A hotel in Kuwait is licensed by the Ministry of Information, not by the Ministry of Commerce and Industry, although the commercial license of the Ministry of Commerce remains a required document. Since Council of Ministers Decision No. 441 of 2015 moved the tourism sector to the Ministry of Information, hotel licensing has been governed by that ministry's decisions, today chiefly Ministerial Decision No. 833 of 2022 on the licensing of media and tourism activities, as amended. Its Article 12 allows a hotel to be established or operated only by a company formed under the Companies Law. This article explains how the decision works with the commercial licensing law, what an application must contain, how classification and renewal run, and what an operator, owner or lender should write into the agreements.
The legal framework: who licenses a hotel in Kuwait
Ministerial Decision No. 833 of 2022 was issued on 19 June 2022 and replaced earlier decisions of the Ministry of Information, among them Decision No. 18 of 2016 on operating licenses for tourism, hotel and resort establishments and Decision No. 123 of 2016 on the activity of hotel and property booking. It was amended by Decision No. 934 of 2022, which replaced Articles 2, 5, 14 and 15, and later by Decisions No. 16 and No. 60 of 2023. Article 11 of Decision 833 names the Tourism Department as the body that receives applications for hotels, hotel apartments, resorts, organized tourist trips and internal tourist guiding, and recreation parks, beaches and coasts.
Two regimes therefore apply side by side. The Ministry of Information grants the tourism license for the hotel activity. The Ministry of Commerce and Industry grants the commercial license under Law No. 111 of 2013 on the licensing of business premises, and Article 2 of Decision 833, as replaced, asks for a copy of that license with the application. Our standing advice is to plan the whole sequence before signing a lease or management agreement, because a missing approval holds up the rest.
A hotel may be operated only by a company (Articles 12 and 13)
Article 12 of Decision 833, read with the Companies Law (Law No. 1 of 2016), states an exception to the general chapter: a hotel establishment may be set up or operated only by a company existing under the Companies Law and after obtaining a license from the Ministry of Information. An individual trader, a foreign owner without a Kuwaiti entity and an unincorporated partnership therefore cannot hold a hotel license.
Article 13 adds a timing rule that investors often miss: a company that wants to set up or operate a tourist hotel must obtain the approval of the Ministry of Information before starting construction of the building. Approval of the design and the project concept therefore comes first, and construction contracts should be conditional on it. Where a foreign investor is behind the company, the direct investment regime of Law No. 116 of 2013, which the decision also lists, may bring in the Kuwait Direct Investment Promotion Authority, and the structure should be checked before the license application.
The commercial license under Law No. 111 of 2013
Article 1 of Law No. 111 of 2013 forbids opening or owning an establishment for trade, a profession or a craft without a license from the Ministry of Commerce and Industry, unless special laws govern the activity, and requires the ministry to issue the license once the conditions are met, refusing only for failure to meet them. Article 2 sets the applicant conditions, including nationality of Kuwait or another Gulf Cooperation Council state for the license holder, and requires a foreign company or branch to meet the rules governing foreign companies.
Article 6 allows the license to be issued on a temporary basis for a period set by the regulations, during which the holder must obtain the remaining approvals from the other bodies for the activity and for the suitability of the site. If the temporary period ends without the approvals because of the applicant's default, the temporary license is canceled. For a hotel, this means that the commercial license, the tourism license and the building approvals have to be sequenced with the opening date in mind, with a fallback if one body is slow.
The hotel application file (Article 14 as replaced, and the supporting approvals)
Article 14 of Decision 833, as replaced in 2022, lists the documents for a hotel license: the company's contract of incorporation and articles, the commercial register extract, the commercial license, the authorized signature certificate, the civil identity card, the contract of the managing company if there is one, the title deed or lease of the property, the tourism plan, the structural plan and the economic feasibility study. Article 2, as replaced, adds a criminal record certificate showing no felony or crime against honor or honesty unless the applicant has been rehabilitated, and the fee receipt.
