ShareKUWAIT: In a stand against those monopolizing land for investment purposes or other reasons, Kuwait has enacted a new law to curb this phenomenon. To know more about the law, Kuwait Times spoke to attorney Sultan Al-Shimali and international lawyer Bedour Al-Rasheed.
Shimali told Kuwait Times that the law 126/2023 has significant implications for landownership antimonopoly measures. Under this law, there is a fine for unused or undeveloped land that has remained so for two years. After the initial two-year period, there will be a fine of KD 10 per square meter for every plot exceeding 1,500 sq m.
This means a potential fine of KD 15,000 per year. Additionally, the fine increases every two years, until it reaches KD 100. In order to avoid these fines, plots must be at least 50 percent under construction and connected to the power grid. Failure to meet these requirements will result in serious fines, and no procedures such as leasing, selling or buying can proceed without paying the fines.
In cases where the penalty amount becomes substantial, the only way to make use of the land is by selling it through a public auction, supervised by the court. However, the fines must be paid first before any money can be collected. According to Rasheed, Kuwait had implemented law 8/2008 to prevent land monopolization. This law specifically applies to residential plots and houses.
The measures taken to prevent land monopolization include the imposition of fees on the designated area as outlined by the law. Under the new law 126/2023, these measures have been enhanced to effectively prevent monopolization. Rasheed also confirmed that the annual fine has been increased from half a dinar to KD 10, and will continue to increase annually until it reaches KD 100 per square meter for the designated area.
Furthermore, the new law has reduced the area exempted from paying the fine. Shimali elaborated that this change is expected to have a drastic impact on the market value of all types of land, housing and apartments. It is a long-awaited change that aims to bring about serious alterations in Kuwait’s housing market, as the current prices make it difficult for average families with fixed incomes to afford a house.
Understanding the concept of monopoly is crucial in analyzing the market structure. “The monopolization of land in Kuwait poses a significant challenge that requires immediate attention. Privatization, displacement and habitat destruction all stem from unchecked development and greed. It is crucial for the government and local authorities to implement policies to protect and preserve Kuwait’s natural landscapes. Sustainable development and community engagement are key to ensuring the preservation of Kuwait’s diverse landscapes for future generations,” Yousef Abdulaziz, a Kuwait businessman, told Kuwait Times.
