Kuwait Eases Property Ownership Rules for Expats Under New Law

Kuwait has introduced landmark reforms to its property ownership laws, granting expatriates controlled real estate rights while imposing stricter regulations to curb speculation. The changes, outlined in Law No. 7 of 2025, mark a significant shift in the country’s long-standing restrictions on non-Kuwaiti property ownership.

Expanded Ownership for Expats with Key Conditions

Under the new law, expatriates can now own real estate in Kuwait under specific conditions. Among the notable changes, Arab nationals who inherit property in Kuwait must sell it within two years. If they fail to do so, the government will enforce a compulsory sale, unless they receive an exemption.

However, expatriates inheriting property from their Kuwaiti mothers are fully exempt from these restrictions, allowing them to retain ownership without limitations.

Increased Access for Listed Companies and Investment Entities

The reform also opens Kuwait’s real estate sector to stock exchange-listed companies, which can now own property while adhering to strict share distribution rules to ensure regulatory compliance. Additionally, licensed investment entities are permitted to acquire real estate, but only for business operations or employee housing—not for speculative trading.

Previously, companies with foreign ownership were barred from holding property, and any real estate they owned had to be sold within a year. The new law removes this restriction, allowing real estate funds, investment portfolios, and publicly traded firms to acquire property within regulated limits.

Preventing Speculation and Ensuring Market Stability

Despite the relaxed ownership rules, the government has reinforced measures to prevent real estate speculation. Investors and firms acquiring property must prove that their real estate holdings serve a functional purpose, rather than being used for flipping or high-risk trading.

Additionally, while foreign investors can now hold shares in listed companies that own property, the law mandates that real estate-based dividends and asset distributions remain exclusive to Kuwaiti shareholders. In the event of liquidation, foreign investors will receive cash compensation instead of property-based payouts.

A Strategic Move to Strengthen Kuwait’s Economy

A senior official from the Ministry of Commerce and Industry emphasized that these reforms are designed to enhance investment opportunities while maintaining market stability.

“The real estate sector is a crucial pillar of Kuwait’s economy. These legal adjustments provide a structured path for foreign investment while ensuring that property ownership aligns with national economic goals,” the official said.

With these comprehensive real estate reforms, Kuwait aims to balance economic growth, foreign investment, and market stability, while reinforcing its commitment to sustainable property ownership regulations.

 

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