In a sweeping policy change aimed at tightening oversight and boosting local entrepreneurship, Kuwait’s Ministry of Commerce and Industry has officially restricted 120 freelance business activities to Kuwaiti citizens only. The move, backed by a ministerial resolution, introduces a new framework for licensing, compliance, and business operations, while extending freelance licences from one to four years.
Tightened ownership rules: Freelancing now for Kuwaitis only
Under Ministerial Resolution No. 168 of 2025, issued by Khalifa Al-Ajeel, Kuwait’s Minister of Commerce and Industry, the country now mandates that only Kuwaiti citizens can own and operate freelance businesses under a licensed structure. The new resolution explicitly bars expatriates, including GCC nationals, from participating in any of the 120 defined freelance activities — whether as founders, partners, or managers. To qualify, applicants must meet a detailed set of conditions:
- Be a Kuwaiti national of full legal capacity.
- Be at least 21 years old.
- Have no previous criminal conviction involving dishonesty or moral turpitude, unless their legal status has been rehabilitated.
- Must form a single-person company.
- Use an official address or registered mailbox; if operating from a private residence, written landlord approval is mandatory.
- Sign a compliance pledge.
- Avoid the use of health or environmentally hazardous materials.
- Submit any additional documents as required by the Ministry.
The applicant must also be the company’s sole manager, and licences are non-transferable to non-Kuwaitis under the current resolution.
Kuwait freelance licences: Longer term, lower capital
Several procedural and structural upgrades have been introduced to make freelancing more accessible for Kuwaitis:
- Licence validity has been extended from one to four years.
- The minimum capital requirement has been halved to KD 50, in contrast to previous requirements for similar company types.
- Multiple freelance activities can now be bundled under a single licence, but only if they are similar, complementary, or functionally linked to the main approved activity.
- Licences can be obtained through the Ministry’s “Sahl” or “Sahl Business” applications, or via other approved digital platforms.
Existing licensed businesses, regardless of when they were established, must also adhere to the updated rules without exception — though their current licences remain valid. To ensure transparency, all licensed freelancers are now required to:
- Include their commercial registration number in all official transactions and public accounts.
- Conduct business exclusively via electronic payments.
- Annually submit:
- Bank statements
- Financial reports
- Social media or e-platform data
This information will be reviewed by the Ministry and forwarded to the Public Authority for Manpower, aligning with Cabinet Decision No. 391 of 2001 and its subsequent amendments.
What falls under the 120 protected activities
The newly defined 120 freelance activities primarily span consultancy, creative services, rentals, events, tourism, and brokerage. Some of the major categories under the umbrella include:
- Consulting Services:
- Economic, administrative, marketing, statistical, petroleum, geological, agricultural, media, sports, social, and women’s charitable consultations.
- Design & Creative Work:
- Fashion design, interior decoration, gift wrapping, luxury design.
- Photography & Events:
- Outdoor photography for events, managing exhibitions and entertainment markets.
- Tourism & Real Estate:
- Organizing local and cultural trips, tourist guidance, hotel and real estate booking, land and real estate brokerage.
- Leasing & Rentals:
- Rental of playgrounds, recreational and sports equipment, bicycles, and computer equipment.
- Promotional & Sales Services:
- Product promotion, marketing services, and related consultancy.
- Specialised Brokerage:
- Fish, bird, and livestock brokerage.
- Facility Management:
- Managing small industrial and craft facilities.
- Managing small industrial and craft facilities.
This broad list is being actively overseen by the Ministry’s Trade Classification Committee, which holds authority to define, revise, or remove any activity under the freelance category in the future.
Why the change matters
This resolution is part of a broader effort to recalibrate Kuwait’s economic environment by strengthening individual entrepreneurial initiatives while ensuring strong regulatory compliance. It reflects a dual focus: simplifying licensing for small businesses and tightening controls to ensure alignment with environmental, health, and legal standards.The move also aligns with Kuwait’s broader nationalisation agenda, aiming to localise key economic activities and expand job opportunities for citizens across emerging and non-traditional sectors.Published officially in Kuwait Al-Youm, the decree confirms earlier reports — including one by Al-Anba on June 29 — about a forthcoming shift in the governance of freelance businesses. The Ministry positions this step as critical to boosting national economic participation, promoting transparency, and ensuring that micro-enterprises genuinely contribute to the country’s development.