Kuwait City – Authorities in Kuwait are studying the introduction of a new “freelance residency” system that would allow skilled expatriates to establish and operate small businesses independently, without the need for a traditional sponsor.
Speaking at a gathering organized by the Public Authority for Manpower (PAM), Interior Minister Sheikh Fahad Al-Yousef Al-Sabah revealed that the proposed system aims to combat visa trading and regulate the labor market more effectively.
Under the proposal, expatriates would pay an annual government fee ranging between KD 800 and KD 1,000 in exchange for the ability to legally operate their own small businesses. The minister emphasized that this initiative would offer a lawful alternative to the widely criticized practice of visa trading, where workers pay large sums annually to companies that provide residency permits without actual employment.
“Instead of paying to visa traders, pay the government KD 800 to KD 1,000,” the minister stated.
He indicated that the system could be implemented within months.
Stronger Enforcement Measures
The announcement comes amid intensified government efforts to regulate the labor market. According to Sheikh Fahad, authorities deported approximately 39,000 expatriate workers last year for violating labor regulations, particularly for working outside their legal sponsorship arrangements.
Additionally, around 3,000 private sector companies were closed due to legal violations.
The minister warned that while the government is prepared to provide private sector employers with the manpower they require, strict penalties will continue for any breaches of labor laws.
Wage Protection and Family Sponsorship
Sheikh Fahad underscored that salary payments remain a “red line,” stressing that expatriate workers’ wages must be paid regularly and on time, regardless of circumstances.
He also clarified that the Ministry of Interior has no objection to either parent individually sponsoring their children under the age of 18.
Furthermore, he reiterated that Kuwait remains open to workers of all nationalities, provided legal procedures are followed.
Residency Transfers Under Review
Head of the Public Authority for Manpower, Rabab Al-Ossaimi, stated that the Authority is currently reviewing and reorganizing residency transfer procedures across various sectors, including small businesses and government contracts, in an effort to streamline processes and enhance regulatory oversight.
What This Means for Expats
If implemented, the freelance residency system could represent a major shift in Kuwait’s labor structure, offering skilled expatriates greater independence while helping authorities curb illegal visa practices. However, final details and eligibility requirements are still under study.
The proposal signals Kuwait’s broader push toward labor market reform, stricter enforcement, and improved transparency within the private sector.
Source Kuwait Times
