Housing Minister: Real Estate Financing Law Aims to Ensure Sustainable Provision of Dignified Housing for Citizens

- The state bears the interest and returns on subsidized financing, with repayment in monthly installments over a period of up to 25 years.

- Covers the purchase of a unit from a real estate developer or the construction of a government plot allocated to the beneficiary.

- Fifteen articles regulate purchase, construction, default, and mortgage, with the executive bylaw to be issued within six months.

Abdullatif Al-Mashari, Minister of State for Municipal Affairs and Minister of State for Housing Affairs, stated that the draft decree-law on real estate financing for beneficiaries of housing care, approved by the Council of Ministers in its meeting today, Tuesday, aims to ensure the sustainable provision of dignified housing for Kuwaiti citizens.

Minister Al-Mashari added, in a statement to the Kuwait News Agency (KUNA) following the meeting, that the draft decree-law comprises 15 articles. He explained that Article 2 defines the scope of application and 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 plot allocated by the Public Authority for Housing Care, in accordance with 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 and non-subsidized real estate financing and the repayment mechanism, stipulating that both types may be combined in accordance with 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 bears 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 added that Article 5 stipulates that all real estate financing 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 set 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 of cities or residential areas and their economic development. The same article also states that real estate financing for the purpose of constructing on a government plot allocated by 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 them, in accordance with the provisions of the real estate financing contract. In such cases, it permits these providers to restructure the real estate financing for a period not exceeding five years, in accordance with the instructions of the Central Bank of Kuwait, provided that the beneficiary bears the repayment 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 empowers the Kuwaiti Credit Bank to act as the state’s representative in signing contracts with financing providers, within the scope of the provisions of the draft decree-law and its implementing regulations. It also obligates the Ministry of Finance to pay the interest or returns accruing on the supported real estate financing extended by the Kuwaiti Credit Bank from the General Reserve Fund, which is then used to settle the amounts due to the supported financing providers.

He clarified that Article 10 stipulates the Kuwaiti Credit Bank’s obligation, on behalf of the state and vis-à-vis the real estate financing providers, to settle the outstanding balance of the supported real estate financing in the event of the beneficiary’s default. Meanwhile, Article 11 specifies that the Kuwaiti Credit Bank obtains a mortgage on the property as collateral for its obligation, on behalf of the state, to the real estate financing providers to settle the remaining balance of the supported real estate financing in case of the beneficiary’s default. It further notes that a property mortgage is only valid if established through an official mortgage contract.

He noted that Article 12 grants the Kuwaiti Credit Bank, or any entity designated by the competent minister, the right to purchase all or part of the real estate financing provided to beneficiaries by the financing providers. In contrast, Article 13 obligates the Central Bank of Kuwait to issue the rules and regulations governing the provision of real estate financing and to determine the interest or return rates applicable to non-supported financing.

He stated that Article 14 emphasizes the necessity of issuing the implementing 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. Meanwhile, Article 15 specifies that the provisions of the draft decree-law shall apply to beneficiaries from the date of publication of the implementing regulations in the Official Gazette.