In a bid to tackle money laundering concerns, Kuwait is considering new regulations that would ban cash transactions exceeding 1500 KD in specific sectors, including car sales. This initiative aims to enhance financial transparency and curb illicit financial activities.

According to a report by Al-Rai Arabic newspaper, ongoing discussions are taking place between the Ministry of Commerce and the Central Bank of Kuwait. The proposed regulation seeks to mandate that car dealerships and companies process payments over 1,500 KD through electronic payment methods, specifically K-net.

The introduction of this ban is seen as a significant step toward tightening control over money laundering operations. By restricting cash transactions, government agencies will be better equipped to monitor fund movements and verify their origins. This measure will also facilitate cooperation with the Financial Investigation Unit in line with legal regulations.

The Minister of Social Affairs, Family and Childhood Affairs, along with the Minister of State for Youth Affairs, has introduced a new regulation affecting caregivers of disabled citizens. This directive aims to ensure continuous support for disabled individuals by restricting the international travel of their caregivers.

Details of the New Regulation

1. Travel Restrictions for Caregivers

Under the new circular, caregivers, including servants and drivers assigned to disabled individuals, are now restricted from leaving the country for more than 45 days. This rule applies unless the caregiver is accompanying the disabled person.

2. Compliance Requirements

To adhere to this new regulation, caregivers must:

- Submit a declaration affirming their commitment to the travel restrictions.

- Provide an annual certificate from the Ports Administration.

- Submit copies of their passport and residence permit.

- Regularly submit periodic reports to confirm compliance.

3. Purpose of the Directive

The regulation is designed to ensure that disabled individuals receive uninterrupted care and support. By limiting the travel duration of their caregivers, the government aims to maintain consistent and reliable assistance for those in need.

4. Implementation and Enforcement

The new rules require caregivers to carefully manage their travel plans and maintain proper documentation. Failure to comply with these regulations could result in administrative or legal repercussions.

The new travel restrictions for caregivers of disabled citizens underscore the government's commitment to ensuring continuous care for vulnerable populations. Caregivers must be aware of and adhere to these new regulations to avoid any issues.

The Ministry of Interior has issued a strict warning: All citizens and expatriates must complete their biometric fingerprint registration by the upcoming deadlines or face suspension of essential government services. The clock is ticking, and failing to act could leave you unable to renew your residency, vehicle registrations, or driver’s licenses.

Deadlines for Registration:

• Citizens: September 30
• Expatriates: December 31

Biometric registration centers are conveniently located across all governorates and major complexes, but time is running out. Avoid the last-minute rush and potential penalties by booking your appointment today through the Ministry of Interior’s website or the Sahel app.

The Directorate General of Civil Aviation (DGCA) has recently implemented new rules for luggage handling services at Kuwait Airport. According to the updated regulations, passengers can now use trolleys free of charge without the need for a porter. However, if porter assistance is required, a fee of KD 1 will be charged for a small trolley and KD 2 for a large trolley.

The DGCA's decision responds to passenger complaints about workers requesting additional fees and handling luggage unprofessionally. The revised system introduces a dedicated employee and a counter specifically for trolley and luggage handling services. Additionally, a contact number for complaints and inquiries has been established to enhance service efficiency and address issues more effectively.

In a related development, it has been reported that several DGCA employees are preparing to submit grievance letters concerning a recent administrative decision. This decision, which took effect from September 1, ends the shift system for certain employees, leading to the suspension of their financial allowances, which could be as high as KD 300 for some job grades.

The decision to withdraw shift allowances was made at the request of regulatory authorities, including the State Audit Bureau. The rationale behind this move is that the work of some employees is primarily administrative and does not align with the technical nature of shift work. As a result, these allowances are deemed inapplicable, prompting concerns among affected employees about the fairness and financial impact of this change.

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.

A recent report by Al-Shall Center reveals a positive trend in Kuwait’s real estate sector, with the vacancy rate for buildings decreasing to 8.4% by the end of June 2024. This marks a decline from 8.8% in June 2023, reflecting a slight improvement in occupancy and a growing demand for residential and commercial spaces.

