Introduction
Kuwait
Background:
Britain oversaw foreign relations and defense for the ruling Kuwaiti AL-SABAH dynasty from 1899 until independence in 1961. Kuwait was attacked and overrun by Iraq on 2 August 1990. Following several weeks of aerial bombardment, a US-led, UN coalition began a ground assault on 23 February 1991 that liberated Kuwait in four days. Kuwait spent more than $5 billion to repair oil infrastructure damaged during 1990-91. The AL-SABAH family has ruled since returning to power in 1991 and reestablished an elected legislature that in recent years has become increasingly assertive.
Geography
Kuwait
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Location:
Middle East, bordering the Persian Gulf, between Iraq and Saudi Arabia
Geographic coordinates:
29 30 N, 45 45 E
Map references:
Middle East
Area:
total: 17,820 sq km land: 17,820 sq km water: 0 sq km
Area - comparative:
slightly smaller than New Jersey
Land boundaries:
total: 462 km border countries: Iraq 240 km, Saudi Arabia 222 km
Coastline:
499 km
Maritime claims:
territorial sea: 12 nm
Climate:
dry desert; intensely hot summers; short, cool winters
Terrain:
flat to slightly undulating desert plain
Elevation extremes:
lowest point: Persian Gulf 0 m highest point: unnamed location 306 m
Natural resources:
petroleum, fish, shrimp, natural gas
Land use:
arable land: 0.84% permanent crops: 0.17% other: 98.99% (2005)
Irrigated land:
130 sq km (2003)
Total renewable water resources:
0.02 cu km (1997)
Freshwater withdrawal (domestic/industrial/agricultural):
total: 0.44 cu km/yr (45%/2%/52%) per capita: 164 cu m/yr (2000)
Natural hazards:
sudden cloudbursts are common from October to April and bring heavy rain, which can damage roads and houses; sandstorms and dust storms occur throughout the year but are most common between March and August
Environment - current issues:
limited natural fresh water resources; some of world's largest and most sophisticated desalination facilities provide much of the water; air and water pollution; desertification
Environment - international agreements:
party to: Biodiversity, Climate Change, Climate Change-Kyoto Protocol, Desertification, Endangered Species, Environmental Modification, Hazardous Wastes, Law of the Sea, Ozone Layer Protection signed, but not ratified: Marine Dumping
Geography - note:
strategic location at head of Persian Gulf
People
Kuwait
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Population:
2,596,799 note: includes 1,291,354 non-nationals (July 2008 est.)
Age structure:
0-14 years: 26.6% (male 351,057/female 338,634) 15-64 years: 70.6% (male 1,172,460/female 659,927) 65 years and over: 2.9% (male 46,770/female 27,951) (2008 est.)
Median age:
total: 26.1 years male: 28 years female: 22.6 years (2008 est.)
Population growth rate:
3.591% note: this rate reflects a return to pre-Gulf crisis immigration of expatriates (2008 est.)
Birth rate:
21.9 births/1,000 population (2008 est.)
Death rate:
2.37 deaths/1,000 population (2008 est.)
Net migration rate:
16.39 migrant(s)/1,000 population (2008 est.)
Sex ratio:
at birth: 1.04 male(s)/female under 15 years: 1.04 male(s)/female 15-64 years: 1.78 male(s)/female 65 years and over: 1.67 male(s)/female total population: 1.53 male(s)/female (2008 est.)
Infant mortality rate:
total: 9.22 deaths/1,000 live births male: 10.2 deaths/1,000 live births female: 8.21 deaths/1,000 live births (2008 est.)
Life expectancy at birth:
total population: 77.53 years male: 76.38 years female: 78.73 years (2008 est.)
Total fertility rate:
2.81 children born/woman (2008 est.)
HIV/AIDS - adult prevalence rate:
0.12% (2001 est.)
HIV/AIDS - people living with HIV/AIDS:
NA
HIV/AIDS - deaths:
NA
Nationality:
noun: Kuwaiti(s) adjective: Kuwaiti
Ethnic groups:
Kuwaiti 45%, other Arab 35%, South Asian 9%, Iranian 4%, other 7%
Religions:
Muslim 85% (Sunni 70%, Shia 30%), other (includes Christian, Hindu, Parsi) 15%
Languages:
Arabic (official), English widely spoken
Literacy:
definition: age 15 and over can read and write total population: 93.3% male: 94.4% female: 91% (2005 census)
School life expectancy (primary to tertiary education):
total: 13 years male: 12 years female: 13 years (2006)
Education expenditures:
3.8% of GDP (2006)
Government
Kuwait
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Country name:
conventional long form: State of Kuwait conventional short form: Kuwait local long form: Dawlat al Kuwayt local short form: Al Kuwayt
Government type:
constitutional emirate
Capital:
name: Kuwait geographic coordinates: 29 22 N, 47 58 E time difference: UTC+3 (8 hours ahead of Washington, DC during Standard Time)
Administrative divisions:
6 governorates (muhafazat, singular - muhafazah); Al Ahmadi, Al 'Asimah, Al Farwaniyah, Al Jahra', Hawalli, Mubarak al Kabir
Independence:
19 June 1961 (from UK)
National holiday:
National Day, 25 February (1950)
Constitution:
approved and promulgated 11 November 1962
Legal system:
civil law system with Islamic law significant in personal matters; has not accepted compulsory ICJ jurisdiction
Suffrage:
NA years of age; universal (adult); note - males in the military or police are not allowed to vote; adult females were allowed to vote as of 16 May 2005; all voters must have been citizens for 20 years
Executive branch:
chief of state: Amir SABAH al-Ahmad al-Jabir al-Sabah (since 29 January 2006); Crown Prince NAWAF al-Ahmad al-Jabir al-Sabah head of government: Prime Minister NASIR MUHAMMAD al-Ahmad al-Sabah (since 3 April 2007); First Deputy Prime Minister JABIR Mubarak al-Hamad al-Sabah (since 9 February 2006); Deputy Prime Ministers MUHAMMAD al-Sabah al-Salim al-Sabah (since 9 February 2006) and Faysal al-HAJJI (since 5 April 2007); note - the Amir accepted the resignation of the prime minister and cabinet on 1 December 2008) cabinet: Council of Ministers appointed by the prime minister and approved by the Amir elections: none; the amir is hereditary; the amir appoints the prime minister and deputy prime ministers
Legislative branch:
unicameral National Assembly or Majlis al-Umma (50 seats; members elected by popular vote to serve four-year terms; all cabinet ministers are also ex officio voting members of the National Assembly) elections: last held 17 May 2008 (next election to be held in 2012) election results: percent of vote by bloc - NA; seats by bloc - Sunni 21, Islamic Salafi Alliance 10, Liberals 7, Shiites 5, Popular Action Bloc 4, Islamic Constitutional Movement 3
Judicial branch:
High Court of Appeal
Political parties and leaders:
none; formation of political parties is in practice illegal but is not forbidden by law
Political pressure groups and leaders:
other: Islamists; merchants; political groups; secular liberals and pro-governmental deputies; Shia activists; tribal groups
International organization participation:
ABEDA, AfDB (nonregional members), AFESD, AMF, BDEAC, CAEU, FAO, G-77, GCC, IAEA, IBRD, ICAO, ICC, ICCt (signatory), ICRM, IDA, IDB, IFAD, IFC, IFRCS, IHO, ILO, IMF, IMO, IMSO, Interpol, IOC, IPU, ISO, ITSO, ITU, ITUC, LAS, MIGA, NAM, OAPEC, OIC, OPCW, OPEC, PCA, UN, UNCTAD, UNESCO, UNIDO, UNITAR, UNWTO, UPU, WCO, WFTU, WHO, WIPO, WMO, WTO
Diplomatic representation in the US:
chief of mission: Ambassador SALIM al-Abdallah al-Jabir al-Sabah chancery: 2940 Tilden Street NW, Washington, DC 20008 telephone: [1] (202) 966-0702 FAX: [1] (202) 966-0517
Diplomatic representation from the US:
chief of mission: Ambassador Deborah K. JONES embassy: Bayan 36302, Block 13, Al-Masjed Al-Aqsa Street (near the Bayan palace), Kuwait City mailing address: P. O. Box 77 Safat 13001 Kuwait; or PSC 1280 APO AE 09880-9000 telephone: [965] 259-1001 FAX: [965] 538-0282
Flag description:
three equal horizontal bands of green (top), white, and red with a black trapezoid based on the hoist side; design, which dates to 1961, based on the Arab revolt flag of World War I
Economy
Kuwait
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Economy - overview:
Kuwait is a small, rich, relatively open economy with self-reported crude oil reserves of about 104 billion barrels - 10% of world reserves. Petroleum accounts for nearly half of GDP, 95% of export revenues, and 80% of government income. High oil prices in recent years have helped build Kuwait's budget and trade surpluses and foreign reserves. As a result of this positive fiscal situation, the need for economic reforms is less urgent and the government has not earnestly pushed through new initiatives. Despite its vast oil reserves, Kuwait experienced power outages during the summer months in 2006 and 2007 because demand exceeded power generating capacity. Power outages are likely to worsen, given its high population growth rates, unless the government can increase generating capacity. In May 2007 Kuwait changed its currency peg from the US dollar to a basket of currencies in order to curb inflation and to reduce its vulnerability to external shocks.
GDP (purchasing power parity):
$140 billion (2007 est.)
GDP (official exchange rate):
$111.3 billion (2007 est.)
GDP - real growth rate:
4.7% (2007 est.)
GDP - per capita (PPP):
$55,900 (2007 est.)
GDP - composition by sector:
agriculture: 0.3% industry: 52.4% services: 47.3% (2007 est.)
Labor force:
2.093 million note: non-Kuwaitis represent about 80% of the labor force (2007 est.)
Labor force - by occupation:
agriculture: NA% industry: NA% services: NA%
Unemployment rate:
2.2% (2004 est.)
Household income or consumption by percentage share:
lowest 10%: NA% highest 10%: NA%
Investment (gross fixed):
19.7% of GDP (2007 est.)
Budget:
revenues: $85.28 billion expenditures: $37.77 billion (2007 est.)
Public debt:
9.7% of GDP (2007 est.)
Inflation rate (consumer prices):
5.5% (2007 est.)
Central bank discount rate:
6.25% (31 December 2007)
Commercial bank prime lending rate:
8.54% (31 December 2007)
Stock of money:
$15.12 billion (31 December 2007)
Stock of quasi money:
$55.2 billion (31 December 2007)
Stock of domestic credit:
$78.25 billion (31 December 2007)
Agriculture - products:
practically no crops; fish
Industries:
petroleum, petrochemicals, cement, shipbuilding and repair, water desalination, food processing, construction materials
Industrial production growth rate:
1.7% (2007 est.)
Electricity - production:
44.75 billion kWh (2006 est.)
Electricity - consumption:
39.54 billion kWh (2006 est.)
Electricity - exports:
0 kWh (2007 est.)
Electricity - imports:
0 kWh (2007 est.)
Oil - production:
2.613 million bbl/day (2007 est.)
Oil - consumption:
334,700 bbl/day (2006 est.)
Oil - exports:
2.356 million bbl/day (2005)
Oil - imports:
8,022 bbl/day (2005)
Oil - proved reserves:
104 billion bbl (1 January 2008 est.)
Natural gas - production:
12.5 billion cu m (2006 est.)
Natural gas - consumption:
12.5 billion cu m (2006 est.)
Natural gas - exports:
0 cu m (2007 est.)
Natural gas - imports:
0 cu m (2007 est.)
Natural gas - proved reserves:
1.586 trillion cu m (1 January 2008 est.)
Current account balance:
$47.5 billion (2007 est.)
Exports:
$63.72 billion f.o.b. (2007 est.)
Exports - commodities:
oil and refined products, fertilizers
Exports - partners:
Japan 19.9%, South Korea 17%, Taiwan 11.2%, Singapore 9.9%, US 8.4%, Netherlands 4.8%, China 4.4% (2007)
Imports:
$20.64 billion f.o.b. (2007 est.)
Imports - commodities:
food, construction materials, vehicles and parts, clothing
Imports - partners:
US 12.7%, Japan 8.5%, Germany 7.3%, China 6.8%, South Korea 6.6%, Saudi Arabia 6.2%, Italy 5.8%, UK 4.6% (2007)
Reserves of foreign exchange and gold:
$16.78 billion (31 December 2007 est.)
Debt - external:
$33.62 billion (31 December 2007 est.)
Stock of direct foreign investment - at home:
$898 million (2007 est.)
Stock of direct foreign investment - abroad:
$24.22 billion (2007 est.)
Market value of publicly traded shares:
$128.9 billion (2006)
Currency (code):
Kuwaiti dinar (KD)
Exchange rates:
Kuwaiti dinars (KD) per US dollar - 0.2844 (2007), 0.29 (2006), 0.292 (2005), 0.2947 (2004), 0.298 (2003)
Communications
Kuwait
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Telephones - main lines in use:
517,000 (2006)
Telephones - mobile cellular:
2.774 million (2007)
Telephone system:
general assessment: the quality of service is excellent domestic: new telephone exchanges provide a large capacity for new subscribers; trunk traffic is carried by microwave radio relay, coaxial cable, and open-wire and fiber-optic cable; a cellular telephone system operates throughout Kuwait, and the country is well supplied with pay telephones international: country code - 965; linked to international submarine cable Fiber-Optic Link Around the Globe (FLAG); linked to Bahrain, Qatar, UAE via the Fiber-Optic Gulf (FOG) cable; coaxial cable and microwave radio relay to Saudi Arabia; satellite earth stations - 6 (3 Intelsat - 1 Atlantic Ocean and 2 Indian Ocean, 1 Inmarsat - Atlantic Ocean, and 2 Arabsat)
Radio broadcast stations:
AM 6, FM 11, shortwave 1 (1998)
Television broadcast stations:
13 (plus several satellite channels) (1997)
Internet country code:
.kw
Internet hosts:
3,289 (2008)
Internet users:
900,000 (2007)
Transportation
Kuwait
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Airports:
7 (2007)
Airports - with paved runways:
total: 4 over 3,047 m: 1 2,438 to 3,047 m: 2 1,524 to 2,437 m: 1 (2007)
Airports - with unpaved runways:
total: 3 1,524 to 2,437 m: 1 under 914 m: 2 (2007)
Heliports:
4 (2007)
Pipelines:
gas 269 km; oil 540 km; refined products 57 km (2007)
Roadways:
total: 5,749 km paved: 4,887 km unpaved: 862 km (2004)
Merchant marine:
total: 38 by type: bulk carrier 2, cargo 1, carrier 3, container 6, liquefied gas 4, petroleum tanker 22 registered in other countries: 34 (Bahrain 5, Comoros 1, Libya 1, Panama 2, Qatar 7, Saint Kitts and Nevis 1, Saudi Arabia 7, UAE 10) (2008)
Ports and terminals:
Ash Shu'aybah, Ash Shuwaykh, Az Zawr (Mina' Sa'ud), Mina' 'Abd Allah, Mina' al Ahmadi
Military
Kuwait
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Military branches:
Land Forces, Kuwaiti Navy, Kuwaiti Air Force (Al-Quwwat al-Jawwiya al-Kuwaitiya), National Guard (2007)
Military service age and obligation:
18 years of age for compulsory and voluntary military service; reserve obligation to age 40 with 1 month annual training; women have served in police forces since 1999 (2006)
Manpower available for military service:
males age 16-49: 1,032,408 females age 16-49: 568,657 (2008 est.)
Manpower fit for military service:
males age 16-49: 892,816 females age 16-49: 500,540 (2008 est.)
Manpower reaching militarily significant age annually:
male: 17,737 female: 18,519 (2008 est.)
Military expenditures:
5.3% of GDP (2006)
Transnational Issues
Kuwait
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Disputes - international:
Kuwait and Saudi Arabia continue negotiating a joint maritime boundary with Iran; no maritime boundary exists with Iraq in the Persian Gulf
Trafficking in persons:
current situation: Kuwait is a destination country for men and women who migrate legally from South and Southeast Asia for domestic or low-skilled labor, but are subjected to conditions of involuntary servitude by employers in Kuwait including conditions of physical and sexual abuse, non-payment of wages, confinement to the home, and withholding of passports to restrict their freedom of movement; Kuwait is reportedly a transit point for South and East Asian workers recruited for low-skilled work in Iraq; some of these workers are deceived as to the true location and nature of this work, and others are subjected to conditions of involuntary servitude in Iraq tier rating: Tier 3 - insufficient efforts in 2007 to prosecute and punish abusive employers and those who traffic women for sexual exploitation; the government failed for the fourth year in a row to live up to promises to provide shelter and protective services for victims of involuntary domestic servitude and other forms of trafficking (2008)
Kuwait’s Polity
Kuwait was founded in the early 1700s after tribes from Central Arabia settled in the Bay of Kuwait City. The Al-Sabah family has been in power since 1756. Fearful that the Ottoman Empire would expand further south, Kuwait came under British protection in 1899. In 1961 Kuwait gained independence from Britain while Iraq pressed a territorial claim to the country. Iraq invaded and occupied Kuwait on August 2, 1990. On February 26, 1991 a US-led international coalition liberated Kuwait by ousting Iraqi troops.
Kuwait is hereditary Amirate with an elected National Assembly and relatively democratic style of governance. The Amir is the Head of State and appoints the Prime Minister who heads the Government. The Constitution provides for separation of powers among the Executive, Judiciary and Legislature. Unicameral National Assembly (Majlis Al-Umma) with 50 members elected for a four-year term. Number of constituencies was reduced to 5 in July 2006. Ministers are not elected but sit as ex-officio MPs. The number of Ministers is fixed at 16 including the PM (⅓rd the strength of the House). One MP has to be included in the Council of Ministers.
To complete National Assembly quorum, at least one Cabinet Minister has to attend session.
Following the demise of the 13th Amir Sheikh Jaber AI-Ahmad Al-Jaber Al-Sabah in January 2006, the Kuwaiti cabinet announced the appointment of the Crown Prince Sheikh Saad Al-Abdullah Al-Salem Al-Sabah as the 14th Amir of Kuwait. However, due to his ill health, then Prime Minister Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah was appointed the 15th Amir of Kuwait. The Amir appointed Sheikh Nawaf Al-Ahmad Al-Jaber Al-Sabah as the new Crown Prince and Sheikh Nasser Al-Mohammad Al-Ahmad Al-Sabah as the new Prime Minister on February 7, 2006.
The last elections (12th) to the 50-member National Assembly (Parliament) of Kuwait were held on May 17, 2008 following which, the Government of Prime Minister Sheikh Nasser Al-Mohammed Al-Ahmed Al-Sabah was reappointed to office. The new Cabinet comprises 16 Ministers including the Prime Minister with 7 new appointees.
http://www.indembkwt.org/bilateral.php
Indians top in foreign manpower of Kuwait
KUWAIT CITY, Nov 1: Indians with more than 1,84,200 workers have become the largest community among foreigners employed by Kuwait’s private sector, the Social Affairs and Labour Minister said today.
Egyptians come second with 183,000 workers while Bangladeshis total 116,000, Faisal Al-Hajji told Al-Qabas daily.
Hajji said the total number of foreigners employed in the private sector reached 7,25,000 on June 30 this year, 52 per cent from the Indian sub-continent.
Other nationalities include 64,400 from Pakistan, 42,300 Syrians and 42,000 from Iran, in addition to 20,200 from the Philippines, 15,800 Lebanese, 11,000 from Sri Lanka and 10,500 Jordanians.
The figure does not include foreigners working in the public sector, estimated at 1,00,000 and some 3,00,000 domestic workers mostly from India, Sri Lanka and the Philippines.
Nor does it include hundreds of thousands of family members accompanying their sponsors in the oil-rich Emirate.
According to official figures released by the Planning Ministry, the foreign population of Kuwait rose 5.8 per cent in 2002 to reach the 1.5 million mark for the first time in 12 years.
The report said that Kuwait’s total population at the end of last year reached 2.42 million — 37.1 per cent Kuwaitis, 36.2 per cent Asians and 22.2 per cent Arabs.(AFP)
http://www.dailyexcelsior.com/web1/03nov02/inter.htm#3
http://middleeast.about.com/gi/dynamic/offsite.htm?zi=1/XJ&sdn=middleeast&cdn=newsissues&tm=25&gps=81_27_1276_626&f=00&tt=11&bt=1&bts=1&zu=https%3A//www.cia.gov/library/publications/the-world-factbook/geos/ku.html
DOMESTIC LABOUR SITUATION
Labour market
Labour force and employment regulations
In 2003 the labor force in Kuwait was 1.4 million. More than 81% of the labor force were non-nationals numbering 1.14 million. Overall, the labor force grew by 7.3% over the last 12 months. Both the Kuwaiti and expatriate segments experienced lower growth compared to the previous year, increasing by 4.5% and 8%, respectively, though the slowdown was especially noticeable among nationals.
