One of the most expected reforms for the year 2025 is the new mortgage law, under discussion between government ministries and banks and the Central Bank of Kuwait (CBK). If approved, the legislation, which was under discussion for years, will allow commercial lenders to issue residential loans; Currently, Kuwait’s credit bank, owned by the country, may only.
“This is a change for games for banks in Kuwait,” says Ahmed Duwaisan, Acting Executive Director and Administrative Director of Corporate Banking Services at Al Ahly Bank in Kuwait. “Once the mortgage law comes out, it will help the work of retail significantly. This is a new way for traditional banks like us.”
According to local media reports, the new law will allow commercial banks to provide up to 750,000 dollars over a period of up to 25 or 30 years; The current cover is 15 years. The debt ratio is expected to increase to the required income, giving borrowers more flexibility.
With more than 100,000 hanging applications, demand is tremendous, but also a great growth opportunity in the Kuwait banking industry.
“With the increase in government discussions on mortgages,” says Abdullah Al -Tuwaijri, CEO of consumers and private banking services. “
The proposed reforms are also expected to affect real estate investment.
“The reforms such as the proposed mortgage law and the recent laws to prevent land monopoly will support local real estate, which is an important assets category for investors,” says Ali Khalil, CEO of Markaz, a Kuwaiti asset management and investment bank. The real estate market in the emirate has already shown impressive growth, as sales increased by 36 % year on year in 2024. The housing is expected to be a major driver in the ambitious government wing of $ 121 billion, which increases the fueling of the sector’s expansion.
