Kuwait launches nationwide campaign to reclaim inactive sites

• Inspection campaigns give a three-month warning to resume activity, followed by a one-month closure, after which contracts are canceled, and vouchers withdrawn if violations persist.

The Public Authority for Industry is conducting extensive inspection campaigns across various regions of the country to identify closed or unutilized industrial and craft facilities. Such cases represent a significant breach of the usufruct contracts issued by the authority.

Responsible sources revealed to Al-Qabas newspaper that inspection campaigns targeting closed industrial vouchers are preceded by a three-month warning period to resume the activity, followed by the closure of the voucher for one month. If there is no response or correction of the violation, the usufruct contract will be canceled, and the industrial voucher will be withdrawn.

The sources emphasized that an investor’s closure of the voucher and failure to engage in the licensed activity constitute a serious violation of the allocation contract.

This violation obligates the investor to carry out industrial activities; otherwise, the usufruct contract will be considered terminated for breaching the grant conditions, in accordance with the law and the Industry authority’s regulations governing usufruct contracts.

The sources explained that the Public Authority for Industry considers closed industrial vouchers, or those not engaging in any activity, as a missed opportunity for other investors waiting to obtain an industrial voucher to begin their operations.

Furthermore, the Director General of the Public​Authority for Industry issued several decisions to close seven violating industrial vouchers for a period of one month.

The decisions, which were reviewed by the newspaper, stated that the closure would last one month. If investors fail to address the violations identified by the authority, stricter measures will be implemented, including the withdrawal of the industrial voucher, cancellation of usufruct contract rights, and revocation of the license.

The violations of the industrial vouchers that the Public Authority for Industry decided to close included the following: four closed and unused vouchers, vouchers leased to others in industrial and craft areas where leasing is not permitted, exploitation of vouchers for unlicensed commercial and industrial activities that violate their licensed purpose, and violations involving the discharge of prohibited oils or materials into sewage networks, rainwater networks, or open areas by an industrial company.

The closed industrial vouchers are located in the Mina Abdullah area, Al Rai area, and Al Shaiba Industrial West.