Kuwait is preparing to allow banks to offer mortgages for the first time, a move that could reshape the financial landscape of diesel -rich country.

The legislation is expected to be passed soon by the Council of Ministers, according to sources cited by the Bloomberg agency.

Movement will unlock a market that could reach in value of $ 65 billiongiving financial institutions to expand their portfolios by up to 40%, according to the same sources, which refused to be named as the information is confidential.

In the country, there is currently no mortgages to be granted, nor is there any regulatory framework, as policymakers feared the political impacts of any seizure of citizens’ housing.

Instead, the government applies a housing program that enables married citizens to acquire a high -profile home or a low -profile plot.

However, this system faces significant problems, with pending applications reaching 103,000 and the wait will reach the decade, which drives the government to make significant changes.

Bloomberg has not been able to contact government officials on Friday to comment on the issue as it is an official holiday for the country.

Thanks to its mineral wealth, Kuwait is one of the richest countries in the world, but is lagging behind in other countries in the Middle East due to the political paralysis for years.

The long -awaited law could provide a “structured framework that enhances the accessibility of beneficiaries on mortgages,” notes Abdulla Al Sumait, the executive of the Managing Director of the Al Ahli Bank of Kuwait Group. “We think it’s a transitional step.”

The adoption of the law on mortgage loans is coming 10 months after Kuwait’s Emir suspended the operation of Parliament For up to four years, paving the way for the government for up to four years, essentially paving the way for the government- appointed by the Al-Sabah family of the Emir of Qatar- to pass critical bills.

A few days earlier, the Council of Ministers approved a draft decree that paves the way for the OPEC member state to sell bonds to foreign investors for the first time in eight years.

These moves have already created optimism in the markets.

Kuwait’s Stock Exchange is overflowing this year of other bay states, with banks pioneering in the shareholder rally – it is noted that the shares of Boubyan Bank, Burgan Bank and Warba Bank record Profits of 17% and now.

The compressed demand for housing means that providing mortgage mortgages, even under a rigorous regulatory framework, could significantly boost the profitability of Kuwait’s financial institutions, according to Justin Alexander, director of Khalij Economics and Analyst Globals.

It could also arouse the interest of foreign investors in the shares of the Kabetian banks. Currently foreign investment in Kuwait banks amount to $ 15.3 billion, accounting for only 15% of investment in the industry.