The Ministry's published service pages for the operating license also ask for the Kuwait Municipality approval, the license of the Kuwait Fire Service Directorate, the certificate of the Ministry of Social Affairs and Labour, the advertisement license and the civil number of the building from the Public Authority for Civil Information. In the original text of Article 14, a classification certificate and a bank guarantee of KWD 10,000 appeared in the list. The replacement text no longer lists them, and the classification route now runs through Article 15. Because the later 2023 amendments were not part of our review, we confirm the current document list with the Ministry before filing.
Decision time, license term and fees (Articles 4, 5, 16 and Schedule 1)
Article 4 of Decision 833 gives the department ten days to study the application. If it is complete, the assistant undersecretary decides within twenty days of receipt, and a refusal must be reasoned. If thirty days pass without a decision, the application is treated as refused. The applicant may file a grievance with the Minister within sixty days of refusal, and silence on the grievance is also treated as refusal.
Article 5, as replaced, sets a license term of three years, renewable, with the renewal request filed at least sixty days before expiry. For hotels, Article 16 as originally issued makes an exception and sets a one-year term renewable on request. Schedule 1 to the decision fixes the fee for a hotel at KWD 1,000 for issue, KWD 500 for renewal, KWD 100 for amendment and KWD 1,000 for transfer. The Ministry's electronic service page currently shows a different fixed fee for a hotel operating license, so the amount should be confirmed at the time of filing, and the renewal diary should track the term in force.
Classification of the hotel (Article 15 as replaced)
Article 15, as replaced by Decision 934 of 2022, requires an establishment to apply for classification within six months of the date it begins to operate. The Standing Committee for the Classification of Hotel Establishments must then classify it within six months of receiving the request, according to the classification criteria, and hotel classifications are redone at least once every three years.
For contracts, the star rating is a commercial promise as well as a regulatory status. A brand agreement that guarantees a particular rating should say who prepares the classification file, who pays for the changes the committee requires, and what happens if the committee classifies the hotel lower than the brand standard.
Management company, property rights and changes of operator (Articles 6 and 7)
The application under Article 14 requires the managing company's contract, if any, and the title or lease of the property. A management agreement should state that the licensee remains the license holder, set out who bears fees and fines, and provide for what happens to the license file if the manager changes.
Article 6 of Decision 833 requires the licensee to notify the department within fifteen days of any wish to end or suspend the license, change its name or address, or change any data in the application. Article 7 makes any lease of the license void, forbids its sale or assignment without the Ministry's prior approval, requires the buyer to meet the Article 2 conditions, and gives the heirs of the licensee six months from death to ask for transfer. A hotel sale should therefore be conditional on approval, and a license cannot be sub-let to an operator.
Hotel apartments, resorts and tour activities (Articles 17 and 18)
Article 17 sets a different file for hotel apartments, resorts and organized internal tourist trips: the commercial license copy and an unconditional, irrevocable bank guarantee from a local bank in favor of the Ministry for KWD 10,000, valid for the whole license term and for three months after expiry or cancellation, together with a declaration authorizing the Ministry to liquidate the guarantee in whole or in part for the licensee's customers under Article 9.
Article 18 requires the licensee under that chapter to display the Ministry license in a visible place and to use a written contract stating at least the service and its level, the hotel name and address, the number of nights and their prices in Kuwaiti dinars, the booking dates and the specification and location of the property. A serviced apartment operator that sells nights through its own channels should check its booking terms against that list, because the contract content is prescribed and not left to the parties.
Complaints, sanctions and the guarantee (Articles 8 to 10)
Article 8 of Decision 833 creates a standing committee chaired by the undersecretary or a delegate to receive and examine complaints arising from the licensed activities, with power to hear those concerned. Under Article 9, if a violation is proven without justification, the committee may recommend a written warning, deduction of the complainant's financial damage from the guarantee mentioned in Articles 14 and 17, or closure of the establishment or cancellation of the license if the violation is not removed within a week of the warning or is repeated twice within a year.
Article 10 requires a decision of the Minister to approve those recommendations, notified within three days, and, before a closure or cancellation decision, a warning giving one week to remove the cause. The practical lesson is that a hotel has a short window to answer a complaint.
