Kuwait suspends over 600 licenses citing lack of mandatory approvals

The Ministry of Commerce and Industry has announced the suspension of more than 600 commercial licenses after uncovering serious irregularities in the way they were issued. These licenses had been granted on the basis of exemptions that bypassed key legal requirements, most notably the mandatory approvals of the Kuwait Municipality and the Kuwait Fire Force.

According to informed sources, the discovery came after a joint review carried out by officials from the Ministry of Commerce, the Ministry of Interior, and the Municipality.

The inspection focused on commercial licenses issued with exemptions between 2021 and August 2025. The results revealed widespread violations of the regulations governing business licensing.

The suspended licenses fall under individual and partnership activities and are spread across various regions of Kuwait. While a significant concentration was found in Jleeb Al-Shuyoukh and Khaitan, sources confirmed that the irregularities extended far beyond these areas.

As part of the probe, four employees of the Ministry of Commerce who were found to have misused their powers to issue licenses with exemptions have been stripped of their authority. Other officials connected to the licensing process have also been questioned, with investigations still ongoing.

The crackdown is closely linked to a broader security campaign led by the Criminal Security Sector last week under the supervision of First Deputy Prime Minister and Minister of Interior Sheikh Fahad Al-Yousef.

That campaign, which involved multiple government agencies, uncovered 19 businesses in Jleeb Al-Shuyoukh and Khaitan operating in violation of licensing rules, including cases of entirely unlicensed commercial activities.

Following these findings, the Ministry of Commerce referred the suspended licenses to the Municipality for reassessment. Owners will either be allowed to regularize their status by meeting all requirements or forced to relocate their businesses to addresses that comply with licensing rules, especially in cases where businesses were registered at private residences.

Investigators are also examining suspicions of fraud and forgery in the issuance of certain approvals. Sources revealed that some licenses were supported by manual approvals from the Municipality, despite the fact that an electronic system had been in place throughout the period under review. This raised questions about the authenticity of these documents and prompted a parallel investigation to verify whether they were legitimate or falsified.

The Ministry of Commerce and the Municipality have now launched a joint audit to review all licenses that bypassed standard procedures. This includes a closer look at licenses backed by manual approvals, with the aim of taking legal and procedural action against both license holders and the employees responsible for the violations.

The move reflects growing concerns about governance and oversight in Kuwait’s licensing system. The failure to obtain mandatory approvals from the Municipality was described by sources as a clear violation of the law and regulatory procedures. Authorities believe that the misuse of exemptions compromised regulatory integrity and created loopholes that may have encouraged illegal commercial activity.

In response, the Ministry of Commerce is considering restricting the authority to approve exemptions for commercial licenses. Instead of being delegated to individual employees, this power would be centralized at the senior management level, with only officials of director rank or higher permitted to authorize exceptions.

Officials believe this reform is necessary to prevent the recurrence of such violations and to strengthen oversight over the licensing process. It is also seen as a step toward restoring public confidence after questions were raised about how hundreds of businesses were able to operate without meeting the required conditions.

The ongoing investigations are expected to determine the extent of the violations, clarify the role of employees involved, and establish whether forgery took place. Legal measures are anticipated against violators, as Kuwait seeks to tighten enforcement and ensure greater transparency in the issuance of commercial licenses.

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