World
Kuwait Imposes Business Restrictions on Private Sector Employees
ۃnly foreign nationals with an investor residence permit will be allowed to conduct business: Report
Kuwait City: The Kuwaiti Ministry of Commerce has introduced a new law that restricts employees in the private sector from engaging in business activities or participating in any business ventures. According to the latest regulations, only foreign nationals with an investor residence permit will be allowed to conduct business or participate in any business activities within Kuwait.
Key Aspects of the New Law:
- Business Restrictions for Private Sector Employees: The new law prohibits employees working in the private sector from owning or participating in businesses. This measure is aimed at regulating foreign involvement in commercial activities and ensuring that only those with the proper investor status can operate businesses.
- Amendments to Labor Law: The Kuwaiti Ministry of Commerce has also amended Article 19 of the labor laws, which pertains to foreign investors. This change is part of broader efforts to control and monitor foreign business ownership and participation in the country.
- Impact on Existing Licenses: The Ministry has stated that all commercial licenses held by foreign nationals in the private sector, who do not fall under the new Article 19 provisions, will be canceled. This is in response to concerns that approximately 10,000 foreign workers in Kuwait, who are employed in the private sector, currently hold around 45,000 commercial licenses or are involved in various business ventures.
- Compliance and Transition: Foreign nationals involved in business activities who do not comply with the new regulations are required to either rectify their legal status by obtaining the appropriate investor residence permit or cease their business operations. The Ministry has advised affected individuals to take necessary actions to align with the new regulations or face potential business license revocation.
Additional Information:
- Purpose and Rationale: The Kuwaiti government aims to streamline business operations and reduce the complexity of foreign business ownership. By restricting business activities to those with proper investor permits, the authorities hope to better manage and regulate economic activities within the country.
- Implementation Timeline: The Ministry has not specified a detailed timeline for when the new regulations will come into full effect, but businesses and foreign nationals are encouraged to begin compliance processes as soon as possible.
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This regulatory change marks a significant shift in Kuwait’s business environment and underscores the country’s ongoing efforts to regulate foreign business participation and streamline economic operations.