Among Kuwaitis, the net increase in employment during the year ending exceeded 11 thousand, 90% of which was absorbed by the public sector. The number of new jobs, which decresed by 27%, remained below the number of Kuwaiti entrants into the labor market. As a result, the number of unemployed Kuwaitis is increasing.
In 2003 the Kuwaitis registered to receive unemployed compensation reached 9.9 thousand, up by 38% from a year ago. This represents an employment rate among Kuwaitis of 3.6%. While this figure appears relatively low, it may non-the-less reflect high unemployment since the figure excludes that have been seeking unemployment for under six months. Though fresh university graduates and other new entrants into labor market represent a large part of those seeking work they are not eligible to obtain unemployment compensation within the first six months.
At the same time, the figure may overestimate actual unemployment by counting registrants who have no intention of working. Indeed, during the first half of 2003, over 17 thousand Kuwaitis submitted applications for employment with the Civil Service Commission, a number that far exceeds the number expected to have entered the labor market. Of the applicants, roughly 90% were women, which may indicate that many applicants outside the labor market have applied for jobs with the sole intention of collecting unemployment compensation.
The employment of Kuwaiti nationals in the private sector accelerated over the past three years, no doubt driven at least in part by incentives provided by law 19/2000. The law introduces a number of incentives to Kuwaitis working in the private sector. The quotas were specified in decision number 904/202. The net increase in the number of Kuwaitis employed in the private sector during the 12 months ending June 2003 reached 1,150 jobs versus 980 jobs the previous year.
The net increase in expatriate employment during the same period was very similar to the figure seen the previous year. Net new jobs totaled 84.2 thousand, with the increase during the first half of 2003 exceeding that seen during the second half of 2002 by 31%.
http://www.ecbg-kuwait.com/kuwait/labor_availability.php
Legislative framework of public procurement and concessions
The Central Tenders Committee (CTC), an independent government agency attached to the Council of Ministers, is the government authority responsible for prequalifying firms, issuing government tenders and awarding contracts. Tendering procedures executed by this committee are regulated by law number 37/1964. Law number 81/1977 authorizes government bodies to independently import commodities and/or commission the execution of works directly, or by way of tenders, and not through the CTC, if the value of the contract is not in excess of KD 5,000. However, such contracts shall not be concluded to cover the same commodities or works more than once in one calendar month.
The CTC is made up of six members appointed by decree from the Council of Ministers for a term of two years, subject to re-appointment, and one representative each from the Ministry of Finance, the Department of Legal Advice and Legislation, the Ministry of Planning, the government authority for which the tender has been let and the government authority which will supervise the execution of the tender. The CTC acts on behalf of nearly all government departments, but is independent from them, being directly responsible to the Council of Ministers.
A limited number of government bodies and enterprises (Kuwait Airways, Kuwait University and Kuwait Ports Authority) are exempted from CTC supervision. The Ministries of Defense and Interior (including the security forces) can also issue their own tenders independently of the CTC. Consulting contracts do not fall under the purview of the CTC. Invitations to consultants are issued by the Consultants Selection Committee at the Ministry of Planning to those consultants registered with the ministry.
A foreign company must be registered through a Kuwaiti agent and prequalified if it is to bid for any government contract. To prequalify, the Kuwaiti agent of the concerned company must submit a standard set of documents outlining its capabilities to the CTC. The CTC in turn sends a list of approved companies to the ministry or ministries concerned, which in turn assesses the technical qualifications of the company in question, particularly its experience with similar projects, technical capabilities and financial strength. Once this assessment is made, a short list of prequalified companies is returned to the CTC. The CTC can add a company to the shortlist if it feels it has been erroneously excluded.
Prequalification may be required by an international company each time it bids for a contract. When ministries require services or products that are very similar from project to project, particular companies that have performed the service or provided the product before are often asked to do so again. Occasionally, the ministries prequalify companies automatically, and only those companies are asked to bid on the project. On rare occasions when a particular company has a skill or product that is unusual or hard to obtain it may be asked to bid for a contract, even if it does not currently have an agent.
Public works projects are classified into those which can be carried out by local contractors and those that are allotted to international contractors. The CTC classifies local contractors into four categories according to past performance, technical and financial capabilities and work expertise. This classification is not applied to foreign companies.
All forthcoming government tenders, whether administered by the CTC or by another body, are advertised in Al Kuwait Al Youm, the official gazette published every Sunday.
To obtain the tender documents, a covering letter in Arabic plus a fee in the form of a certified check are required. The documents can only be collected at the place and time shown in the official gazette. The fee for tender documents varies depending on the expected value of the contract.
Bids must be submitted to the CTC before the deadline, and in the place and manner prescribed. Bids must usually be submitted on the forms provided with the tender documents. The submitted bid must conform exactly with the conditions laid down in the tender documents. The bid must be accompanied by all supporting documentation required and the original receipts for the purchase of the tender documents. Extremely minor discrepancies can in some cases legally result in disqualification.
Submitted tenders will be evaluated on the basis of price and conformity to the technical specifications issued. Though the CTC and other tender committees are obliged to award contracts to the lowest bidder, some exceptions are permitted. Where a company has submitted an artificially low bid and it appears that the company will be unable to finish the work to the required standard, the government body may recommend another company which is not the lowest bidder. In instances where a ministry feels it can justify taking a higher priced bid for technical reasons, it can recommend that bid.
With regards to tenders for supply contracts, locally produced goods enjoy a 10% price margin over comparable imported items. Goods produced in GCC states enjoy a 5% price advantage. When there is no local competition, GCC goods have a 10% advantage. No price preference is given to local contractors or service companies.
An initial bank guarantee to be issued in Arabic by a Kuwaiti bank, and varying from 2.5% to 5% of the bid value must be submitted with the bid. A successful bidder who does not sign the contract may forfeit this bid bond. Unsuccessful bidders have their bank guarantees released. Upon signing the contract, the successful bidder must replace the initial guarantee with a performance guarantee from a Kuwaiti bank, typically 10% of the contract value.
On contracts for the performance of works the contractor may receive an advance payment to cover his initial costs of up to 10% of the total contract value. This advance is deducted as payment on account of work in progress. Some contracts allow the ministries to make a retention of 10% from each work in progress payment in the early stages. A retention during the maintenance period is also usual. All contracts contain penalty clauses to cover delays in completion, sub-standard quality and similar faults. A completion certificate is often given to a contractor when project work is completed. A maintenance performance of works on the supply of equipment. A final acceptance certificate, enabling the contractor to receive his final payment and releasing him from further liability, is given at the end of the maintenance period.
http://www.ecbg-kuwait.com/kuwait/concessions.php
Dispute resolution mechanism
The court system of Kuwait is divided into six different branches: personal, criminal, commercial, administrative, leases and civil. There are three levels in the Kuwaiti legal system, namely: the Court of First Instance, Court of Appeals and Court of Cassation.
The personal courts have jurisdiction over matters relating to the personal status of Muslims, in particular, family and inheritance law. The civil court has jurisdiction over all non-criminal cases not dealt with by other branches.
Replacing the previous ad hoc form of arbitration, law number 11/1995 provides for the establishment of one or more arbitration authorities at the Court of Appeals each consisting of three judges and two arbitrators to be chosen by the parties requesting arbitration.
The arbitration authority is empowered to rule on and conciliate disputes between government, ministries or other government bodies and companies that are fully owned by the government, or between these companies, or between individuals or private legal entities and government ministries and other public bodies, and generally between any parties that agree to its arbitration.
In addition, the Kuwaiti Chamber of Commerce and Industry (KCCI) administers arbitration and conciliation procedures according to its internal regulations and the Kuwait Society of Engineers administers arbitration proceedings concerning disputes in the construction industry. Many arbitrations in Kuwait have also taken place under the Rules of Conciliation and Arbitration of the International Chamber of Commerce and awards were deemed binding.
http://www.ecbg-kuwait.com/kuwait/dispute_resolution_mechanism.php
Working conditions
Legal weekly duration
8 hours per day, 48 hours per week.
Retirement age
60 years old.
Working contracts
The private sector has two types of contracts: Contract for unlimited time and contract for limited time which cannot exceed five years. It is mandatory that all contracts have to be written in Arabic, but they can be translated if the employee does not speak Arabic.
Cost of labor
Minimum wage
There is not a legal minimum wage in the private sector. However, in the public sector, the minimum wage is approximately 200 dinars (USD690) per month for Kuwaiti citizens.
Average wage
The average salary of a Kuwaiti is high, about 1,000 KWD (3,749 USD)
Social contributions
Social security contributions paid by employers: Employers are not required to contribute for the foreign labor force they recruit. Social security contributions paid by employees: For foreign labor force, this system is not mandatory.
Social partners
Bargaining power
Creation of syndicates (unions) is limited. All syndicates (about 15) are regrouped under the Kuwaiti Federation of Syndicates. Foreign domestic workers, who represent one third of the active population, do not have the right to be affiliated to a syndicate.
Unions
Kuwait Trade Union Federation
Unionization rate
5 % of the active population is affiliated to a syndicate (union).
Labor regulation bodies
Kuwait Ministry of Social Affairs and Labor
http://emporikitrade.com/uk/countries-trading-profiles/kuwait/labour-market
Politics
Kuwait is a constitutional monarchy and has the oldest directly elected parliament in the Persian Gulf region. The head of state is the Emir or Sheikh, a hereditary office. The Emir appoints a Prime Minister, who until recently was also the Crown Prince. A council of ministers, also known as cabinet ministers, aids the Prime Minister in his task as the head of Government of Kuwait which must contain at least one elected member of the Kuwaiti parliament, known as Majlis Al-Umma (National Assembly). The National Assembly has the power to dismiss the Prime Minister or any member of cabinet through a series of constitutional procedures. All cabinet ministers are answerable to the National Assembly.[25]
The National Assembly consists of fifty elected members, who are chosen in elections held every four years. Government ministers are also granted membership in the parliament and can number up to sixteen excluding the fifty elected members. According to the Constitution of Kuwait, nomination of a new Emir or Crown Prince by the ruling Al-Sabah family has to be approved by the National Assembly. If the nominee does not win the votes of the majority of the assembly, the royal family must submit the names of three other candidates to the National Assembly, and the Assembly must approve one of them to hold the post. Any amendment to the constitution can be proposed by the Emir but it needs to be approved by more than two-thirds of the members of the National Assembly before being implemented.[26] There have been several conflicts between the Emir, the government and the National Assembly over various policies. The National Assembly was suspended from 1976 to 1981, from 1986 to 1991 and from May 1999 to July 1999 due to irresolvable conflicts between some members of the government and the Assembly.[25]
Two-thirds of Kuwait's population do not have citizenship and thus cannot vote in parliamentary elections. Additionally, prior to 2005, only 15% of the Kuwaiti citizen population was allowed to vote, with all women, "recently naturalized" citizens (i.e. those of less than thirty years' citizenship), and members of the Kuwaiti Armed Forces excluded. On May 16, 2005, Parliament permitted women's suffrage by a 35-23 vote, subject to official interpretation of Islamic law and effective for the 2006 parliamentary election.[27] The decision raised Kuwait's eligible voter population from 139,000 to about 339,000. In 2006, Kuwaiti citizens were estimated to be more than 960,000. In 2005, the former Prime Minister Sheikh Sabah al-Ahmad al-Sabah announced the appointment of the first women as a cabinet minister, Massouma Mubarak. She was designated the post of Planning Minister and Minister of State for Administrative Development Affairs.[28] During the 2008 parliamentary elections, 27 of the 275 candidates were women. However, none of them won
HUMAN RESOURCE BASE
Employment and Unemployment
Kuwait Unemployment rate
Kuwait > Economy
Year
Unemployment rate
Rank
Percent Change
Date of Information
2003
7.00 %
129
2002 est.
2004
2.10 %
178
-70.00 %
2003 est.
2005
2.20 %
16
4.76 %
2004 est.
2006
2.20 %
18
0.00 %
2004 est.
2007
2.20 %
20
0.00 %
2004 est.
2008
2.20 %
21
0.00 %
2004 est.
Definition: This entry contains the percent of the labor force that is without jobs. Substantial underemployment might be noted.
Source: CIA World Factbook - Unless otherwise noted, information in this page is accurate as of May 16, 2008
Source: www.indexmundi.com/kuwait/unemployment_rate.html
India,Kuwait to address labour issues
New Delhi: In a move aimed at giving relief to lakhs of Indian nationals working in the Gulf, New Delhi will sign an agreement on labour issues with Kuwait for protecting their interests and revise a similar accord with Qatar. Negotiations on the agreement with Kuwait have been initiated, sources said in New Delhi on Sunday.
The pact is aimed at institutionalizing services and protecting the interests of lakhs of Indians working in Kuwait in view of complaints by many of them about harassment and abuse by their employers.
The sources pointed out that an agreement in the area of labour is a complicated issue as it has implications for the domestic affairs of the host country and requires adjustment of its laws. A labour agreement with Qatar is already in place and it will be revised, they said.
Similar accords are also proposed to be signed with four other countries of the Gulf -- the UAE, Saudi Arabia, Oman and Yemen. Tens of lakhs of Indians work in Gulf countries and many have complained about ill-treatment by their employers there.
The main complaints relate to non-payment of wages and failure of employers to provide proper working conditions.
The Indian government is mostly found helpless in such matters in the absence of any pacts that provide for securing the interests of workers.
To make up for this, New Delhi usually uses its good offices with the host country to help address the grievances of workers. (PTI)
http://www.headlinesindia.com/archive_html/17September2006_12312.html
Kuwait eyes higher minimum wage after workers strike
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KUWAIT (Reuters) - Inflation-hit Kuwait is considering raising the minimum wage to 40 dinars ($151) after Asian workers staged a strike demanding better pay, state news agency KUNA reported.
The Kuwaiti government reached an agreement with Asian workers on Monday to end a three-day strike over pay and working conditions against a backdrop of soaring inflation, which exceeded 11 percent in April and May.
Some striking workers said they were getting paid as little as 8 dinars per month.
The Ministry of Social Affairs and Labour would submit a recommendation to cabinet to raise the minimum monthly wage to 40 dinars, KUNA quoted Minister Bader al-Duwaila as saying late on Tuesday, without giving the current level.
Kuwait, the world's seventh-biggest oil exporter, is the third-richest Arab country, with per capita gross domestic product of $30,188 in 2006, according to London-based Middle East Economic Digest.
Hundreds of mainly Bangladeshi cleaners and workers staged demonstrations in the Gulf oil producer. The strike turned violent, with cars overturned, and was dispersed by police.
Any change in the minimum wage would apply to current and future contracts, KUNA quoted the minister as saying.
Struggling to fight inflation while insulating its population from rising prices, the government has raised wages of Kuwaiti citizens twice by a total of 170 dinars this year.
Gulf Arab countries rely heavily on foreign workers as they invest windfall revenues from a more than six-fold rise in oil revenues since 2002 to diversify their economies. Expatriates comprise two thirds of Kuwait's 3.2-million population.
http://in.reuters.com/article/topNews/idINIndia-34742720080730
Private Sector Labour Law
Labour regulation in the private sector are enforced by the Ministry of Social Affairs & Labour (MSA&L). The points discussed below are neither complete nor authoritative. As well as domestic sevants, persons on temporary contractors of less than six months are excluded from the scope of the private sector labour law. Where an employer’s head office is outside Kuwait, the labour law of the country where the employer has its head office, governs expatriates working in Kuwait, unless the employer has a branch in Kuwait which concluded the contract with the employee in which case Kuwait law applies.
Contract of Employment
An employee’s terms of service are contained in his employment contract, which may be for a fixed time or it may be indefinite. A fixed time may not exceed five years. The labour law specifies minimum limits below which terms of service may not fall, and if a clause in his contract gives an employee a lesser benefit than his right under the law, he is entitled to the minimum specified by law for that particular term. An employment contract may be verbal or in writing. In either case, it must show at least: · The remuneration payable · A description of the job · The date of appointment · Its duration (if fixed) Where a contract is verbat then, in the event of a dispute, either side can use circumstantial evidence to prove what is in it. If the contract is in writing, it must be in Arabic. A translation into another language may be attached but the Arabic version is authoritative, ie only the Arabic version will be considered in resolving a dispute in a cout of law. An employee may be hired on probation for a 100 days at most. During this time he may be terminated without notice, though accrued indemnity but not holding pay must be paid. The same employer may not put an employee on probation more than once.
Remuneration & Deductions
Remuneration includes basic pay, incentives, commissions, obligatory bounses, gratuities from third parties and allowaces from which the employee benefits (such as housing allowance), but excludes allowances on account of expenses and profit shares, Payment of a bonus is obligatory if it is stipulated in the contract of employment or in the by-laws of the firm or it has been paid in the same amount regularly every year. What is included in total remuneration is important, as this is the figure that must be used when calculating terminal indemnity or compensation on account of injury. Where an employee is paid on a time basis the last salary payable is used, but if he is paid on a piece-work basis then the average wage actually payable to him during the previous three months is used.
Payments
There is no minimum wage. Salaried employees must be paid at least once a month. Piece-workers and those on hourly or weekly wages must be paid every two weeks. Persons working for a subcontractor, who has failed to pay their salaries, may demand payment from their employer’s superior contract to the extent that the latter owner their employer money for work done. When an employer goes bankrupt the outstanding salaries and termination benefits of his employees must be paid before his other creditors.
Deductions
An employee may not be obliged to buy products made by his employer, If he owes his employer money than not more than 10% of his salary may be deducted to pay off his dept and he may not be charged interest. Where an employee’s Salary is attached on account of debts to third parties, the deduction is limited to 25 % of his salary.
Working Hours
The working hours of an adult are limited to eight hours a day and 48 hours a week. A rest break of at least one-hour must be allowed after five consecutive hours of work. Rest periods are not included in the calculation of working hours. These standered hours may be increased or decreased by the MSA&L in certain cases, such as hotel works.
Holidays
An employee is entitled to one full day off without pay a week. The traditional day off is Friday, but this is not a legal requirement in Kuwait. An employee also has the right to eight public holiday’s a year with full pay as follows: · One day on Hijri NewYear’s Day · One day on Ascension Day · Two days for Eid Al-fitr · Two days for Eid Al-Adha · One day for the prophet Mohammed Birthday (PBUH) · One day for National day Liberation Day is not yet a statutory holiday in the private sector.
Annual Leave
An employee with up to five years of continuous service is entitled to 14 days leave a year on full day, provided he has completed one year of services, and 21 days after more than 5 years of continuous service. Official holidays and days of sickl leave may not be counted a part of annual leave. The employer has the right to fix the date of leave. An employee must be given his holidays pay before he goes on leave and the last salary payable before the holidays must be used to calculate the amount due. If an employee’s services are terminated that he is entitled to a cash payment in lieu of accumulated leave, irrespective of the number of years of leave due, and payment for the accumulated leave must be calculated on the basis of the last salary payable on the date of termination.
Sick Leave
Subject to a satisfactory medical report, an employee is entitled to sick leave for · The first six days of illness on full pay · The next six days on three-quarters pay · The next six days on half pay · The next six days on quarterpay · The next six days without pay This entitlement is the total entitlement in one year and not per period of sickness.
Overtime
An employee may be required to work overtime provided it is necessary and the employer’s order is in writing. Overtime rates of pay are: · 1.25 times the basic hourly rate for excess hours worked on ordinary days · 1.50times the basic hourly rate for all hours worked on the weekly day off · Twice the basic hourly rate for all hours worked on public holidays. Overtime may only be worked on 90 days in a year and is limited to 2 hours a day, 6 hours a week, and 180 hours a year. An employee has the right to refuse to work overtime.
Female Employees
A women performing the same work as a man must be paid equal remuneration. The standard working hours for women are the same as for men. But may not work at night (7pm to 6 pm ) except in clinics, pharmacies, hotels, nursery schools, homes for the handicapped, airline and tourist offices, theaters and Entertainment City. They may work up to midnight in cooperative societies and public utilities, beauty salons, tailoring shops, banks and offices. Night-time working hours may be extended by the MSA&L during Ramadan, and on Eids and public holidays. Employers are obliged to arrange transport for women working at night.
