Kuwait is considering a new residency model that would allow skilled expatriates to operate small businesses independently without needing a local sponsor, according to Kuwait Times. The proposal, announced by First Deputy Prime Minister and Interior Minister Sheikh Fahad Al-Yousef Al-Sabah, would introduce a freelance residence system where expats pay an annual government fee instead of relying on private sponsorship.
During a meeting organised by the Public Authority of Manpower and attended by business owners, the minister stated that expatriates opting for the new system would pay between KD 800 and KD 1,000 per year (approximately Rs 2.37 lakh to Rs 2.96 lakh). The initiative aims to address visa trading, where expatriates pay companies large sums annually for residency permits without formal employment. “Instead of paying to visa traders, pay to the government some KD 800-1,000,” Sheikh Fahad said, noting that the framework could be implemented within “months.”
The minister highlighted enforcement measures, noting that authorities deported 39,000 expatriate workers last year for violating labour market regulations, particularly for working outside legal sponsorship arrangements. He also reported that nearly 3,000 private sector firms were shut down for breaching labour laws. Sheikh Fahad emphasized that salary payments are a “red line,” insisting wages must be disbursed monthly and without delay.
Kuwait remains open to workers of all nationalities, and the interior ministry allows fathers or mothers to independently sponsor children under 18. Rabab Al-Osaimi, head of the Public Authority of Manpower, said the authority is reviewing procedures for transferring residency across various business categories, including small enterprises and government contracts.
If implemented, the freelance residency system would represent a major structural change in Kuwait’s sponsorship framework, shifting oversight from private intermediaries to the state while aiming to curb exploitative practices.
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