Kuwait’s SME Collapse: 3,000+ Businesses Cancel Licenses in 2025
SME crisis deepens: Over 3,000 Kuwaiti companies sought license cancellation in 2025
A growing number of small and medium-sized enterprises in Kuwait are being pushed to the brink, with many already shutting down and others preparing to exit the market in the coming months or rather days. Despite the diversity of their commercial activities, these businesses share a common struggle that includes intensified competition, shifting consumer behavior, ...
Kuwait’s small and medium-sized enterprises (SMEs) are facing a sharp decline as over 3,000 companies have applied to cancel their commercial licences this year. The surge in closures comes amid weak consumer spending, lingering pandemic effects, and fierce market competition.
In just the past two months, more than 600 businesses have dissolved or liquidated. Many of these operate in sectors heavily dependent on consumer spending, such as restaurants, retail, and services. Entrepreneurs cite high government fees, strict regulations, and punitive fines as major obstacles to survival.
The growing number of licence cancellations signals ongoing strain on Kuwait’s SME landscape. Businesses in consumer-facing industries remain the most vulnerable, with regulatory and financial hurdles pushing many to close. Without intervention, the loss of these enterprises may reshape the country’s economic structure in the coming years.
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