Maternity Leave
A women is entitled to maternity leave to a maximum of 30 days prior to delivery and 40 days after delivery on full day. Thereafter she may be absent from work without pay for up to 100 consecutive or non-consecutive days, provided she presents a medical certificate stating that she is ill as result of gestation and parturition. The annual leave entitlments of a women who makes use of her maternity for leave privileges in any year are forfeit on day-per-day basis until her annual leave entitlement for that year is extinguished.
Termination Benefits
When his employment is terminated, an employee is entitled to a lump sum payment called termination indemnity.
Calculation
For those paid monthly, termination indemnity is 15 days remuneration for each complete year of service for first 5 years and 30 days for each complete year beyond 5 years, but the total indemnity is limited to one and a half year’s remigration. For piece-rate workers and those paid on an hourly, daily or weekly basis, the indemnity is 10 days remuneration for each complete year of service for the first 5 years, and 15 days pay for each complete year beyond 5 years, subject to a limit of one year’s remuneration. In both cases part years are calculated pro-rata.
Restrictions
An employee who resigns with less than five years service is not entitled to indemnity. One who resigns with five years or more of services is entitled to 50% indemnity. But employees are more made redundant (irrespective of length of service), who reach retirement age, who are disabled at work, or who die are entitled to full indemnity. And woman who marriage while she is an employee and who resigns within six months of marriage is entitled to full indemnity.
Disciplinary Notices & penalties
All employees related regulations must be issued as circulars or bulletins written in Arabic. Miscreant employees may be peanlised provided the employee issued regulations specifying the acts that are punishable. Penalties must be progressive and are limited as follows: · Only one publishment may be infected for each act of misbehavior · A penalty cannot be imposed for an act committed outside the work place unless it was related to work · A pay deduction cannot exceed 5 days have a month · A suspension from duty cannot exceed 10 days a month · A penalty cannot be imposed for any act once 15 days have elapsed science the act was proved or since the usual date for the payment of wages.
Termination
Where an employment contract is for a fixed period, it terminates automatically at the end of the period, But if both parties then continue to implement it, it is deemed to be renewed indefinitely under the same terms and conditions. If either party terminates the contract before the end of the fixed period (and there is no clause in the contract to cover this) then the party terminating the contract must compensate the other. Where termination is made by the employer, compensation is limited to wage the employee would have earned from the day of termination to the expiry of his contract. Where it os the employee who quits, compensation is limited to the employer’s actual loss. Where an employment contract is for an unlimited period, either party may terminate it by notifying the other in writing ar least 15 days prior to termination (Where the employee is paid more frequently). Either party may pay the other 15 or 7 days salary, as appropriate, in lieu of notice. An employer has the right to terminate an employee without notice, and without paying indemnity and compensation, if the employee: · Commits a wrongful act resulting in serious loss to the employer · Repeatedly disobeys the instructions of the employer · Disobeys the employer’s instructions concerning saftey at work on a single occation · Has been absent from work for more than seven consecutive days without due cause · Has been convicted of a crime affecting honour, honestly or morality · Commits an act against public morality in the workplace · Assaults a fellow employee, the employer or his agent at work or on account of work · Fails to carry out his obligations under the terms of his contract or the labour law · Has used fraud to obtain work · Reveals any secrets relating to his employment
An employee has the right to quit without notice before the expiry of his contract, and to collect his indemnity and not pay compensation, if: · His employer fails to abide by the provision of his contract or the labour law · The employee has been assaulted by the employer or his agent · To continue in work would endanger his health An employee’s contract is terminated if he dies. It may be terminated if he fails (without fault) to perform his work or he exhausts his entitled to sick leave. In all these cases his indemnity must be paid. An employee’s contract is automatically terminated if his firm goes into liquidation or merges with another, or there is a lockout, or the firm is sold or inherited, the new owner while reserving his right to indemnity, though the employee may continuo in service with the new owner while reserving his right to indemnity for his previous service.
Health & Safety
Employers are obliged to take precautions to protect their employees against physical hazards and occupational diseases work. They are also required to ensure that places of work are clean, well ventilated, adequately lit and in sanitary condition. Employers must supply first aid kits containing medicines, antiseptics and bandages, and place them visibly within reach of employees. Detailed standards in these matter are contained in resolutions issued by the MSA&L in consultation with the Ministry of public Health. Employees who work in areas not serviced by public transport must be provided with suitable transport. If they work in localities far from populated areas, the employer must provide suitable accommodation, potable water and the means to obtain supplies.
Accidents
If an employee is injured at work, the employer must report the matter to the local police station and the MSA&L. The injured employee has the right to treatment, at the employer’s expense, in any government hospital or private clinic as the employer deems suitable, A doctor’s report, stating the period of treatment required, any disability arising from the accident and the employee’s fitness to continue in work, must be obtained. During treatment, an injured employee is entitled to full pay for the first six months and, thereafter, half pay until he dies, or recovers, or is proved to be permanently disabled.
Compensation
An employee has the right to compensation for work-related injuries without having to prove that the employer was at fault, provided he did not injure himself intentionally or was not guilty of gross malpractice (such as expressly contra-vening safely regulation). But where his injuries have made him more than 25% disabled or he has died of them , he or his family will be entitled to compensation even if he was guilty of gross malpractice. Compensation varies with the severity of the injury. Where death has occurred, it is the greater of: · 1500 days pay · the legal blood money currently KD 10.000 For total permanent disability, it is the greater of: · 2000 days pay · one and one-third titimes the legal blood money For partial permanent disability, compensation is calculated as a percentage of what would be due for total permanent disability. Trade union & Dispute resolution The formation and activities of trades unions are strictly controlled. Only on union may be established for workers of any firm of profession and person may not join mare than one union. To join a union, a person must: · Be at least 18 years of age · Have a certificate of good conduct from a complete authority An expatriate must also · Have valid work permit · Have been in Kuwait for 5 consecutive years The right to vote in the general assembly of a union or to be elected to its executive board is restricted to Kuwaitis. Expatriate members only have the right to delegate one of themselves as their representative to express their views before the executive board.
Collective Labour Disputes
If a dispute arises between an employer and all or some of his employees regarding terms of work, the following procedures are mandatory: · Direct negotiation must take place between the employer and the employees. If an agreement is reached, it must be registered with the MSA&L within seven days · If no agreement is reached then the parties should request the MSA&L to intervene · If the MSA&L fails to settle the dispute within 15 days, it must refer the matter to Labour Disputes Arbitation Committee in the courts. The employer or his representative and representative of the employees may appear beforethis committee to a limit of three representatives each. The committee’s decision is final and binding.
Individual Labour Disputes
The private sector labour law also lays down specific procedures which must be followed by individual pursing claims against their employers. The dispute must be submitted to the MSA&L before a law suit is started. The Ministry must call the two parties together and try to settle the matter amicably. If no settlement is reached then, within two weeks of being asked by the employee, the MSA&L must refer the dispute to the Labour Court, along with a summary of the matter, the evidence of the parties, and the Ministry’s own comment’s. Within three days the court must fix a date for a hearing, and notify both parties. The case is heard in a summary manner. The tome limit for filing cases is one year after employment is terminated. Labour cases are exempt from the usual court fees but if the employss loses then the court may order him to pay anominal amount on account of costs.
Expected Changes
Regulations under the private sector labour law are issued at regular intervals.they only become effective when published in Al-Kuwait Al-Youm,the official gazette. In july 1997 a new draft labour law was finalised by the MSA&L.Terminal indeminity ,annual holidays and sick leave are to be increased and the number of public holidays is to be extended to twelve.Haj leave,compassionate leave and Idda leave for new widows,all fully paid ,are to be introduced.The new law is expected to make the payment of salaries within seven days of their due date mandatory,and may also bring in a minimum wage.In November 1999 the MSA&L announced that a revised draft law would be submitted for approval to the Council of Ministers before the end of 1999.
Disputes and Civil Rights
Expatriates who are finding it difficult to get their legal rights in a work related or other dispute may find the following organisations helpful.
· Labour Departments at the ministry of Social Affairs and Labour The MSA&L has five labour Deparments,one in each governorate.Labour disputes should be referred to one of these departments,along with documents to substantiate a claim.The Department will give advice on the merits of a case and follow the procedures mentioned on the previous page.· Kuwait Trade Union Federation The Federation has a special interest in preventing the abuse of expatriate labourers.It provides legal advice to labourers free of charge and also helps them to take action against their emloyers. · Human Rights Committee(HRC) at the National Assembly Complaints on any matter,whether related to employment or other issues,can be sent to the HRC by letter or by fax,or can be discussed on the telephone or by visiting the National assembly building in person.Persons who are refused entry to the National Assembly building should call the Committee directly. The HRC are particurlarly interested in expatriates who are having difficulty in obtaining their passports from their employers,and these persons are asked to send a signed letter in arabic stating the facts of their case,their civil ID and passport numbers,country of origin,and the name of the their employer by fax to the Committee who will treat the matter in strictest confidence.
Source: http://www.kuwaitiah.net/visa5.html
It is evident from the data on labour flows to developed and developing countries from South Asia that all South Asian countries have a strong interest in exporting labour-intensive services, at all levels of skills.
The main markets of interest are the Middle East, South East Asia and the industrialised countries, in particular the US, UK, Canada and Australia.
Sectors of interest include professional services such as information technology, finance and engineering, as well as semi-skilled and low-skilled services such as construction work, repair, nursing and domestic help.
All countries have also been focusing on the software industry as a thrust area, by facilitating domestic and foreign investment in this industry and by investing in training and skill-development to create the requisite manpower for this industry.
Hence, Mode 4 is a focus area for securing and enhancing market access in services exports for South Asia.
It is also worth noting that Mode 4-based exports are critical not only for the growth of certain industries such as IT, but also for generating resources for development in the source sectors and communities of these countries, and thus important not only from the strategic viewpoint of the GATS negotiations but also from a larger development perspective.
http://www.centad.org/relatedinfo16.asp
Market Share
Competitive Indicators
Labour Laws
LABOUR LAWS IN KUWAIT
The Law Firm of Labeed Abdal
In Kuwait , the labour laws in public sector and private sectors are regulated by separate statutes. There are three main legal codes governing labour laws in Kuwait . Labour laws in the private sector are enforced by the Ministry of Social Affairs & Labour (MSA & L). The Employment related matters for the civil servants are regulated by the Labour Law for Government Employees. The employees who work in the Oil Industry are regulated by the Labour Law of the Oil Sector. The persons on temporary contracts of less than six months and persons in domestic service, such as the maids, domestic servants, drivers etc are not covered by any particular labour law and must rely for protection on general principles of law.
Labour Laws in the Private Sector (Law No.38/1964)
Labour laws in the private sector are enforced by the Ministry of Social Affairs & Labour ( MSA & L). The contract of employment could be for fixed time or indefinite. A fixed time may not exceed 5 years. The Contract may be verbal or in writing. The Employment Contract should specify atleast the description of the job, remuneration payable, terms of services etc. The Contract must be in Arabic as it will be considered authoritative in case of any dispute before the court of law. In case the employee is unable to communicate in Arabic language, he may get the Arabic version of the contract translated from any authorized translation office to his language for the purpose of his reference.
Remunerations includes basic pay, incentives, commissions, obligatory bonuses, gratuities from third parties, allowances etc. Payment of a bonus is obligatory if it is stipulated in the contract of employment. The total remuneration as per the contract is very important when the terminal indemnity is calculated or for compensation for any injury to the employee. Where an employee is paid on a time basis, the last salary payable is used, but if he is paid on a piece-work basis, then the average wage actually payable to him during the previous three months is used. The employee having a fixed salary must be paid every month and piece�workers and those on hourly or weekly wages must be paid every two weeks.
The working hours of an adult are limited to eight hours a day and 48 hours a week. An employee is required to work overtime provided it is necessary and the employer's order is in writing. An employee should be adequately paid for the over time work performed. The overtime pay are generally higher than the pay during the ordinary office hours. An employee is entitled to one full day off per week. In most offices, friday is the traditional off day, but this is not a legal requirement.
Regarding leave, an employee who has completed five years of continuous service is entitled to 21 days leave a year and the employee who has not completed five years term is entitled to 14 days leave a year. Official holidays and days of sick leave may not be counted as part of annual leave.
A woman employee should be paid equal remuneration as a man for the same work performed. The standard working hours for the women are same as men. A woman is entitled to maternity leave for a maximum 30 days prior to delivery and 40 days after delivery.
Termination
For an employee who gets paid salary every month, termination indemnity is 15 days remuneration for each complete year of service for the first 5 years and 30 days for each complete year beyond 5 years. An employee who resigns without completing five years of service is not entitled to indemnity.
If the employment contract is for a fixed period and if either the employer or the employee wants to terminate the contract before the end of the fixed period, then the party terminating the contract must compensate the other.
Wherein an employment contract is for an unlimited period, either party may terminate it by notifying the other in writing at least 15 days prior to the termination.
An employer has the right to terminate the employee without notice and without payment of any indemnity or any compensation, if the employee commits any wrong or fraud, causing serious loss to the employer or has been convicted of any crime or disobeys the instructions of the employer etc.
Compensation
An employee has the right to compensation for work-related injuries for no fault on his part, even without having to prove that the employer was at fault. Compensation varies with the severity of the injury occurred. Where the employee has become 25% or more disabled or has died due to it, he or his family will be entitled to compensation.
Disputes and Civil Rights
The employee especially the expatriates, who are not able to get their due in case of any dispute with the employer, may communicate with the Labour Departments at the Ministry of Social Affairs and Labour along with their relevant documents to substantiate a claim..
http://www.helplinelaw.com/law/kuwait/articles/labeed%20abdal/article6.php
LABOUR LAWS There are three main legal codes governing labour conditions in Kuwait. The employment conditions of civil servants are regulated by the Labour Law for Government Employees. Those who work in the oil industry are protected by the Labour Law of the Oil Sector. And the Labour Law of the Private Sector governs employment condittions in private businesses. Persons in domestic service, such as maids and chauffeurs, however are not covered by any particular code and must rely for protection on general principles of law.
PRIVATE SECTOR LABOUR LAWLabour regulations in the private sector are enforced by the Ministry of Social Affairs & Labour (MSA&L). The points discussed below are neither complete nor authoritative.As well as domestic servants, persons on temporary contracts of less than six months are excluded from the scope of the private sector labour law. Where an employer’s head office is outside Kuwait, the labour law of the country where the employer has its head office, governs expatriates working in Kuwait, unless the employer has a branch in Kuwait which concluded the contract with the employee in which case Kuwaiti law applies.
HINTS FOR EXPATS
Keep photocopies of all documents so that they will be easier to replace if lost.
The work permit (idah amal), which is issued to process a residency application, also needs to be shown at various government offices for differing purposes, such as the traffic department when applying for a driving licence. Only two copies are issued. One is given to the Immigration Department when obtaining residency and one is kept by the sponsoring company. If the latter is lost, the Labour Department will not issue another copy. Therefore always make sure that a photocopy is obtained and guard it carefully.
Contract of EmploymentAn employee’s terms of service are contained in his employment contract, which may be for a fixed time or it may be indefinite. A fixed time may not exceed five years.The labour law specifies minimum limits below which terms of service may not fall, and if a clause in his contract gives an employee a lesser benefit than his right under the law, he is entitled to the minimum specified by law for that particular term. An employment contract may be verbal or in writing. In either case, it must show at least (a) the remuneration payable, (b) a description of the nature of the job, (c) the date of appointment, and (d) its duration (if fixed). Where a contract is verbal then, in the event of a dispute, either side can use circumsta-ntial evidence to prove what is in it.If the contract is in writing, it must be in Arabic. A translation into another language may be attached but the Arabic version is authoritative.An employee may be hired on probation for a 100 days at most. During this time he may be terminated without notice, though accrued indemnity but not holiday pay must be paid. An employee may not be put on probation more than once by the same employer.
Remuneration & DeductionsRemuneration includes basic pay, incentives, commissions, obligatory bonuses, gratuities from third parties and allowances from which the employee benefits (such as housing allowance), but excludes allowances on account of expenses and profit shares. Payment of a bonus is obligatory if it is stipulated in the contract of employment or in the by-laws of the firm or it has been paid in the same amount regularly every year. An employee’s total remuneration must be used when calculating terminal indemnity or compensation on account of injury. Where an employee is paid on a time basis the last salary payable is used, but if he is paid on a piece-work basis then the average wage paid to him for his actual work during the previous three months is used.There is no minimum wage. Salaried employees must be paid at least once a month. Piece-workers and those on hourly or weekly wages must be paid every two weeks.Persons working for a subcontractor, who has failed to pay their salaries, may demand payment from their employer’s superior contractor to the extent that the latter owes their employer money for work done. When an employer goes bankrupt, the outstanding salaries and termination benefits of his employees must be paid before his other creditors.
An employee may not be obliged to buy products made by his employer. If he owes his employer money then not more than 10% of his salary may be deducted to pay off his debt and he may not be charged interest. Where an employee’s salary is attached on account of debts to third parties, the deduction is limited to 25% of his salary.
Working HoursThe working hours of an adult are limited to 8 hours a day and 48 hours a week. A rest break of at least one hour must be allowed after 5 consecutive hours of work. Rest periods are not included in the calculation of working hours. These standard hours may be increased or decreased by the MSA&L in certain cases, such as hotel workers.
HolidaysAn employee is entitled to one full day off without pay a week. The traditional day off is Friday, but this is not a legal requirement in Kuwait.An employee has a right to eight public holidays a year with full pay as follows: one day on Hijri New Year’s Day, one day on Ascension Day, two days each for Eid Al-Fitr and Eid Al-Adha, one day for the Prophet Mohamed’s Birthday, and one day for National Day. Liberation Day is not yet a statutory holiday in the private sector. An employee is entitled to 14 days leave a year on full pay, provided he has completed one year of service, and 21 days after more than 5 years of continuous service. Official holidays and days of sick leave may not be counted as part of annual leave. The employer has the right to fix the date of leave. An employee must be given his holiday pay before he goes on leave and the last salary payable before the holidays must be used to calculate the amount due. If an employee’s services are tertminated then he is entitled to a cash payment in lieu of accumulated leave, irrespective of the number of years of leave due, and payment for the accumulated leave must be calculated on the basis of the last salary payable on the date of termination.
Sick LeaveSubject to a satisfactory medical report, an employee is entitled to sick leave for (a) the first six days of illness on full pay, (b) the next six days on 3/4 Pay, (c) the next six days on 1/2 Pay, (d) the next six days on 1/4 Pay, and (e) the next six days without Pay. This entitlement is the total entitlement in one year and not per period of sickness.
OvertimeAn employee may be required to work overtime provided it is necessary and the employer’s order is in writing. Overtime rates are (a) 1.25 times the basic hourly rate for excess hours worked on ordinary days, (b) 1.50 times the basic hourly rate for all hours worked on the weekly day off, and (c) twice the basic hourly rate for all hours worked on public holidays. Overtime may only be worked on 90 days in a year and is limited to 2 hours a day, 6 hours a week, and 180 hours a year. An employee has the right to refuse to work overtime.
Female EmployeesA woman performing the same work as a man must be paid equal remuneration. The standard working hours for women are the same as for men. But women may not work at night (8pm to 7am) except in clinics, pharmacies, hotels, nursery schools, homes for the handicapped, airline and tourist offices, theatres and Entertainment City. They may work up to midnight in cooperative societies and public utilities, restaurants, beauty salons, tailoring shops, banks and offices. Night time working hours may be extended by the MSA&L during Ramadan, and on Eids and public holidays. Employers are obliged to arrange transport for women working at night.
Maternity LeaveA woman is entitled to maternity leave to a maximum of 30 days prior to delivery and 40 days after delivery on full pay. Thereafter she may be absent from work without pay for up to 100 consecutive or non-consecutive days, provided she presents a medical certificate stating that she is ill as a result of gestation and parturition. The annual leave entitlements of a woman who makes use of her maternity leave privileges in any year are forfeit on a day-per-day basis until her annual leave entitlement for that year is extinguished.
Termination Benefits When the employment is terminated, an employee is entitled to a lump sum payment called termination indemnity. For those paid monthly, termination indemnity is 15 days remuneration for each complete year of service for the first 5 years and 30 days for each complete year beyond 5 years, but the total indemnity is limited to one and a half year’s remuneration. For piece-rate workers and those paid on an hourly, daily or weekly basis, the indemnity is 10 days remuneration for each complete year of service for the first 5 years, and 15 days tpay for each complete year beyond 5 years, subject to a limit of one year’s remuneration. In both cases part years are calculated pro-rata.Pay per day is calculated by dividing the monthly salary in the final year of employment by 26. The monthly salary used to calculate daily pay must include the elements mentioned under ‘remuneration’ above.An employee who resigns with less than five years service is not entitled to indemnity. One who resigns with five years or more of service is entitled to 50% indemnity. But employees who are made redundant (irrespective of length of service), who reach retirement age, who are disabled at work, or who die are entitled to full indemnity. And a woman who marries while she is an employee and who resigns within six months of marriage is entitled to full indemnity.
