Kuwait Court of Cassation principle number 2390

The regulation concerning licences 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 licences and contracts relating to buildings and structures erected on the State's privately owned immovable property and covered by Council of Ministers Decision No. 592/Sixth of 2001. These are the licences and contracts that ended under a licensing or contractual arrangement for exploiting a plot of land to erect a property. The contractual term of these licences 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 at renewal. The investor must submit a written application expressing his wish to renew one year before the contractual term expires. Investors' properties whose contracts or licences expired before this regulation was issued. They must apply for renewal within three months of its publication in the Official Gazette. If the Ministry of Finance approves renewal, a contract shall be concluded with new conditions, obligations, and rental value. If the investor does not agree to renew the contract and licence. The buildings and structures devolve upon the State subject to removal. Example. Extension of the contract: