Kuwait is reforming real estate, tax and economic laws to boost investment
The transformation of the Kuwaiti institutional economy is based on a comprehensive review of its legal framework amid the urgent global challenges, changing models of production and investment, moving forward in the digital economy, and strengthening the competitiveness of the financial region.
The modern initiative has gained prominence as a structural reform tool aimed at aligning the legal framework with the 2030 global sustainable development goals and the Kuwait Vision 2035.
Kuwait’s legal reforms
As part of efforts to support innovation and entrepreneurship, the Cabinet in November approved a draft law governing digital transactions.
The legislation creates an enabling environment for digital business models and introduces regulatory sandboxes to allow innovators to safely test products and services before selling.
It also sets up an integrated security framework that includes privacy protections, clear terms and conditions and effective dispute resolution mechanisms, increasing confidence in electronic transactions and promoting a safer, more transparent digital commerce sector.
The draft law is described by officials as a milestone in the modern legal reform, which provides comprehensive rules for digital commerce while balancing the economic freedom and supervision necessary to improve the attractiveness of investments in the digital economy and support the goals of sustainable development.
Financial regulations
In parallel, Decree-Law 60 of 2025 on finance and liquidity was issued in March to strengthen financial stability and support economic growth in line with Kuwait Vision 2035.
The law sets a public debt limit of KD30bn ($98bn) and allows the issuance of financial instruments with maturities of up to 50 years.
Since it remains in force for 50 years, this law gives Kuwait more financial flexibility to access domestic and international markets and improve liquidity management, according to the Minister of Finance at the time and the Minister of State for Economic Affairs and Investment.
Officials describe it as an important step in building a diverse and sustainable economy that works for the state and its citizens.
In order to improve the visibility of goods sold and real estate, the Minister of Justice Counselor Nasser Al-Sumait issued Decree 194 of 2025, which regulates the payment rates and consideration of money in legal deeds, contracts, credit approvals and loans issued by the Ministry of Justice.
The decision requires proof of payment by bank transfer or certified checks, to support efforts to combat money laundering, to limit fraudulent lending and credit approvals, to close legal loopholes that were previously exploited due to illegal activities, to protect buyers and sellers from fraud and counterfeit sales, and to strengthen financial supervision.
Kuwait real estate laws
August saw Decree Law 89 of 2025 amending the provisions of Law 118 of 2023, known as the housing developer law, which gives developers greater power to provide a variety of housing products designed for different family needs, capacities and sizes of units, to support market responsiveness and the diversity of housing supply.
In January 2025, the Ministry of Finance issued the regulatory rules for the tax determination of international corporate groups, clarifying the provisions of the law, defining the procedures and methods of implementation, improving transparency, and providing clear guidance to stakeholders in accordance with international standards.
Preliminary estimates show that the tax could generate KD250m ($815m) in annual revenue, strengthening the government’s ability to build a strong, sustainable economy that can face future challenges.
In order to protect financial security and strengthen the fight against money laundering, the Cabinet in December 2025 approved a draft law that adds Article 12 bis to Law 111 of 2013 regarding the licensing of commercial outlets, and criminalizing other money transfer schemes – procedures that are considered one of the most dangerous financial activities and major threats to Kuwait’s financial stability.
Tax guidelines
Legal experts told Kuwait News Agency that the law is not just a regulatory framework but a determining factor that shapes the investment climate and economic behavior.
Dr. Ali Al-Mutairi, the Dean of the College of Administrative Sciences at the University of Kuwait, said that revising the existing law aims to create a modern legal environment that meets the broad needs of development, strengthens transparency and accountability in government institutions, achieves social justice and equality before the law, and ensures sustainable stability.
Dr Al-Mutairi noted that economic laws that support sustainable growth – especially in investment, trade, taxation, labor and small and medium enterprises – reduce legal and procedural risks for investors, promote entrepreneurship and innovation, improve market efficiency through fair competition and prevent self-dealing practices.
He added that academic studies emphasize the urgent need for continuous revision of economic laws to respond to the digital transformation and global economic exchange, with legislative amendments acting as the main driver of growth rates, job creation and productivity.
Meanwhile, Ahmad Al-Tuhaih, Vice Chairman of the Kuwait Economic Society, highlighted the importance of renewing the legal framework to keep up with the economic development in the world.
Economic changes
He described the government’s approach as implying a new stage of institutional reform in line with global conditions and the vision of Kuwait’s development, stressing that balancing the social, criminal and economic pillars reflects a comprehensive strategy.
Al-Tuhaih expressed hope for the continuation of economic law, including establishing an economic court and revising important laws such as the Commercial Companies Law, the Direct Investment Promotion Law and the Public-Private Partnership Law – laws that he said form the backbone of Kuwait’s business environment.
He stressed that simplifying procedures, increasing governance and transparency, renewing competition and anti-monopoly laws, and harmonizing labor market laws with market needs will protect sustainable profits without undermining the attractiveness of the economy.
