Kuwait — Property: Foreign Ownership

Why this matters

Understanding these restrictions is crucial as foreign individuals cannot own residential real estate directly, and there are limitations on commercial property ownership.

Key facts

• The 2026 U.S. investment climate report says non-GCC citizens may own properties only under special conditions that require Cabinet approval.
• It describes Decree-Law No. 7 of 2025 as permitting foreign investors to own real estate in certain instances and removing limits that stopped companies with foreign shareholders from owning real estate.
• Earlier U.S. reports (2001, 2015, 2016) state that non-GCC nationals could not own land; the position has since been loosened.
• Under the 2013 Foreign Direct Investment Law, the Kuwait Direct Investment Promotion Authority (KDIPA) can approve up to 100% foreign ownership in qualifying sectors, including housing projects and urban development.

Steps

1. Registering a Local Company for Property Ownership — Foreigners must establish a company with at least 51% local ownership to own commercial property.
2. Applying for Foreign Ownership Permission — Foreigners need to obtain a Foreign Ownership Permission from the Ministry of Commerce and Industry for both residential and commercial properties.

Common mistakes

• Relying on older guidance that says foreigners cannot own property at all; rules changed in 2025 but approval conditions still apply.