'Finance': Real estate financing law allows citizens subsidized funding through banks alongside Credit Bank loans
Law Decree No. 114 of 2026 allows real estate financing from local banks as an alternative option to the Kuwait Credit Bank loan
Translated by Qiyas from السياسة — Original source
- Al-Ansari: Citizens have the right to choose between subsidized financing and loans from the Kuwait Credit Bank
- Al-Muzaini: Repayment over a maximum of 25 years, with a grace period and the option for early repayment
The Ministry of Finance announced that Law-Decree No. (114) of 2026 concerning housing financing for eligible recipients of residential care allows eligible citizens to obtain housing financing from local banks and financing and investment companies subject to the supervision of the Central Bank of Kuwait, as a parallel option to the construction and purchase loans offered by the Kuwait Credit Bank. The decree’s provisions will take effect from the date its executive regulations are published in the Official Gazette.
The Ministry noted that the law-decree represents an important step in developing the housing financing system in the State of Kuwait, as it expands the financing options available to citizens and enhances the participation of the banking and financial sectors in the housing sector.
It added that the executive regulations will be issued within six months from the date of publication of the law-decree, along with the rules and regulations issued by the Central Bank of Kuwait regarding the granting of financing, including the interest rates or returns on non-subsidized financing.
The law-decree is the result of the work of a committee formed by a decision of the Minister of Finance, chaired by Engineer Ahmed Mohammed Al-Ansari, Deputy Managing Director for Investment and Private Sector Projects at the Public Authority for Housing Welfare, and with the membership of Faisal Fahad Al-Muzaini, Director of the Public Debt Department at the Ministry of Finance, and specialists from relevant authorities.
Committee Chairman Engineer Ahmed Al-Ansari clarified that financing is limited to two specific purposes: purchasing a residential unit from developers approved by the Public Authority for Housing Welfare, or constructing on a government plot allocated by the Authority. The provisions of the law-decree do not apply to other purposes, such as expansion, renovation, purchase from non-approved developers, or construction on private plots.
Al-Ansari added that the financing consists of two integrated parts. The first is subsidized financing, where the state bears the cost of its interest or returns, serving as a parallel option to the construction and purchase loans from the Kuwait Credit Bank, not a replacement for them, as citizens retain the right to choose between the two pathways.
The second part is additional non-subsidized financing, limited to buyers of residential units from developers, provided by financing institutions according to their credit terms, with state support restricted solely to the subsidized portion.
