Kuwait plans to introduce ‘Free Residency’ model within two months

• ‘Free Residency” system will allow expatriates to work independently without a sponsor under a regulated legal framework.
• The initiative, announced by First Deputy Prime Minister and Interior Minister Fahad Al-Yousef, aims to curb residency trading and move informal labor into an organized, monitored system.
• The first phase will target simple professions, with annual fees expected between 750 and 1,000 dinars, alongside strict documentation and verification requirements.
• Officials and experts believe the reform will reduce worker exploitation, shrink the informal economy, and improve service quality while strengthening transparency and competitiveness in Kuwait’s labor market.
• If implemented effectively, the system is expected to mark a significant shift in balancing labor market flexibility with regulatory control, creating a more stable and competitive employment environment.

As part of ongoing government efforts to regulate Kuwait’s labor market and curb illegal residency practices, authorities are moving toward introducing a new residency framework known as “free residency,” allowing expatriates to work independently without a traditional sponsor under a regulated legal system.

The initiative was announced by First Deputy Prime Minister and Minister of Interior Fahad Al-Yousef during a recent meeting with private-sector representatives, sparking widespread debate among business owners, economists, and workers awaiting further details on how the system will operate.

The proposed system aims to shift unregulated labor into an organized framework, reducing illegal practices such as residency trading while improving oversight and professional standards, reports Al-Rai daily.

Discussions intensified on social media, where many highlighted rising daily wages for informal labor — sometimes reaching 25 dinars or more — alongside concerns about inconsistent quality and lack of accountability.

Supporters believe a regulated freelance residency would enhance competitiveness, lower costs for basic services, and improve work quality by placing workers under clear legal and administrative supervision.

According to preliminary guidelines, the first phase will target simple professions, with annual fees expected to range between 750 and 1,000 dinars.

Applicants would need to meet several requirements, including a verified residential address, approved electronic contact details, and complete personal documentation.

Authorities are expected to announce full implementation details, application mechanisms, and eligible professions within the next two months.

Entrepreneurs and economists say regulating marginal labor could significantly improve Kuwait’s business environment by eliminating residency brokers and ensuring workers operate within transparent legal frameworks.

The system is also expected to reduce worker exploitation, provide legal stability for freelancers, and encourage the growth of small independent businesses aligned with modern labor market needs.

Entrepreneur Bashar Al-Ustad described the proposal as a positive step in combating human trafficking but stressed that strict oversight and profession verification mechanisms will be essential to prevent misuse.

Similarly, Abdulaziz Bandar, head of the delivery company owners’ committee, warned that sectors such as delivery services could face unfair competition unless strong regulatory controls ensure compliance with quality and operational standards.

The “free residency” initiative forms part of a wider reform package aimed at modernizing Kuwait’s labor regulations, strengthening transparency, and improving operational efficiency in line with international best practices.

Observers believe the move could help shrink the informal economy by integrating large segments of freelance workers into the formal system, improving service quality while increasing state oversight and fee collection.

If implemented effectively, the system is expected to mark a significant shift in balancing labor market flexibility with regulatory control, creating a more stable and competitive employment environment.