Disciplinary Notices & PenaltiesAll employee related regulations must be issued as circulars or bulletins written in Arabic. Miscreant employees may be penalised provided the employer issues regulations specifying the acts that are punishable. Penalties must be progressive and are limited as follows:
ü only one punishment may be inflicted for each act of misbehaviour. ü a penalty cannot be imposed for an act committed outside the work place unless it was related to work. ü a pay deduction cannot exceed 5 days pay a month. ü a suspension from duty cannot exceed 10 days a month. ü a penalty cannot be imposed for any act once 15 days have elapsed since the act was proved or since the usual date for the payment of wages.TerminationWhere an employment contract is for a fixed period, it terminates automatically at the end of the period, but if both parties then continue to implement it, it is deemed to be renewed indefinitely under the same terms and conditions. If either party terminates the contract before the end of the fixed period (and there is no clause in the contract to cover this) then the party terminating the contract must compensate the other. Where termination is made by the employer, compensation is limited to the wage the employee would have earned from the day of termination to the expiry of his contract. Where it is the employee who quits, compensation is limited to the employer’s actual loss. Where an employment contract is for an unlimited period, either party may terminate it by notifying the other in writing at least 15 days prior to termination (where the employee is paid monthly) or 7 days before termination (where the employee is paid more frequently). Either party may pay the other 15 or 7 days salary, as appropriate, in lieu of notice.An employer has the right to terminate an employee without notice, and without paying indemnity and compensation, if the employee:
commits a wrongful act resulting in serious loss to the employer,
repeatedly disobeys the instructions of the employer,
disobeys the employer’s instructions concerning safety at work on a single occasion,
has been absent from work for more than seven consecutive days without due cause,
has been convicted of a crime affecting honour, honesty or morality,
commits an act against public morality in the work place,
assaults a fellow employee, the employer or his agent at work or on account of work,
fails to carry out his obligations under the terms of his contract or the labour law,
has used fraud to obtain work, or
reveals any secrets relating to his employment.An employee has the right to quit without notice before the expiry of his contract, and to collect his indemnity and not pay compensation, if:
his employer fails to abide by the provisions of his contract or the labour law,
the employee has been assaulted by the employer or his agent, or
to continue in work would endanger his health.An employee’s contract is terminated if he dies. It may be terminated if he fails (without fault) to perform his work or he exhausts his entitlement to sick leave. In all these cases his indemnity must be paid.
An employee’s contract is automati-cally terminated if his firm goes into liquidation or merges with another, or there is a lockout, or the firm is sold or inherited, and in all cases the employee is entitled to his termination indemnity. Where the firm is sold or inherited, the new owner must settle the indemnity, though the employee may continue in service with the new owner while reserving his right to indemnity for his previous service.
Health & Safety Employers are obliged to take precautions to protect their employees against physical hazards and occupational diseases at work. They are also required to ensure that places of work are clean, well ventilated, adequately lit and in sanitary condition. Employers must supply first aid kits containing medicines, antiseptics and bandages, and place them visibly within reach of employees. Detailed standards in these matters are contained in resolutions issued by the MSA&L in consultation with the Ministry of Public Health.Employees who work in areas not serviced by public transport must be provided with suitable transport. If they work in localities far from populated areas, the employer must provide suitable accommodation, potable water and the means to obtain supplies.
AccidentsIf an employee is injured at work, the employer must report the matter to the local police station and the MSA&L. The injured employee has the right to treatment, at the employer’s expense, in any government hospital or private clinic as the employer deems suitable. A doctor’s report, stating the period of treatment required, any disability arising from the accident and the employee’s fitness to continue in work, must be obtained. During treatment, an injured employee is entitled to full pay for the first six months and, thereafter, half pay until he dies, or recovers, or is proved to be permanently disabled.CompensationAn employee has the right to compensation for work-related injuries without having to prove that the employer was at fault, provided he did not injure himself intentionally or was not guilty of gross malpractice (such as expressly contravening safety regulations). But where his injuries have made him more than 25% disabled or he has died of them, he (or his family) will be entitled to compensation even if he was guilty of gross malpractice.Compensation varies with the severity of the injury. Where death has occurred, it is the greater of (a) 1500 days pay or (b) the legal blood money (currently KD10,000). For total permanent disability, it is the greater of (a) 2000 days pay or (b) one and one-third times the legal blood money. For partial permane-nt disability, compensation is calculated as a percentage of what would be due for total permanent disability.
TRADE UNIONS & DISPUTE RESOLUTIONThe formation and activities of trades unions are strictly controlled. Only one union may be established for workers of any firm or profession and a person may not join more than one union. To join a union, a person must:(a) be at least 18 years of age and (b) have a certificate of good conduct from a competent authority. An expatriate must also (c) have a valid work permit and (d) have been in Kuwait for 5 consecutive years. The right to vote in the general assembly of a union or to be elected to its executive board is restricted to Kuwaitis. Expatriate members only have the right to delegate one of themselves as their representative to express their views before the executive board.
Collective Labour DisputesIf a dispute arises between an employer and all or some of his employees regarding terms of work, the following procedures are mandatory:
Direct negotiation must take place between the employer and the employees. If an agreement is reached, it must be registered with the MSA&L within seven days.
If no agreement is reached then the parties should request the MSA&L to intervene.
If the MSA&L fails to settle the dispute within 15 days, it must refer the matter to the Labour Disputes Arbitration Committee in the courts. The employer (or his representatives) and representatives of the employees may appear before this committee to a limit of three representatives each. The committee’s decision is final and binding.
Individual Labour DisputesThe private sector labour law also lays down specific procedures which must be followed by individuals pursuing claims against their employers:The dispute must be submitted to the MSA&L before a law suit is started. The Ministry must call the two parties together and try to settle the matter amicably. If no settlement is reached then, within two weeks of being asked by the employee, the MSA&L must refer the dispute to the Labour Court, along with a summary of the matter, the evidence of the parties, and the Ministry’s own comments. Within three days the court must fix a date for a hearing, and notify both parties. The case is heard in a summary manner. The time limit for filing cases is one year after employment is terminated. Labour cases are exempt from the usual court fees but if the employee loses then the court may order him to pay a nominal amount on account of costs.
DISPUTES & CIVIL RIGHTS Expatriates who are finding it difficult to get their legal rights in a work-related or other dispute may find the following organisations helpful:Labour Departments at the Ministry of Social Affairs & Labour
The MSA&L has five Labour Departments, one in each governorate. Labour disputes should be referred to one of these departments, along with documents to substantiate a claim. The Department will give advice on the merits of a case.
HINTS FOR EXPATS
Ensure that an employment contract is in writing.
Check that the salary shown in the work permit reflects the salary shown in the employment contract as in the event of a dispute, the MS&L may rely on the work permit.
Check that total remuneration is shown in the employment contract.
Keep records of salary and other payments.
Note that the time limit for filing cases in the Labour Court is one-year from the date employment is terminated.
It is illegal for a foreigner to work in Kuwait except on a work visa and for their own sponsor. Part-time work requires special permission
An employer cannot cancel an employee’s residence unless all dues and indemnities have been paid in full.
An employer cannot give notice of termination during an employee’s sickness or injury.
In case of dispute, always seek legal advice.
Kuwait Trade Union Federation The federation has a special interest in preventing the abuse of expatriate labourers. It provides legal advice to labourers free of charge and also helps them to take action against their employers.
Human Rights Committee (HRC) at the National AssemblyComplaints on any matter, whether related to employment or other issues, can be sent to the HRC by letter or by fax, or can be discussed on the telephone or by visiting the National Assembly building in person. Persons who are refused entry to the National Assembly building should call the Committee directly. The HRC are particularly interested in expatriates who are having difficulty in obtaining their passports from their employers, and such persons are asked to fax a signed letter in Arabic stating the facts of their case, their civil ID and passport numbers, country of origin, and the name of their employer to the Committee who will treat the matter in strict confidence.
MSA&L Labour DepartmentsGovernorate Tel FaxKuwait City 2406139 2406140Hawalli 2660228 2660227Mubarak Al KabirFarwaniya 4343871 4332456Jahra 4580055 4583821Ahmadi 3982178 3980986Kuwait Trade Union FederationGeneral Secretary: Tel 5616053 Fax 5627159The HRC at the National AssemblyTel 2458368 Fax 2455806
Complaints on any matter, whether related to employment or other issues, can be sent to the HRC by letter or by fax, or can be discussed on the telephone or by visiting the National Assembly building in person. Persons who are refused entry to the National Assembly building should call the Committee directly. The HRC are particularly interested in expatriates who are having difficulty in obtaining their passports from their employers, and such persons are asked to fax a signed letter in Arabic stating the facts of their case, their civil ID and passport numbers, country of origin, and the name of their employer to the Committee who will treat the matter in strict confidence.
MSA&L Labour Departments
Governorate
Tel
Fax
Kuwait City
2406139
2406140
Hawalli
2660228
2660227
Farwaniya
4343871
4332456
Jahra
4580055
4583821
Ahmadi
3982178
3980986
Kuwait Trade Union Federation
General Secretary:
5616053
5627159
The HRC at the National Assembly
2458368
2455806
PRIVATE SECTOR LABOUR LAWLabour regulations in the private sector are enforced by the Ministry of Social Affairs & Labour (MSA&L). The points discussed below are neither complete nor authoritative.As well as domestic servants, persons on temporary contracts of less than six months are excluded from the scope of the private sector labour law. Where an employer’s head office is outside Kuwait, the labour law of the country where the employer has its head office, governs expatriates working in Kuwait, unless the employer has a branch in Kuwait which concluded the contract with the employee in which case Kuwaiti law applies.
HINTS FOR EXPATS
Keep photocopies of all documents so that they will be easier to replace if lost.
The work permit (idah amal), which is issued to process a residency application, also needs to be shown at various government offices for differing purposes, such as the traffic department when applying for a driving licence. Only two copies are issued. One is given to the Immigration Department when obtaining residency and one is kept by the sponsoring company. If the latter is lost, the Labour Department will not issue another copy. Therefore always make sure that a photocopy is obtained and guard it carefully.
Contract of EmploymentAn employee’s terms of service are contained in his employment contract, which may be for a fixed time or it may be indefinite. A fixed time may not exceed five years.The labour law specifies minimum limits below which terms of service may not fall, and if a clause in his contract gives an employee a lesser benefit than his right under the law, he is entitled to the minimum specified by law for that particular term. An employment contract may be verbal or in writing. In either case, it must show at least (a) the remuneration payable, (b) a description of the nature of the job, (c) the date of appointment, and (d) its duration (if fixed). Where a contract is verbal then, in the event of a dispute, either side can use circumsta-ntial evidence to prove what is in it.If the contract is in writing, it must be in Arabic. A translation into another language may be attached but the Arabic version is authoritative.An employee may be hired on probation for a 100 days at most. During this time he may be terminated without notice, though accrued indemnity but not holiday pay must be paid. An employee may not be put on probation more than once by the same employer.
Remuneration & DeductionsRemuneration includes basic pay, incentives, commissions, obligatory bonuses, gratuities from third parties and allowances from which the employee benefits (such as housing allowance), but excludes allowances on account of expenses and profit shares. Payment of a bonus is obligatory if it is stipulated in the contract of employment or in the by-laws of the firm or it has been paid in the same amount regularly every year. An employee’s total remuneration must be used when calculating terminal indemnity or compensation on account of injury. Where an employee is paid on a time basis the last salary payable is used, but if he is paid on a piece-work basis then the average wage paid to him for his actual work during the previous three months is used.There is no minimum wage. Salaried employees must be paid at least once a month. Piece-workers and those on hourly or weekly wages must be paid every two weeks.Persons working for a subcontractor, who has failed to pay their salaries, may demand payment from their employer’s superior contractor to the extent that the latter owes their employer money for work done. When an employer goes bankrupt, the outstanding salaries and termination benefits of his employees must be paid before his other creditors.
An employee may not be obliged to buy products made by his employer. If he owes his employer money then not more than 10% of his salary may be deducted to pay off his debt and he may not be charged interest. Where an employee’s salary is attached on account of debts to third parties, the deduction is limited to 25% of his salary.
Working HoursThe working hours of an adult are limited to 8 hours a day and 48 hours a week. A rest break of at least one hour must be allowed after 5 consecutive hours of work. Rest periods are not included in the calculation of working hours. These standard hours may be increased or decreased by the MSA&L in certain cases, such as hotel workers.
HolidaysAn employee is entitled to one full day off without pay a week. The traditional day off is Friday, but this is not a legal requirement in Kuwait.An employee has a right to eight public holidays a year with full pay as follows: one day on Hijri New Year’s Day, one day on Ascension Day, two days each for Eid Al-Fitr and Eid Al-Adha, one day for the Prophet Mohamed’s Birthday, and one day for National Day. Liberation Day is not yet a statutory holiday in the private sector. An employee is entitled to 14 days leave a year on full pay, provided he has completed one year of service, and 21 days after more than 5 years of continuous service. Official holidays and days of sick leave may not be counted as part of annual leave. The employer has the right to fix the date of leave. An employee must be given his holiday pay before he goes on leave and the last salary payable before the holidays must be used to calculate the amount due. If an employee’s services are tertminated then he is entitled to a cash payment in lieu of accumulated leave, irrespective of the number of years of leave due, and payment for the accumulated leave must be calculated on the basis of the last salary payable on the date of termination.
Sick LeaveSubject to a satisfactory medical report, an employee is entitled to sick leave for (a) the first six days of illness on full pay, (b) the next six days on 3/4 Pay, (c) the next six days on 1/2 Pay, (d) the next six days on 1/4 Pay, and (e) the next six days without Pay. This entitlement is the total entitlement in one year and not per period of sickness.
OvertimeAn employee may be required to work overtime provided it is necessary and the employer’s order is in writing. Overtime rates are (a) 1.25 times the basic hourly rate for excess hours worked on ordinary days, (b) 1.50 times the basic hourly rate for all hours worked on the weekly day off, and (c) twice the basic hourly rate for all hours worked on public holidays. Overtime may only be worked on 90 days in a year and is limited to 2 hours a day, 6 hours a week, and 180 hours a year. An employee has the right to refuse to work overtime.
Female EmployeesA woman performing the same work as a man must be paid equal remuneration. The standard working hours for women are the same as for men. But women may not work at night (8pm to 7am) except in clinics, pharmacies, hotels, nursery schools, homes for the handicapped, airline and tourist offices, theatres and Entertainment City. They may work up to midnight in cooperative societies and public utilities, restaurants, beauty salons, tailoring shops, banks and offices. Night time working hours may be extended by the MSA&L during Ramadan, and on Eids and public holidays. Employers are obliged to arrange transport for women working at night.
Maternity LeaveA woman is entitled to maternity leave to a maximum of 30 days prior to delivery and 40 days after delivery on full pay. Thereafter she may be absent from work without pay for up to 100 consecutive or non-consecutive days, provided she presents a medical certificate stating that she is ill as a result of gestation and parturition. The annual leave entitlements of a woman who makes use of her maternity leave privileges in any year are forfeit on a day-per-day basis until her annual leave entitlement for that year is extinguished.
Termination Benefits When the employment is terminated, an employee is entitled to a lump sum payment called termination indemnity. For those paid monthly, termination indemnity is 15 days remuneration for each complete year of service for the first 5 years and 30 days for each complete year beyond 5 years, but the total indemnity is limited to one and a half year’s remuneration. For piece-rate workers and those paid on an hourly, daily or weekly basis, the indemnity is 10 days remuneration for each complete year of service for the first 5 years, and 15 days tpay for each complete year beyond 5 years, subject to a limit of one year’s remuneration. In both cases part years are calculated pro-rata.Pay per day is calculated by dividing the monthly salary in the final year of employment by 26. The monthly salary used to calculate daily pay must include the elements mentioned under ‘remuneration’ above.An employee who resigns with less than five years service is not entitled to indemnity. One who resigns with five years or more of service is entitled to 50% indemnity. But employees who are made redundant (irrespective of length of service), who reach retirement age, who are disabled at work, or who die are entitled to full indemnity. And a woman who marries while she is an employee and who resigns within six months of marriage is entitled to full indemnity.
Disciplinary Notices & PenaltiesAll employee related regulations must be issued as circulars or bulletins written in Arabic. Miscreant employees may be penalised provided the employer issues regulations specifying the acts that are punishable. Penalties must be progressive and are limited as follows:
ü only one punishment may be inflicted for each act of misbehaviour. ü a penalty cannot be imposed for an act committed outside the work place unless it was related to work. ü a pay deduction cannot exceed 5 days pay a month. ü a suspension from duty cannot exceed 10 days a month. ü a penalty cannot be imposed for any act once 15 days have elapsed since the act was proved or since the usual date for the payment of wages.TerminationWhere an employment contract is for a fixed period, it terminates automatically at the end of the period, but if both parties then continue to implement it, it is deemed to be renewed indefinitely under the same terms and conditions. If either party terminates the contract before the end of the fixed period (and there is no clause in the contract to cover this) then the party terminating the contract must compensate the other. Where termination is made by the employer, compensation is limited to the wage the employee would have earned from the day of termination to the expiry of his contract. Where it is the employee who quits, compensation is limited to the employer’s actual loss. Where an employment contract is for an unlimited period, either party may terminate it by notifying the other in writing at least 15 days prior to termination (where the employee is paid monthly) or 7 days before termination (where the employee is paid more frequently). Either party may pay the other 15 or 7 days salary, as appropriate, in lieu of notice.An employer has the right to terminate an employee without notice, and without paying indemnity and compensation, if the employee:
commits a wrongful act resulting in serious loss to the employer,
repeatedly disobeys the instructions of the employer,
disobeys the employer’s instructions concerning safety at work on a single occasion,
has been absent from work for more than seven consecutive days without due cause,
has been convicted of a crime affecting honour, honesty or morality,
commits an act against public morality in the work place,
assaults a fellow employee, the employer or his agent at work or on account of work,
fails to carry out his obligations under the terms of his contract or the labour law,
has used fraud to obtain work, or
reveals any secrets relating to his employment.An employee has the right to quit without notice before the expiry of his contract, and to collect his indemnity and not pay compensation, if:
his employer fails to abide by the provisions of his contract or the labour law,
the employee has been assaulted by the employer or his agent, or
to continue in work would endanger his health.An employee’s contract is terminated if he dies. It may be terminated if he fails (without fault) to perform his work or he exhausts his entitlement to sick leave. In all these cases his indemnity must be paid.
An employee’s contract is automati-cally terminated if his firm goes into liquidation or merges with another, or there is a lockout, or the firm is sold or inherited, and in all cases the employee is entitled to his termination indemnity. Where the firm is sold or inherited, the new owner must settle the indemnity, though the employee may continue in service with the new owner while reserving his right to indemnity for his previous service.
Health & Safety Employers are obliged to take precautions to protect their employees against physical hazards and occupational diseases at work. They are also required to ensure that places of work are clean, well ventilated, adequately lit and in sanitary condition. Employers must supply first aid kits containing medicines, antiseptics and bandages, and place them visibly within reach of employees. Detailed standards in these matters are contained in resolutions issued by the MSA&L in consultation with the Ministry of Public Health.Employees who work in areas not serviced by public transport must be provided with suitable transport. If they work in localities far from populated areas, the employer must provide suitable accommodation, potable water and the means to obtain supplies.
AccidentsIf an employee is injured at work, the employer must report the matter to the local police station and the MSA&L. The injured employee has the right to treatment, at the employer’s expense, in any government hospital or private clinic as the employer deems suitable. A doctor’s report, stating the period of treatment required, any disability arising from the accident and the employee’s fitness to continue in work, must be obtained. During treatment, an injured employee is entitled to full pay for the first six months and, thereafter, half pay until he dies, or recovers, or is proved to be permanently disabled.CompensationAn employee has the right to compensation for work-related injuries without having to prove that the employer was at fault, provided he did not injure himself intentionally or was not guilty of gross malpractice (such as expressly contravening safety regulations). But where his injuries have made him more than 25% disabled or he has died of them, he (or his family) will be entitled to compensation even if he was guilty of gross malpractice.Compensation varies with the severity of the injury. Where death has occurred, it is the greater of (a) 1500 days pay or (b) the legal blood money (currently KD10,000). For total permanent disability, it is the greater of (a) 2000 days pay or (b) one and one-third times the legal blood money. For partial permane-nt disability, compensation is calculated as a percentage of what would be due for total permanent disability.
