Regulations issued on allocation of service, craft, commercial lots

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KUWAIT CITY, Dec 24: Minister of Commerce and Industry and State Minister for Youth Affairs Muhammad Al-Aiban issued a ministerial decision specifying the rules and regulations on the allocation of service, craft and commercial lots under the supervision of the Public Authority for Industry (PAI) to limit speculation on these plots, and give the developers and serious investors a chance to use these plots for their enterprises, reports Al-Qabas daily quoting reliable sources.

Sources revealed the decision specifies a mechanism for allocating the above-mentioned plots by putting them up for bidding in a public auction. Sources confirmed that most categories can participate in the auction provided they meet the conditions. Sources stressed that the decision will prevent the exploitation of these plots as it requires the assignment or sale of the usufruct right within not less than three years from the date of signing the usufruct contract with the authority and provided the plot is fully built and utilized to limit speculation on it.

Following are the most important provisions of Ministerial Resolution No. 32 of 2023 applicable to service, craft and commercial plots under the supervision of PAI; regardless of their location:
■ The authority shall put these plots up for bidding in a public auction, such that the plots are awarded to the highest bidders.
■ The plots allocated before this resolution took effect are subject to the provisions of Council of Ministers Resolution No. 141 of 2023 regarding the allocation of industrial, craft, service and commercial plots, as well as the service wages and fees imposed by PAI; or any subsequent decisions issued in this regard.
■ The auction committee is formed as per the minister’s decision and it shall consist of three members from PAI, one member from the Legal Advice and Legislation Department, and one from the Ministry of Finance.
■ A contract shall be concluded with the winning bidder to benefit from the plot for five years, renewable for a similar period or another period as per the request submitted by the beneficiary or his legal representative, and after the authority approves of the renewal.
■ The beneficiary is obligated to use the plot only for permitted activities, by the license issued. It is not permissible to engage in other activities except after obtaining the approval of PAI and other concerned authorities.
■ The beneficiary is obligated to pay the corresponding fees to PAI annually and a 10 percent penalty is applied in case of delayed payment.
■ The beneficiary is allowed to sublease the plot as per the relevant regulations, while it is not permissible to sublease service plots in industrial areas except after obtaining approval from PAI. The subtenant can engage in the same activities stipulated for the beneficiary in the terms and conditions.
■ If the beneficiary wishes to renew the contract, he is obligated to express his desire to renew three months before the end of the contract period. During this period, he is obligated to fulfill all the requirements for renewal and fine will be imposed in case of delay.
■ Employees assigned by the minister have the right to enter the plots to monitor the implementation of the provisions of this decision, and all related decisions and regulations. They have the right to inspect premises, uncover violations, and submit reports in this regard to the concerned authorities.
■ The beneficiary cannot assign the plot without obtaining approval from PAI and it should be done by Article 13 of the relevant law.

On adding or changing activities:
■ The beneficiary or his legal representative should submit the request for changing or adding activities using the forms prepared the authority.
■ Pay the prescribed fees for change or addition.
■ There are no violations or unpaid dues.
■ Obtain approval from the competent authorities for the activities required to be added or changed.

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