New Residency Rules in Kuwait to Combat Iqama Trade

The Kuwaiti government recently approved a draft law on residency aimed at stopping the illegal trade of residency permits, known as iqamas, and tightening penalties for violations. This 36-article draft was approved during a recent Cabinet meeting and introduces strict regulations on foreigners' entry, residency permits, and employment terms.

New Rules Target Illegal Trade in Residency Permits

The draft law prohibits any exchange of residency permits or entry visas for money or other benefits. It explicitly bans the sale of permits or entry visas that facilitate foreign employment in Kuwait, making it illegal to recruit foreigners through unauthorized methods.

Employers or recruiters are barred from hiring expats for purposes outside of those stated in their employment agreement. They must also avoid facilitating expats’ work for others without permission from the Ministry of Interior or withholding their wages.

Restrictions on Unauthorized Employment and Sheltering Expats

The new regulations also restrict expatriates from working for any party other than their official employer without prior permission from relevant government authorities. Additionally, third parties are prohibited from sheltering or employing expatriates with expired or invalid iqamas, further limiting opportunities for unauthorized employment.

Reporting Requirements for Employers

Under the draft law, recruiters must notify the Ministry of Interior if an expatriate's visa or residency permit expires and the individual has not left Kuwait. This reporting requirement aims to reduce the number of illegal residents in the country and maintain an accurate record of residency statuses.

Ongoing Crackdown on Illegal Residency Practices

In recent months, Kuwait has intensified its crackdown on the illegal iqama trade. The Interior Ministry reports over 21,000 foreign nationals have been detained and deported in the past nine months for violating residency or labor laws, with thousands more adjusting their legal status to comply with new regulations. Authorities have uncovered several fake companies exploiting residency permits for profit, which were subsequently referred for prosecution.

Kuwait’s Population and Residency Impact

Kuwait has a population of 4.9 million, with expatriates comprising around 3.3 million. The new residency rules aim to better regulate this significant expat population, enhance compliance, and curb the illegal iqama trade.