Kuwait Cabinet clears fresh financing path for housing

KUWAIT CITY, Sept 22: Kuwait’s Cabinet approved a draft decree-law on mortgage financing for beneficiaries of housing welfare on Tuesday, aimed at ensuring the sustainable provision of adequate housing for Kuwaiti citizens. The Cabinet meeting, chaired by His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, reviewed the draft decree- law as part of the State’s commitment to family welfare, housing needs, and efforts to provide sustainable housing solutions. The Cabinet referred the draft decree-law to His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah for consideration.

The draft legislation comes in support of Law No. 118 of 2023 on establishing companies to construct and develop residential cities or areas economically, as amended by Decree-Law No. 89 of 2025, which the government considers one of the pillars for addressing the housing issue. The Cabinet said the new legislation would provide an additional alternative to addressing the housing issue from an economic perspective while achieving the required sustainability. At the outset of its meeting, the Cabinet was briefed on a letter addressed to His Highness the Amir from King Abdullah II of Jordan inviting him to participate in the High-Level Conference on Preserving Humanity in War, scheduled for Dec 7, 2026, in Jordan.

The Cabinet was also informed that His Highness the Amir had tasked Prime Minister Sheikh Ahmad Abdullah Al- Ahmad Al-Sabah with representing him at the opening of the third phase of Al- Shaheed Park. The Cabinet reviewed the official delegation accompanying His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah during his official visit to Bern, Switzerland, from Sept 27- 29 to participate in celebrations marking the 60th anniversary of diplomatic relations between Kuwait and Switzerland.

The delegation includes Minister of Foreign Affairs Sheikh Jarrah Jaber Al- Ahmad Al-Sabah, Director-General of the Kuwait Direct Investment Promotion Authority Sheikh Dr. Meshal Jaber Al-Ahmad Al-Sabah, Kuwait’s Ambassador to Switzerland Yousef Ahmad AbdulSamad, Assistant Foreign Minister for European Affairs Ambassador Najeeb Abdulrahman Al-Bader, Kuwait’s Permanent Representative to the UN and other international organizations in Geneva Ambassador Nasser Abdullah Al-Hain, as well as several officials from the Crown Prince’s Diwan and Ministry of Foreign Affairs.

The Cabinet also congratulated King Salman bin Abdulaziz Al-Saud and Crown Prince and Prime Minister Prince Mohammad bin Salman bin Abdulaziz Al-Saud, as well as the Saudi people, on the Kingdom’s 96th National Day, which falls on Wednesday. It affirmed the deep-rooted fraternal ties between Kuwait and Saudi Arabia and expressed wishes for the Kingdom’s continued security, prosperity and development. It also commended Saudi Arabia’s development achievements and its positions on Arab and Islamic issues, as well as its support for Kuwait.

The Cabinet strongly condemned the targeting of Taif Governorate by the Houthi militia with a drone last Thursday, which resulted in the death of one person, injuries to two others and material damage after the drone was intercepted and its fragments fell. It affirmed Kuwait’s full solidarity with Saudi Arabia and support for measures taken to safeguard its sovereignty, security and stability and protect citizens and residents.

The Cabinet also condemned the Houthi militia’s attempted targeting of Riyadh with a ballistic missile and attempts to target civilians and civilian objects in Bisha, Taif, Farasan and Yanbu on Sunday. It praised the vigilance and efficiency of the Royal Saudi Air Defense Forces in confronting the attacks, stressing that Saudi Arabia’s security is an integral part of the security of Kuwait and the GCC states. The Cabinet reviewed several agenda items, reports and minutes of ministerial committees and approved several of them, while referring others to the relevant committees for study and submission of appropriate recommendations.

Meanwhile, Minister of State for Municipal Affairs and Minister of State for Housing Affairs Abdulatif Al-Mashari said Tuesday the cabinet approved a draft decree-law on mortgage financing for housing welfare beneficiaries, to ensure sustainable provision of adequate housing for Kuwaiti citizens. In a statement to KUNA following the Cabinet’s weekly meeting, Al-Mashari said the draft decree-law consists of 15 articles covering the scope of application, eligibility requirements, financing mechanisms, repayment procedures and the roles of relevant government and financial institutions. He noted that Article 2 defines the scope of the legislation, allowing financing for purchasing a housing unit from a real estate developer in accordance with Law No. 118 of 2023 on establishing companies to construct and economically develop residential cities or areas, as amended by Decree-Law No. 89 of 2025.

The provisions also cover financing for constructing a government housing plot allocated by the Public Authority for Housing Welfare, subject to its conditions and regulations in completed and ongoing housing projects. Under Article 3, beneficiaries seeking supported mortgage financing must meet the general conditions stipulated in the Kuwait Credit Bank’s real estate loan regulations for purchasing or construction and must not have previously received housing welfare from the State. Article 4 sets out provisions governing supported and non-supported mortgage financing and repayment mechanisms, allowing beneficiaries to combine the two types of financing in accordance with rules and procedures set by the Central Bank of Kuwait.

The beneficiary remains responsible for repaying the principal of both supported and non-supported financing, as well as interest or returns on non-supported financing, while the State bears the cost of interest or returns on supported financing in accordance with the draft decree-law. Al-Mashari said Article 5 provides that all mortgage financing shall be repaid in equal monthly installments, with the repayment period not exceeding 25 years from the date financing is first disbursed, in accordance with Central Bank of Kuwait regulations. Article 6 refers financing procedures for purchasing housing units from developers to Law No. 118 of 2023, while financing for construction on government housing plots will be disbursed in stages in accordance with bank rules.

Article 7 requires financing entities to notify beneficiaries in case of failure to meet repayment obligations. It allows such entities to reschedule the financing for a period not exceeding five years, subject to Central Bank regulations, with the beneficiary bearing interest or returns resulting from the rescheduling period. Article 8 requires financing entities to register mortgage financing cases and provide the Central Bank with relevant documents, including repayment schedules and default cases, in accordance with its regulations.

The minister said Article 9 authorizes Kuwait Credit Bank to act on behalf of the State in signing agreements with financing entities within the framework of the draft decree-law and its executive regulations. It also requires the Ministry of Finance to pay interest or returns on supported financing to Kuwait Credit Bank from the General Reserve, which in turn pays the financing entities. Under Article 10, Kuwait Credit Bank, on behalf of the State, guarantees to financing entities payment of the outstanding balance of supported mortgage financing if a beneficiary defaults. Article 11 provides for Kuwait Credit Bank to obtain a mortgage over the property in return for its obligation on behalf of the State, with the mortgage becoming effective only through an official mortgage contract.

Article 12 grants Kuwait Credit Bank, or an entity designated by the competent minister, the right to purchase all or part of the mortgage financing provided to beneficiaries by financing entities. Article 13 requires the Central Bank of Kuwait to issue rules and regulations governing the provision of mortgage financing and determine interest rates or returns applicable to non-supported financing. Article 14 provides for the executive regulations of the draft decree-law to be issued by decree, upon the competent minister’s proposal, within six months of its publication in the Official Gazette. Article 15 stipulates that the draft decree-law’s provisions shall apply to beneficiaries from the date the executive regulations are published in the Official Gazette.(KUNA)