Kuwait Issues Real Estate Law Enabling Limited Real Estate Ownership By Companies And Investment Funds

New regulations have allowed foreign-partnered firms to own property in Kuwait. Image Credit: Reuters
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Arab Times stated, citing the official gazette (Kuwait Alyawm), that Kuwait has made a significant step to issue a new decree governing real estate ownership by companies, investment funds, and portfolios, including those that have foreign partners, under certain conditions.

According to the report, under this, any expat partner of a firm that is listed at the Kuwait stock exchanges, as well as real estate funds and investment portfolios licensed by the Kuwaiti authorities, may own real estate provided that their intended purpose consists of real estate operations.

It enforces the provisions of the Decree Law No.74 of 1979 that govern the ownership of property by non-Kuwaitis.

The Arab Times report said that the Kuwaiti law enacted in 1979, the property ownership of such companies was not permitted in the country, and only Arabian people could purchase a house or a piece of land by Amiri decree.

The old legislation provides that foreigners who inherit property from their Kuwaiti mothers are required to sell within a period of one year. The foreign embassies might also acquire up to 4,000 sq m of land on mutual treatment to construct their own premises.

It is reported that the majority of Gulf countries now enable foreigners to own houses directly, and other states even provide long-term residence permits to large purchasers.

The decree explains that the intent of such companies, funds, and portfolios should incorporate the interest in carrying out real estate undertakings.

The report claimed that, however, it explicitly forbids the transaction in any form, whether in the form of ownership, transfer, or investment in any form of real estate, plots, or lands that are oriented to residential use of individuals, irrespective of the location or the project in which it is located.

It further states in the decree that the citizens of GCC countries would be considered as Kuwaiti citizens when it comes to ownership of land and property, as per the existing rules.