Kuwait Shuts Down 39 Industrial Plots Over Unpaid Rent

Public Authority for Industry Enforces Closure Due to Outstanding Rental Fees

Introduction

Kuwait's Public Authority for Industry has announced the closure of 39 industrial plots due to unpaid rent. This decision, as outlined in Resolution No. 61 of 2024, follows a series of warnings to beneficiaries to settle their financial obligations. The authority's action aims to enforce compliance with rental agreements and recover outstanding dues.

Details of the Closure

The closure affects industrial plots in several key areas, including Amghara, East Ahmadi, Abdullah Port, Al-Rai, Al-Mirqab, and Shuwaikh. The authority's decision is based on a failure to pay required rental fees despite prior warnings. According to the resolution, beneficiaries were given a one-month notice to clear their dues, after which services would be suspended and legal action pursued in accordance with Industry Law No. 56/1996 and its amendments.

Penalties for Non-Compliance

Article Two of the resolution stipulates that if the debts remain unpaid after one month of the closure, more severe penalties will be imposed. This step underscores the authority’s commitment to enforcing payment and managing financial responsibilities effectively.

Background and Rationale

The decision was made following a recommendation from the Permanent Committee for Industrial Violations during its meeting in July. The closure aligns with the authority’s debt collection mechanism and is supported by Law No. 56 of 1996, which governs the industry sector in Kuwait, and Law No. 22 of 2009 regarding the Unified Industrial Regulation Law for Gulf Cooperation Council countries.

Impact and Future Actions

The closure of these industrial plots highlights the importance of adhering to financial obligations within the industrial sector. It serves as a clear message to other beneficiaries about the consequences of failing to meet rental payments. The authority will continue to monitor compliance and enforce regulations to maintain the integrity of Kuwait's industrial sector.

Conclusion

The Public Authority for Industry’s decision to close 39 industrial plots due to unpaid rent reflects its efforts to enforce financial discipline and recover outstanding dues. As the situation evolves, stakeholders in the industrial sector are advised to ensure timely payments to avoid similar penalties and disruptions.