Kuwait Court of Cassation principle number 637

The regulations concerning licenses and structures erected on State property, issued by Decision No. 56 of 2001 of the Minister of Finance, included an amendment to the conditions of licenses and contracts concerning - 169 - Administrative buildings and structures erected on the State’s private immovable property and covered by Council of Ministers Decision No. 592/Sixth of 2001. These are the licenses and contracts that ended under a licensing or contractual system for exploiting a plot of land to erect a property. The contractual term for these licenses or contracts concluded between the Ministry of Finance and investors is ten years from the end of their original term, whatever term was agreed upon renewal. The investor must submit a written application expressing his wish to renew one year before the contract expires. Investors’ properties whose contracts or licenses expired before issuance of those regulations. They must apply for renewal within three months of the date of their publication in the Official Gazette. If the Ministry of Finance approves renewal, a contract shall be concluded under new conditions, obligations, and rental value. If the investor does not agree to renew the contract and license. The buildings and structures shall devolve to the State subject to removal. An example. - Performance of the administrative contract:-