35 entities rent sites, racking up KD 31 million in rental contracts

• Notably, 30 out of 55 entities in Kuwait own unused lands and buildings, revealed the Committee for the Inventory of Unused Lands and Buildings and Rented Sites of Government Agencies.

• Fourteen government agencies were not included in the report due to their failure to respond to the Ministry of Finance’s requests in accordance with the Cabinet’s decision.

• The Ministry of Electricity leads with 117 unused land plots, followed by the Ministry of Interior (54), Public Works (45), Finance (29), and Insurance (15). For buildings, the Ministry of Communications has 147 unused, Kuwait Municipality has six, and Zakat House has three.

The Committee for the Inventory of Unused Lands and Buildings and Rented Sites of Government Agencies has revealed startling figures in its preliminary report. Notably, 30 out of 55 entities own unused lands and buildings, while 35 entities hold rented sites. The total value of building rental contracts with these entities is approximately 31 million dinars, according to Al Rai newspaper.

According to the initial report reviewed by the Cabinet from the Ministry of Finance, which was compiled after the committee held ten meetings over eight months, from September 13, 2023, to May 16, 2024, it was found that there are 344 plots of land within the country and eight unused plots abroad.

The number of unused buildings within the country reached 161, while abroad there are two buildings belonging to the Ministry of Foreign Affairs.

In terms of land, the Ministry of Electricity leads with 117 unused plots, followed by the Ministry of Interior at 54, Public Works with 45, Finance at 29, and Insurance with 15. For buildings, the Ministry of Communications tops the list with 147 unused buildings, followed by Kuwait Municipality at six and Zakat House with three.

The report stated that fourteen government agencies were not included due to their failure to respond to the Ministry of Finance’s requests in accordance with the Cabinet’s decision. It explained that the committee did receive a response from the Kuwait Municipality, which outlined the procedures for withdrawing unused lands as follows:

1. The government agency must receive the land within two years from the date of issuance of the allocation decision; otherwise, the decision will be considered void if the site is not received.
2. The entity has a period of six years to implement the designated project on the land for which licenses were issued. If this period is exceeded, the license will be considered void.
3. The Kuwait Municipality does not cancel the licensing decision after the expiry of the time period.

Finance Assignments

Based on the report, the Council of Ministers has tasked the Ministry of Finance, in coordination with relevant entities, with establishing the necessary controls and procedures to regulate the disposal of unused government lands and buildings both inside and outside Kuwait.

This includes setting up controls and procedures for regulating the rental of buildings from the private sector and completing all statements and data on unused lands and buildings.

The council also directed the Ministry of Finance to “coordinate with the Kuwait Municipality, the Public Authority for Civil Information, and other relevant authorities to study the unification of the Geographic Information Systems (GIS) at the state level.

The goal is to create a central system containing detailed data on all lands and buildings owned by the state and government agencies, supervised by one competent authority, with the potential for other relevant authorities to benefit from it.”

According to the decision, the Ministry of Finance is required to provide a report within three months on the procedures it has been assigned to carry out.

Two years to deliver, six years to implement—or face cancellation

The Council of Ministers has tasked the Kuwait Municipality with implementing Municipal Council Resolution No. (MB/LF 2023/06/75/2 D2), which stipulates that sites allocated to government agencies must be handed over within two years from the date of the allocation decision. If the site is not received within this period, the resolution will be considered void.

The resolution also stipulates that the time allocated for implementing government projects is six years from the date of receiving the site, with the allocation considered void if this period is exceeded.

Seven entities hold most unused lands

1. Ministry of Electricity, Water, and Renewable Energy: 117 plots
2. Ministry of Interior: 54 plots
3. Ministry of Public Works: 45 plots
4. Ministry of Finance: 29 plots
5. General Organization for Social Insurance: 15 plots
6. Ministry of Justice: 12 plots
7. Ministry of Endowments and Islamic Affairs: 10 plots

Seven entities own largest number of unused buildings

1. Ministry of Transport: 147 buildings
2. Kuwait Municipality: Six buildings
3. Zakat House: Three buildings
4. Ministry of Foreign Affairs: Two buildings
5. Applied: Two buildings
6. Ministry of Electricity: Two buildings
7. Small and Medium Enterprises Fund: One building

Fourteen entities fail to provide required data

1. Public Authority for Industry, 2. Civil Service Bureau, 3. Public Authority for Roads and Land Transport, 4. Amiri Diwan, 5. Kuwait Fire Force, 6. General Administration of Customs, 7. Public Authority for Sports, 8. Ministry of Information, 9. Public Authority for Agriculture Affairs and Fish Resources, 10. Ministry of Social Affairs, 11. General Secretariat of the Council of Ministers, 12. Ministry of Defense, 13. Ministry of Education, 14. General Administration of Civil Aviation.

Five recommendations

The committee identified five recommendations to address the imbalances observed in unused government lands and buildings. They are:

1. Withdraw unused vacant lands from government agencies by the Kuwait Municipality in accordance with Municipal Council Resolution No. (MBLF 2023/06/75/2) issued on 10/16/2023, which has surpassed the resolution’s timeframe.
2. Address the lack of mechanisms for withdrawing unused buildings by assigning the Public Services Sector at the Ministry of Finance—State Employees Housing Department—to reallocate these buildings to other government agencies that either need them or rent from the private sector. This aims to reduce rental costs. If any agency does not want these buildings, they should be transferred to the Kuwait Municipality after the specified period, with a mechanism in place for the disposal of buildings not used by the municipality.
3. Unify the Geographic Information Systems (GIS) at the state level into a central system that contains detailed data on all lands and buildings owned by the state and government agencies.
4. Issue a regulation to specify the controls for renting buildings from the private sector, including a maximum rental period. This will allow government agencies to build or provide headquarters, with accountability if the specified period is exceeded.
5. Study the establishment of controls and procedures by the Ministry of Finance (Asset Systems Department) to regulate the disposal of unused lands and buildings outside Kuwait.

Eight obstacles

1. Difficulty accessing data due to the lack of a unified government-approved database or Geographic Information System (GIS) to review and verify accuracy.
2. Non-receipt of responses from fourteen government agencies, leaving the committee without data or information about unused lands, buildings, and rented sites.
3. Delayed responses to the Ministry of Finance’s correspondence from some parties.
4. Lack of clarity and incomplete data provided by some parties.
5. Failure to withdraw unused lands after the expiration of the period specified by the municipality.
6. Absence of a mechanism to regulate the reuse of buildings not utilized by the authorities.
7. Lack of a mechanism to determine the period during which government agencies must complete building rental contracts from the private sector.
8. No mechanism for disposing of unused lands and buildings outside Kuwait.