Official issuance of 'Housing Finance' law, to take effect within 6 months
The Official Gazette published a decree-law on housing finance for eligible housing care beneficiaries. The state bears the interest costs, and the Kuwait Finance Bank guarantees repayment in case of default.
Translated by Qiyas from الجريدة — Original source
The Official Gazette, “Kuwait Today,” published Law-Decree No. 114 of 2026 concerning housing finance for beneficiaries of residential care. This decree applies to financing provided by local banks and financing and investment companies subject to the supervision of the Central Bank of Kuwait for the purchase of a residential unit from a real estate developer or for constructing a plot on a government allotment.
Under this decree, the State bears the interest or returns accruing on the subsidized financing, with repayments to be made in equal monthly installments not exceeding a term of 25 years. The Kuwait Credit Bank, acting on behalf of the State, is obligated to settle the remaining balance of the subsidized financing in the event of a beneficiary’s default. The law-decome comes into effect from the date of publication of its executive regulations, which shall be issued within six months of the decree’s publication.
