Kuwait: Indemnity Changes Under Consideration

Senior Kuwaiti Government officials have confirmed there is a Parliamentary consensus on amending Kuwait Law No. 17/2018 which includes amendments to Kuwait Law No. 6/2010 (the Private Sector Labour Law). The proposed amendment states Kuwaiti nationals are entitled to full indemnities at the end of their service without employers deducting sums from their salaries to pay for the Public Authority for Social Security subscription. Indemnities will be paid in full by the current employer at the end of their service retrospectively actively from the date of Kuwait Law No. 6/2010 being implemented.

Kuwait: New Decree Establishing Real Estate Broker’s Book

Kuwait’s Commerce and Industry Minister has issued a Decree establishing a Real Estate Broker’s Book. The Book will be online and is aimed at finalising the regulation of the country’s real estate sector and eliminate market manipulations. Under the Decree, the Commerce and Industry and Justice Ministries, Kuwait Municipality and the Public Authority for Civil Information will establish a database with details of any property which is being traded in terms of disputes and ownership status. Those who have obtained the relevant e-permits from the Public Authority for Civil Information will then be able to register on the e-booking system.

Kuwait: Health Insurance to Become Mandatory for Tourists

Kuwait’s National Assembly has approved a draft law which will mean tourists visiting the country will have to have a health insurance policy which covers the duration of their stay there. The aim is to ensure tourists do not receive medical treatment in the country. A visit visa cannot be granted until the Interior Ministry has seen the health insurance policy documentation. The amount of coverage has not been specified in the law, but this is likely to be clarified when the Ministry prepares the bylaws to implement the law which is expected within the next two to three months.

Kuwait: Free Trade Zone Decision Cancelled

According to local newspaper reports, Kuwait’s Council of Ministers has cancelled Kuwait Decision No. 512/2018 establishing a free zone in Shuwaikh port. However, the Public Authority for Industry will continue to undertake the tasks entrusted to it in the area until 1 April 2019. The Government has entrusted the Kuwait Ports Authority, together with the Kuwait Municipality to make future plans and projects for ports according to the country’s fourth organisational chart. Contracts with investors demanding the evacuation of buildings and land and handing them over to the Government should not be renewed.

Kuwait: E-payments to be Regulated

Kuwait’s Central Bank has announced it has issued Instructions to all service providers to register on their electronic payments system. Under the Instructions, all service providers will have to regulate their e-payment transactions in line with the relevant regulations. The Central Bank will be able to scrutinise all e-payment methods.

Kuwait: Age Limit for Recruiting Foreigners will be Reduced to 60

Kuwait is looking to impose a new cap on hiring foreigners based on their age, as part of a an official drive to address the demographic imbalance in the country as Kuwaiti nationals represent only 30 per cent of the total population. Under the proposal, the age limit for recruiting foreigners will be reduced from 65 to 60 and no contract for any expatriate who turns 60 will be renewed. A limited number of positions that require particularly high skills would be exempted from the new rules. Other measures being considered by the Interior, Social affairs, Labour and Trade Ministries include confining family visit visas to spouses and children and limiting them to one month without the possibility of renewal. Currently, family visit visas cover expatriates’ relatives, including their parents, and can be extended. The Ministry of Interior is also considering reducing the number of work permits to members of some large communities, and limiting them to government contracts and technical specialities. Increasing recruitment fees and health insurance and requiring expatriates to undergo medical check-ups before entering Kuwait are other options being considered.

Kuwaitis Can’t Leave GCC Anymore with Old Passports

Source: Kuwait Times, 5 July 2018

The Nationality and Travel Documents Department of Kuwait’s Interior Ministry has advised Kuwaiti nationals must hold e-passports before leaving the GCC. The advice followed a meeting of GCC Interior Ministers, where fellow interior Ministers were also advised the change came into effect on 30 June 2018. Kuwaiti nationals can currently travel freely with their civil IDs.

Read full article here: http://news.kuwaittimes.net/website/kuwaitis-cant-leave-gcc-with-old-passports/

Kuwait: Amendments to the Companies Law Relating to Protection for Minority Shareholders Approved

Kuwait’s National Assembly has approved amendments to the Companies Law relating to protection for minority shareholders. The changes would reduce the minimum percentage of shareholders to request a general assembly requirement from 25% to 10%. Distribution of profits approved in a general assembly would take place within one month of the meeting. For companies with multiple directors, the general assembly would determine their powers and responsibilities. The time before a general assembly would also be increased from 15 to 21 days.

Lawyers have welcomed suggestions a Private-Public Partnership Law could be on the way in the Kingdom. If it is introduced, it will regulate the role of the private sector in terms of partnering with the public sector in infrastructure projects for the first time.

Despite not having any specific regulations in this area, the Kingdom has completed a number of projects using this framework.