Kuwait has issued a decree-law on real estate financing for those eligible for housing care.
The move aims to speed up housing provision for citizens and ease the financial obstacles to buying or building homes.
Decree No. 114 of 2026 contains fifteen articles that establish a framework for both subsidized and non-subsidized financing.
It covers the purchase of units from real estate developers, as well as construction on government plots allocated by the Public Authority for Housing Welfare, according to the Kuwait News Agency (KUNA).
Subsidized financing requires meeting the conditions set by the Kuwait Credit Bank, and the beneficiary must not have previously received housing welfare or any loan from the bank.
The decree also allows combining subsidized and non-subsidized financing in accordance with the regulations of the Central Bank of Kuwait.
The state bears the interest or returns on subsidized financing, while the beneficiary repays the principal, in addition to the cost of the non-subsidized financing.
Financing is repaid in equal monthly installments over a period not exceeding twenty-five years. In cases of default, rescheduling is possible for a maximum of five years, with the beneficiary bearing the resulting interest or returns.
The Credit Bank also guarantees the remaining balance of subsidized financing in the event of default, in exchange for an official mortgage.
The decree prohibits disposing of the mortgaged property without prior approval from the bank and the financing authority.
The executive regulation is set to be issued within six months of the law’s publication.
The regulation will determine procedures for early repayment, grace periods, and default provisions, with the decree’s provisions applying to beneficiaries starting from the date of its publication in the Official Gazette.
