Manama: A Kuwaiti court has cancelled an interior ministry decision that denied a Kuwaiti woman the right to set up a women-only taxi company.

The plan announced last year to set Kuwait's first pink taxi company was stalled after the interior ministry rejected the application, claiming there was no law in Kuwait that allowed women to drive taxis as a commercial activity.

However, the decision was challenged and the ruling by the Court of Appeals will now allow the entrepreneur to go ahead with a company that offers taxi services by women and for women.

The interior ministry was also made to pay KD 10,000 ($36,000) in compensation for refusing to issue taxi licences to the Kuwaiti woman.