Decree-Law No. 7 of 2025 amended Decree-Law No. 74 of 1979 regulating the ownership of real estate by non-Kuwaitis. It was published on 10 February 2025 and opened two defined routes: inheritance from a Kuwaiti mother, and ownership by licensed real estate funds and listed companies. In this article, Attorney Meshari Obeid Alenezi explains what changed and what did not.
The position before the amendment
- The base rule: Decree-Law No. 74 of 1979 restricts ownership of real estate in Kuwait by non-Kuwaitis.
- GCC nationals: Law No. 1 of 2004 treats nationals of the Gulf Cooperation Council states as Kuwaitis for the ownership of land and property.
- Inheritance: a non-Kuwaiti to whom property passed by inheritance had to dispose of it within a set period or face forced sale, unless a special permission issued.
- The recurring hardship: children of Kuwaiti women married to non-Kuwaitis faced forced sale of their mother’s home.
What the amendment changed
- Articles amended: the second paragraph of Article 4, and Article 8, of Decree-Law 74 of 1979.
- Inheritance from a Kuwaiti mother: an Arab to whom ownership of the property passes in full by inheritance from his Kuwaiti mother is exempted from the obligation to sell.
- The condition of completeness: the text requires that ownership pass in full, so a shared or partial interest needs its own assessment.
- Documents that matter: the succession declaration, the mother’s nationality record, the title deed, and proof that the property passed in full.
Companies, funds and portfolios
- Who may own: companies with non-Kuwaiti partners listed on licensed exchanges in Kuwait, real estate funds, and licensed investment portfolios.
- The condition: dealing in real estate must be among their purposes.
- Distribution restriction: in-kind property shares are distributed to Kuwaitis only, while non-Kuwaitis receive the cash value.
- The design: foreign capital gains exposure to the real estate return through financial instruments, while in-kind ownership of the property itself stays in Kuwaiti hands.
Licensed investment entities
- Scope: entities licensed under Law No. 116 of 2013 on the promotion of direct investment.
- Permitted purpose: ownership for operational needs or for staff housing.
- Excluded purpose: speculation is expressly outside this permission.
- Detail deferred: the controls were referred to a subsequent decree.
What did not change
| Category | Position after the amendment |
|---|---|
| Kuwaiti | Full ownership without a nationality restriction |
| GCC national | Treated as Kuwaiti under Law 1/2004 |
| Arab inheriting a property in full from a Kuwaiti mother | Exempt from the obligation to sell |
| Listed company with non-Kuwaiti partners | May own where property is among its purposes |
| Entity licensed under Law 116/2013 | May own for operations and staff housing, not speculation |
| Individual expatriate buying a home | No general permission was created |
The amendment is a measured widening, not a liberalisation, and the general restriction remains the starting point.
Risks to avoid
- Nominee arrangements: registering property in a Kuwaiti name for a foreign buyer exposes both sides to invalidity and to concealment allegations.
- Relying on an unregistered contract: title passes on registration, and a preliminary contract does not protect against third parties.
- Assuming a fund solves everything: the in-kind distribution restriction still applies on liquidation.
- Overlooking the completeness condition in the inheritance exemption where other heirs share the estate.
- Ignoring Decree-Law 78 of 2026, under which circumventing ownership percentages is squarely within commercial concealment from February 2027.
Frequently asked questions
My mother was Kuwaiti and left a house. I am not Kuwaiti. Must I sell it?
The amendment exempts an Arab to whom ownership passes in full by inheritance from his Kuwaiti mother from the obligation to sell. The condition is that ownership passed to you in full, so if other heirs share the property the position needs to be examined against the deed and the succession declaration before any step is taken.
I am an expatriate. Can I now buy an apartment to live in?
No general permission for individual expatriates to buy residential property was created. The amendment widened defined routes for licensed entities and addressed the inheritance case. Any arrangement offered to you that works around the restriction risks invalidity of the transaction and exposure under the commercial concealment regime.
My company has a foreign partner and wants to buy premises. Is that possible?
It depends on how the company is characterised. Listed companies whose purposes include dealing in real estate have one position, and entities licensed under Law 116 of 2013 have another that is limited to operational needs and staff housing and excludes speculation. The classification of the entity determines the answer.
What does the in-kind and cash distinction mean in practice?
A non-Kuwaiti investor takes the economic return of the property without in-kind title passing to him. On liquidation or distribution a Kuwaiti receives a property share while a non-Kuwaiti receives its cash equivalent. This restriction has to be built into the fund rules or portfolio agreement from the outset.
If you have inherited property in Kuwait or are structuring a real estate investment, you may book an appointment with the office of Attorney Meshari Obeid Alenezi or call 22204490.
Disclaimer: this article provides general legal information and is not a substitute for specialised legal advice.
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