As of June 2024, the total number of buildings in Kuwait reached approximately 219,600, up from 216,300 the previous year. This represents a 1.5% growth rate, slightly lower than the 1.6% growth recorded in the previous year. Additionally, the number of building units increased to about 786,800, compared to 778,200 units a year earlier, marking a 1.2% increase. The compound annual growth rates from June 2015 to June 2024 show a 1.9% growth for units and a 1.2% growth for buildings, indicating a trend toward smaller unit sizes within buildings and shifting demand patterns.

Residential buildings dominate Kuwait’s real estate landscape, accounting for approximately 66.6% of the total. These are followed by mixed-use and commercial buildings. The report indicates a decrease in the percentage of vacant buildings, which now stands at 8.4%, translating to about 18,400 vacant buildings out of 219,600. This reduction from the previous year’s 8.8% suggests a modest improvement in occupancy rates.

Among the building units, apartments make up the largest share at 45.3%, followed by houses at 21.8% and shops at 20.1%. The growth rates for these types of units from June 2015 to June 2024 were 3.4% for shops, 1.7% for apartments, and 1.4% for houses. Conversely, the growth rate for annexes has declined by about -0.9%. The percentage of vacant units also decreased to approximately 20.1% in June 2024, down from 21.5% a year earlier.

The latest report highlights a positive shift in Kuwait’s real estate sector, with a decrease in vacancy rates and continued growth in the number of buildings and units. While the overall growth rates are modest, the decrease in vacancies reflects a gradual improvement in market conditions. The trend toward smaller unit sizes and the increase in building numbers suggest evolving demand patterns within Kuwait's real estate market.

Kuwait's home delivery industry is under significant threat, with many firms warning of potential bankruptcy due to recent regulatory changes and miscommunication from government agencies. The Delivery Company Owners Committee has voiced serious concerns about the negative impact of new rules and the inconsistency of some decisions affecting their businesses.

Abdulaziz Abdullatif Bandar, Chairman of the Delivery Company Owners Committee, highlighted that recent decisions and circulars are causing severe disruptions. Many of these regulations are reportedly baseless and subject to rapid changes, which have led to increased debts and operational challenges for delivery firms. Bandar pointed out that the implementation of Article Seven of Ministerial Resolution No. 271/2020 has been problematic, particularly regarding the cancellation of licenses for companies that are non-compliant or inactive.

Financial Strain: Delivery companies face mounting debts due to unstable policies and the high costs of compliance. Many commercial licenses remain unused due to regulatory inefficiencies.

Potential Black Market: Bandar warned that the ongoing situation could foster a black market for delivery licenses, exacerbating the problem.

Increased Costs: New regulations on vehicle types and conditions for licenses could drive up operational costs, ultimately impacting delivery service prices and contributing to traffic congestion.

Bandar has urged decision-makers to engage with delivery industry stakeholders before implementing new laws or circulars. He emphasized the importance of consulting with industry experts to avoid negative consequences for the delivery sector and the wider labor market. He also called on the Interior Minister to address the concerns of Kuwaiti SMEs, advocating for the removal of obstacles and the implementation of laws without unnecessary intermediaries.

The increased costs and regulatory burdens have not only affected delivery companies but also have implications for consumers. Higher delivery charges are anticipated, which could affect both Kuwaiti citizens and expatriates. Bandar stressed that the current approach could lead to a rise in illegal labor and black market activities, further destabilizing the industry.

The current regulatory landscape poses significant challenges for Kuwait’s home delivery sector. As the industry grapples with financial pressures and policy inconsistencies, it is crucial for government agencies to reassess their approach and engage with stakeholders to ensure sustainable and fair regulations.

In response to a recent surge in monkeypox infections and the World Health Organization's (WHO) declaration of a state of emergency, Kuwaiti health officials have addressed concerns regarding the virus’s impact on the country. Dr. Ghanem Al-Hujailan, a consultant in internal and epidemiological diseases at Adan Hospital, has reassured the public that Kuwait remains distant from the outbreak’s hotspots and that the disease does not currently pose a significant threat to the country.

