Kuwait’s real estate contracts to have new legal formulas
The Ministry of Commerce and Industry will regulate the formulas of state-owned lands’ contracts and establish ways to monitor them.
H E Khalifa Al-Ajeel, Minister of Commerce and Industry, issued a decision to form a committee to regulate the formulas of state-owned lands contracts, headed by him, and with membership from 9 different government agencies.
This is part of the Kuwaiti government’s steps towards achieving optimal utilization of state-owned lands and monitoring them in a way that prevents some from tampering with them.
Related sources indicated that the newly formed committee will discuss taking the necessary measures to review the formulas of state-owned land contracts and establish ways to monitor them and hold accountable violators, in implementation of the Cabinet’s decision regarding reviewing the formulas of contracts for the exploitation of all state-owned land.
The sources explained that the committee will work for one month and will work on the following:
- Hearing suggestions and opinions of the competent authorities dealing with state-owned lands.
- Reviewing terms, conditions and special formulas for contracts for the exploitation of state-owned lands in all their forms, and making the necessary formulas and amendments to them.
- Finding best ways to monitor them and hold violators accountable, in order to prevent some from tampering with these lands and to enhance the state’s revenues.
Optimum Exploitation
The government seeks to review the formulas of contracts for the exploitation of all state-owned lands (industrial, craft, service, agricultural, warehouses, and others) from a “legal and financial” perspective.
It also aims to develop appropriate visions for the optimal exploitation of these lands in a way that meets the country’s current and future requirements related to investment, commercial, residential, and other lands, and in a way that ensures maximizing the state’s revenues and strengthening its economic system.
Developing a modern land management system is one of the main pillars for achieving the “Kuwait 2035” vision, which aims to transform the country into a regional financial and commercial center.
In light of the excessive dependence on the oil and gas sector, Kuwait has relied on diversifying the economy as one of the main development goals, and has adopted the principle of a free economy.
Procedures and Decisions
In confirmation of the importance of the committee and the procedures and decisions expected to be taken, the headquarters of the General Secretariat of the Council of Ministers was designated as the venue for its meeting, during or outside official working hours.
The committee’s work was also assigned to the Secretariat of Committees in the Council of Ministers, which is responsible for drafting the minutes of the committee’s meetings and mentioning all the procedures and decisions taken therein and the documents submitted to it, provided that the minutes, work of the committee and its recommendations are attached to the report submitted by it to the Council of Ministers.
One Month Term for the Committee
The committee’s term of work is set at one month from the date of its first meeting. After completing its work, the committee shall submit a report to the Council of Ministers. It will include the results it has reached, with the right to seek assistance from whomever it deems appropriate to hear their testimony from any government agency.
Within the framework of the government’s commitment in rationalizing spending, the sources said that the committee members were assigned to carry out the tasks delegated to them according to their specializations without any compensation.
Moreover, the coordination would take place between them to ensure the implementation of the tasks assigned to each of them. They are also committed to submitting periodic reports on the work to the committee chairman whenever requested.
Committee Members
- Minister of Trade and Industry – Chairman.
- Hamoud Abdul Mohsen Al-Daihani – Representative of the Government Performance Follow-up Agency, as Vice President.
- Dr. Maha Hamad Al-Asimi – Representative of the Fatwa and Legislation Department.
- Sarah Ayed Al-Mawed – Representative of the General Sports Authority.
- Eng. Mohammed Eid Al-Adwani – Representative of the Public Authority for Industry.
- Basma Al Jassim – Representative of the National Fund for Small and Medium Enterprises Development.
- A representative of the Ministry of Finance.
- A representative of the General Authority for the Promotion of Direct Investment.
- A representative of the Public Authority for Agriculture Affairs and Fish Resources.
- Representative of Kuwait Municipality.