Industrial Scope
Industrialization is very important for Kuwait’s economy, which is largely dependent on oil production and exports. Diversification of production base has always been an important issue for the government of Kuwait.
According to the studies published by the Public Authority for Industry and the Gulf Organisation for Industrial Consultancy, Kuwait has good scope for industrialization and could easily establish basic or even advanced petrochemical industries based on its massive oil reserves which are estimated at 96.5 billion barrels.
Geological surveys in Kuwait have shown the existence of 10 to 15 million cubic meters of sand pebbles and abundance of limestone used in the construction industry. It also indicated that some stone structures in the northern part of Kuwait could be used to manufacture cement.
Agriculture has a very limited scope as less than 0.5 per cent land in Kuwait has been earmarked for agriculture. Fishing is so limited that it cannot meet more than 50% of the local demand. However, the studies show that the existent scrap metal offers a potential for melting and forging industry and animal skin from slaughter houses can support leather industry in Kuwait.
Kuwaiti economy is largely dependent on oil and most of its industrial activity is focused on transformation of this natural mineral wealth. Production of crude oil and refined products accounts for nearly half of Gross Domestic Product (GDP) and more than 94 per cent of exports. Efforts and emphasis on developing industry sector in recent years has yielded results. Developing the national industry sector is important to reduce the dependence of national economy on oil revenue which fluctuates with international rates and poses insecurity for national income. The government is providing more facilities and encouragement so that the industrial sector growth is ensured.
The government provides infrast-ructure, support and facilities to national industries by providing state owned properties and low priced electricity, water and fuel to the private sector to build industrial areas in addition to incentives such as custom exemptions tax exemption and preference given to national products. The government has participated in joint private venture medium and large manufacturing enterprises which produce foodstuffs, beverages, paper, carton, wooden and metal furniture, chemicals, paints, plastics, construction materials etc. for encouraging the private sector for establishing new industrial enterprises.
The Industrial Bank of Kuwait K.S.C. (IBK)The government has participated in the establishment of The Industrial Bank of Kuwait (IBK) which offers soft loans to the industrial sector, was established in late 1973 as a joint venture between the Ministry of Finance, the Central Bank of Kuwait, commercial banks, investment companies and some large industrial establishments.
The primary aim of IBK is to promote industrial development in Kuwait by participating in the development of long-term strategy for industrial growth in Kuwait and identifying sectors and activities which best suit local conditions and constrains.
For the first time in its history in July 2006 the bank obtained credit ratings from one of the global rating majors, Fitch Ratings, which gave it a long term rating of 'A' and short term rating of 'F1'.
The cumulative industrial loan commitments since the Bank started its operations in 1974 until the end of 2006 reached KD 690.75 million, provided to 780 industrial projects with a total cost KD 1.31 billion. IBK’s financing represented, on an average 52.78 per cent of the total cost of any project.
In December 2001 the Parliament (Majlis Al-Oma)promulgated a law allowing the government to provide The Industrial Bank of Kuwait (IBK) with a loan in the form of revolving facilities within KD 200 million limit which has accelerated the tempo and expanded the industrial financing activities. Industrial loan commitments in 2006 reached KD 59.10 million compared to KD 55.3 million in 2005. The year 2006 saw increase in the number of projects and a surge in industrial financing.
The number of industrial projects financed increased by 13.6 per cent in 2006.
During 2006, It was approved on agricultural loans for 32 agricultural projects and reached a total cost of KD 7.83 millionn, up 12% from KD 11.71 million at end 2005.
Public Authority for Industry (PAI)PAI is responsible for issuing industrial licences and developing local industry. Its objectives include encouraging, protecting and supporting the local industry. Its functions include drawing up an industrial plan, proposing industrial sites, providing the necessary infrastructure and industrial services. PAI is responsible for rules and procedures regulating the granting or cancellation of industrial licences. It supervises the compliance with the Kuwaiti, Gulf and International standards and specifications dictated by the regulations for imported and local products. It is also responsible for verifying the compliance of any industrial project with the domestic and international rules governing the environment protection. Its functions include carrying out studies relevant to the industrial activity and ways to support it and determine the means for protection of domestic products.
Industrial Areas and PlotsClause (1), Article (15) of the Industrial law allows industrial to apply for land plot to set up the industry. Such applications may be submitted to the competent authority which allocates these land plots with the consent of the Ministry of Commerce and Industry.
While the preparation and provision of infrastructure and services cost the government more than one KD per sq. meter the subsidised offer to industries may be only 5 - 10 fils per sq. meter for periods up to 50 years. In Sabhan and Mina Abdullah areas the subsidised cost is about 200 fils per sq. meter.
The number of industrial areas in Kuwait may reach ten. While some areas are fully developed with all necessary services provided, some new areas are still under development.
According to the Ministry of Commerce and Industry 1997 statistics, 33% of the industrial establishments are in Shuwaikh Industrial area, 27% are in Sabhan and the rest are distributed in other industrial areas as follows.
It is worth mentioning that most industrial sectors are concentrated in two main areas; namely ,Shuwaikh and Subhan, except the sector of the mining products which concentrate in Amghara and Senior Contractors areas.
Kuwait Municipality has demarcated two new locations for setting up industries. The first location is in Abdali covering an area of six square kilometers and the second in Shadadiyah covering five square kilometers.
Kuwait Oil IndustryProduction of crude oil and refined products accounts for nearly half of Gross Domestic Product (GDP) and over 90 per cent of exports.
The Ministry of Energy oversees and supervises operations and activities of oil companies operating in Kuwait in the exploration and developments of oil and gas fields.
Kuwait Petroleum Corporation Kuwait Petroleum Corporation (KPC), an independent wholly state-owned public body, is responsible for all hydrocarbon-related operations in Kuwait and abroad. KPC buys the crude oil it extracts from the ground from the State through the Ministry of Oil at a selling price that is related to world market prices. KPC then sells and distributes the oil, or refines it and markets the petroleum products.
\The international marketing of oil, products and liquefied gas is carried out from KPC’s headquarters in Kuwait City. But all other main operations, such as exploration, production, refining, petrochemicals, transport, and distribution, are effected through KPC’s subsidiaries, and the Corporation has a worldwide vertically integrated network of businesses extending from the wellhead to the petrol pump, including refineries and petrol stations in Europe.
Petrochemicals PIC, KPC’s wholly-owned subsidiary, produces, markets and distributes petrochemicals. It has fertiliser and salt and chlorine plants in Kuwait and is involved in joint ventures abroad. PIC has a petrochemicals complex in Shuaiba.
The complex includes a polypropylene plant and plants for processing olefins. The polypropylene plant takes feedstock of propylene from KNPC’s refinery in Mina al-Ahmadi and converts it into three types of plastic material: homopolymer (clear plastic), random polymer (a strong plastic used for bottles and lids) and high impact copolymer (used for suitcases and car bumpers, etc).
The olefins plants, which began operations in November 1997, are owned by EQUATE, a joint venture between PIC and Union Carbide of the USA. Using local feedstocks, they produce polyethylene (one of the most commonly used plastics) and ethylene glycol (which is used to make polyester for fabrics and plastic bottles). There are plans to add an aromatics plant, for making industrial solvents, to the complex in the near future.
Similar to the existing plants, a second olefins project (Olefins II) is being launched at Shuaiba at the cost of $ 1.5 billion. The existing production capacity of Equate for the Olefine I project is 800,000 metric ton of ethylene, 600,000 metric tons of polyethylene and 400,000 metric ton of ethylene glycol per year. The Olefins II project is expected to be completed by the year 2007.
The Aromatics project which KPIC intends to establish encompasses Naphtha enhancement unit, the Paraxylene production unit and the Benzeneunit. The project will have 20 per cent private participation with 80 per cent KPIC share.
The State of Kuwait has three existing refineries (Al-Ahmadi, Al-Shuaiba, and Mina Abdullah) with a total refining capacity of 912,000 bpd, equivalent to 43.4 per cent of the country’s crude oil production.
Natural gas reserves in the State of Kuwait are estimated at 52400million cubic meters or 1.1 %of the world confirmed reserves of natural gas, However, the oil sector is working on an ambitious plan to exploit the recently found natural gas in commercial quantities, estimated at 35 trillion cubic meters.
Non-Oil IndustriesKuwait's development policy aims at diversifying and expanding the production base.
A wide range of products are being manufactured in Kuwait covering food products, household durable products, textile, paper, detergents, construction materials, furniture, decor and electrical, mechanical and industrial products.
Small industrial set ups (employing less than 10 workers) represent 84% of the total industrial units, while medium industrial set ups (employing 10 - 49 workers) represent about 14 %.
The majority of the small set ups manufacture textiles and ready-made garments. Metal products industry occupies second position, manufacture of wooden products and furniture and foodstuff follow next.
The nominal value added generated in building and construction sector increased by 13.3% per 2005 compared with 15.1% in 2004, the transport and communications sector increased by of 4.3% compared to 4.1% in 2004.
Membership of international organisations: Most international organisations, including the Gulf Co-operation Council (GCC); Organisation of the Islamic Council (OIC); Arab League; United Nations; OPEC; WTO.
http://www.fco.gov.uk/en/about-the-fco/country-profiles/middle-east-north-africa/kuwait
Medium-term Development Plan Thrusts and Priorities
Joint UN Activities and Activities of RC Office in Kuwait
Most of the UN development activities in Kuwait are funded by the Government. Kuwait is considered a Net Contributing Country (NCC). Some activities are funded by the budgets of the UN organizations which undertake them. This is particularly the case of activities of non-resident organizations.
Joint UN activities in Kuwait
· UNDP is managing a project to support Kuwait Foreign Investment Bureau (KFIB) in collaboration with UNIDO. This project aims to develop the institutional capacity of KFIB to enable it to attract foreign investors to Kuwait as a means of supporting economic development in the country. This endeavor comes in line with Kuwait’s national priority to create an enabling business environment to encourage diversification of the sources of income beyond full dependence on oil production and exportation. An important step in that direction was the enactment of Law No. 8/2001 regulating Foreign Direct Investment (FDI) into the country in addition to the establishment of the Kuwait Foreign Investment Bureau (KIFB) as hub providing support for the private sector in FDI.
· UNIDO is also collaborating with UNDP to provide technical assistance for the implementation of the enterprise development programme in the centre of excellence affiliated with Kuwait University. The main aim of this project is to encourage entrepreneurship as a means of economic development.
· UNDP cooperated with UNIFEM during the latter part of 2005 to support the Arab Women Parliamentarians project in Kuwait particularly in the aftermath of Kuwaiti women acquiring their full political rights.
· UNDP signed an MOU with ESCWA to conduct training programme for government officials working in the field of foreign investment to enable them to respond to international requirements of WTO in this field.
· UNDP Kuwait, in collaboration with the World Tourism Organization (WTO) finalized the Kuwait Tourism National Master Plan, which will contribute to setting Kuwait as a popular tourism destination and accordingly introduce investment opportunities for both national and foreign investors thus diversifying sources of income for the country and creating more job opportunities for Kuwaitis.
· UNDP’s continued to support Dar Al-Athar AL-Islamia (the Islamic collection of artifacts) through restoration, preservation and cataloguing of precious artifacts at the hands of specialized UNESCO consultants. UNDP also recruited an international consultant to assist in developing and implementing the restoration plans of the Kuwait National Museum, which will house the collection of DAI as well as other components of Kuwait’s cultural heritage. Work in this area also took place in collaboration with UNESCO missions.
Activities of RC Office in Kuwait
Administrative / Operations
- The Resident Coordinator’s Office continues to provide logistical support to UN Organizations in Kuwait (both those serving Kuwait as well as those serving Iraq), including making financial payments; arranging security clearances as well as incoming/outgoing shipments of personal effects and mail pertaining to staff; assistance in suitable accommodations, transportation and easy banking facilities. The office also, administered contracts for newly hired personnel for many agencies.
- The RC office continued to arrange meetings and logistics for all UN officials visiting Kuwait for purposes related to UN activities Iraq. Top on this list was the visit of the SG to Kuwait and then on to Iraq and back.
- The office of the Resident Coordinator continued the follow up with the government to ensure the construction of a MOSS compliant UN house on a recently acquired safer lot in the Mishref diplomatic area. This purpose built UN house will unite all accredited UN agencies such as UNDP, ILO, IOM, Habitat and UNHCR under one roof facilitating cooperation. Completion is expected in the last quarter of 2006.
Finance
In addition to funding the UNDP Country Programme and various UN development activities in the country, the Government of Kuwait contributed in 2005 US$ 1,025,000 to the budgets of the following UN organizations: US$ 570,000 to UNDP core budget; US$ 200,000 to UNICEF; US$ 5000 to UNDCP; US$ 200,000 to UNEP; US$ 20,000 to UNITAR; US$ 10,000 to UNIFEM, US$ 10,000 to UNFPA, US$ 10,000 to the United Nations Fund for Victims of Torture.
Moreover, the Kuwaiti Red Crescent Society contributed US$ 3 million to the budgets of several UN organizations through a cheque delivered to the SG by the Society’s Deputy Director.
In terms of administering UN financial disbursements in Kuwait, the Finance department of UNDP continues to handle an extra workload in support of UN operations in Iraq. Many agencies still depend on UNDP for access to funds. The Resident Coordinator’s Office continues to assist in coordinating all methods of payment as and when the situation demands. Guidelines were given to the new Universal Price List (UPL), which was introduced from 1st January 2005. Short briefings of the billing system in UNDP/UNFPA/UNOPS Atlas were also given. Financial reports and requests for copies of Internal Office Vouchers (IOV) are being sent before their deadline dates.
3. Humanitarian Assistance
The State of Kuwait is stable with no humanitarian emergencies going on at the moment. However, given its strategic geographical location, it is considered a central support and logistical base for the UN humanitarian activities to Iraq. The Office of the Resident Coordinator dedicates significant attention to facilitate the UNAMI and other Iraq related UN missions working from Kuwait.
Synopsis of Activities of UN organizations (in alphabetical order) in Kuwait
ESCWA: ESCWA focused on providing technical assistance to Kuwait during 2005 covering strategic planning, environmental sustainability, national accounts, and WTO related issues. It is to be noted that advisory services are provided at the request of the Government and in areas related to ESCWA fields of work.
Environment
The Sustainable Development and Productivity Division of ESCWA organized and supported the following activities.
1. Workshop on Training of Trainers on the Application of Integrated
Water Resources Management (IWRM) Guidelines in the Arab Region that was convened in Kuwait, between 14-18 May 2005. Participants representing KISR, Kuwait University and the Ministry of Energy attended the workshop, which aimed at providing the tools and methods to apply IWRM to achieve sustainable development.
2. The Preparatory Workshop for the 4th World Water Forum (WWF-4): Water Resources Issues in the Western Asia Region that was convened at the UN House, Beirut-Lebanon on 29 September 2005. A representative from the Ministry of Energy in Kuwait participated in the workshop that was organized to consult and coordinate with the representatives of the member states and other regional organizations to identify water resources challenges and discuss policy options to achieve sustainable management of water resources.
3. A Seminar on Water Governance: Role of Stakeholders, which was convened at the UN House, Beirut-Lebanon, between 14 and 15 November 2005. Kuwaiti participants attended the Seminar, which aimed to highlight the challenges, to rank the priorities in water governance issues, and to identify mechanisms for translating this concept into action at the national and local levels.
4. Participation in identifying key issues and project components to include for planning water security in the State of Kuwait.
5. Advisory services and technical assistance rendered to the government
of Kuwait through the regional advisor on Environment to:
· Finalize the national environmental strategy, which is planned to be finalized during the spring of 2006.
· Review the Draft Law for Environment Protection, which is planned to be submitted to the Parliament during 2006.
· Revive the UNDP project entitled "The Sustainability Environmental Management Project" and harmonize its components with those of the national environmental programmes that are addressing the same issues.
Trade issues (WTO)
ESCWA presented six lectures in a training workshop in the Arab Planning Institute, covering WTO accession, negotiation on agriculture , negotiation on trade in services, preparations for the WTO Ministerial Conference of December 2005 and on issues of the Doha Work Programme. ESCWA also presented a paper on Future WTO negotiations and concerns of GCC countries to the International Conference on “Challenges of Economic Development for the GCC countries “ in the Kuwait Institute for Scientific Research.
Statistics
ESCWA provided support to the Central Statistical Office, Ministry of Planning, by reviewing and assessing the methodologies of statistical surveys and suggesting revision/amendments, and on the review of national accounts classifications such as (CPC, ISIC, SITC, HS and others). National accounts in Kuwait are still based on SNA 1968. Work was initiated on the use of SNA 1993. The advisor recommended the continuation of conversion into the use of SNA 1993.
Science and Technology
At the request of Kuwait Institute for Scientific Research, ESCWA reviewed and followed up on the national S&T Policy.
Foreign Direct Investment
Kuwait joined the ESCWA project on Networking of expertise in foreign direct investment in member States of the Economic and Social Commission for Western Asia whose objective is to strengthen the capacity of member States to apply accepted methodology and standards with respect to compiling FDI data, and establishing a database for FDI statistics in the participating countries. The project also endeavours to improve the exchange of expertise and experience among national investment promotion officers and other concerned agencies in the region. The first stage of implementation in Kuwait included the holding of a national training workshop (Kuwait, 25-29 June 2005). The second stage, which includes the survey of enterprises with FDI participation and taking stock of FDI policies, will continue in 2006.
Social Policies
Through ESCWA efforts, a report on Social policies in Kuwait was prepared and approved by the Kuwaiti authorities in 2005. The report covers data and information a social policies related to population, education, health, housing and other social areas.
FAO : In July 2003, the Public Authority for Agricultural Affairs and Fish Resources (PAAF) in Kuwait contacted FAO with a request for technical assistance in the formulation of a medium-term programme (MTP) for the development of the agricultural and fisheries sectors in Kuwait. The MTP was expected to provide an overall framework for the medium-term development of agriculture and fisheries and to constitute a basis for PAAF to formulate its contribution to the “Five-year Development Plan (2006/2007 – 2010/2011)”.
Activities and Results
Medium-Term Programme (MTP) for Sustainable Development of Agriculture and Fisheries in Kuwait
A senior International Consultant in Agricultural Policy and Planning was recruited to act as the International Team Leader for the project in close collaboration with the PAAF-appointed National Project Coordinator (NPC). The implementation of the project involved fielding a multi-disciplinary team of international experts in the following specialties: agricultural economics; water resources and irrigation; agricultural marketing; protected agriculture; organic agriculture; research and extension; plant protection; landscaping; livestock production; animal health; fisheries; and training and capacity building. The mission presented its main findings and recommendations during workshops held at PAAF.
The MTP was formulated taking into account the Government’s stated priorities and based on the overall observations/findings of the multi-disciplinary mission and the extensive feedback from PAAF. Based on the above, it was possible to identify a comprehensive list of proposed medium and long-term development interventions including project ideas, policy measures, institutional restructuring and capacity building programs. The proposals were grouped into four interrelated and mutually-reinforcing themes, as follows:
Capacity building and support to the institutional and technical capacities of the agriculture-related institutions.
Conservation and sustainable management of natural resources.
Enhancing the productivity, competitiveness and diversification of agricultural production.
Raising technical and quality standards to comply with international requirements
An initial portfolio of 16 draft project proposals were formulated by the FAO team in close consultation with their counterparts at PAAF. These proposals were presented during a National Workshop on the “Formulation of a Medium Term Programme for Sustainable Agriculture and Fisheries in Kuwait”,
which was held in Kuwait during the period 30-31 May 2005. Following the National Workshop, the preliminary project proposals were revised to reflect all the feedback received from the workshop
Formulation of the UTF Umbrella Programme
A comprehensive “Umbrella” programme for the provision of specialized services to PAAF was formulated to assist the government in the implementation of priority actions included in the Medium Term Programme for Sustainable Agriculture and Fisheries in Kuwait (MTP) The Umbrella Programme was constituted of the individual projects proposed in the MTP. The proposed Umbrella Programme for “Technical Assistance to the Public Authority for Agriculture Affairs and Fish Resources for the Implementation of the Medium Term Programme for Sustainable Development of Agriculture and Fisheries in Kuwait” consist of three main components:
i. Capacity Building
ii. Technical Assistance
iii. Coordination
3. UTF project proposal for the establishment of an International Centre for Studies and Research on Wastewater Treatment and Reuse in Kuwait.