Cancellation and penalties under Law No. 111 of 2013 (Articles 11 to 13)
Article 11 of Law No. 111 of 2013 lists nine grounds on which a commercial license is canceled, including dissolution of the licensed company, the license holder's request, failure to carry on the activity for six consecutive months without informing the ministry, failure to renew within a year of expiry, obtaining the license on false data or forged documents, and breach of the conditions attached to the license.
Article 12 punishes the false-data and health-violation cases with imprisonment of up to one year and a fine of KWD 1,000 to KWD 5,000, or either, unless another law imposes a heavier penalty. Article 13 provides for administrative closure in the cases in items five to nine of Article 11.
Online booking, guest data and consumer rules
Decision 833 repealed the earlier Decision No. 123 of 2016 on hotel and property booking, and Article 18 prescribes the minimum contract content for the tourist-booking activities in that branch. A hotel that sells through a platform should write into the platform contract who accepts the booking, who holds the money, who may change a price or refund, and how a duplicate charge is corrected, and should compare the platform's displayed terms with Article 18.
Guest data in electronic records falls under Law No. 20 of 2014 on electronic transactions. Under Article 1, the Data Privacy Protection Regulation issued by the Communication and Information Technology Regulatory Authority under Decision No. 26 of 2024 applies to CITRA-licensed service providers, not to hotels merely because they process guest data. A hotel should check whether any service provider in its booking or data chain holds a CITRA license and allocate the applicable duties accordingly. Distance sales also fall under Law No. 20 of 2014 on electronic transactions and Consumer Protection Law No. 39 of 2014. A hotel should record the legal basis for each use of guest data, the retention period and every processor, including the platform and any outsourced reservation desk.
What we review in a Kuwait hotel or tourism transaction
When we review a Kuwait hotel file we begin with the license trail. We check the Ministry of Information license and its term under Articles 5 and 16, the commercial license under Law No. 111 of 2013, the pre-construction approval under Article 13, the application documents under Articles 2 and 14, and the classification status under Article 15. We then compare the title or lease, the management contract and the brand agreement with the names on the license, check the notices of change under Article 6 and the approvals required for a transfer under Article 7, and look at the complaint history and any guarantee under Articles 9 and 17.
See also: our Kuwait company formation guide and our Kuwait labor law guide, plus our commercial and corporate practice.
Frequently asked questions
Which authority licenses a hotel in Kuwait?
The Ministry of Information, through its Tourism Department, under Article 11 of Ministerial Decision No. 833 of 2022. The Ministry of Commerce and Industry still issues the commercial license under Law No. 111 of 2013, and a copy of it is part of the application under Article 2 of the decision.
Can an individual or a foreign owner without a local company hold a hotel license?
No. Article 12 of Decision 833 allows a hotel to be established or operated only by a company formed under the Companies Law and licensed by the Ministry of Information. A foreign investor needs a Kuwaiti entity, and the investment route under Law No. 116 of 2013 should be checked first.
When must approval be obtained for a new hotel?
Article 13 requires the Ministry of Information's approval before the construction of the building begins, so approval comes before the building contract and not after it.
How long does the Ministry take to decide?
Under Article 4 the department studies the file within ten days and the decision follows within twenty days of receipt. If thirty days pass without a decision the application is treated as refused, and a grievance to the Minister must be filed within sixty days.
How long is a hotel license valid?
Article 5, as replaced, gives three years as the general term, but Article 16 as issued sets one year, renewable, for hotels. The renewal request is due at least sixty days before expiry under Article 5, and we confirm the current term with the Ministry because of later amendments.
When must the hotel be classified?
Article 15, as replaced, requires an application within six months of starting operation, a decision by the Standing Committee within six months of the request, and reclassification at least every three years.
Can a hotel license be leased or sold?
A lease of the license is void under Article 7, and a sale or assignment needs the Ministry's prior approval, with the buyer meeting the Article 2 conditions. The heirs of a licensee have six months from death to ask for transfer.
How do I get advice on a specific Kuwait hotel project?
Contact our team through the contact page, with the commercial license, title or lease and operating agreements if you have them, and our Kuwait office will review the file against the decision and the law and tell you what to correct first.