Kuwait Reconsiders High Fees for Renewing Work Permits of Expats
Kuwait City, Kuwait: Kuwait is reviewing a controversial policy imposing high fees on work permit renewals for expat workers over 60 years old. The fees, along with mandatory private health insurance, were implemented to reduce the foreign workforce and encourage Kuwaiti employment.
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However, the policy has sparked concerns. Critics say it discourages valuable expertise and hurts the investment climate. Companies, especially small and medium enterprises (SMEs), face increased operational costs due to the fees, potentially leading to job cuts or closures. This, in turn, can harm the overall economy.
There are calls for a more balanced approach. Some propose exemptions for crucial sectors relying heavily on foreign expertise. Others suggest dual policies that promote Kuwaiti employment while attracting foreign talent through training programs and a positive work environment.
Fahd Al-Arbash, head of the Restaurant Owners Union, highlights the negative impact of losing experienced workers over 60. He emphasizes that developed countries don’t have strict age limitations and value the experience and innovation older workers bring.
Al-Arbash also calls for amending labor laws to better regulate employment in the private sector, ensuring responsible management and clear definitions of power dynamics.
The government is expected to announce a decision soon, with sources suggesting potential “relief” for expat workers over 60. This policy review reflects Kuwait’s efforts to strike a balance between improving its labor market and maintaining a strong and attractive business environment, reported Arab Times.
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