MCI reopens real estate exhibitions after 9 years with strict no-sales rules

In a sweeping regulatory move, Minister of Commerce and Industry Khalifa Al-Ajil has tightened the rules on real estate exhibitions, imposing strict oversight and banning the sale of any land or property units on site. The decision marks the end of a suspension that has been in place since 2016, paving the way for the cautious return of such events under close government supervision.

Under the new regulations, the role of participating companies is strictly limited to marketing and presenting projects only, with an explicit ban on concluding sales, signing contracts, or engaging in any form of transaction inside exhibition halls. The decision also prohibits the use of return percentages in advertising or project promotion, in a clear effort to curb misleading practices and speculative marketing, reports Al-Rai daily.

The decision further bans the marketing or display of lands that have not obtained final building permits, as well as the promotion or sale of timeshare products, which allow multiple buyers to share ownership of a tourist property for specific periods. The ministry stressed that such systems, which focus on usage rather than ownership, are not permitted under the new exhibition framework.

Al-Ajil’s decision stipulates that any company or institution seeking to organize a real estate exhibition must obtain prior approval from the International Relations Department for Organizing Exhibitions at the Ministry of Commerce and Industry at least 30 working days before the exhibition’s opening date.

The organizing entity is also required to submit a full list of participating companies, along with all required documents, at least 14 working days before the event. No exhibition may be held without the issuance of a final license specifying the location and duration of the exhibition.

The regulations require that every participating company or institution must have real estate activity listed among its licensed activities and must hold a valid license throughout the exhibition period. Only project owners, developers, or companies holding an official power of attorney, authorization, or written mandate from the owner or developer may market properties or projects.

If the project or property is located outside Kuwait, all documents must be officially certified by the Kuwaiti embassy in the host country and the Ministry of Foreign Affairs. Participating companies must also provide explanatory brochures and full project details.

Each exhibitor is required to display clear, pre-prepared signage in a prominent location at its booth, detailing the project being promoted. Companies must also strictly adhere to all circulars, instructions, warnings and guidelines issued by the Ministry of Commerce.

The decision strongly emphasizes that real estate exhibitions are purely marketing platforms and must not result in sales, reservations, contracts or financial commitments of any kind. This measure, the ministry said, is aimed at protecting consumers, preventing pressure selling, and ensuring transparency and clarity in the information presented.

The regulations explicitly prohibit:

• Conducting sales or signing contracts inside exhibitions
• Using misleading or inaccurate advertising
• Promoting projects using return or profit percentages
• Marketing timeshare products
• Displaying or marketing lands without final building permits

Under the new framework, any company whose activities include real estate is entitled to hold its own exhibition at its headquarters or at a licensed rented venue for a period not exceeding three days, provided that the same conditions and controls are fully observed.

Applications to organize exhibitions must be submitted to the Ministry of Commerce along with all required documents. The Real Estate Services and Valuation Department is tasked with reviewing applications, verifying compliance and requesting completion of any deficiencies within a specified timeframe.

Once all requirements are met, the application is referred to the International Relations Department, which is responsible for issuing the final exhibition license. No event may proceed without this approval.

Without prejudice to harsher penalties under other laws, the Ministry of Commerce may impose one or more of the following sanctions on violators:

• Written warning
• Cancellation of the exhibition license
• Closure of the exhibition
• Ban from organizing or participating in exhibitions for up to one year

The ministry stressed that these measures are designed to regulate the sector, curb abuses, protect consumers and restore confidence in real estate exhibitions after years of suspension.

Real estate exhibitions are defined as organized events aimed at promoting licensed real estate products by approved companies,