The Public Authority for Industry is considering a temporary management model for service and craft plots withdrawn from violators, with three government-owned companies approached to submit proposals for operating the sites until they are re-auctioned to new investors.
The issue has become more pressing as the Authority continues to take action against violations. According to its publications in Kuwait Alyawm, the authority closed 29 plots in Al-Rai, Al-Mirqab Industrial Area 1, Amghara, Subhan Industrial Area, Al-Shuwaikh, Al-Fahaheel and Abu Fatira Craft Area, among other locations.
The issue has gained financial importance because some of the withdrawn plots are large commercial assets that generate significant rental income recorded in the Industry Authority’s budget. Many are located in high-demand areas and already contain operating commercial facilities.
Officials have therefore been examining whether the withdrawn plots should remain operational under temporary government management rather than remain closed until they are offered again to investors. Under the emerging proposal, a government company would temporarily manage each withdrawn plot as a third party until it is offered at public auction and awarded to a new company or investor.
Three investment and facilities-management companies, all wholly owned by government entities, have been contacted to submit proposals for managing service and craft plots allocated for commercial use that have already been withdrawn or could be withdrawn in the future.
The companies have been asked to present comprehensive management plans covering how the plots would be operated and the returns they would seek in return for maintaining their existing commercial activities without interruption.
The alternative under consideration is to immediately re-auction the withdrawn plots, following the approach previously adopted by the Ministry of Finance with projects withdrawn from investors and subsequently offered to new investors through auctions.
The temporary-management option would allow the Industry Authority to continue collecting revenues from the withdrawn plots while they remain operational, rather than leaving commercial assets idle pending a new investment award.
From a government operations perspective, the arrangement could also generate management returns for government-owned companies involved in investment-asset management, while maintaining the commercial operation of the plots could preserve their appeal to prospective investors.
The violations included closed or unused plots, expired contracts, breaches of public-safety and storage requirements, operating activities without licences, encroachment on state property and failure to utilize allocated plots.
Inspectors also recorded conditions that could obstruct firefighting operations, exposed electrical cables, neglected fire extinguishers, damaged shelving and improper storage, including stockpiling materials outside plot boundaries.
Other violations involved operating commercial or craft activities without licences, using facilities belonging to others, establishing workers’ accommodation without a licence and encroaching on state property.
