The Ministry of Commerce and Industry in Kuwait is set to meet with the Kuwait Banking Association to discuss the implications of new regulations affecting expatriate business ownership. This review focuses on a recent decision that restricts residents holding residency under Article 18 from becoming partners or managing partners in companies or institutions unless they qualify under Article 19.

The Ministry's review encompasses various residency articles, including Articles 17, 18, 19, 20, 22, and 24, aiming to ensure that company partners comply with current regulations. The new rules could impact around 10,000 expatriate workers who currently hold partnership roles under Article 18, affecting approximately 45,000 licenses.

The Ministry seeks input from banks to evaluate how these restrictions might affect credit and loans for businesses with foreign partners. Banks are expected to provide insights into potential risks and impacts on their lending systems.

The new regulations require expatriates under Article 18, who are currently business partners, to either adjust their residency status to Article 19 or divest their shares. This move aligns with the Foreigners’ Residence Law, which governs partnership and investment status.

While the decision aims to address regulatory compliance and ensure workers are genuinely employed by their sponsors, many economists worry that these changes could disrupt the corporate market and negatively impact economic activity in Kuwait.