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IMPACT – HIGH Kuwait recently announced government closures and other measures to mitigate the spread of COVID-19.
Key points:
Analysis & Comments: The response to the COVID-19 pandemic continues to develop, and Deloitte will provide additional updates as information becomes available. Please check Deloitte’s COVID-19 Digital Map, available here, for information on travel restrictions and immigration changes in other countries.
Rest of World Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This includes Deloitte Tax LLP in the United States which does not provide legal and/or immigration advice or services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
IMPACT – MEDIUM
What is the change? The Ministry of Interior has introduced new document authentication requirements for foreign nationals submitting commercial visa applications.
What does the change mean? Foreign nationals submitting bachelor’s degrees will be required to follow additional document authentication requirements when applying for commercial visas.
Additional information: The new requirements are as follows:
Background: The Ministry of Interior implemented new requirements for Egyptian nationals in November after determining that many degrees issued in Egypt were forged. Shortly thereafter, the requirements were expanded to all bachelor’s degree holders submitting commercial visa applications.
Analysis & Comments: The changes introduce additional document authentication requirements for degree holders and will lengthen preparation time for affected applicants.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2020. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Kuwait has increased the minimum monthly salary requirements for foreign nationals sponsoring family and visit visas.
What does the change mean? Employees must earn at least KWD 500 ($1,480) per month to sponsor dependent visas.
Background: Kuwait last increased the minimum salary required for foreign nationals to sponsor their family members in Oct. 2016.
According to Article no. 30 of the Ministerial Decision no. 957 of 2019, foreign employees in the following 14 professions are exempted:
Analysis & Comments: The change represents an 11% increase in monthly salary requirements and will mostly impact foreign employees at the lower end of the salary scale.
Source: Deloitte. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited (“DTTL”), its global network of member firms, and their related entities. DTTL (also referred to as “Deloitte Global”) and each of its member firms are legally separate and independent entities. DTTL does not provide services to clients. Please see www.deloitte.com/about to learn more. Deloitte Legal means the legal practices of Deloitte Touche Tohmatsu Limited member firms or their affiliates that provide legal services. For legal, regulatory and other reasons, not all member firms provide legal services. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms or their related entities (collectively, the “Deloitte network”) is, by means of this communication, rendering professional advice or services. Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication. © 2019. For information, contact Deloitte Touche Tohmatsu Limited.
What is the change? Kuwait will soon increase the penalty for companies that do not adhere to “Kuwaitization” quotas.
What does the change mean? Beginning July 1, fines will increase to 300 Kuwaiti Dinars (about $986) per worker per year. The current penalty is 100 Kuwaiti Dinars.
Background: Like other countries in the region, Kuwait has stepped up efforts in recent years to promote its local workforce. Foreign worker quotas vary depending on sector and company size. On the whole, Kuwait is moving toward stricter limitations on sponsoring foreign workers. Officials have now moved to increase the penalty for those who hire foreign workers outside their quota.
Analysis & Comments: Employers are encouraged to work with their immigration provider to make sure they are in compliance with applicable “Kuwaitization” rules, particularly in light of the increased penalties.
Source: Deloitte LLP. Deloitte LLP is a limited liability partnership registered in England and Wales with registered number OC303675 and its registered office at 1 New Street Square, London EC4A 3HQ, United Kingdom.
What is the change? Kuwaiti authorities will no longer issue residency permit stickers but instead will issue Civil ID Cards.
What does the change mean? Residents with stickers issued before March 10 may use the sticker and their passport to prove residence status. Those applying for a Civil ID Card should ensure that the first and last name on the ID matches their passport.
Analysis & Comments: While residency stickers issued before March 10 will still be usable (until their expiration) with a valid passport, employees are advised to use Civil ID cards when entering and exiting Kuwait. Expatriates who have been issued Civil ID cards must exit and re-enter Kuwait carrying both their passport and their Civil ID card.
Kuwaiti authorities have moved to allow dependent family members to apply for 90-day visas and have placed new restrictions on Moroccan and Tunisian women working in the country. They have also proposed changes to require health insurance for all foreign employees and to further restrict visa transfers.
Key Points:
Analysis & Comments: The changes ease visa processes for visiting dependent family members and make working in Kuwait more difficult for some women from Morocco and Tunisia. The proposed health insurance requirements and restriction on visa transfers would be significant for employers and employees alike, but are not yet finalized and may change before they are implemented.
IMPACT – HIGH
What is the change? A new regulation has created hurdles for foreign engineers seeking to renew their work permits.
What does the change mean? Engineers must obtain a no-objection certificate from the Kuwait Society of Engineers. In order to obtain the certificate, the engineers must show that they have graduated from an accredited university, that both their university and their course of study are on the society’s accreditation list and that they have passed an exam given by the society.
Background: The Public Manpower Authority implemented the new rule in a circular with little notice, ordering all labor departments not to renew residence permits (iqamas) for foreign engineers unless they obtain a no-objection letter. Hundreds of engineers, mostly from India, were reportedly unable to renew their permits last week, as many foreign universities are not on the Kuwait Society of Engineers’ accreditation list. Jordanian and Egyptian authorities are putting diplomatic pressure on Kuwait to delay implementation of the rule and allow their universities to be put on the accreditation list.
BAL Analysis: Kuwait’s move toward stricter criteria for engineers is consistent with similar efforts by countries in the Gulf region to localize their workforces in part by reducing the number of expatriate workers. Saudi Arabia recently implemented stronger prerequisites for the hiring of foreign engineers. Employers should anticipate that Kuwaiti authorities may impose new rules for other professions as well.
This alert has been provided by the BAL Global Practice group and our network provider located in Kuwait. For additional information, please contact your BAL attorney.
Copyright © 2018 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? Kuwait is in the midst of a 25-day amnesty period for foreign nationals who have overstayed their visas or are otherwise in the country illegally.
What does the change mean? Foreign nationals who wish to regularize their status have until Feb. 22 to take advantage of the amnesty and can either apply for new visas in order to remain in Kuwait or leave the country without paying fines that would otherwise be applied upon their departure.
BAL Analysis: Foreign nationals who are out of status who remain in Kuwait after Feb. 22 will be assessed fines of 2 Kuwaiti dinars (about US$6.65) for each day they overstay their visas (capped at 600 dinars). Employers with employees whose visas have been canceled or not renewed on time may wish to encourage them to take advantage of the amnesty program before the deadline.
What is the change? Kuwaiti authorities have said that in 2018 they will stop issuing new private sector work visas to foreign nationals under 30.
BAL Analysis: The plan reflects the importance Kuwait is placing on filling high-skilled jobs with local workers when possible. The recruitment ban could significantly limit companies’ access to university graduates and other young workers from outside Kuwait.
Copyright © 2017 Berry Appleman & Leiden LLP. All rights reserved. Reprinting or digital redistribution to the public is permitted only with the express written permission of Berry Appleman & Leiden LLP. For inquiries please contact copyright@bal.com.
What is the change? The Kuwaiti Ministry of Interior has begun requiring foreign nationals in jobs that require a university degree to provide an attested original certificate or diploma when applying for their residency permit (iqama).
What does the change mean? Residence permit applicants, including renewal applicants, should be sure to provide an attested original certificate or diploma when submitting their applications.
BAL Analysis: The new requirement is part of Kuwait’s efforts to more closely monitor whether foreign workers are meeting education and skills standards. Those preparing applications should be sure to leave enough time to obtain an attested original certificate or diploma. Those who do not do so risk unnecessary delays or having their applications rejected.