Kuwait has strengthened private sector support by canceling several financial guarantees tied to work permits and commercial activities. The Public Authority for Manpower (PAM) announced the decision under Administrative Resolution No. 1377 of 2025. Consequently, the move aims to cut bureaucracy and improve business efficiency.
According to officials, the canceled guarantees include those for cleaning, security, and handling services. Additionally, PAM removed financial guarantees for absent employees and workers with final judicial rulings. Furthermore, guarantees linked to commercial licenses for Gulf Cooperation Council (GCC) citizens were revoked.
This initiative is part of a broader plan to enhance Kuwait’s business environment. By simplifying procedures, the government hopes to attract investment and provide a more flexible framework for employers. Moreover, authorities emphasized that streamlining work permits will further strengthen private sector support while maintaining legal standards.
Experts welcomed the change, noting that it reduces administrative burdens and accelerates employment processes. They added that businesses can now allocate resources more efficiently and focus on growth. Consequently, companies in logistics, security, and facility management are expected to benefit the most.
Officials also highlighted that the decision aligns with Kuwait’s ongoing efforts to modernize labor regulations and boost competitiveness. By removing unnecessary guarantees, PAM aims to make hiring processes more transparent. In addition, the move demonstrates the government’s commitment to enhancing private sector support for both local and GCC businesses.
The revocation of work permit guarantees could produce broader economic effects. For example, it may attract new investment, expand job opportunities, and strengthen Kuwait’s position as a regional business hub. Authorities noted they will monitor the impact and adjust policies as needed.
Looking ahead, PAM plans to continue simplifying procedures, promoting innovation, and fostering public-private collaboration. Experts predict these reforms will boost productivity and increase investor confidence in the Kuwaiti market.
Overall, the decision underscores Kuwait’s commitment to maintaining a dynamic business climate while supporting employers. As a result, measures like this are likely to drive long-term growth and improve employment practices.
