Kuwaitization not a new policy in the country

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While many companies and individuals become uneasy when the word “Kuwaitization” is mentioned, Kuwait has had long existing laws pertaining to this subject matter. Companies that have experience conducting business with the Kuwait government or employing foreign nationals, may already be familiar the “nationality” laws.

Kuwait law already stipulates certain requirements to purchase

Kuwait products and hire Kuwait nationals. Kuwait Products The Ministry of Commerce Ministerial Decision No. 6/1987 specifies that national products must be purchased/ utilized, if available, unless foreign products are: 1) more affordable; 2) better quality; or 3) stipulated in the RFP/ Tender.

Kuwait Nationals Article 6 of Law No. 19/2000 requires a minimum hiring of Kuwait nationals for companies awarded government tenders. Article 9 of such law states that companies, which fail to employ the required Kuwait nationals shall be required to pay a surcharge of a minimum of KD 100 each residency cycle for each foreign national employed in a position that should fall under the Kuwait national percentage. Relevant resolutions, further stipulate the percentage of Kuwait nationals that must be hired in certain positions.

If companies violate these laws (e.g., commit fraud or deception by submitting wrong data or switching labels), they are subject to several penalties or punishment, such as cancelled contracts or blocked from doing business with the government for up to two years. Companies should make themselves knowledgeable with all similar laws to ensure compliance.

Najmah Brown, Esq.

By Najmah Brown
email: [email protected]

This news has been read 25418 times!

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