The draft UTF document pertaining to the establishment of a centre on wastewater treatment and reuse was submitted to the Kuwaiti authorities in March, 2005. A national workshop was organized on 28 September 2005 to present the proposal and to discuss it with the national institutions and agencies concerned with wastewater treatment and reuse and which may play a role in the establishment process and/or in the functioning of the centre after its establishment
The main elements of the proposal was to assist the Government of Kuwait to establish a High-level Research and Technology Centre specialized in wastewater treatment and reuse. The proposed Centre will serve the national interests but will also contribute to the regional and international efforts for addressing the issues of wastewater treatment and recycling as a means of alleviating the burden of water shortage and protecting health and the environment.
The UTF project document describes the process for establishing the International Centre, with FAO Technical Assistance, for a period of five years. At the term of the project implementation, the Centre would be established and fully operational. The project document indicates the preparatory and implementation actions for establishing the Centre, including legal aspects, institutional arrangements, equipment specifications for laboratories, staffing and capacity development.
ICAO: ICAO had no activities in Kuwait during 2005. However, Kuwait has signed a project document with ICAO to participate in a regional project entitled "Cooperative Development of Operational Safety and Continuing Airworthiness Programme (COSCAP) for the Gulf States Region: COSCAP-GS". There are five (5) States, including Kuwait, participating in this project. The home base of the project is in Dubai, UAE. The objective of the project is the enhancement of the safety and efficiency of air transport in the Gulf States through harmonization of international and national flight safety oversight rules, regulations and procedures, as well as their uniform and effective application, thus contributing to the social and economic development of the region and promoting cooperation among the participating States. The project commenced operations during January 2006.
Additionally, in relation to the ICAO Universal Security Audit Programme, Kuwait is scheduled for an aviation security audit from 10 to 19 April 2006. The audit will consist of an evaluation of the national level aviation security system and a comprehensive review at Kuwait International Airport of the implementation of Standards contained in Annex 17 to the Convention on International Civil Aviation.
ILO: As a tripartite organization, ILO continues to provide technical support to Governments, Employers’ and Workers’ Organizations. ILO in Kuwait offers continuous technical advice to its constituents, the Ministry of Social Affairs and Labour (MOSAL), the Kuwait Chamber of Commerce & Industry (KCCI) and the Kuwait Trade Union Federation (KTUF) in areas related to the ILO programmes and activities.
· In April 2005, Mr. Thabet Al-Haroun, OIC ILO Kuwait, joined the office. He was previously the Director General of the Kuwait Trade Union Federation. Since he joined he worked on resolving many conflicts between migrant workers and private and public sponsors, through governmental channels.
· The ILO organized in cooperation with the KTUF two separate Seminars during 2005. The fist seminar (5-7 April 2005) on "Social Dialogue and Hazards at Work in the Oil and Gas Sector".
· The second seminar (25-27 September 2005) on "Social Dialogue and Declaration of the Basic Principles at Work".
· Mr. Taleb Rifai, Regional Director of the ILO Regional Office for Arab States, and Mr. Waleed Hamdan, Senior Specialist on Relations of Workers Relations, visited Kuwait in May 2005, on an assessment mission. They discussed aspects of enhancing ILO support to its constituents. They met with the concerned officials from MOSAL, KTUF and KCCI. Follow-up on discussions regarding the Draft New Labour Law in Kuwait, which had been prepared by the ILO experts. A draft law was submitted to the People's Assembly and it is still pending ratification.
· In May 2005 ILO issued the technical note regarding the Database assumptions for the actuarial valuation of the Kuwait Public Institution for Social Security as of 30 June 2004.
· ILO office arranged for the attendance of the tripartite constituents’ delegation in the 93rd session of the International Labour Conference (Geneva, June 2005).
· ILO continued its assistance to MOSAL in the preparation of reports submitted to the Committee of Experts in ILO, through the International Labour Standards Department.
· ILO office continued its contacts with other workers’ organizations that are not part of the KTUF, including some of the newly established unions and some of the pipe-line ones.
· ILO pursued its efforts to publicize ILO publications and supply copies of these publications and other ILO annual subscriptions of statistics and journals.
IMO had no specific activities in Kuwait during 2005.
IOM Kuwait
1. Labour Migration:
While the labour laws in Kuwait provide legal guarantees to some categories of migrant workers, these laws do not apply to domestic work and other low-skill jobs. The working conditions of these migrant workers are determined mainly by the terms of their individual work contracts. This usually implies that these workers receive lesser pay than the minimum wage and work beyond the legally maximum number of hours declared in the labour law.
IOM, on this front, has organized conferences for government representatives in Kuwait and the region to discuss and address the challenges related to foreign labourers. Furthermore, it has organized training workshops for officials of labour sending countries on how to deal with related challenges. On another front, IOM is working on designing awareness-raising/info campaigns aiming at improving the understanding of the local population on the cultural differences of the migrant workers and promote better communal and societal attitude towards the migrant workers. This will employ the techniques used in the Education for Behavioural Change packages. Moreover, IOM is working on building the capacity of the legislators to work on refining the Kuwaiti labour laws to cover the widest range possible of labour issues. The partners in this initiative will be the Government of Kuwait, the ILO, and the Arab Labour Organisation.
2. Counter Human Trafficking
Kuwait is a destination country for women from who are put into situations of coerced labour, where they may endure physical abuse or other extreme working conditions. Victims come primarily from Bangladesh, Indonesia, the Philippines, Sri Lanka, and India. They may have their passports with-held, contracts altered, and suffer non-payment of salaries. Furthermore, some male foreign labourers kidnap runaway maids and force them into prostitution.
The above offers guidelines for IOM’s intervention in counter human trafficking. Two initiatives are being designed in that respect, the first is on the level of prevention, by tailoring a comprehensive info campaign that raises the awareness of the local population on the issues of human trafficking. The second is on the level of protection, the aim of this initiative will be to increase the capacity of Kuwaiti government institutions and NGOs to develop national instruments to protect migrant workers from abuse, prevent the exploitation of migrant workers and establish mechanisms to fight and prevent migrant trafficking, with a special focus on domestic workers.
3. Migration Management
In the aftermath of the 9/11 and the Iraq Operation, increasing attention world-wide is being paid to correlation between migration and security. Both to the conceptual framework of the issue as well as practical measures to tackle the problem and minimise the threat through more effective border control measures. It is generally accepted that international terrorism, because of its cross-border nature, it a migration-related issue by definition. It is more complex, however, to outline how migration relates to the modern security agenda, including its biggest recent concern, international terrorism.
The objective of IOM’s intervention on the level of border control and migration management is to strengthen and enhance Kuwait's migration management capacity to prevent and combat trans-border crime, with particular reference to terrorism prevention.
To the fullest extent possible, attention is being paid to ensure that the outcome of such initiative will not compromise human rights and individual freedoms rooted in international legal norms and Kuwaiti municipal law.
Activities being discussed with the Government are:
Conference Migration Control and Counter-Terrorism: a Regional Perspective .
Practical/technical training seminars for Kuwaiti officials and/or commercial partners related to airport security on expertise and technical capacity required for effective responses to migration/travel management.
Introducing effective information gathering, recording and sharing concerning persons of interest (chiefly people from documented terrorism-sponsoring states, other high-risk countries, others designated as people of interest on an ad hoc basis by immigration officials). Selective photographing/fingerprinting/scanning personal documents.
UNDP: During 2005, UNDP has worked to reorient its activities towards greater focus on supporting Kuwait’s efforts to meet unrealized MDGs. The new UN RC/UNDP RR (started in March 2005) devoted the first months of his assignment to strengthening team cohesiveness, programme reorientation and proactive advancement. Gradual reorientation has taken place away from dispersion across scattered unconnected projects and towards programmatic coherence within an MDG framework. Within this framework, new initiatives have focused on two MDGs where Kuwait is lagging, namely: gender equality (support to women’s political participation); environment (water security strategy and reactivation of environment portfolio). This coherence is now evident in UNDP-Kuwait’s vision and mission statements. It is being applied through the following activities.
· Proactive formulation of a comprehensive programme to support expanded political participation, particularly of women. This followed women’s acquisition of their political rights (Kuwaiti Parliament’s decision in May). UNDP coordinated a mission from HQ and UNDP’s Sub-regional Resource Facility for Arab States (SURF-AS) resulting in the development of a project on “Expanded Political Participation”. The project aims to build the capacity of women and other groups with low political participation, like youth and the disabled, to enable them to fully practice their political rights and be part of the electoral process building on the country’s relatively rich democratic experience. Cooperation with UNIFEM also contributed to this end. UNDP has been recognized for this involvement including from the Minister of Planning and from women activists.
· Since the MDG related to environmental sustainability is one of the few unrealized MDGs in Kuwait, it was a priority for UNDP to revive the two environment related projects: Support to Environment Protection Authority to develop Kuwait environment strategy and coastal zone management plan; and Kuwait Integrated Environmental Information Network implemented by Kuwait Institute for Scientific Research (KISR).
· In a related issue and in response to a long-standing request from the Prime Minister to several high ranking UN officials, UNDP fielded a mission from HQ and SURF-AS to prepare a policy note on water security in Kuwait and recommend a mechanism to develop a strategy for Kuwait in this area. The mission met all concerned authorities and presented the policy note which is under consideration.
· Publication of Kuwait’s second MDG report that was the main document used by the PM during his participation in the World Summit +5. Kuwait’s Perm. Rep. to the UN commented that it was an exemplary UNDP-supported publication.
· UNDP Kuwait was also active in responding to HIV/AIDS as one of the pertinent MDGs. In this framework, UNDP CO in Kuwait hosted the annual meeting of HIV/AIDS Focal Points in UNDP RBAS offices in May 2005 where the annual work plan for the region’s response to HIV/AIDS was developed. There was also close cooperation with the HIV/AIDS Regional Programme in the Arab States (HARPAS) and supporting its initiative involving religious leaders. In cooperation with the Ministry of Awqaf and Islamic Affairs in Kuwait, UNDP CO organized and hosted the sub-regional training conference to introduce the Muslim toolkit to respond to HIV/AIDS to Imams and religious leaders in the GCC countries.
UNDP also continued its institutional strengthening activities, including the following.
· Support for the Kuwait Airways Corporation in pursuing administrative and financial reform to enable it to move to privatization by making it attractive to potential investors. The main components of the reform programme were financial reform, strategic assessment for human resources, added value analysis, engineering and engine overhaul for cost reduction and building strategic alliances.
· Extensive capacity building in the Ministry of Planning in many sectors to enable the Ministry to perform its critical role as the main planning authority in the country. A major achievement was the development of a sophisticated computer based decision support system known as the Quantitative Planning Tools (QPT) which will enable decision makers to take informed decisions in the fields of macroeconomic planning and forecasting. The QPT were finalized and will be officially introduced to the concerned authorities early 2006. Another important achievement is supporting MOP was the development of a Geographical Information System (GIS) for the Information and Census Sector in the Ministry to facilitate conducting the national census using advanced GIS facilities.
· Substantive initiatives were introduced upon consultation with government counterparts in the field of IT technology to expedite the public sector’s move to electronic government methods. One of those was developing an advanced IT system for documentation in the Technical Cooperation and Development Support Department in MOP as well as initiating a programme to train key officials in the Civil Service Commission to obtain advanced IT skills.
· Support to various government bodies to respond to the challenge of administrative reform. Technical support was provided to these government bodies to enhance their performance and to improve the services they provide for their respective clients. Beneficiaries in this domain included the State Audit Bureau which produced five specialized audit manuals in the fields of high tech acquisition, oil sector, contracts, IT management and disputes resolving; the Civil Service Commission through introduction of a Performance Measurement System and the Decision Support Sector in the Council of Ministers to obtain ISO 9000 certification.
The UNDP office consolidated its utilization of the new project management system (Atlas) adopted in January 2004. Most of the technical challenges introduced by this system were overcome and the staff learning requirements were addressed.
Overall the UNDP programme delivered approximately US$ 4 million that were fully funded by the Government of Kuwait.
UNESCO
Beirut Office: The office has provided financial support during 2005:
1- Within the framework of implementing the UNESCO work plan for 2004-2005 in the field of developing Science and Technology Education, UNESCO Regional Offices in Beirut and Doha in cooperation with the Ministry of Education in Kuwait organized a regional workshop on “STE Resource Kit – Arabic Version” which was held in Kuwait from 25-28 September 2005. 25 participants from the Arab States attended this workshop, of which 6 were from Kuwait.
2- Kuwaiti participants attended the “Regional Experts Meeting on Social Studies Curricula and Issues of Cultural diversity” (Cairo, 24-26 November 2005) and the Expert Meeting on “Developing Cooperative Project on TVET in the Arab States” which was held in Amman from 1-3 August 2005.
Doha Office: Education Activities during Year 2005:
1- Kuwait participated in the Seminar on Curriculum reform in Oman organized by UNESCO Doha office.
2- An expert undertook a consultancy mission under the direction of the Ministry of Education, Kuwait: “Education Planning Programme”.
3- An expert undertook a consultancy mission under the direction of Ministry of Education, Kuwait. Provision of consultancy service with a view of strengthening EMIS (Education Management Information System).
4- An expert undertook a consultancy mission under the direction of Ministry of Education “Evaluation of Educational Services”.
5- Kuwait participated in Sub-regional meeting to review and follow-up actions on WCHE and WCHE+5 in Sharjah, UAE, organized with the collaboration with ABEGS & ISESCO Sharjah.
6- STP Workshop, Kuwait 25-28 September 2005.
7- Child Abuse, CMC 14-16 May 2005.
8- Capacity Building Workshop 7-16 March 2005.
9- Youth Encounter, March 2005
Sciences & Environment Activities during Year 2005
1- Support Kuwaiti expert to participate in a workshop on “Women & Water” in Qatar, with the participation of Oman, Bahrain, Qatar and UAE, recommendation towards a water friendly school were developed.
2- Assist Kuwait Institute for Scientific Research (KISR) with the development of a Red list of Endangered Animal and Plant Species in Kuwait. (Expected publication 2007)
3- Support a Kuwait expert to participate in an activity on “Trans-Boundary-Diagnostic-Analysis of coastal and marine environmental issues in the Ropme Sea Area” which was organized conjunction with the Division of Ecological Sciences, the Iran Office, the Iraq Office in Amman and under the guidance of the Doha Office.
4- Two Kuwaiti music experts participate in a workshop on Khaleej Young Musicians in Doha.
5- A Kuwaiti expert to participate in producing a Science-based book “Combating Marine Pollution in the Gulf” jointly with international and Gulf Experts. This is done in conjunction with Saudi Arabia’s National Commission for Wildfire Conservation and Development NCWCD- supported by ADNOC (expected publication 2006/2007).
Cultural Activities during year 2005
1- Support two Kuwaiti experts to participate in a training workshop on “The Application of the World Heritage Convention” which was organized in conjunction with the Division of the World Heritage Center, UAE, and Government of Sharjah, Department of Culture & Information and UNESCO Doha Office.
2- Two Kuwaiti experts participated in a seminar on “Falconry: A world Heritage” which was organized by environmental research and wildlife Development Authority in UAE; A seminar was supported by the Division of Intangible Cultural Heritage at UNESCO Headquarter and UNESCO Doha Office.
3- Two Kuwaiti experts participated in a Regional Meeting on World Heritage in the Arab States: follow up to periodic reporting & information Management” which was organized conjunction with Abu Dhabi tourism Authority and the World Heritage Center supported by UNESCO Doha Office.
UNFPA: In absence of a UNFPA country Office in Kuwait, activities have been limited to technical missions. UNFPA through its Country Support Team in Amman undertook a mission at the request of the Resident Coordinator and the higher Population Commission to articulate the process and content of a national population policy, and discuss the formulation of a technical assistance project in population policies and development under 100% cost-sharing arrangements with UNFPA.
UNHCR – Kuwait: Pursued its mandate of international protection vis-Ã -vis the present refugee population and worked closely with the Ministry of Interior and the Ministry of Foreign affairs to seek appropriate local solutions for the refugee caseload. UNHCR further continued to ensure that the rights of asylum –seekers and refugees were protected and that no forced return or refoulement took place.
UNHCR present caseload of 1,518 registered persons, mainly Iraqis, Palestinians, Bedouns, Somalis, Afghans and Iranian. UNHCR is involved in advocating local solutions for the Bedouns or stateless persons.
One case was released and resettled to third country during 2005.
In absence of Senior Liaison Officer at, UNHCR Kuwait continued in close consultation with the Regional Representative in Riyadh, to be an active partner, in the discussion and liaison with concerned partners and various Kuwaiti Ministries.
UNHCR-Kuwait continued to assist CBBK (Cross Basra Border-Kuwait) in providing major administrative support.
UNIDO : UNIDO participated in a joint venture with UNEP regarding the National Ozone Project in Kuwait, under the umbrella of the Environment Public Authority (EPA). In April 2005, the Compliance Assistance Programme (CAP) team at the United Nations Environment programme / Regional office of west Asia (UNEP/ROWA) conducted a roundtable meeting on Trends in the Chiller sector versus the Environment Challenges.
This project aims to collect data and assess the portion of the refrigeration service sector made up by chillers and identify incentives and impediments to the transition to non-CFC. One of the outcomes of this project involves capacity building within local concerned authorities such as EPA, through participation in conferences and other events related to this field, organized by UNIDO.
UNIFEM: UNIFEM’s intervention in Kuwait in 2005 was in the framework of women empowerment. A three-year project is being implemented as part of the regional effort to facilitate the empowerment of Arab women parliamentarians to act as agents of change through their transformative participation in political processes. The project also aims to foster an appropriate political climate needed to achieve gender equality in all aspects of national development through the establishment and functioning of an Arab Women Parliamentarians’ Forum (AWPF); gender sensitization of Arab Parliamentarians; and establishment and functioning of national incubators for prospective Arab women leaders.
Several activities have taken place during 2005, including the preparation for an evaluation of the status of Kuwaiti women in the light of Beijing Platform for Action. The evaluation report covers achievements and obstacles in the areas of health, education, decision-making, and violence against women, economy, gender mainstreaming and women’s human rights.
The AWP project held two round tables meetings to discuss the political participation and political system in elections. Capacity building workshops were conducted focusing on leadership, advocacy and communication skills.
A baseline study research has been prepared to shed light on the advancement of the political life of Kuwaiti women. UNIFEM Arab States Regional Office is commissioning experts to prepare a report on women in politics and success indicators, taking into consideration women and political development, gender and politics, obstacles women face, and means to overcome obstacles.
Moreover, UNIFEM commissioned a consultant to prepare a report on migrant women workers in Kuwait.
UPU : Activities of the Development Cooperation Directorate (DCDEV)
I. Kuwait: Integrated Postal Reform and Development Plan 2005 - 2008
Based on the Bucharest Congress resolution C 21/2004, which decided among other things “… to regard institutional and structural reforms of the postal sector in developing countries as a priority area for development cooperation activities…” a new approach has been developed by the UPU illustrated by the formulation of integrated postal reform and development plans (IPDPs) This new approach consists of some research and data collection on the part of the concerned postal administration, an on-site development mission, development of the plan and its submission to the country concerned and the possible formulation of a national or regional Multi-Year Integrated Project (MIP).
Kuwait has been chosen for the pilot project of the Arab region, and consequently an external consultant and the UPU Regional Adviser carried out an on-site mission from 3 to 15 September 2005. Following this mission a report has been prepared and it will serve as the basis for the formulation of an IPDP.