Dr. Al-Hujailan explained that Kuwait’s position as a non-transit hub and its limited tourism from affected African regions reduce the likelihood of the disease spreading through travelers. Monkeypox, a viral disease of animal origin, can be transmitted to humans through direct contact with the blood, bodily fluids, or skin lesions of infected animals. It can also spread from person to person through close contact with respiratory secretions or skin lesions.

There are two main types of monkeypox virus: the Congo Basin virus, which is more contagious, and the West African virus. The disease has been associated with various animals in Africa, including squirrels, marsupial rats, dormice, and monkeys. Consuming undercooked meat from these infected animals is a notable risk factor.

Dr. Abeer Al-Baho, Director of the Health Promotion Department, highlighted that the vaccines used in the smallpox eradication program provide up to 85 percent protection against monkeypox. She emphasized the importance of these vaccines in preventing the disease.

Monkeypox symptoms often resemble those of other infectious diseases and include fever, rash, and swollen lymph nodes. The incubation period ranges from five to 21 days, with initial symptoms appearing as fever, headache, back and muscle pain, and extreme weakness. Enlarged lymph nodes are a distinctive feature of monkeypox.

Studies indicate that monkeypox predominantly affects young people, with a significant number of cases involving homosexual and bisexual individuals.

The Al-Ojeiri Scientific Center announced that the summer season is entering its final phase with the onset of the Al-Kulaibin season on Sunday, August 11. This period is known as the last season to experience increased temperatures before transitioning to more moderate weather conditions.

The Al-Kulaibin season lasts for 13 days and serves as a dividing line between the intense summer heat and the more temperate conditions that follow. According to the Bedouin Arabs, this period is the sixth house of summer, while in the calendar of the houses of the sun and moon, it is recognized as the seventh.

During this season, stormy winds typically calm down, and by the end of the period, the earth’s interior begins to cool. The Al-Kulaibin season is characterized by two stars that mark the last constellation, signaling a gradual shift in the atmosphere.

As the Al-Kulaibin season progresses, a noticeable moderation in temperatures is observed, particularly during the night. The length of the night continues to increase at the expense of daylight hours. At the start of the season, the day lasts for 13 hours and 18 minutes, while the night extends to 10 hours and 41 minutes.

The announcement of the Al-Kulaibin season by the Al-Ojeiri Scientific Center marks an essential transition towards the end of the summer heat. With cooling temperatures and longer nights, this period is a welcome change for residents anticipating the upcoming moderate weather.

The Ministry of Commerce and Industry clarified in Administrative Circular No. 11 of 2024 that the ban on individuals holding Article 18 (Private Company Visa) from establishing, renewing, or amending companies and institutions is temporary and applies only to amendment and renewal procedures. The ministry stressed that existing licenses remain valid and have not been suspended.

The ministry confirmed that current licenses are still in effect and assured that coordination with government agencies is ongoing to revise regulatory controls for foreign partners and managers.

A responsible source within the Ministry of Commerce and Industry reiterated that the suspension of expatriate licenses holding Article 18 is a temporary measure, solely until the necessary amendments and renewals are completed. The source assured that the existing licenses are unaffected.

The ministry is actively working with other government entities to update the regulations governing foreign partners and managers, aiming to support the Kuwaiti economy.

The source also highlighted that the ministry is fully prepared to assist license holders and facilitate their procedures at any time, stressing that the ministry’s objective is to organize, not disrupt, business activities.

The ministry’s regulatory updates are intended to support the Kuwaiti economy by ensuring clear and effective regulations for foreign investors and managers.

Ongoing discussions aim to resolve any conflicts and streamline processes related to foreign business licensing.

The ministry's efforts are focused on improving business conditions and regulatory clarity for foreign partners and managers in Kuwait.

Trade union representatives in the oil sector are calling for the Kuwait Petroleum Corporation (KPC) to address the stringent and complex job requirements imposed by private oil companies, especially those in which KPC holds significant shares.

