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ARTICLE · 27 OCTOBER 2026

Kuwait Introduces New Real Estate Financing Framework For Housing Welfare

Kuwait has introduced a new framework for real estate financing for individuals entitled to housing welfare under Decree Law No. 114 of 2026. The framework allows local banks, finance companies and investment companies supervised by the Central Bank of Kuwait to provide financing to eligible individuals, covering both State-subsidised and unsubsidised financing. The Decree Law also establishes provisions supporting a secondary market for financing through securitisation and the issuance of sukuk.

KuwaitReal Estate and Construction
ASAR – Al Ruwayeh & Partners
ASAR – Al Ruwayeh & Partners

Kuwait has introduced a new framework for real estate financing for individuals entitled to housing welfare under Decree Law No. 114 of 2026 (the Decree Law).

Gazetted on 18 October 2026, the Decree Law allows local banks, finance companies and investment companies supervised by the Central Bank of Kuwait (CBK), whose objects include real estate financing, to provide financing to individuals entitled to housing welfare who satisfy the conditions and controls prescribed by Kuwait Credit Bank (KCB).

The framework covers both State-subsidised and unsubsidised financing and introduces provisions governing repayment, State support and security arrangements. It also includes provisions supporting a secondary market for financing provided under the new regime, including through securitisation and the issuance of sukuk.

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