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Kuwaiti Decree No. 195 of 2025 concerning Foreign Ownership of Real Estate by Companies and Investment Funds in the State of Kuwait

In line with Kuwait’s vision to develop its real estate investment environment and regulate non-Kuwaiti participation in this vital sector, Decree No. 195 of 2025 (the “Decree”) was issued to strike a balance between attracting foreign investment while safeguarding the exclusivity of private housing for Kuwaiti nationals and maintaining consistency with the existing legal framework governing non-Kuwaiti ownership.

The Decree, while operates alongside Decree No. 74 of 1979 on non-Kuwaiti ownership of real estate, sets out the following provisions:

Eligibility and Conditions For Real Estate Ownership (Article 1):

In compliance with Decree-Law No. 74 of 1979 on Non-Kuwaiti Real Estate Ownership, companies with non-Kuwaiti partners and which are listed on licensed stock exchanges in Kuwait, as well as real estate funds and investment portfolios licensed by the competent Kuwaiti authorities, may own real estate, subject to the following conditions:

  • One of the activities of such companies, real estate funds, or investment portfolios must include dealing in real estate.

  • The Decree imposes a categorical prohibition on owning or dealing of real estate, plots, or lands designated for private housing purposes regardless of location or project.

    • Exceptions and Equal Treatment (Article 2)

    The provisions of this Decree expressly preserve two key points:

  • The right of entities under the supervision of the Central Bank of Kuwait or the supervision of other regulatory bodies to own real estate in accordance with the law.

  • The treatment of nationals of the Gulf Cooperation Council (GCC) member states shall be treated the same as Kuwaiti citizens with respect to the ownership of land and constructed properties in Kuwait, in accordance with the law.

    • Implementation and Entry into Force (Article 3):

    Ministers, each within their respective jurisdictions, shall implement this Decree, which shall take effect upon its publication in the Official Gazette. Market participants should, therefore, align internal policies, funds documentation, and transaction screening protocols to ensure compliance with the Decree from the date of publication.

    As outlined above, Decree No. 195 of 2025 aims to preserve the exclusivity of residential housing for citizens and prevent practices that could disrupt the national real estate market, while clearly ring-fencing the private housing segment for citizens and preserving supervisory and GCC equal-treatment frameworks. In parallel, it promotes sustainable investment within the real estate sector, while remaining consistent with existing laws governing the ownership of property by non-Kuwaitis.. The result is a more defined pathway for non-Kuwaiti capital that aligns with Kuwait’s policy objectives and market stability.

    Authors: May El Mahdy, Senior Associate and Maha Abdullah, Trainee Lawyer

    Content supplied by GLA & Company