Recent job announcements by EQUATE Petrochemical Company have sparked controversy. Despite the Petrochemical Industries Company (PIC), a KPC subsidiary, owning a 42.5% stake in EQUATE, the job listing did not specify that applicants need to be Kuwaiti citizens. This omission has raised questions about KPC's influence in the hiring process.

The job requirements for a position at EQUATE have been criticized for being excessively demanding. The basic qualification is a Bachelor’s degree in Accounting, but applicants must also meet several additional criteria:

Experience: 5-8 years in accounting, including financial reporting and accounting settlements.

Skills: Proficiency in accounting software and ERP systems (e.g., SAP), advanced Excel skills, and expertise in preparing and reviewing financial statements.

Additional Preferences: Experience with internationally recognized auditing firms and accounting qualifications such as CPA or ACCA are preferred.

The complexity of these requirements has led some to believe that the job advertisement may be aimed at a select group of candidates.

As the 3-day deadline for Dr. Noura Al-Mishaan, the Minister of Public Works and Minister of State for Municipal Affairs, to decide on the termination of all expatriates with university degrees in the municipality draws to a close today, municipal authorities are awaiting a directive from Eng. Saud Al-Dubos, the Director of Kuwait Municipality. This decision will determine the fate of expatriates in various roles, including those with qualifications in law, engineering, accounting, and other administrative fields, as well as expatriate legal advisors in the Legal Department and affiliated offices.

Municipal sources have expressed concern that the rapid 72-hour timeframe for implementing the terminations could disrupt municipal operations. The short period is deemed insufficient for training new Kuwaiti employees to take over the roles of the departing expatriates. The municipality’s departments are currently reviewing the decision from a legal standpoint to determine the appropriate course of action, given that many of the affected employees are under contracts managed by the Civil Service Bureau.

Previously, the municipality had coordinated with the Bureau to implement a gradual replacement plan to increase the number of national employees without compromising operational efficiency. Newly appointed national staff will require gradual training to handle the roles effectively, and the municipality plans to organize special training courses for positions in engineering, control, administration, and finance.

The decision by Al-Mishaan follows two similar previous initiatives that caused disruptions and delays in replacement efforts. The first was in 2020 under former Minister Walid Al-Jassem, who ordered the termination of half of the expatriate employees in the municipality. This was followed by former Minister of Municipality Dr. Rana Al-Fares, who introduced a 3-stage plan to Kuwaitize municipal jobs. This plan began with the termination of 33% of non-Kuwaiti employees starting in 2022, while exempting non-Kuwaiti employees with a Kuwaiti mother, citizens of GCC countries, stateless permanent residents registered with the Central Agency for Illegal Residents, service employees, and 50% of funeral department staff.

The Disciplinary Board of the Competition Protection Authority has approved significant financial penalties on 16 out of 20 exchange companies accused of violating a monopoly agreement to unify foreign currency exchange rates. This agreement, deemed harmful to healthy competition by the Authority and the Disciplinary Board, violated the business model, its law, and its executive regulations.

Details of the Penalties

The sources reported that the fines imposed on these companies ranged between 1%, 3%, and 5% of their total revenues from the fiscal years 2020 to 2022. These penalties were based on evidence that the companies had colluded to fix exchange rates over a period of time.

Financial Impact and Revenue Details

In 2023, the revenues of the 32 exchange companies operating under the Central Bank of Kuwait’s supervision amounted to approximately 80.15 million dinars, including 60.3 million from currency sales, 18.87 million from other revenues, and 972.5 thousand from bank interest. These companies recorded net profits of 43.08 million dinars last year. Additionally, around 105 banking institutions are subject to the Ministry of Commerce and Industry’s supervision.

Legal Findings and Violations

The penalties were approved after the Authority investigated these companies’ practices, specifically their violation of Chapter Two, “Practices Harmful to Competition,” Article (5). This article prohibits agreements or actions related to horizontal relationships, such as indirectly determining product prices by raising, lowering, or fixing them.

