Delivery

Kuwait’s Home Delivery Companies Face Bankruptcy Threat as New Regulations Are Implemented

The owners of consumer delivery companies are concerned about potential bankruptcy and increasing debt due to poorly considered decisions by certain government agencies and misleading information provided by some officials to relevant ministers. During a meeting held on Saturday, the owners called for a comprehensive review of the recent decisions and circulars that have negatively impacted their businesses.

Abdulaziz Abdullatif Bandar, Chairman of the Delivery Company Owners Committee, stated that license holders are facing significant challenges because many of the decisions and circulars are unfounded and communicated verbally. He highlighted that some laws change frequently, causing business disruptions, increasing debts, and pushing some companies to the brink of bankruptcy. He revealed that some commercial licenses for delivery services have remained unused since their issuance due to the Ministry of Interior’s failure to implement Article Seven of Ministerial Resolution No. 271/2020. This regulation requires the ministry to request the cancellation of licenses from the Ministry of Commerce for those proven to have committed violations or those not operating in accordance with their licenses.

He warned that if the situation continues, it could lead to the creation of a black market for trading licenses, noting that the total number of delivery licenses issued up to this month is 1,452. He added that most delivery company owners are citizens registered under the Fifth Chapter of the Small and Medium Enterprises (SMEs) Law. These citizens often lack the capital to sustain their businesses and some rely on financial support from the National Fund for SMEs, the Industrial Bank, or commercial banks.

 

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