Local media reported last week that the Ministry of Interior had issued instructions to directors of residence department in all the governorates of Kuwait not to issue visit or entry visas for Iraqi, Syrian, Yemeni, Iranian, Pakistani and Bangladeshi nationals without prior approval from the office of the Deputy Prime Minister and Interior Minister Lt. Gen. Sheikh Khalid Al-Jarrah.
The authorities in Kuwait have on several occasions resorted to various measures aimed at curbing the entry of foreigners into the country, including through the imposition of temporary bans on work or visit visas to citizens of certain countries deemed to be a security-risk. Over the years, such bans have been imposed and rescinded in the case of some countries and new ones placed on other countries.
The government has imposed entry bans on nationals from specific countries citing difficult security conditions prevailing in those nations, and due to “the increasing tendency of nationals from these countries to apply for visas to bring into Kuwait relatives who faced or could face arrest by their local authorities.”
Kuwait is also keen to adjust the existing demographic imbalance in the country. With latest population figures showing that expatriates outnumber nationals, three-to-one, parliamentarians have repeatedly piled pressure on the government to expel expatriates.
Some parliamentarians have called for the imposing a maximum 5-year duration for residence visas of expatriate workers. But the Chairman of the Union of Contracting Companies, Dr. Salah Bourseli declared that stipulating five years for expatriates’ residence visas is an unrealistic proposition that cannot stand the test of time and the decision is unprofessional. Others said the policy would only serve the interests of visa traders as it will help them to increase the rate for their activities.
Lawmakers, including members of the powerful Financial and Economic Affairs committee of the National Assembly, have also urged the government to introduce a 5-percent tax on remittances made by expatriates to their home country. Despite opposition from the legal and legislative committee and the government which said the bill would hurt the economy, the finance committee insisted on it being tabled in parliament. The International Monetary Fund has said that money transfers by expatriates in the entire Gulf region amounted to less than US$85 billion and that a 5-percent remittance tax would yield around $4.2 billion — around 0.3 percent of the total income of the six-nation Gulf Cooperation Council (GCC) bloc.
In recent years, the government has acted to tackle unemployment among nationals by pursuing a policy of replacing foreigners with nationals in public sector jobs. Retrenching expatriates and replacing them with citizens has gained traction in ministries and government organizations in the last several months. Pressure is also now mounting on the private sector to replace foreigners with nationals. Economic pressure has also been added to expatriate woes, with the government cutting subsidies and raising tariffs on fuel, water and electricity for expatriates, and increasing fees for government services.
The latest fee increase was in the health sector, where last week, Minister of Health Sheikh Dr. Bassel Al-Sabah issued a ministerial decision to increase the consultation cost for expatriates visiting the casualty units of public hospitals from KD5 to KD10. In a statement the health ministry said the decision was intended to reduce the pressure and congestion experienced in the casualty units at public hospitals, and ensuring patients first visit the clinics in their areas of residence and obtain necessary services there before they resort to hospitals.
As a result of increased pressure on day-to-day life and the rising cost of living, many expatriates have decided to repatriate families back to their home countries. However, this expat exodus has had the unforeseen consequence of leaving many apartments vacant. Several real-estate owners and investors have expressed their dismay over the large number of residential apartments lying vacant, which has led to a fall in rents in some areas. Retail stores are also complaining about the fall in sales as a result of expatriate families leaving the country.
Expatriates currently account for 70 percent of the 4.4 million people in Kuwait and they form a significant element in the economy of the country. Attempting to eliminate this large expat demographic, or alienating them through half-baked brusque measures, could have unforeseen repercussions on the economy, which the government is so keen to revive and diversify.