II. Training activities
In 2005, Kuwait participated to the following training activities:
Seminar on Statistics and cost accounting in Rabat (Morocco), 22 – 24/3/2005
Conference on the Development of Postal Markets in Cairo (Egypt), 19-21/9/2005
Quality of Service Fund (QSF) and Terminal Dues training workshop in Cairo(Egypt), 12 – 14/11/2005
www.undg.org/unct.cfm?module=AnnualReport&page=GetDocumentFile&AnnualReportDocumentID
Immigrations Laws of Kuwait
The Amiri Decree 17/ 1959, a law that regulates the residency rules for expatriates was issued and it consists of 28 articles. There has been amendments to it thereafter viz; Law No.17 of 1959Law No. 1 of 1963Law No. 26 of 1965Law No. 17 of 1988Law Decree No. 41of 1987; andLaw Decree No. 7 of 1988.It is not allowed for any expatriates to enter or depart Kuwait without a valid passport issued by the formal authority in his country. The passport must be stamped with visa issued by the Kuwait Consulate abroad.No expatriate can enter or depart Kuwait unless from authorized entries and stamped from competent authority. All expatriates must provide their passports upon request, answer any information requested and must refer to the Immigration Office upon request. In case of loss or damage of passport, they must inform within 3 days to the Immigration Office.All captains for ships, airplanes and car drivers must provide list of their names and their crew upon arrival to Kuwait and must inform the local authorities about the passengers who don't have valid passports and they must prevent them from leaving the ship, airplane or car.The Head of the Immigration Department can provide temporary visa for 3 months and the expatriate must leave Kuwait on its expiry unless renewal is granted from the Ministry of Interior not exceeding one year.It is possible to allow expatriate to reside in Kuwait temporarily for a period not exceeding 3 months.An expatriate who is a government employee is granted an ordinary ( job) visa for the whole period of his engagement with the government under condition of having a valid passport.If the validity of the passport expires, the expatriate must depart Kuwait within a period not less than one week and not exceeding 3 months.It is possible for the Head of Police Department to issue a written deportation order for any expatriate even if they have visa in the following situations:-a) If a judgment was issued from court for the deportation of the expatriate.b) If expatriate has no means of living.c) Deportation can be issued in case of violation of public order, public security or public morality.It is not allowed for any expatriate who was deported previously to come back to Kuwait unless there is permission from the office of the Minister of Interior, Kuwait.The fees for issuing visas and renewal are regulated by an order from Police Department and Public Security.An amount of KD 10 will be levied for every day for delay if the entry of expatriate into Kuwait was for a visit visa and the amount will be considered KD 2 for every day delay for ordinary(job) or temporary visa.If the expatriate did not intend to have full residency but only a visit and if he/ she did not depart Kuwait within the time limit, the court can impose imprisonment not exceeding 3 months and fine not less than KD 600 and not exceeding KD 1000. Some Arab citizens can be exempted from visa requirements after special decree issued by the Kuwait Government.The exceptions from the implementation of this law are:-a) Head of countries or President of countries and their family.b) Head of diplomatic missions, their family, their formal employees, their consulates, family under the conditions of the reciprocal treatment.c) Holders of diplomatic passport under condition of reciprocal treatment.d) Members of tribes that enters Kuwait from land borders.e) Ships, air planes, crew which arrives to Kuwait which they hold naval or air tickets from the authorities in their countries.This law does not contradict any international agreements that regulates the expatriate treatments under the International law.
http://www.helplinelaw.com/law/kuwait/articles/labeed%20abdal/immigrationslaws.php
Agreement
Between
(Embassy of India, Kuwait)
and
[Name of Contractor]
relating to
Arrangements for visa services
THIS AGREEMENT IS MADE ON THE DAY OF 2008
BETWEEN
Embassy of India, Kuwait
And
(Name of Contractor) whose registered office is at:
RECITALS;
(a) The Embassy of India, Kuwait operates visa offices in (Name of the country) and requires visa support services to be provided by (Name of Contractor) Details of locations where (Name of contractor) is to provide the visa services are in Schedule 1.
(b) The Embassy of India , Kuwait requires a range of visa services to be carried out by (Name of contractor) including client information dissemination, receiving of visa applications and other documentation, collection of the relevant Visa Application Charge (VAC) issuing of receipts, data capture, and passport and application tracking and distribution.
(c) (Name of contractor) agrees to provide the services required by the Embassy of India, Kuwait on certain terms and conditions and in accordance with procedures agreed to by the Parties as detailed in Schedule 1.
(d) The Parties wish to formally record their agreement hereby as follows:-
IT IS AGREED;
1. PROVISION OF SERVICES
1.1. (Name of contractor) agrees to provide visa support services (the Services) in respect of visa applications, supporting documentation and passports of persons in (NAME OF THE COUNTRY) seeking to apply for visas to enter India as listed in Schedule 2; in particular the following services shall be provided.
The Service Provider shall be responsible for ensuring that wherever an application is made the Service Provider can undertake all of the following functions for the Embassy/Consulates:
i) Distribute Visa Application Forms. The Service Provider will arrange to print Visa Application Forms at his own cost in the format prescribed by the Embassy/Consulates from time to time.
ii) Assist applicants in completion of forms and provide factual information on the various categories of visa available and the application process.
iii) Accept visa applications, including those received by post, together with passport, visa fee, Service Provider’s service fee (equal to the Contract Price) and supporting documents from applicants and agents approved by the Embassy/Consulates Accept additional documents requested by the Embassy/Consulates from existing applicants. Fee will be accepted in all manners of payment generally used in the United Kingdom, including credit cards and debit cards. However, any bank/agency charges levied on such transactions will be borne by the applicants.
iv). Accept such fees and pay the fees due to the Embassy/Consulates i.e. fees excluding the Service provider’s service fee, in Embassy/Consulates’ bank account on the day of receipt. Clear and transparent audit trails of fees taken will be supplied at the time the relevant applications are submitted, in a format to be agreed between the Embassy/Consulates and Service Provider. Provide reconciliation of fees remitted daily and at any other intervals decided by the Embassy/Consulates from time to time. The Service provider shall provide a Bank Guarantee for the government funds held by it temporarily.
v) Provide a bar-coded receipt to each applicant showing the service fee paid to the Service provider, the visa fee or any other fee, the category of visa applied for and the date of payment. A copy of the bar coded receipt is to be enclosed with the application.
vi). Electronic data entry of visa applications in a format prescribed by the Embassy/Consulates and transfer this data physically to the Embassy and the Consulates twice each working day (the timings and manner of which will be determined by the Embassy/Consulates).
vii) On receipt of applications, scrutinize the various documents and forms to ensure they are properly completed and ensure that each visa application form has clear audit information on it to allow easy identification of the fee paid, type of visa required and date of payment. Application documents along with passports to be forwarded to the Indian Embassy, Kuwait as the case may be, securely and in a timely manner twice each working day (the timings and manner of which will be determined by the Embassy/Consulates).
viii) Collect from the Embassy/Consulates processed applications and passports, twice each working day.
ix) Return passports and visas to successful applicants in a timely and orderly fashion and provide those, who are required to go to the Embassy or the Consulates for interview, with the date & time of interview in consultation with the Embassy/Consulates.
x) Delivery of applications and collection of passports will be done twice each working day (the timings and number of which will be determined by the Embassy/Consulates). Handing / Taking over of applications and passports will take place at the premises of the Embassy and the two Consulates.
xi) Publish and distribute an official leaflet explaining clearly how to apply for an Indian visa, complete with relevant guidance.
xii) Maintain proper records of every application received, cross-referenced to individual fees taken on databases and systems, and in accordance with practices to be prescribed by the Embassy/ Consulates.
xiii) Maintain proper accounts of all the visa fees received by individual subhead.
xiv) Have in place an efficient system for scheduling appointments for applicants requiring an interview.
xv) Have an efficient system for returning passports (with associated documents) in a timely and orderly fashion to the applicants.
xvi) Have in place a reliable quality control system that maintains continuous surveillance on service standards.
xvii) Put in place a viable and effective security and vigilance system.
xviii) Operate an e-mail, tele-enquiry facility and electronic display in order that applicants can track the progress of their applications.
xix) Put in place a system where telephone enquiries are to be answered promptly and email and postal letters are to be replied to within 2 working days of receipt.
xx) Issue news releases as and when required by the Embassy/Consulates.
xxi) Carry out any other related activities as instructed by the Embassy/Consulates.
xxii) Have in place an adequate contingency plan, prior to operation of the agreement, to maintain an acceptable level of service if the operation of any/all Visa Application Centres is interrupted for any reason.
Facilities
The Service Provider shall be required to have the following facilities at each Visa Application Centre:
(a) Effective systems and processes to recruit and train staff who can explain clearly and accurately the visa application process and the details of which documents must be submitted with the application.
(b) An IT system which will allow the entire Service Providers’s visa service network access to any centrally based appointment system.
(c) The ability to computerise operations related to data capture and scanning of applications and photographs on behalf of the Embassy.
(d) The ability to computerise operations related to the accounting of fee collection.
(e) The ability to computerise operations related to the tracking of passport movement from receipt to delivery.
(f) A security system for the presence of applicants and safe custody of documentation collected, including information held on IT systems.
(g) An effective quality control system.
(h) The Service Provider will maintain records and statistics in the format required by the Embassy/Consulates.
(i) The Service Provider will be allowed to charge service fee, equal to the Contract Price, from all individuals who make a visa application. This fee will be collected by the Service provider from applicants at the time of receiving the application and visa fees. Documents relating to collection of the service fee (receipt books etc.) will be properly maintained and made available for inspection by the designated officer of the Embassy/Consulates or any audit team)
(j) The Service provider may secure additional sources of revenue through advertising subject to the agreement of the Embassy/Consulates and subject to the terms and conditions of Local law if there is no conflict of interest. The decision of the Embassy/Consulates will be final in this case.
(k) The service provider will ensure that turn around time for visa applicants applying for visas will not be more than 30 minutes. Machine generated tickets should be given to visa applicants which will indicate date and time of entry and of exit from the collection centre.
(l) The Service provider can also introduce value-added services for the benefit of visa applicants and offer these services for a charge if there is no conflict of interest. Introduction of these value-added services is subject to the prior written approval of the Embassy/Consulates and subject to the terms of British law.
(m) The Service provider shall not receive any payments from the Embassy/Consulates for setting up these offices, nor for providing services for visa applicants. The Embassy/Consulates shall entertain no claim for expenses or liability for loss of passports or documents. The Service provider shall indemnify the Embassy/Consulates in the event of any claim made by any applicant and it shall be the Service provider's responsibility to compensate applicants if such losses occur.
(n) The Service Provider will establish and operate a website on behalf of the Embassy/Consulates, which will contain all information relevant and useful to visa applicants. All information posted on the website will be agreed in advance with the Embassy/Consulates.
(o) The Service Provider shall ensure complete confidentiality of the information provided by visa seekers and will further ensure that it is used for no purpose other than processing of visa. The service provider shall indemnify the Embassy/Consulates in the event of any leakage of such information and a consequential claim made by visa applicant/applicants.
2. FEES
2.1 Accept relevant fees from applicants and pay the fees due to the Embassy/Consulates i.e., fees excluding the Service Provider’s Fee, in Embassy/Consulates’ bank account on the day of receipt.
2.2 No fees will be payable to (Name of contractor) by the , Kuwait, however, (name of contractor) may charge clients a collection fee in relation to the performance of the Services at the rate prescribed in Schedule1.
3 CONTRACT MATERIAL
3.1 , Kuwait Material
All material provided by the (Name of the Mission to[ name of contractor] for the purposes of providing the Services ( “Name of the Mission”) remains the property of the , Kuwait and must be returned to the , Kuwait on Expiration or earlier termination of this Deed. The , Kuwait grants [name of contractor] a license to use, reproduce and adapt , Kuwait only for the purposes of this Deed and in accordance with any conditions or restrictions notified by the , Kuwait in writing from time to time. In this clause, , Kuwait material includes but is not limited to:
Application forms
(insert description of any other material)
3.2 Contract Material
Ownership of all material created in performance of the Services under or otherwise in accordance with this Deed (Contract Material) vests immediately in the , Kuwait on its creation. (Name of contractor) will ensure that the Contract Material is used, copied supplied or reproduced only for the purposes of this Deed.
In this clause, Contract Material includes but is not limited to:
The Indian Visa web-page on the (name of Contractor) website
Information flyers for Indian Visa Applicants
(insert description of any other material) (Mission to indicate details)
4. RESPONSIBILITY AND INDEMNITY
4.1 (Name of contractor) will be fully responsible for performance of the Services and for all documentation and Visa Application Charges received including the safe keeping of such documentation of visa application charge from the point of collection until it is delivered to the appropriate visa office or deposited in the Embassy/Consulates’ designated bank account in accordance with the Schedule and while it is in transit back to the applicant or their authorized representative/agent.
4.2 (Name of Contractor) indemnifies , Kuwait from and against any liability incurred by , Kuwait and loss/damage to the property of , Kuwait arising from any unlawful, negligent or willful act or omission by (Name of contractor) its officers, employees agents or subcontractors in connection with this agreement. However, (name of contractor) liability to indemnify, Kuwait will be reduced proportionately to the extent that any negligent act or omission of , Kuwait, its officers, employees, agents or sub contractors contributed to the relevant liability loss or damage.
5. ACCESS TO PREMISES
5.1 {Name of contractor will allow)
(a) the , Kuwait Visa Office
(b) other persons authorised by the , Kuwait Visa Office and
(c) the Indian Audit Office
(d) to access (name of contractor’s ) premises at all reasonable times and to inspect and copy all relevant documentation and records, however stored in(name of contractor) possession or control for purposed associated with the Deed or any review of performances under the Deed.
5.2 The rights referred to in sub-clause 5.1 are subject to:
(a) the provision of reasonable prior notice to (name of contractor)
(b) compliance with (name of contractor’s )reasonable security procedures
(c) (Name of contractor) will ensure that any subcontract entered into for the purpose of this Deed contains an equivalent clause granting the rights specified in this clause 5.
(d) Sub clauses 5.1 and 5.2 apply for the term of the Deed and for a period of five years from the date of expiration or termination of the Deed.
6. INSURANCE
6.1 (Name of contractor) will effect and maintain adequate insurance to cover all (name of contractor) Services obligations under this Agreement, including those obligations, which survive the expiration or termination of this agreement.
6.2 (Name of contractor) will provide proof of current insurance acceptable to the, Kuwait visa office.
6.3 (Name of contractor) will provide to, Kuwait a bank guarantee from the vendors’ equivalent to 125% of the maximum collection during a day in the previous one year. The amount of bank guarantee will be reviewed at the end of every year of the contract period.
7. PROTECTION OF PERSONAL INFORMATION
7.1 (Name of contractor) will deal with and handle all personal information as if the provisions of the Privacy Laws applicable both in India and the (Name of the country concerned) applied to it. In particular (Name of contractor) undertakes to:
(a) use, handle and deal with all personal information only for the purposes for which it is collected or otherwise comes into (Name of contractor) possession under this Agreement and
(b) protect all personal information in its possession and will not disclose it without the consent in writing of the , Kuwait or unless required by law.
8. MISREPRESENTATION
8.1 (Name of contractor) will not represent itself and will ensure that its officers, employees, agents and subcontractors do not represent themselves, as being an officer, employees, partner or agent of the , Kuwait Visa Office.
8.2 (Name of contractor) will not by virtue of this Agreement be or for any purpose be deemed to be an officer, employee, partner or agent of the Government of India or as having any power or authority to bind or represent the Government of India.
8.3 All advertising signage and public information relating to the services provided by (Name of contractor) for the, Kuwait Visa Office requires the prior approval of the, Kuwait Visa Office.
9. ASSIGNMENT AND NOTATION
9.1 (Name of contractor) will not assign in whole or in part its rights or obligations under this Agreement without the prior written approval of the , Kuwait or as specified in Schedule 1.
9.2 (Name of contractor) will not consult with any other person or body for the purposes of entering into an arrangement which will require notation of the Agreement without first consulting the , Kuwait.
10. DISPUTE SETTLEMENT
Any dispute or difference regarding the interpretation of the provisions of this agreement shall be resolved amicably between the parties. If the dispute is not resolved through mutual consultations within a period of six months, either party may refer the dispute or difference to arbitration is accordance with the UNCITRAL Arbitration Rules. In such a situation the applicable substantive law will be the law of India.
11. TERMINATION
11.1 The , Kuwait may at any time terminate this Deed of Agreement by giving one month’s notice to (Name of contractor) Termination will have effect one month from the date of notification unless there is a statement to the contrary in the notice of termination.
12. VARIATION
12.1 No variation of this Agreement is binding unless it is agreed in writing between the Parties.
13. WHOLE AGREEMENT
13.1 This Deed constitutes the whole agreement between the Parties in relation to its subject matter.
14. TERM OF AGREEMENT
14.1 This Agreement commences on (date) and expires (date) unless terminated before that date in accordance with its terms.
14.2 The Government of India shall have an option to extend the operation of this Agreement for 1 year on such terms and conditions as are agreed to by the Parties by giving (Name of contractor) notice 4 weeks prior to the date on which it is due to expire.
In witness whereof the parties to this agreement have set their hands and seal in this agreement on this day of .
SIGNED SEALED AND DELIVERED
For and on behalf of the
Ministry of External Affairs
in the presence of
(insert Name)
, Kuwait
SIGNED SEALED AND DELIVERED
For and on behalf of
(NAMEOF CONTRACTOR)
BY (Name)
Of (address)
In the presence of
Name
SCHEDULE 1
1 [Name of contractor] Office Locations
1.1 [ Name of contractor ] will maintain offices in the following locations :
…………
…………
(Mission to indicate location of centres)
The Service providers shall ensure that Visa Application Centres are situated in premises easily accessible to members of the public. The Centres shall have sufficient space in terms of waiting area, application counters and processing area. Each Centre will have appropriate facilities and conveniences for the applicants while endeavouring to minimize waiting time. These offices will be maintained unless an alternative agreement is reached between the parties. These offices will be opened to the public on [ Mission to indicate date ].
2 Operating Hours
2. 1 The Centres shall be open from 7:00 am to 7:00 pm (to be finalized by the Embassy) on all days, including weekends, except public holidays in (NAME OF THE COUNTRY).
2.2 Extended hours for peak periods will be by agreement.
3 Reporting Requirements
3.1 [Name of contractor] is to maintain records of the number of applications received, the number of passports handled, and the number of phone calls and e-mails received and answered. These reports are required on a weekly basis and should be provided to the, Kuwait Visa Office.
3.2 [Name of contractor] is required to report daily on the number of applications accepted by [Name of contractor] and the corresponding amount paid into the nominated, Kuwait Visa Office account. A Performa will be provided to [Name on the contractor] by the, Kuwait Visa Office on the information required daily when [Name of contractor] drops off visa application forms (See “Drop-off Requirements” below).
3.3 [Name of contractor] will report monthly, or as required by the, Kuwait Visa Office, on the location of visa application lodgements (which [Name of contractor] office applications were lodged in) and statistics on where passports were forwarded to in order to better understand where the demand for Indian visas is coming from.
4 Remuneration
4.1 The charges to clients shall not exceed the cost of the appropriate Visa Application Charge (VAC), plus a [Name of contractor] service fee for each passport not exceeding *** (exclusive of any applicable taxes) per passport. In case of a family visa and partner visas the [Name of contractor] service charges will not exceed *** (exclusive of any applicable taxes). The amount of the [Name of contractor ] service fee may be revised following negotiation and agreement between the , Kuwait Visa Office and [Name of contractor]
4.2 The Visa Application Charge must be paid into the designated Name of the Mission account in (NAME OF THE COUNTRY) Pounds/Euros. However, [Name of contractor] may accept a range of payment methods for the VAC from clients.
4.3 The Contractor accepts full responsibility for the Visa Application Charge from the time it is received from a Visa Applicant Unit it is deposited in the deposited in the designated Embassy account and bank deposit slip is received from the bank.
4.4 The Visa Office(s) will inform [Name of contractor promptly in case there is a change to the Visa Application Charge (VAC). Normally changes to VACs will occur on 1 January and 1 July. However, due to exchange rate fluctuations, the VAC any change at other times. The, Kuwait Visa Office will promptly provide the relevant details to [Name of contractor] in writing.
5 Drop-off/Pick up times
5.1 The visa application drop-off and pick-up times may vary depending on the operational needs of the, Kuwait Visa Office. However, there will be at least one combined drop-off/pick-up run per working day as agreed in advance by [Name of contractor] and the , Kuwait Visa Office.
6 Drop off requirements
6.1 The drop-off material must also contain a bank deposit slip clearly indicating the amount deposited into the Name of the Mission Visa Office account. Applications must be reconciled against the amount deposited.
6.2 A list of the applicants (full names), their passport numbers, the amount paid, whether the Visa Applicant requested an individual receipt from a bulk application and date the application was lodged must accompany all visa application drop-offs.
7 Receipts to Clients
7.1 [Name of contractor] must provide clients with a receipt at the time of the transaction clearly indicating separate amounts paid for the Visa Application Charge (VAC) and the [Name of contractor] service fee.
7.2 Subject to section 7.3, if more than [insert number] of visa applications are received together and the Visa Applicants are traveling together, the Contractor should issue a bulk receipt.
7.3 The Contractor may issue Visa Applicants traveling together individual receipts if they request it, however the Contractor will notify Name of the Mission of the request in the drop off material.
7.4 The Contractor must attach duplicate of the receipt to the visa application to be delivered to the Name of the Mission visa office.
