Housing Minister: Real Estate Financing Law Aims to Ensure Sustainable Provision of Dignified Housing for Citizens
State Minister for Municipal Affairs and State Minister for Housing Affairs Abdul-Latif Al-Mashari stated that the draft decree-law on real estate financing for beneficiaries of housing care, approved by the Council of Ministers in its meeting yesterday, aims to ensure the sustainable provision of dignified housing for Kuwaiti citizens.
Minister Al-Mashari added in a statement to KUNA following the meeting that the draft decree-law comprises 15 articles. He explained that Article 2 defines the scope of application and the applicability of its provisions for the purpose of purchasing a residential unit from a real estate developer in accordance with the provisions of Law No. (118) of 2023, as amended by Decree-Law No. (89) of 2025, or for constructing a government-allocated plot from the Public Authority for Housing Care, subject to the conditions and regulations established by the Authority for housing projects, whether already completed or currently under implementation.
He noted that Article 3 of the draft decree-law specifies the eligibility conditions for beneficiaries to receive subsidized real estate financing. These conditions include meeting the general requirements set out in the real estate loan regulations issued by the Kuwait Finance House for the purposes of purchase or construction, and not having previously benefited from state-provided housing care.
Al-Mashari stated that Article 4 outlines the provisions governing subsidized or non-subsidized real estate financing and the repayment mechanism. It stipulates that both types of financing may be combined, subject to the regulations and procedures established by the Central Bank of Kuwait.
He clarified that the same article specifies that the beneficiary is responsible for repaying the principal of both subsidized and non-subsidized real estate financing, as well as the interest or returns accruing on the non-subsidized financing, in accordance with the terms of the financing contract and the Central Bank’s regulations. It also notes that the state shall bear the cost of the interest or returns accruing on the subsidized real estate financing, in accordance with the provisions of the aforementioned draft decree-law.
He indicated that Article 5 stipulates that all real estate financings shall be repaid in equal monthly installments, with the repayment period not exceeding 25 years from the date of commencement of disbursement of the real estate financing by the financing provider, in accordance with the instructions and regulations established by the Central Bank.
He pointed out that Article 6 refers the procedures for disbursing real estate financing for the purchase of a residential unit from a real estate developer to the provisions of Law No. (118) of 2023 on the establishment of companies for the construction and economic development of cities or residential areas. The same article also states that real estate financing for the purpose of construction on a government-allocated plot from the Public Authority for Housing Care shall be disbursed in stages, in accordance with the rules established by the Central Bank.
He noted that Article 7 specifies the obligation of financing providers to issue a notice to the beneficiary in the event of non-compliance with the repayment of the real estate financing provided by such entities, in accordance with the provisions of the real estate financing contract. In such cases, it permits these entities to restructure the real estate financing for a period not exceeding five years, in accordance with the instructions of the Central Bank of Kuwait, with the beneficiary bearing the cost of the interest or returns resulting from the restructuring period.
The Minister stated that Article 8 obligates financing providers to register real estate financing cases and submit related documents to the bank, including repayment schedules and default cases, in accordance with the instructions and regulations established by the Central Bank in this regard.
He added that Article 9 authorizes the Kuwait Finance House to act as the state’s representative in signing contracts with financing providers, within the limits of the provisions of the draft decree-law and its executive regulations. It also obligates the Ministry of Finance to pay the interest or returns accruing on subsidized real estate financing to the Kuwait Finance House from the General Reserve Account, which the Kuwait Finance House shall then pay to the subsidized financing providers.
He clarified that Article 10 stipulates the obligation of the Kuwait Finance House, on behalf of the state before real estate financing providers, to settle the remaining balance of subsidized real estate financing in the event of the beneficiary’s default on repayment. Meanwhile, Article 11 specifies that the Kuwait Finance House shall obtain a mortgage on the real estate in exchange for its obligation, on behalf of the state before real estate financing providers, to settle the remaining balance of subsidized real estate financing in the event of the beneficiary’s default on repayment. It also states that a mortgage on real estate is only established by virtue of an official mortgage contract.
He explained that Article 12 grants the Kuwait Finance House, or any entity designated by the competent minister, the right to purchase all or part of the real estate financing provided to beneficiaries by financing providers. Meanwhile, Article 13 obligates the Central Bank of Kuwait to issue the specific rules and regulations for granting real estate financing and to determine the interest or return rates accruing on non-subsidized financing.
He noted that Article 14 emphasizes the necessity of issuing the executive regulations for the draft decree-law by decree, based on the proposal of the competent minister, within six months of its publication in the Official Gazette. Article 15 specifies that the provisions of the draft decree-law shall apply to beneficiaries from the date of publication of the executive regulations in the Official Gazette.
