New law channels KFAED earnings to support citizens’ housing programs

A decree-law has been issued amending one of the provisions of the law regulating the Kuwait Fund for Arab Economic Development, stipulating the allocation of a portion of the Fund’s annual profits to support housing services in Kuwait.

According to the decree published Sunday (today) in the official gazette Kuwait Alyawm, Article (3 bis) of Law No. 25 of 1974 has been replaced with a new provision requiring that an annual percentage not exceeding 25 percent of the Fund’s realized net profits be deducted and transferred to the Public Authority for Housing Welfare, starting from the fiscal year 2026–2027.

The measure aims to strengthen the Authority’s financial resources and support its housing programs for citizens, reports Al-Rai daily.

The explanatory memorandum accompanying Decree-Law No. 8 of 2026 noted that a similar amendment introduced in 2003 required the deduction of up to 25 percent of the Fund’s net profits, at a time when fluctuating oil prices affected state revenues while demand for essential public services — particularly housing — was rising.

The contribution from the Fund was intended to help secure sustainable financing for housing welfare programs.

The memorandum explained that the new amendment reflects current economic developments while ensuring the Fund can continue fulfilling its core mission of supporting Arab and developing countries through development financing and loans.

Under the revised text, the deducted percentage will be calculated from the Fund’s realized profits only — after excluding unrealized gains and losses — rather than total net profits, with implementation beginning in the 2026–2027 fiscal year.