KUWAIT CITY, Aug 12: As part of ongoing regulatory discussions to adjust procedures for the inclusion of residents as company partners, the Ministry of Commerce and Industry is planning to meet with the Kuwait Banking Association. The purpose of this meeting is to gather banks’ opinions and perspectives on a new decision that prohibits any resident holding a residency under Article 18 from entering companies or institutions as a partner, managing partner, or being registered in the commercial register unless they fall under Article 19.

Sources revealed that the Ministry is reviewing the controls and regulations affecting individuals under various residency articles, including Articles 17, 18, 19, 20, 22, and 24. This review aims to ensure that company partners are compliant with the regulations. The Ministry seeks input from all relevant parties, particularly banks, to assess the potential credit impact of barring foreign partners from Kuwaiti companies and to evaluate the risks this decision may pose to the banks’ loan systems.


According to a letter from the Public Authority for Manpower, which the Ministry of Commerce based its decision on, approximately 10,000 expatriate workers with work permits under Article 18 currently hold the status of partner or managing partner. This situation affects around 45,000 licenses. The Ministry’s review with the Banking Union aims to determine the potential credit impact on loans for this group and to address any future financial obstacles that may arise due to the decision.

Additionally, the Federation of Companies will be consulted regarding the new directives requiring workers under Article 18 who are partners in companies to either adjust their residency status to Article 19 or sell their shares. This aligns with the Foreigners’ Residence Law, which stipulates the conditions for enjoying the status of partner or investor.


The Manpower Authority argues that the current situation conflicts with the intended purpose of bringing workers into the country to work for employers. It highlights the challenges in verifying that these workers are indeed working for the employers with whom they are registered.

In contrast, while the decision was based on the principle that expatriates under Article 18 should not be listed as partners or managing partners, as this status does not legally align with their worker status, many economists believe that this decision may disrupt the corporate market and negatively affect economic activity.