Reiterate what I said when the former Minister of Finance issued the so-called “chalet” decision, which sparked a massive uproar and was suspended just two days after approval for further study. At that time, I emphasized that any decision must be carefully considered before issuance to avoid harming the interests of citizens and the nation. Any action taken by the Council of Ministers should aim to develop society, not create additional obstacles, as ultimately this harms both citizens and the country.
Recently, the Public Authority for Industry issued a decision to halt the issuance of licenses for commercial, craft and other plots. The decision also restricts the activities investors can undertake on these plots, which undoubtedly stifles business, weakens economic activity, industry and crafts. These are sectors that desperately need encouragement. The region is witnessing significant investment growth in all sectors, and Kuwait must keep pace to avoid being left behind. We see that commercial, industrial, and craft activities in Kuwait are off course due to several obstacles restricting freedom of movement, placing significant pressure on the economy. When hundreds or even thousands of licenses are suspended or denied renewal, many investors face severe crises, primarily failing to meet banking obligations, defaults, and mounting pressure to pay workers’ salaries while operations come to a halt due to expired licenses.
This situation fuels further inflation and negatively impacts other sectors that support commercial, craft or industrial activities. Consequently, citizens hesitate before making any investments out of fear of the risks involved.
Many beneficiaries have invested heavily in developing their plots, only to find their efforts blocked by those obstructing their progress. It is well known that people’s interests are interconnected, so any disruption creates a domino effect. This inevitably impacts credit, loans and the flow of financial liquidity, leading to economic contraction, contrary to the government’s goal of increasing the gross domestic product. Therefore, the Public Authority for Industry’s decision is a step in the wrong direction.
The decision has angered and frustrated citizens, as it has negatively affected them and halted their transactions, including banking operations, which are the backbone of the financial system, as well as the flow of trade and even everyday activities like grocery shopping. Industrial, craft, commercial and service plots are the backbone of economic activity. Governments around the world focus on them, allowing their owners to diversify their businesses, as they contribute to diversifying sources of national income. Kuwait needs this now more than ever. Not everyone should be punished because someone made a mistake.
Only those who committed a violation, such as delaying payment of plot rent, should be held accountable. The rule is that no one shall bear the burden of another, as punishment is individual, not collective. Thus, the matter should be limited to violators, rather than suspending hundreds of licenses or halting hundreds of businesses.
The Public Authority for Industry should encourage the investors. Construction gives value to the plots, not the undeveloped land. Construction on these plots has been going on for years, and various activities have been carried out on them, which have increased their market value and turned them into public benefit facilities. Non-renewal of plot licenses means a death sentence for businesses and enterprises, whether big or small. Some of these plots cost millions, so what will happen to them when their operations cease? This question leads us to another question. Who is responsible for deciding the destiny of these businesses? Is it the Kuwait Municipality, the Public Authority for Industry, the Council of Ministers, or the Ministry of Commerce and Industry?
I kindly submit this question to His Highness the Prime Minister, because the situation has become uncomfortable for business owners, and it harms the interests of thousands of citizens. I would like to ask where we are headed. Do we want to increase the gross domestic product? Is there someone who unintentionally limits economic activity? Will this decision not lead to bankruptcy of many enterprises belonging to the people who worked hard but failed? Countries tend to support businesspersons suffering from difficulties and oblige banks to continue providing them with financing facilities.
Countries do not withdraw plots from beneficiaries or suspend their licenses if they are late in paying rent due to an emergency. Investors should not live under the threat of losing their plots or stopping their businesses. Your Highness the Prime Minister, let us enjoy the return of the government’s prestige and the new era, may Allah preserve its glory.