Impact on Market Competition

The investigation concluded that the alliances formed between the exchange companies to unify foreign currency prices led to price fixing, violating the Competition Protection Law, which prohibits any agreements to unify prices. This practice impacted service quality and product competitiveness, contradicting the Authority’s policy to monitor markets and commercial sectors. Such agreements fall under monopolistic practices that hinder fair competition in the markets.

The General Administration of Residency Affairs in Kuwait is considering an increase in the fees for transferring the residency of parents from those holding Article 22 to their sponsor who holds Article 24. This potential change comes as the department seeks consultation from the General Administration of Legal Affairs.

Article 22 Residency Fees: Currently, the fee for renewing or transferring residency for a father or mother under Article 22 is only ten dinars. This fee is significantly lower compared to other residency categories.

Family/Dependent Visa Fees: For parents or other family members holding residency under different articles (Article 17, Article 18, Article 19), the cost is substantially higher, amounting to 250 dinars.

Fee Review: The Residency Affairs department is reviewing whether the annual fee of ten dinars for Article 22 residency will remain or if it will be adjusted to align more closely with the higher fees applied under other articles.

Impact on Sponsors: If the fee increase is approved, sponsors holding Article 24 may face higher costs for renewing or transferring the residency of their parents, reflecting a shift towards a more uniform fee structure.

In a significant move, the Ministry of Commerce and the Public Authority for Manpower in Kuwait have jointly announced the suspension of establishing and renewing business entities where partners or managers are not under Article 19 residency. This decision impacts 45,000 business licenses and approximately 10,000 expatriates currently under Article 18 who must transition to Article 19 to retain their roles as partners or managing partners.

Residency Regulations Overview

This announcement, initially reported by Al-Rai, reveals that the Ministry of Commerce will review regulations for individuals under various residency articles, including Articles 17, 18, 19, 20, 22, and 24. The Public Authority for Manpower clarified that properties affected by this suspension do not need to be registered in the Ministry of Justice’s registry. Importantly, combining roles of worker and employer is not allowed under the new regulations.

Key Residency Articles

• Article 18: Covers workers with a work permit under the supervision of employers as per Law No. 6 of 2010 regarding work in the private sector.
• Article 19: Grants ordinary residency to foreign investors or partners in commercial or industrial activities, provided they submit two budgets certified by the Ministry of Commerce and Industry.

Transition and Compliance

Expatriates under Article 18 must amend their status to Article 19 to continue as partners or investors. Failure to transition will necessitate the sale of their shares. Approximately 10,000 expatriates in this category, affecting 45,000 licenses, must comply with the new rule. The Manpower Authority stressed that non-citizen residents can still be partners or investors, but must hold Article 19 residency to avoid legal conflicts.

Inspections and Legal Violations

Recent inspections revealed that many expatriates holding partner status under Article 18 are not actively engaged in commercial activities, which is a violation of the Labor Law and raises concerns about potential human trafficking. Consequently, expatriates must transition to Article 19 or relinquish their ownership to avoid legal repercussions.

Transition Period and Enforcement

A grace period will be provided for expatriates to transition their residency status to Article 19 or liquidate their shares. This measure aims to protect their legal and financial positions and maintain market stability. The Ministry of Commerce has banned expatriates from owning businesses under Article 18, enforcing that they must comply with Article 19 regulations to continue their business activities.

This regulatory change is designed to ensure compliance with Kuwaiti law, safeguard investment opportunities for citizens, and verify that workers are employed by their registered employers. Expatriates must act promptly to transition to Article 19 to avoid negative impacts on their rights and business operations.

Kuwait’s new residency rules require 10,000 expatriates to transition to Article 19 to maintain their business licenses. The Ministry of Commerce and the Public Authority for Manpower aim to ensure compliance with labor laws and prevent legal violations. Expatriates must act during the grace period to avoid selling their shares and facing legal consequences.

The Ministry of Health (MoH) has unveiled a new digital linkage project designed to connect hospitals with medical warehouses in Subhan. This initiative aims to improve health services, enhance drug security, and streamline the supply chain for medicines and medical supplies.

The project, which is being implemented through a series of technical and executive phases, began with standardizing the types of medicines and supplies between hospitals and warehouses. A detailed timetable was established for processing orders, specifying quantities, and outlining the procedures for delivery, examination, and distribution to hospital pharmacies.

