Kuwait’s recent move to allow foreign ownership of real estate is set to revolutionize the country’s property market, opening the door to global investment and boosting market liquidity. This change, fueled by ongoing economic reforms, is expected to accelerate the growth of Kuwait’s real estate sector, particularly in investment and commercial properties.
As part of its efforts to diversify its economy and attract foreign investment, Kuwait has made significant strides by easing its real estate laws. Previously, property ownership in the country was restricted to Kuwaiti citizens, Gulf nationals, and diplomatic entities. However, the new reforms now permit foreign banks, real estate companies, and entities licensed by the Kuwait Direct Investment Promotion Authority, as well as companies listed on the stock exchange and real estate investment funds, to invest in the Kuwaiti real estate sector.
This shift is viewed as a crucial first step toward opening up the market to foreign ownership, and experts believe it will drive economic diversification while encouraging global investors to tap into the potential of Kuwait’s real estate market.
Zacky Sajjad, a partner at Cavendish Maxwell Real Estate, emphasized that similar initiatives in other Gulf nations have significantly expanded their real estate markets and improved market transparency. He sees Kuwait’s economic reforms as a positive and essential move for the country’s property sector.
In addition to allowing foreign ownership, the updated real estate laws also include provisions for Arabs who inherit property from their Kuwaiti mothers. These individuals will no longer be required to sell the property within two years of inheritance, lifting previous restrictions and offering more flexibility.
Raghu Mandagolathur, CEO of Marmore MENA Intelligence, explained that investment and commercial real estate have already been key drivers of Kuwait’s real estate growth. With the new foreign ownership law, he predicts further expansion, particularly as foreign banks and real estate firms, previously unable to own property in Kuwait, are now able to invest.
Matthew Green, head of research at CBRE Middle East, added that the new law will enhance the liquidity of Kuwait’s real estate market, marking a progressive shift in a sector that was once limited to only Kuwaitis and Gulf nationals.
These changes reflect Kuwait’s ambition to position itself as a global investment hub, with the real estate market playing a pivotal role in the country’s economic future.
