Minister of Housing: «Real Estate Financing» aims to sustainably provide decent housing for citizens
State Minister for Municipal Affairs and State Minister for Housing Affairs, Abdul Latif Al-Mutairi, stated that the draft decree-law on housing finance for beneficiaries of state housing care, approved by the Cabinet in its meeting on Tuesday, aims to ensure the sustainable provision of dignified housing for Kuwaiti citizens.
In a statement to the Kuwait News Agency (KUNA) following the meeting, Minister Al-Mutairi explained that the draft decree-law comprises 15 articles. He noted that Article 2 defined the scope of application and validity 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 building on a government plot allocated by the Public Authority for Housing Care, subject to the conditions and controls set by the Authority in housing projects, whether already implemented or currently under construction.
He pointed out that Article 3 of the draft decree-law specified the eligibility conditions for beneficiaries to receive subsidized housing finance. These conditions include meeting the general requirements stipulated in the mortgage loan regulations issued by the Kuwait Credit Bank for the purposes of purchase or construction, and not having previously received housing care from the state.
Minister Al-Mutairi mentioned that Article 4 outlined the provisions regarding subsidized and non-subsidized housing finance and their repayment. It permitted combining both types of finance in accordance with the controls and procedures established by the Central Bank of Kuwait. The same article clarified that the beneficiary is responsible for repaying the principal of both subsidized and non-subsidized housing finance, plus the interest or returns accruing on the non-subsidized finance, in accordance with the terms of the finance contract and Central Bank regulations, while noting that the state bears the cost of interest or returns associated with the subsidized housing finance as per the aforementioned draft decree-law.
He added that Article 5 stipulated that all housing finance must be repaid in equal monthly installments, with a repayment period not exceeding 25 years from the date of disbursement by the granting entity, in accordance with instructions and controls set by the Central Bank.
He noted that Article 6 referred the procedures for disbursing housing finance for purchasing a residential unit from a real estate developer to the provisions of Law No. (118) of 2023 concerning the establishment of companies for building cities or residential areas and developing them economically. The same article stated that housing finance for building on a government plot allocated by the Authority would be disbursed in stages and in accordance with the rules established by the Central Bank.
He indicated that Article 7 outlined the obligation of granting entities to notify beneficiaries in case of failure to repay the housing finance provided by them, in accordance with the terms of the housing finance contract. In such cases, these entities were permitted to reschedule the housing finance for a period not exceeding five years, in accordance with instructions from the Central Bank of Kuwait, provided that the beneficiary bears the interest or returns resulting from the rescheduling period.
The Minister said that Article 8 obligated granting entities to register housing finance cases and submit related documents to the Bank, including repayment schedules and default cases, in accordance with instructions and controls set by the Central Bank in this regard.
He added that Article 9 authorized the Kuwait Credit Bank to act on behalf of the state in signing contracts with granting entities within the limits of the draft decree-law and its executive regulations. It also obligated the Ministry of Finance to pay the interest or returns associated with subsidized housing finance to the Kuwait Credit Bank from the General Reserve Account, which would then settle the amount with the subsidized granting entities.
He clarified that Article 10 stipulated the obligation of the Kuwait Credit Bank, on behalf of the state, to repay the remaining balance of subsidized housing finance to granting entities in the event of a beneficiary’s default. Meanwhile, Article 11 stated that the Kuwait Credit Bank would obtain a mortgage in exchange for its commitment, on behalf of the state, to granting entities to pay the remaining balance of subsidized housing finance in case of beneficiary default, and that the mortgage would only be established through an official mortgage contract.
He explained that Article 12 granted the Kuwait Credit Bank or any entity designated by the competent Minister the right to purchase all or part of the housing finance provided to beneficiaries by granting entities. Meanwhile, Article 13 obligated the Central Bank of Kuwait to issue rules and controls regarding the granting of housing finance and to determine the interest or return rate applicable to non-subsidized finance.
He mentioned that Article 14 emphasized the necessity of issuing the executive regulations for the draft decree-law by decree, based on a proposal from the competent Minister, within six months of its publication in the Official Gazette. Article 15 specified that the provisions of the draft decree-law would apply to beneficiaries from the date of publication of the executive regulations in the Official Gazette.
