Eviction Process for Companies and Commercial Shops in Kuwait

In the Kuwaiti commercial real estate landscape, "stability" for companies and trademark owners is considered a fundamental pillar of investment. Consequently, Kuwaiti law strictly prohibits the landlord from evicting a company or store from its premises merely because the written contract period has ended (due to the statutory extension of the contract). Commercial eviction is only ordered under stringent, exceptional circumstances.

Disclaimer: This guide provides general legal information for educational purposes only and does not constitute legal advice. Commercial eviction cases, especially "selling the Jadak," are complex and require an attorney to represent the company. Information last verified: March 2026.

Direct Commercial Eviction Grounds (Rental Court)

According to Article (20) of the Rent Law, the owner of a commercial complex or tower has the right to head to the Rental Court requesting the termination of the contract and forced eviction in the following cases:

1. The Company Defaults on Payment (Exceeding the 20-Day Grace Period)

The most common reason in the office market: If a tenant company or showroom exceeds a period of (20) days from the rent due date without paying.

• Last Chance: The company can avoid eviction if it pays the arrears and expenses before the judge only in the first hearing. But if the delay is repeated a second time and a new eviction lawsuit is filed, the judge will expel the company immediately, and the decoration (Fit-out) funds will be lost.

2. Changing the Commercial Activity Without Consent (Material Breach)

If a company rents a property as "administrative offices" and converts it into a "dental clinic" causing pressure on the building's elevators and parking, without obtaining written permission from the landlord to change the activity, it will be judged for eviction due to violating the conditions of use and harming the building.

3. Closure and the Landlord's Need for Repair or Demolition

• Showrooms and shops may be evicted if the owner of the old property (after 25 years have passed since its construction) decides to demolish the entire building and redevelop it, provided they issue the necessary licenses and pay compensation or arrange alternatives.

The Great Exception: Selling the Store (Al-Jadak) is Not Subletting

The general rule is that "subletting the premises" to third parties warrants immediate eviction. However, Article (20 - E) introduced a vital exception for the Kuwaiti commercial market:

If the original tenant sells the (commercial shop) as a (commercial establishment with its equipment and name / legally known as selling 'Al-Jadak') to a new investor. Here, the new investor is not considered a "subtenant"; rather, they take the place of the seller in the original lease agreement against the landlord's will, and the landlord has no right to evict them under two conditions:

1. The new buyer must practice the exact same activity.
2. It must not cause any harm to the landlord's material rights.

Executive Pressure Procedures (Ministry of Commerce and Municipality)

When a final eviction judgment is issued against a commercial company that refuses to leave:

• The Rent Execution Department communicates with active partners such as (the Ministry of Commerce, the Municipality, the Public Authority of Manpower).
• The company's file is (frozen), preventing it from bringing in labor or renewing its commercial licenses in other branches until the headquarters is vacated, the keys are handed over, and the debts in favor of the landlord are settled. This forms a lethal deterrent to evasive institutions.

To avoid losing assets, Landager offers commercial property managers automated alerts to track adherence to post-dated cheque dates and deal early with any payment default before resorting to the stages of commercial litigation.

Back to Kuwait Commercial Laws Overview.