Plot withdrawal rules tightened - New fines, eviction process set

KUWAIT CITY, May 11: Minister of Commerce and Industry and Chairman of the Board of Directors of the Public Authority for Industry (PAI) Osama Boodai issued Ministerial Decree No. 8/2026 on the rules, regulations and procedures for withdrawing plots under the supervision of the authority. The decree establishes a clearer legal framework for regulating industrial, service and craft plots, specifying the grounds for withdrawal, the appeals process, and enforcement procedures, along with fines for delays in handing over withdrawn sites.

The ministerial decree, published in the official gazette, Kuwait Al-Youm, on Sunday, cites nine cases under which the minister or his designee will issue a decision to withdraw an industrial plot. These cases include the withdrawal of service, craft and commercial plots in accordance with the regulations, as well as service sites, quarries and vehicle scrap yards. The decision stipulates that withdrawal procedures will commence one month after its publication. The occupant will be notified to vacate the plot within one month. After this, a report will be filed documenting the plot’s return and its closure, and a custodian is appointed if necessary. If non-compliant, the case will be referred to the Legal Department for legal measures like forced eviction and the collection of outstanding payments and usage fees up to the actual date of vacating the plot. The decision imposes stricter financial penalties on those who delay vacating withdrawn plots.

The fine is 25 percent of the annual usage fee for the first month, gradually increasing to 50 percent 75 percent, then 100 percent, and remains at 100 percent for each additional month of delay. A daily fine of KD100 is stipulated for certain activities, such as workshops and craft units. Furthermore, the beneficiary will continue to be charged all outstanding financial obligations until the plot is fully vacated. This decision aims to regulate the management of industrial plots and enhance oversight of their use, ensuring the prevention of encroachments or illegal exploitation and fairness in the distribution and investment of industrial and service plots, while preserving the rights of the State and adhering to legal and regulatory standards. The decision mandates the submission of the final report to the director general to pave the way for reallocating reclaimed plots according to the mechanism adopted by the authority.

The decision allows appealing the withdrawal decision within 30 days of its publication or notification. Such an appeal will lead to suspension of enforcement procedures until a decision is reached. If the appeal is rejected, eviction procedures will be completed within two weeks and the plot owner is obligated to pay all outstanding dues up to the date of handover. The decision permits the director general to extend the eviction period for up to six months, provided all dues are paid in advance.

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