Kuwait tightens industrial rules with plot withdrawals, heavy daily fines for violations
Minister of Commerce and Industry and Chairman of the Public Authority for Industry Osama Boodai has issued Ministerial Resolution No. 8 of 2026 establishing new rules and procedures for withdrawing plots of land and sites that fall under the supervision of the Public Authority for Industry.
The decision identified nine cases in which industrial plots may be withdrawn, including obtaining licenses or plots through false or misleading information or illegal methods, halting production for six months without approved justification, reducing production capacity, or changing industrial activity without the authority’s approval.
Other violations include failure to register or update project data in the industrial register, misuse of allocated sites, unauthorized leasing or transfer of plots, and breaches related to environmental standards, safety and industrial security regulations.
The resolution also covers the withdrawal of service, commercial and craft plots of land, as well as the cancellation of allocations for service sites, sand quarries, gravel storage areas, car scrap yards and craft units, in accordance with regulations governing each activity, a local Arabic daily reports.
Under the new rules, the concerned administration or committee will begin withdrawal procedures one month after publication of the decision in the Official Gazette. Concerned parties must vacate and hand over plots, sites or units free of liabilities within one month from the date of notification.
The decision states that failure to comply with evacuation orders will result in the case being referred to the Legal Affairs Department to pursue legal action, including eviction, expulsion and collection of outstanding financial dues.
It also grants affected parties the right to appeal withdrawal decisions within 30 days from publication or notification, with implementation procedures suspended until a final ruling on the appeal is issued.
The resolution further authorizes the Director General to extend the evacuation deadline for up to six months, provided all required fees are paid in advance.
Monthly fines will be imposed for delays in vacating withdrawn sites, starting at 25 percent of the annual usage fee in the first month and rising to 100 percent from the fourth month onward.
Additional daily fines of 100 dinars will apply to small industrial workshop units and craft facilities.
The decision also confirmed that buildings and facilities constructed on withdrawn plots will be handled according to contracts and applicable laws, while the authority retains the right to dispose of machinery, equipment and movable assets on the sites to recover unpaid dues.
The regulation becomes effective immediately upon publication in the Official Gazette.
