Kuwait plans to introduce a freelance visa with annual fee going up to Rs 2.96 lakhs

Kuwait plans to introduce a freelance visa with annual fee going up to Rs 2.96 lakhs

The initiative is primarily aimed at tackling visa trading, a practice where expatriates pay companies substantial sums each year for residency permits without being formally employed

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Kuwait may launch freelance residence system within months to fight visa tradingKuwait may launch freelance residence system within months to fight visa trading
Business Today Desk
  • Feb 20, 2026,
  • Updated Feb 20, 2026 8:36 AM IST

Kuwait is examining a new residency model that could allow skilled expatriates to operate small businesses independently, without the need for 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 under which expats would pay an annual government fee rather than rely on private sponsorship.

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Addressing a meeting organised by the Public Authority of Manpower and attended by business owners, the minister said expatriates opting for the new system would be required to pay between KD 800 and KD 1,000 per year (approximately Rs 2.37 lakh to Rs 2.96 lakh).

The initiative is primarily aimed at tackling visa trading, a practice where expatriates pay companies substantial sums each year for residency permits without being formally employed. “Instead of paying to visa traders, pay to the government some KD 800-1,000,” Sheikh Fahad said, adding that the framework could be rolled out within “months”.

Highlighting enforcement measures, the minister said authorities deported 39,000 expatriate workers last year for breaching labour market regulations, particularly for working outside their legal sponsorship arrangements. He also stated that nearly 3,000 private sector firms were shut down for violating labour laws.

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While urging authorities to ensure the private sector receives the manpower it requires, Sheikh Fahad cautioned that any breach of regulations would invite strict action. He described salary payments as a “red line”, underlining that wages must be disbursed monthly and without delay, regardless of circumstances.

The minister reiterated that Kuwait remains open to workers of all nationalities. He also clarified that the interior ministry has no objection to fathers or mothers independently sponsoring their children below 18 years of age.

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 introduced, the freelance residency system would represent a structural change in Kuwait’s sponsorship framework, shifting oversight from private intermediaries to the state while attempting to curb exploitative practices.

Kuwait is examining a new residency model that could allow skilled expatriates to operate small businesses independently, without the need for 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 under which expats would pay an annual government fee rather than rely on private sponsorship.

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Addressing a meeting organised by the Public Authority of Manpower and attended by business owners, the minister said expatriates opting for the new system would be required to pay between KD 800 and KD 1,000 per year (approximately Rs 2.37 lakh to Rs 2.96 lakh).

The initiative is primarily aimed at tackling visa trading, a practice where expatriates pay companies substantial sums each year for residency permits without being formally employed. “Instead of paying to visa traders, pay to the government some KD 800-1,000,” Sheikh Fahad said, adding that the framework could be rolled out within “months”.

Highlighting enforcement measures, the minister said authorities deported 39,000 expatriate workers last year for breaching labour market regulations, particularly for working outside their legal sponsorship arrangements. He also stated that nearly 3,000 private sector firms were shut down for violating labour laws.

Advertisement

While urging authorities to ensure the private sector receives the manpower it requires, Sheikh Fahad cautioned that any breach of regulations would invite strict action. He described salary payments as a “red line”, underlining that wages must be disbursed monthly and without delay, regardless of circumstances.

The minister reiterated that Kuwait remains open to workers of all nationalities. He also clarified that the interior ministry has no objection to fathers or mothers independently sponsoring their children below 18 years of age.

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 introduced, the freelance residency system would represent a structural change in Kuwait’s sponsorship framework, shifting oversight from private intermediaries to the state while attempting to curb exploitative practices.

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