Kuwait moves to regulate foreign real estate ownership via listed companies and funds

As part of ongoing reforms to modernize Kuwait’s legislative framework, Minister of Justice Nasser Al-Sumait announced that the Ministry has submitted a draft decree to the Fatwa and Legislation Department to regulate the ownership of real estate by foreign investors through companies listed on the Kuwait Stock Exchange and licensed real estate funds.

It is based on Decree-Law No. 7 of 2025 and will be submitted to the Council of Ministers for final approval.

Al-Sumait explained that the draft includes five specific controls that aim to regulate the participation of foreign investors in the real estate market while preserving market stability and aligning with financial sector regulations already enforced by the Central Bank and the Capital Markets Authority, reports Al-Qabas daily.

The following are the key provisions of the draft decree:

• Listed companies and licensed real estate funds with foreign shareholders may own property, provided it aligns with their investment objectives.
• Real estate designated for private housing is excluded from these provisions to protect residential policies from speculation and hoarding.
• Investment portfolios may manage foreign investors’ capital in real estate securities issued by listed companies or funds.
• Transfers of ownership to non-Kuwaitis in liquidation scenarios will be restricted unless legally justified.
• GCC citizens will retain ownership rights equal to Kuwaiti nationals under existing Gulf agreements.

Al-Sumait emphasized the decree’s role in strengthening the real estate sector’s transparency and governance while ensuring that organized investment does not compromise social stability or housing availability. He noted the decree is part of Kuwait’s broader efforts to combat money laundering and terrorist financing, while also regulating financial and real estate activities.

The new rules are expected to increase investor confidence, boost the efficiency of real estate resource allocation, promote sustainable economic development, prevent illegal ownership and speculative practices and enhance Kuwait’s appeal as an investment destination.

According to the Ministry, allowing foreign ownership through listed means will help attract serious investors, stimulate capital inflows, and unlock new investment opportunities—contributing significantly to state revenues.

The decree aligns with Kuwait’s economic diversification goals and supports real estate as a regulated, transparent, and growth-oriented sector.