Foreign ownership of real estate in Kuwait attracts global investment
Investment and commercial real estate have fueled Kuwait’s real estate growth and are set to expand further as the new foreign ownership law boosts market liquidity and attracts global investors to the sector.
• Kuwait’s recent economic reforms represent a positivefirst step in opening the real estate market to foreign ownership—potentially an important move towards economic diversification and attracting foreign investment.
Kuwait’s move to gradually allow foreign real estate ownership marks a significant shift in its property market, which was previously limited to citizens, Gulf nationals, and diplomatic entities, Arabian Gulf Business Insight reported, according to Al Qabas newspaper.
The report stated that the Kuwaiti government has updated real estate laws to permit ownership by entities licensed by the Kuwait Direct Investment Promotion Authority, companies listed on the stock exchange, and real estate and investment funds.
It quoted Zacky Sajjad, partner at Cavendish Maxwell Real Estate, as saying that similar initiatives in other Gulf countries have significantly expanded the real estate market and improved transparency.
He noted that Kuwait’s recent economic reforms represent a positive first step in opening the real estate market to foreign ownership—potentially an important move toward economic diversification and attracting foreign investment.
The report also highlighted that the amended real estate law exempts Arabs who inherit property from their Kuwaiti mothers from the mandatory disposal rule, meaning they will no longer be required to sell the property within two years of inheritance.
Growth of Kuwait’s real estate sector
The Arabian Gulf Business Insight website reported that Raghu Mandagolathur, CEO of Marmore MENA Intelligence, a subsidiary of the Kuwait Financial Centre, stated that “Investment and commercial real estate have driven the growth of Kuwait’s real estate sector and are expected to expand further with the new foreign ownership law.”
He added that foreign banks and real estate companies, which were previously unable to own property in Kuwait, will now be able to invest in the country’s real estate sector.
Matthew Green, head of research at CBRE Middle East, said that “The new foreign ownership law in Kuwait will significantly increase the liquidity of the real estate market. This progressive step reflects a relaxation of rules that historically allowed only Kuwaitis and Gulf nationals to own property.”
