The Court of Appeal has ordered Agility Public Warehousing Company (Makhazen) to pay KD 13.694 million to the Ministry of Industry as compensation for failing to utilize the Phase Four site in the South Amghara area.

According to the ruling issued on December 26, 2025, the amount represents unpaid rent owed to the Public Authority for Industry for land allocated to the company but left unused.

The compensation covers the period from November 1, 2018, until the date of the last payment specified for each plot, as detailed in the expert committee’s report.

The disputed plots, located in the South Amghara industrial area, span a total area of 939,323 square meters. The court ruled that the authority was deprived of the benefit of these sites due to their non-utilization, warranting financial compensation.

The judgment was based on the findings of the expert committee report dated January 22, 2023, issued in Appeal No. 2022/836, which assessed the rental value and period of non-use for the allocated land.

Agility Public Warehousing disclosed the expected impact of the ruling, stating that it intends to challenge the Court of Appeal’s decision and that it is currently unable to determine the financial implications of the judgment on the company’s results.

It is noteworthy that the Court of First Instance had previously ruled the case inadmissible due to prior adjudication, ordering the plaintiff, in his capacity as Director General of Industry, to pay court expenses and KD 50 in attorney’s fees.

However, the appellate court overturned that outcome and issued a ruling in favor of the Ministry of Industry.

The case highlights the importance of adhering to land utilization requirements in industrial zones and reflects the authorities’ efforts to ensure optimal use of state-owned assets in line with development and planning objectives.