The initial phase of implementation focused on determining the necessary quantities of medicines and supplies for each hospital. Orders were first placed at Farwaniya Hospital, followed by Mubarak Hospital and Jahra Hospital. Preparations are underway to extend the linkage to additional hospitals.

The new electronic system simplifies the ordering process, handling hospital orders that typically range from 200 to 600 items per request. This system is designed to enhance the management of dispensing and distribution, ensuring timely availability of essential supplies.

In addition to the main project, the Ministry has initiated the linkage of laboratory supplies to accelerate laboratory work. This aspect of the project is currently being tested between Subhan warehouses and Mubarak and Farwaniya hospitals. An emergency orders policy has also been activated to address urgent needs efficiently via telephone.

By reducing the documentary cycle through digital linkage, the Ministry aims to ensure the timely availability of medicines and medical supplies. This initiative is expected to improve safe health practices and support drug safety for patients.

The Civil Service Commission (CSC) has issued an urgent directive requiring the verification of university degrees for non-Kuwaiti employees. This action, detailed in an administrative circular dated August 1st and labeled “Important and Urgent,” was announced by Deputy Undersecretary Diaa Al-Qabandi and has been disseminated to all relevant sectors.

The circular, which was obtained by Al-Anba, mandates that all directors and heads of organizational units must notify non-Kuwaiti employees of the urgent need to submit their degree verification documents. The directive emphasizes the critical nature of this process and urges immediate compliance to avoid potential issues with supervisory authorities.

Undersecretary Diaa Al-Qabandi has highlighted the necessity for non-Kuwaiti employees to promptly provide the required documentation. This step is crucial to ensure adherence to legal deadlines and to address any discrepancies that might be flagged by supervisory bodies.

Suad Al-Hussein, Chairperson of the Board of Directors of the Sustainable Energy Society, has hailed the signing of the infrastructure contract for the South Saad Al-Abdullah City project as a transformative step towards Kuwait’s smart city goals. This landmark initiative will deliver approximately 24,508 smart housing units for Kuwaiti citizens.

Al-Hussein praised the government’s commitment to embracing global trends in smart city development. She noted the critical role of scientific and executive institutions such as the Kuwait Foundation for the Advancement of Science (KFAS) and the Kuwait Institute for Scientific Research (KISR), alongside the expertise of trained specialists from educational institutions.

The smart city project will leverage cutting-edge construction systems and energy-saving technologies sourced from global markets, including China, Europe, and the U.S. Al-Hussein highlighted the potential of this initiative to inspire young Kuwaiti professionals to engage in smart technologies and renewable energy sectors, fostering a vibrant job market in these fields.

In a related development, Al-Hussein commended the Public Authority for Industry (PAI) for advancing feasibility studies and qualifying consultants for key projects such as Naeem Industrial City and the Industrial Recycling Zone in Shaqaya. These initiatives are crucial for supporting industrial activities and environmental sustainability.

The PAI has also emphasized the importance of mandating clean energy systems for both existing and future factories. This measure is essential for Kuwait to achieve carbon neutrality by 2060 and fulfill international commitments. The adoption of clean energy will lead to significant energy savings, environmental preservation, and reduced carbon emissions from industrial activities.

The Public Authority for Civil Information (PACI) has recently announced the removal of residential addresses for 583 individuals. This action was undertaken due to either property owners' declarations or the demolition of the respective properties.

Individuals whose addresses have been removed are required to visit the PACI headquarters within 30 days from the publication date in the Official Gazette. They must update their addresses by providing the necessary supporting documents to avoid penalties.

Failure to update addresses within the stipulated timeframe may result in fines as outlined in Article 33 of Law No. 32 of 1982. The fines could reach up to 100 dinars per individual, with the amount potentially multiplied based on the number of affected people.

Steps to Update Your Address

To ensure compliance, affected individuals should gather all required documents and visit the PACI headquarters promptly. For further assistance, refer to the PACI website or contact their customer service for detailed guidance.