiti government has moved to strengthen its open economic vision regarding investment companies and shareholding companies that include non-Kuwaiti partners.

To understand the picture clearly, Kuwaiti law previously did not allow non-citizens to own real estate in Kuwait, with exclusive exceptions for GCC citizens and diplomatic entities present in Kuwait. Therefore, Kuwait’s opening of this closed door in this field represents a significant change in the legal framework governing real estate market conditions in the country.

But what will change after these amendments have been approved?

After updating the old law with amendments that addressed the prohibition of real estate ownership by companies in which non-Kuwaitis hold shares; where Article 8 of Law No. 74 of 1979 required companies in such cases to sell any properties they owned within one year, or they would be sold compulsorily.

The new legal text has modified all this, making it permissible for companies, real estate funds, and investment portfolios whose purposes include real estate dealings and include non-Kuwaiti partners to own property, according to regulations that restrict the distribution of in-kind shares to Kuwaiti partners only, while non-Kuwaiti partners receive their shares in cash and have no right to obtain in-kind shares.

From my perspective, this amendment has established an acceptable and balanced mechanism that preserves the rights of foreign partners and opens the field for shareholding companies involved in the real estate market to expand their operations freely and without any legal obstacles.

To complete the investment openness policy adopted by the Kuwaiti government, the amendment was careful to include licensed investment entities under the Direct Investment Promotion Law, allowing this type of company to also own properties necessary for conducting their activities, including owning headquarters and real estate assets according to regulations determined by the competent authorities.

After this legal narrative, I can generally say that the amendments and regulations contained in Law No. 7 of 2025 represent a qualitative shift in regulating non-Kuwaitis’ property ownership in Kuwait. They also reflected an explicit governmental orientation towards developing the investment environment and attracting foreign investments interested in participating in the Kuwaiti real estate sector.