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The Municipality Switches to ISIC: What It Means for Shop Owners

A move from local activity codes to the United Nations reference for economic activities, and the three licensing breaches that come up most.

A shopfront in Kuwait of the kind covered by municipal activity licensing

Kuwait Municipality is moving from its local codes for commercial activities to the International Standard Industrial Classification of All Economic Activities — ISIC, revision 4 — the reference used by the United Nations.

Abdulaziz Al-Rashidi, head of the engineering licensing section at the Capital Municipality, said Kuwait had worked on “localising activities in line with the International Standard Industrial Classification of All Economic Activities”, and stressed the importance of consulting in advance before starting any project.

What changes in practice

The local code described an activity in the municipality’s own language. The international classification describes it in a language a bank, a statistical body and a foreign partner all understand at once. Its effect shows less in the licence itself than in what is built on it: statistics, financing, and comparison with neighbouring markets.

Three breaches that recur

As part of the “licence your activity” campaign, the municipality points to three breaches as the most frequent among shop owners:

  • Opening or running a shop without a licence.
  • Adding unlicensed floor area or altering the building without prior approval.
  • Adding an unlicensed activity to the shop.

All three share the same shape: they begin with a small step that defers the municipality’s review until after the work is done, which is the most expensive point at which a breach can be found.

No timetable has been announced for completing the transition, and anyone holding an activity licence should follow Kuwait Municipality announcements before submitting a new application or an amendment.

Sources: the Kuwait News Agency (KUNA) · Kuwait Municipality

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