Business cools, vehicle recalls heat up in March MoCI data

07/05/2026

Business cools, vehicle recalls heat up in March MoCI data

KUWAIT CITY, May 7: Data from the Ministry of Commerce and Industry for March showed an exceptional increase in the number of vehicles recalled due to manufacturing defects, reaching 303 vehicles, a significant rise compared to four recalls in the previous month, representing an increase of over 7,000 percent. The advertising department witnessed a decline in most promotional activities, with notable decreases in sales, discounts, and seasonal offers. Business licenses issued to individuals fell to 59, reflecting a 32 percent decrease. Craft licenses declined to 19, marking a 49 percent drop.

License renewal transactions totaled 341, representing a 12 percent decrease. License cancellations declined sharply to 87, which is a 59 percent decrease. At the corporate level, activity remained limited, with only three new licenses issued. Ten licenses were renewed, representing a 55 percent decrease, and seven licenses were canceled, reflecting a 79 percent decrease and indicating a clear sense of caution among major commercial entities. General trade and services topped the list with 48 licenses, followed by accommodation and food services with 15, and maintenance services with 12. Textile-related industries accounted for 8 licenses, while contracting activities recorded 6 licenses. New partnership licenses decreased to 1,335, a 26 percent drop.

However, renewal transactions rose to 1,511, an increase of 21 percent, indicating that existing companies are committed to continuing their operations despite limited expansion. Company dissolution and liquidation transactions increased to 274, reflecting a two percent rise. Sole proprietorships accounted for the largest share with 1,144 transactions, despite a 27 percent decrease. Limited liability companies ranked second with 421 transactions, representing a 28 percent decrease. General partnerships and limited partnerships declined sharply, reflecting a shift in investor preferences toward lower-risk entities.

Only one transaction was recorded for the establishment of a joint-stock company. Meanwhile, the number of certified auditor signatures increased to 310 transactions. Fees collected from precious metals testing decreased to approximately KD 85,000, an 85 percent drop, despite the continuation of testing operations involving large quantities of gold, silver, and precious stones. Inspection operations resulted in 1,131 violation reports, reflecting an 11 percent decrease, while licensing violations declined by 77 percent.

The number of shop closures decreased significantly, whereas complaints submitted through digital channels rose sharply, reaching 7,654 complaints, an increase of 56 percent. Real estate services transactions fell to 47, a decrease of 41 percent. The cumulative number of Kuwaiti brokers reached 1,812, compared to 134 real estate appraisers. The Anti-Money Laundering Department did not conduct any inspections during March due to exceptional working conditions, while continuing to apply limited penalties, including fines totaling KD 13,500. The value of certificates of origin reached approximately KD 172 million, with a significant increase in exports to Gulf countries of 145 percent. Trade fair licenses also witnessed a sharp decline, falling to just 13 compared to 93 in February.

By Marwa Al-Bahrawi Al-Seyassah/Arab Times Staff