Your Piece of Kuwait

This is another article in our GCC series regarding real estate, basic rules for foreign property ownership, and other laws and regulations in the Middle East for foreigners. The topic of today is Kuwait.

Kuwait became an independent state in 1961, and is a relatively new kingdom. Most Americans over age 45 are familiar with the country's role in the Persian Gulf War when Coalition troops led by the U.S., UK, Saudi Arabia and Egypt liberated this small country from a brief occupation by Saddam Hussein's Iraqi Army and Republican Guard. However, its history goes back much further, with its ruling family taking charge of the province in the 1700s.

Photo credit: Kuwait City's world famous skyline, with the Kuwait Towers which became famous during the 1991 Persian Gulf War U.S. and allied liberation of the country from occupation by Saddam Hussein's Iraqi Army in the foreground.

Photographer: Anson Fernandez Dionisio, uploaded to iStock February 2022

Photo credit: Kuwait City Souk Sharq Marina

Uploaded to iStock by user typhoonski January 2015

Kuwait's history may be short compared to other countries in the region with ancient civilizational roots, such as Egypt, Iran, or Turkey-- but its economic prowess is undeniable. The country boasts the worlds highest per capita incomes due to its oil and gas services, which like neighboring Saudi Arabia kicked into production since the 1930s, with the oil and gas sector contributing 90% of export revenues and government income, accounting for half of the GDP. Thus it is not a surprise that Kuwait is an important member of OPEC and the bloc's OPEC+ production agreements with Russia.

It also has a traditional and vibrant culture, with hospitality, family, and social connections being an important keystone of the Kuwaiti people.

Photo credit: Interior of Kuwait's Grand Mosque

Uploaded to iStock by user typhoonski January 2015

With a simple introduction out of the way, let us get into the meat of today's topic--the regulations on foreign ownership of real estate, and a general overview of Kuwait City for foreigners interested in purchasing property here. These would include, given the proximity to the Iranian border Persian origin as well as South Asian Muslim businessmen.

To first be eligible to own real estate in Kuwait, you must first obtain a residency permit from the Ministry of Interior and other valid documentation , such as a passport. Foreigners are not allowed to buy large land plots in the country, only select residential or commercial properties and even then--only in designated areas, to be eligible, you need to meet specific requirements, thus, you need to be:

1) Over the age of 21

2) Have said residency permit

3) Clean criminal record

4) Bank statements, details, etc. to prove financial stability.

Such restrictions are quite common in the GCC countries including neighboring Saudi Arabia.

Photo credit: Kuwait City Al Shaheed Park

Uploaded to iStock by user urbazon Feb 2024

To obtain a Kuwaiti residency permit, there are many methods to obtain it, such as work visas which can be made through your employer. If you are not going through a Kuwaiti businessman or corporate employer, you can apply for a residency permit via the Ministry of Social Affairs and Labor, and have it issued through the Immigration and Passport department. The max period of residency is five years before the permit must be renewed.

To buy and own property, you'll need to first apply for a work and residence permit in Kuwait, and your passport to be valid from at least two years from the date of arrival in Kuwait, other documentation such as IDs and health certificates may be required.

You must also apply to the Real Estate Registration Department of the Kuwaiti Ministry of Justice to obtain a clearance certificate. In your request, you must include quite a lot of details, including the reason and purpose for requiring such a certificate

If you plan to start or purchase a company, you must be aware of the fact that your corporation must have its shares owned by Kuwaitis – at least 51%. Then if you intend to own real estate in Kuwait through corporate ownership such real estate must be used only for verifiable business activities such as retail shops, shipping of goods, or office space leasing etc.

Do not despair though--you can, as a foreigner, own 100% of a property – assuming you are buying in a designated zone.

These designated zones for Kuwait are:

1) Salmiya

2) Al Shaab Al Bahri

3) Abu Al Hasaniah

4) Bneid Al Gar

5) Salwa

Now, to the legal process--

Note – it is important, and a cornerstone of success, to hire and work with a local lawyer/real estate agency, as the laws in Kuwait are complicated and local legal advice and expertise is a necessity.

First, a deposit of 10% must be sent to the seller, but before that the aforementioned certificate from the Kuwaiti government is necessary, in which the Ministry of Justice of Kuwait will either grant the approval or refuse to approve your purchase.

Assuming the seller and the government both agree, you will proceed to buy the property and then register the new ownership with the Kuwaiti government.

I reiterate that you can only buy property and buildings, but not undeveloped land.

As in Qatar, foreigners can apply for mortgages, financing up to 70% of the property value with the remaining being a down payment, which is why bank statements and other documentation regarding your financial stability are critical as is working with a Kuwaiti realtor and law firm.

Photo credit: Kuwait City Kipco Tower

Uploaded to iStock by user urbazon June 2024

General Overview of Designated Zones for Foreign Property Ownership in Kuwait

1) Salmiya

By the beach of the Persian Gulf, this is considered a residential district and has a lot of amenities ranging from high-end restaurant venues for weddings to some of the best health clinics in the country. There are also several international educational facilities, and so a small community of expats has formed here.

2) Al Shaab Al Bahri

Also located by the Gulf, this is a prestigious residential area, a bit more wealthy than Salmiya and it is here where rich Kuwaitis reside.

3) Abu Al Hasaniah

One of the newest districts added to Kuwait city, is suited for the middle-class and income. It is located to the south of the city. If you would prefer a more simple and average lifestyle, it can be worthwhile to seek property in this district.

4) Bneid Al Gar

It is neither fully residential or commercial, more like a mixed area, located close to the famous landmark Kuwait Towers that are featured on Kuwaiti postage stamps and tourist souvenir mugs (pictured above), it is full of residential and commercial facilities. It is not right by the beach but it is a short taxi ride to it. Due to its central location quite a lot of areas in Kuwait City are accessible from here.

5) Salwa

A mostly residential neighborhood, it is similar to Salmiya and Al Shaab Al Bahri, nothing very unique about it, but it could prove more affordable than the previously mentioned neighborhoods.