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 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.
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’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.
This week the spotlight is on legal and regulatory developments in Kuwait where the Finance Ministry has announced it has established a special committee to implement VAT in the country. PricewaterhouseCoopers have also confirmed their officials helped the Ministry draft the VAT Law. Together with PWC, the Investment Companies Union has invited all relevant parties to a conference on Problems and Best Practices on Implementing VAT. At the conference, the Taxation and Planning Manager at the Finance Ministry Osama Al-Qassar said VAT will be introduced after a six to twelve month grace adjustment period. The Ministry has also met with various sectors to get their suggestions and opinions on the proposed legislation.
Elsewhere, the country’s Manpower Authority and the Residency Directorate of the Interior Ministry have announced absconders will be able to legalise their status. Alternatively they can leave the country without paying any fines. The offer of legalisation applies to those who entered the country between 3 January 2016 and 22 April 2018. Some exemptions will be made for citizens’ spouses and children and foreign founding partners of companies.
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Kuwait’s Public Authority for Manpower has announced it has signed an agreement with the Kuwait Engineers Society which will see visa changes for expatriate engineers introduced. Under the agreement, expatriate engineers will not be able to renew their work permits without a No Objection Certificate (NOC) from the Kuwait Society of Engineers. All engineers will be given a NOC certificate after they have passed a competence test regardless of when they entered the country and how many years they have worked.
From 17 June 2018, vehicles in Kuwait will have to meet a new requirement to get their registration issued or renewed. The General Manager of the General Authority for Environment, Dr Mohammed Alahmad made the announcement. In addition to other inspection requirements, vehicles will have to pass an environmental test which means they should meet the environmental standards.
Kuwait’s Commerce and Industry Ministry and the country’s Central Bank of Kuwait are studying the implications of Bitcoin in the country. According to local newspaper reports, they discussed the market to reach a decision on the currency which is currently unregulated. Commerce and Industry Ministry officials also disclosed they have been monitoring the ads of local companies which promote Bitcoin dealing, following several companies posting social media ads to open trading accounts in return for commission.
According to a report on Kuwaiti TV, it has been stated Kuwait will deport any foreigner caught for a second time not wearing their seat belt or using a cell phone while driving. Articles within the Kuwaiti Traffic Law give the interior minister the right to deport those who do not comply with public order and break the laws. Kuwait has recently stiffened penalties against traffic violations including impounding cars for months if motorists are caught not wearing seat belts or using their cell phones while driving or parking in prohibited areas. (Although, following an initial spate of activity this week it was stated the changes would be taken more slowly.) Critics have warned deportations for these reasons could lead to equivalent steps being taken in other countries against Kuwaitis who break traffic laws abroad.
