Kuwaiti citizens eligible for state housing assistance will be able to obtain home financing from local banks and finance or investment firms under Decree-Law No. 114/2026, the Ministry of Finance has confirmed. The scheme, supervised by the Central Bank of Kuwait, offers an alternative to the construction and purchase loans provided by Kuwait Credit Bank (KCB).

The law takes effect once its executive regulations are published in the official gazette, Kuwait Al-Youm. The ministry said the regulations are expected within six months of the decree-law's publication, alongside rules to be issued by the Central Bank.

Ahmed Al-Ansari, who chairs the committee set up for the purpose by ministerial decree, said the financing is limited to buying a unit from developers approved by the Public Authority for Housing Welfare or building a house on a government-allocated plot. Expansion, renovation and construction on privately owned land are excluded.

The financing has two parts: a subsidized portion, with interest covered by the state and granted once to those who have not previously benefited from housing assistance, and an additional non-subsidized portion for buyers from developers, offered on lenders' own credit terms. Citizens may choose between this and KCB loans.

Committee member Faisal Al-Muzaini said repayments will be made in equal monthly installments over no more than 25 years, with a possible grace period on the principal, during which interest still accrues. Early repayment is allowed, with interest waived on the amount settled.

In case of default, lenders must issue formal notice, and financing may be rescheduled for up to five years. The regulations are to ensure defaults do not lead to foreclosure or immediate sale. KCB will pay lenders the remaining subsidized balance on the state's behalf, while the beneficiary remains fully liable and the property stays mortgaged until settlement.