06/11/2024
06/11/2024
KUWAIT CITY, Nov 6: Kuwait has established a set of specific regulations and controls governing real estate ownership by noncitizens, with differentiated rules depending on the nationality of the individual. These rules are designed to balance the interests of the state while maintaining economic and legal stability in the real estate market, reports Al- Seyassah daily. Regulations for Gulf Cooperation Council (GCC) Citizens -- GCC nationals, including citizens from Saudi Arabia, the UAE, Bahrain, Qatar, Oman are treated the same as Kuwaiti citizens in terms of property ownership. This means they are allowed to own real estate in Kuwait without any additional conditions or requirements, reflecting the close economic and political ties between GCC countries.
Regulations for other Arab nationals: For non-GCC Arab citizens wishing to own property in Kuwait, several conditions must be met such as there must be a reciprocal agreement between Kuwait and the applicant’s home country regarding property ownership; the applicant must obtain approval from the Kuwaiti Council of Ministers; the property must be in a residential area designated for private housing.
This is in addition to the applicant must have lived in Kuwait for at least ten years; submitting a clean legal and criminal record is required; the applicant must demonstrate the financial capacity to own the property; the property should not exceed 1,000 square meters and the applicant must not own another property in Kuwait. If non-GCC and non-Kuwaiti heirs inherit property in Kuwait, they must sell the property within one year unless they obtain exceptional permission to retain it. This law ensures that property ownership remains in line with the regulatory framework and prevents non-citizens from holding real estate in the long term without legal exceptions.
When a Kuwaiti woman loses her citizenship, her real estate rights depend on her new nationality; if the woman becomes a citizen of a GCC country, she retains her real estate rights and is treated as a Kuwaiti national for ownership purposes. If the woman becomes a citizen of another Arab country, she is subject to the same conditions that apply to non-GCC Arabs (e.g., residency, approval from the Council of Ministers, and a clean legal record). Meanwhile, the housing applications submitted by individuals who have had their Kuwaiti citizenship revoked will be canceled and treated as if they never existed, reports Al-Seyassah Daily quoting PAHW sources. This decision follows the implementation of the provisions outlined in Article 1 of the Public Authority for Housing Welfare (PAHW) regulations, which specifies that the law applies to “the Kuwaiti family consisting of a Kuwaiti husband, his wife or wives, and their unmarried children.”
Moreover, Article 3 of the same regulations requires that the head of the family must hold Kuwaiti nationality to register a housing application. Since individuals who have had their citizenship revoked no longer meet this essential condition for housing eligibility, their housing applications will be invalidated. Regarding the process of handling these cases, the Real Estate Registration Department at the Ministry of Justice is responsible for organizing and managing such situations. The department is equipped with the necessary mechanisms to address these cases and ensure proper implementation of the legal requirements. If the woman becomes a citizen of a non-Arab foreign country, she loses her entitlement to own property in Kuwait. If she inherited property, she must sell it within a year unless she has a child from the deceased, in which case she can keep the property under certain exemptions. If the woman is stateless, Kuwaiti laws prohibit her from owning real estate. She must dispose of any property she owns, either by selling or relinquishing it, following the appropriate legal procedures. These regulations reflect Kuwait’s effort to regulate real estate ownership by non-citizens, ensuring that ownership rights align with national interests and maintain the balance between legal requirements and diplomatic relations. The rules seek to control the extent of foreign ownership while allowing for some flexibility under specific conditions, such as reciprocity and exceptional approvals, to safeguard Kuwait’s real estate market and legal framework.
The recent announcement by the Supreme Committee for Nationality Investigation, which revealed the withdrawal of Kuwaiti citizenship from 489 individuals, has led to significant discussions regarding the consequences of this decision. The Undersecretary of the Ministry of Justice also issued a circular requiring notaries in real estate and family sectors to verify the civil IDs of service applicants using the “Sahel” or “My Identity” applications. Real estate professionals have hailed the decisions as a positive move to stop individuals who obtained Kuwaiti citizenship fraudulently from benefiting from state resources such as residential homes. Real estate experts emphasized that the authorities swiftly intervened when those whose nationalities were revoked attempted to sell or transfer their residential properties to relatives or others. The concerned authorities successfully halted such attempts to manipulate real estate ownership, including residential, commercial, and investment properties. Experts have also dismissed rumors about significant price reductions in residential properties linked to the withdrawal of nationalities, clarifying that real estate prices remain stable. They cautioned against suspicious offers and advised potential buyers to verify sellers’ documentation with the Ministry of Justice’s Real Estate Registration Department before proceeding with any transactions.
Real estate analyst Ahmed Al-Ahmad highlighted the issue of forgers benefiting from state services, noting the importance of distinguishing between two groups: forgers who illegally attach themselves to Kuwaiti families and dual nationals holding foreign citizenship. He supported the decision to prevent individuals whose citizenship was revoked from trading in real estate, emphasizing the importance of protecting state property. Al-Ahmad also clarified that the withdrawal of citizenship has not impacted real estate prices but rather served to tighten control over fraudulent activities. He called for a clear government plan to manage the seized properties and ensure transparency in how the government handles them. The decision, he argued, would ensure that properties are not manipulated by those who illegally obtained them, benefiting those who are genuinely entitled to these resources. Additionally, the circular issued by the Ministry of Justice mandates the verification of the civil ID via the “Sahel” or “My Identity” applications for real estate transactions involving individuals whose nationalities have been revoked, ensuring tighter controls over property dealings in Kuwait.