7.5 The Contractor must provide to the Name of the Mission visa office a daily reconciliation of fees remitted against applications received. Reports must detail applications received by visa subclass, applicant’s name and visa application charge receive.
8 Name of the Mission Visa Web-page on [Name of contractor ] Website
8.1 [Name of contractor] will maintain a website, which will contain, but is not limited to the following information which has been developed in consultation with Name of the Mission.
An outline of the procedures for clients to lodge and collect their passports and visa applications,
Current visa application charges and lodgement charges;
A link to the Name of the Mission website;
Addresses and contract details for [Name of contractor];
FAQs as provided and/or cleared by Name of the Mission;
A list of public holidays during which each of the [Name of contractor] offices will be closed for business (plus the public holiday lists provided by the Indian Embassy in, Kuwait);
Office opening hours;
A passport tracking system.
8.2 The [Name of contractor] website shall not include;
Any recommendations relating to Agents or parties involved in the preparation of visa applications;
Any information that would jeopardize the privacy of its clients;
Advertising that does not relate to the agreed services provided by [Name of contractor];
Any information relating to visas, or the Name of the Mission, without prior written approval of the, Kuwait Visa Office.
9 Indian Visa Telephone and E-mail Service
9.1 [Name of contractor ] is to provide a telephone and e-mail answering service for Indian Visa applicants by;
Establishing a separate hotline number;
Establishing a separate e-mail address;
Answering queries promptly (immediately or, if that is not possible, within 24 hours];
Notifying the Name of the Mission Visa Office if there are any concerns or queries which cannot be answered by [Name of contractor] staff and/or [Name of contactor] management.
10 Application Forms
10.1 [Name of contractor] will, upon request by the client, distribute application forms to clients. These may include forms printed from the immigration website, photocopied, or provided by the visa office.
10.2 The Name of the Mission Visa Office will inform [Name of contactor] in advance of any forms changes.
11 Training and Human Resources (hr)
11.1 [Name of contractor ] will train staff working directly on Indian visa processing and lodgement, including client service training, training in the operations of systems and functions that are specific to [Name of contractor].
11.2 The Name of the Mission Visa Office will provide training to [Name of contractor]’s employees prior to the opening of the counter facilities. This training will include training on visa classes that [Name of contractor] will be receiving applications for, their role in the process, correct forms and fees, supporting documentation required, privacy requirements and how to assist clients and answer their queries.
11.3 Refresher training or training of new staff may be provided by the Name of the Mission Visa Office as required and as convenient to both parties.
11.4 [Name of contractor] will promptly notify the Name of the Mission Visa Office in case there is any fraud or if there are any allegations of fraud in relation to [Name of contractor] staff.
12 Quality Assurance
12.1 [Name pf contractor] will conduct quality assurance checks. The Name of the Mission Visa Office will also conduct quality assurance and audit checks of the [Name of contractor] office and processes.
13 Outsourcing
13.1 [Name of contractor] may outsource some of the services it provides to the Name of the Mission Visa Office. For example, [Name of contractor] may use a reputable courier, security guards, caterers, etc. however, [Name of contractor] will not outsource any of its services to the Name of the Mission Visa Office without prior consent of the Name of the Mission Visa Office.
14 Additional Services
14.1 Proposals to generate additional revenue from the visa collection centres through advertising, the provision of additional related services to clients or other mechanisms will be considered provided they do not involve a conflict of interest.
For example
The provision of travel agency services by [Name of contractor] or a related entity; or
The advertising of businesses related to the business partner,
Would not be acceptable.
However the provision of
Photocopying services; or
Photograph services,
Is likely to be acceptable.
The provision of all such services can be undertaken only with the agreement of the Name of the Mission Visa Office.
15 Advertising
Name of contractor must not provide any advertising or promotional material to clients that is not related to the Services under this Agreement without the consent of the Name of the Mission Visa Office.
SCHEDIULE 2
List of visas for which [Name of contractor ] will provide visa services to the Name of the Mission Visa Office as described in this deed (listed in numeric order of visa subclass):
(Mission to indicate categories of visa service).
http://indembkwt.org/press/21feb08-1.htm
CONSULATE OF THE STATE OF KUWAIT
The Consulate is located at the Permanent Mission of the State of Kuwait to the United Nations at 321 E. 44th Street New York, NY 10017
Tel: (212) 973-4318/7
Fax: (212) 370-1733
- List of countries who can obtain their visa upon arrival in Kuwait International Airport.
For all citizens of other countries, the Visa requirements are as follows:
BUSINESS VISA:
Business visa is issued for United Nations passport holders and diplomats traveling on official missions to Kuwait, and businesspersons going to Kuwait on business trips.
REQUIREMENTS for business Visa :
Visa Requirements For Individuals Going To Work In Kuwait and Holding a Work Permit: -
1- Valid passport at least for (6) month
2- (1) Passport size photo
3- (1) Visa application filled out
4- (1) Certificate from your Doctor indicates that you are in good health and free of contagious diseases
5- Get tested for HIV and get result
6- Get tested for Hepatitis B & C and get result
7- A certificate from the Police Department that you have no Criminal record
8- Money Order Payable to Kuwait Consulate for American Passport ($60.00) Different Fees For Different Nationalities
9- A Self-Stamped Envelope with Name & Address or An Airway Bill Pre-Paid.
WORK VISA:
For Persons going for employment should get in duplicate their "Work Permit" issued by the Ministry of Social Affairs & Labor in Kuwait.
REQUIREMENTS FOR WORK VISA:
1- Work Permit in duplicate issued by the Ministry of Social Affairs & Labor in Kuwait.
2- One photo.
3- (1) Visa application.
4- Cash or money order for $32.00
5- Clean Police Record.
6- Clan bill of health with no contagious diseases.
7- Negative tests for HIV and Hepatitis (B) and (C).
LEGALIZATION OF DOCUMENTS
REQUIREMENTS FOR LEGALIZATION OF DOCUMENTS:
All legal documents must be authenticated by the Department of State in Washington D.C. prior to presentation to consulate. Power of attorney, Authorization of agent, Articles of incorporation, Assignment, Trademark Registration, Affidavit, etc are examples of documents classified as legal. Per document is $20:00
Please check with Department of state for their requirements. Phone # 202-647 5002
All Shipping documents must be certified by the U.S Arab Chamber of Commerce prior to presentation to Consulate. Our fees for Certificate of Origin $60.00 Certificate of health, Quality, free sale, etc is $20:00 Invoice $40:00 Invoice must be accompanied by the certificate of origin.
Authentication of Medical reports, School certificates and personal power of attorney must be notarized from a notary public. Copy of valid passport must be submitted alone with the document. Fee is $20.00
Authentication of Birth certificates requires original birth certificates from the department of health and copy of both parent’s passports and marriage certificates. Fee is $20.00.
Authentication of Marriage certificates must be notarized by a notary public or original marriage certificate issued by an Islamic center, copy of husband and wife valid passport. The fee is $20.00
Importing pets to Kuwait requires valid health certificate from Vet, Import Certificate from Animal health department from Kuwait. Phone # (965) 4730867 Fax# (965) 4722417 Fee is $20.00
We need an additional copy of each document for our file. All fees have to be paid in money order or certified company check payable to Kuwait Consulate. It takes couple of days to complete the processing of documents.
Please enclose the self–addressed pre-stamped envelope or an airway bill with your documents. Consulate of Kuwait will not be responsible for lost of any documents in mail also documents which is not picked within three months will be disregarded. Our office hours are 9:30am to 1:00pm. You can also visit our web site at www.kuwaitmission.comDocuments that do not meet the requirements will have to be returned.
Please check with the following offices for U.S.ARAB CHAMBER OF COMMERCE fees and requirements.
420 Lexington Ave. Suite 2034 New York- NY 10170 Tel: (212) 986-80-24
1100 New York Ave. NW Suite 550 Washington D.C.20005 Tel: (202) 289-59-20
1330 Post Oak Blvd, Suite 1600 Houston TX 77056 Tel :( 713) 963-46-20
http://www.kuwaitmission.com/visa.html
Local restrictions on employment
Everyone living and working in Kuwait requires a visa. This is only obtainable through sponsorship by an employer (in this case the BC) or a Kuwaiti citizen. There are no restrictions on employment except for those nationalities that supported Iraq during the Invasion. Palestinians, Jordanians and Iraqis are very unlikely to be offered visas. As all expatriates in Kuwait are sponsored by their employer or a Kuwaiti, when any work contract terminates, the residency permit is also cancelled. For this reason it is not possible to stay on in Kuwait for more than a month after the end of a contract.
http://www.hays.com/jobs/britishcouncilmiddleeast/Kuwait.doc
State Structure
Constitution
"Kuwait is a fully independent Arab State with a democratic style of government, where sovereignty rests with the nation, which is the source of power." As prescribed by the constitution, the system of government is based on the separation of powers, although co-operation is required by the Constitution. The legislative authority is vested in the Amir and the national Assembly, while executive power is vested exclusively in the Amir and his Cabinet and Ministers.
The Constitution of the Senate of Kuwait is based on the democratic principles and combines the positive aspects of both presidential and parliamentary systems prevalent in advanced democratic countries. The pillars of the Constitution are the sovereignty of the State, public freedom and equality before the law.
Kuwait constitution is a written one legislated by contract. It was laid down by a constituent assembly of 20 members elected by people. 11 ministers were added to them from outside the assembly. These ministers refrained to vote on the constitution articles while being passed in the constituent assembly as they wished to the elected members alone to do so. Preparation and discussion of the articles of constitution took almost 6 months. On 11/1/1962, the will of Kuwait's Amir, the deceased Sheikh Abdullah Al Salem Al-Sabah, corresponded with that of people's representatives and ratified the draft constitution as the representatives drew it without any amendment to its articles. The constitution came into force on 29/1/1963 when the first Kuwaiti National Assembly convened.
The Amir
The Amir is the head of the State. His person shall be immune and inviolable." The Constitution states that the Amir assumes his authority through his ministers. The Prime Minister and Ministers are collectively responsible to the Amir for the general policy of the State and each Minister is responsible for his own Ministry. "The Amir is the Supreme Commander of the Armed Forces."
"Any Law is issued only after being approved by the National Assembly, and sanctioned by the Amir".
Kuwait is the hereditary Amirate, the succession to which shall be through the descendents of the late Mubarak Al-Sabah.
The present Amir is His Highness Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah.
As well as His Highness's principal responsibilities as the Amir of the State of Kuwait and the powers vested in him with regard to vital and strategic issues, many matters of public interest also fall directly under his supervision. He is the President of some prestigious organizations, foremost among which is the Kuwait Foundation for the Advancement of Sciences (KFAS), which was established under the auspices of His Highness the Amir. However, despite his numerous official duties, His Highness the Amir is very conscious of the importance of his personal relations with his citizens, sharing with them their joys and sorrows.
The Crown Prince
The Crown Prince is the Heir Apparent to the Amir of the State of Kuwait. According to the Constitution of the State of Kuwait, "The Heir Apparent shall be designated within one year at the latest from the date of the accession of the Amir. His designation shall be affected by an Amiri Order upon the nomination of the Amir and the approval of the National Assembly, which shall be approved by a majority vote of its members in a special sitting."
Kuwait's current Crown Prince is HH Sheikh Saad Al-Abdallah Al-Sabah. Born in 1930, HH Sheikh Saad is the eldest son of the late Sheikh Abdallah Al-Salem Al-Sabah, former Amir of Kuwait. He was educated in Kuwait, and later joined the Handen Police College in England, where he attended specialised courses in police and security affairs till 1954.
As the Crown Prince HH Sheikh Saad Al-Abdallah also presides over the Supreme Defence Council, the Supreme Petroleum Council, the Civil Service Commission and the Higher Council of Housing.
The National Assembly
Democratic experience in Kuwait has become more mature, aware and open since the establishment of the parliament in 1963. On October 5, 1992 new elections were held to form the seventh group of representatives who would represent people in the National Council for the seventh legislation chapter. 304 nominators applied for these elections; 50 members were elected by secret direct ballot by 75 thousand voters.
Voting is excluded to Kuwaiti males who are 21 of age. The council nominators must be of Kuwaiti original nationality and not under 30 of age on the election day. Ministers, Justices, Prosecuting Attorneys, Chiefs of Voters register committees or their members may not nominate themselves unless they have already resigned from their jobs prior to election.
The ministers not elected in the National Council are considered members in it by their positions. Kuwait is divided into 25 electoral positions. Kuwait is divided into 25 electoral districts; each district elects two members to become representatives in the National Council.
The period of the legislation chapter is four years starting from the first session after elections to the last session before new elections. Regular annual session is no less than 8 months provided budget is sanctioned. The council sessions is only valid when more than half of the members are present. Decisions are taken by absolute majority of the present members.
The Parliamentary life
Kuwait has known consultation system as the basis of government since 1920 when the first state consultative council was formed in the Gulf and Arab peninsula in the reign of Ahmed Al Jaber. The council consisted of 21 appointed members; Hamad Al Saqer, one of Kuwait's known traders, was elected a chairman. Although the council was short-lived, it was a historical indicator of a serious attempt to create a democratic atmosphere.
Then came the municipal council which comprised 14 members, 10 elected by people and 4 appointed. This council issued all types of decisions and recommendations. In 1938 general elections were conducted and gave rise to the first elected legislative assembly which had 14 members and Sheikh Abdullah Al Salem, the heir apparent at that time - was elected a chairman.
Despite that the council did not stay long, it had impact on the Kuwaiti political life. After that a state consultative council was formed but in 19 June 1961, after liberation, new parliamentary life started by electing the members of the constituent assembly who enacted the state's constitution.
The Judiciary
The Judiciary in Kuwait is an independent body. The administration of justice is free and fair from the influence of any authority. The right of litigation is guaranteed to all citizens as per the procedures and manners prescribed by law.
The Constitution also stipulates the establishment of a Constitutional Court. This court decides disputes relating to the constitutionality of laws, law decrees and regulations, and election of MPs, or the validity of their membership. It also has the authority to interpret a constitutional article following a request by the National Assembly or the government. If the Constitutional Court decides that a law, a law decree or a regulation is unconstitutional it shall be considered null and void.
The Judiciary in Kuwait is organised under three distinct categories:
The Court of First Instance
This is the nucleus of Kuwait's legal system. It decides conflicts of personal, civil, commercial, and labour affairs as well as administrative cases. It also gives judgements on criminal cases, and significant civil and commercial cases.
The court of appeal
This department looks into appeals and rulings sent down from the Court of First Instance (except those appealed before the Court of First Instance in the way of urgent, penalised and non-penalised cases).
Supreme Court
This apex body looks into court appeals concerning commercial, labour and civil cases as well as cases related to personal affairs and crimes. It is also instrumental in establishing legal rules, and interpreting and applying the laws of the country. Its sentences are handed down by a five-member advisory committee.
The Amir acts as the final court of appeal in Kuwait.
http://www.ecbg-kuwait.com/kuwait/state_structure.php
© Copyright, IAU, World Higher Education Database (WHED)
Kuwait - Education system
INSTITUTION TYPES & CREDENTIALS
Types of higher education institutions:
University
College
Training Centre
School leaving and higher education credentials:
Shahadat Al-Thanawiya-Al-A'ama
Bachelor's Degree
Postgraduate Diploma
Master's Degree
STRUCTURE OF EDUCATION SYSTEM
Pre-higher education:
Duration of compulsory education:
Age of entry: 6
Age of exit: 14
Structure of school system:
Primary
Type of school providing this education: Primary School
Length of program in years: 4
Age level from: 6 to: 10
Intermediate
Type of school providing this education: Intermediate School
Length of program in years: 4
Age level from: 10 to: 14
Certificate/diploma awarded: Intermediate School Certificate
General Secondary
Type of school providing this education: General Secondary
Length of program in years: 4
Age level from: 14 to: 18
Certificate/diploma awarded: Shahadat Al-Thanawiya-Al-A'ama
School education:
Primary education lasts for four years. Secondary education is not compulsory. It consists in a four-year cycle comprising grades nine through twelve. For grades nine and ten, students follow a common curriculum. For grades eleven and twelve, they may choose Science or Arts specializations. Religious and Special Education secondary specializations are also offered. The Ministry of Education supervises all aspects of secondary education, both public and private, for general and Islamic education.
Higher education:
Kuwait University is the only university in the country. It comprises 30 departments in the following colleges: Arts; Commerce, Economics and Political Science; Engineering and Petroleum; Law; Islamic Law (sharii 'a) and Islamic Studies; Medicine; Allied Health and Nursing; Science; Education; Graduate Studies; and the Women's College. There is also the Public Authority for Applied Education and Training, as well as the Higher Institute of Dramatic Arts and the Higher Institute of Musical Arts. Non university higher education is provided by several Colleges and a Cadet Academy (Military), as well as Training Centres.
Main laws/decrees governing higher education:
Decree: Decree no 164 Year: 1988
Concerns: Ministry of Higher Education
Decree: Law no 29 Year: 1966
Concerns: Higher education
Decree: Law no 4 Year: 1987
Academic year:
Classes from: Sep to: Jun
Long vacation from: 1 Jul to: 1 Sep
Languages of instruction: Arabic, English, French
Stages of studies:
Non-university level post-secondary studies (technical/vocational type):
Non-university level:
Technical training is supervised by the Public Authority for Applied Education and Training (PAAET) and takes place in its five post-secondary colleges and seven training institutes. Degrees, associate degrees and diplomas are awarded as follows: College of Basic Education: Diploma in Arts and Education or Diploma in Science and Education (4 years - university level); College of Business Studies: Diploma in Applied Business Studies (2 years); College of Technological Studies: Associate degrees and Diploma in Technology (2-and-a-half years); College of Health Sciences (2 years); College of Nursing (2 years). Diplomas andcertificates are awarded at the following institutes: Electricity and Water Training Centre: Technician (2 years); Telecommunications and Air Navigation Centre: Technician (2 years); Industrial Training Institutes (2 campuses): Technicians (2 years); Beauty and Tourism Institute (2 years); Institutes of Secretariat and Administrative Studies (2 years); Vocational Training Institute (2 years).
University level studies:
University level first stage: Undergraduate studies:
The University Colleges for Allied Health and Nursing, Arts, Education, Commerce, Economics and Political Science, Islamic Law and Islamic Science offer a Bachelor's Degree at the end of four years of study. The same degree is conferred by the College of Engineering and Petroleum after five years of study.
University level second stage: Graduate Studies:
Kuwait University offers Master's Degrees in Science, Engineering, Philosophy, and Medicine through the College of Graduate Studies. These programmes require one or two years' study beyond the Bachelor's Degree.
Teacher education:
Training of pre-primary and primary/basic school teachers
The Faculty of Basic Education and the Faculty of Education at the University of Kuwait train primary school teachers.
Training of secondary school teachers
The Faculty of Education at Kuwait University offers a four-year Bachelor's degree programme for intermediate and secondary teachers. The Teacher Training Faculty of Kuwait University offers higher studies programmes for teachers whereby they may obtain a Higher Teaching Diploma or a Master's Degree in Teaching.
Training of higher education teachers
Assistant teachers in the University and instructors in technical colleges must hold a Master's degree. University professors must hold a PhD.
Non-traditional studies:
Lifelong higher education
The Continuing Education & Community Service Centre, supervised by Kuwait University, offers courses in Languages, Computer Sciences, Business Administration and Accounting Sciences, Statistics and Insurance, Economics, Secretarial Studies, Humanities, Arts and General Knowledge, as well as in-service training programmes.
NATIONAL BODIES
Administration & co-ordination:
Responsible authorities:
Ministry of Education and Higher Education
Head: Rashid Hamad Muhammad al-Hamad, Minister
PO Box 7Safat 13001Kuwait
Tel: +965 4837890
Fax: +965 4837601
WWW: http://www.mohe.edu.kw
Role of governing body: Educational planning and policy; adoption of text books, curricula; supply of human/material resources; coordination of education and development policies.
Higher Education Council
Ministry of Education and Higher EducationPO Box 7Safat 13001Kuwait
Tel: +965 4837890
Fax: +965 4837601
Role of governing body: Proposes the educational policy; approves/implements educational plans/programmes; corrects the duration of each educational stage, etc.
Public Authority for Applied Education and Training
Head: Humood Al-Mudhaf, Director-General
Administrative officer: Saud Jafar, Deputy Director-General for Administrative and Financial Affairs
International relations: Meshal Al-Mashaan, Deputy Director-General for Applied Education and Research
PO Box 23167Safat 13092Kuwait
Tel: +965 2563738
Fax: +965 2528915
EMail: info@paaet.edu.kw
WWW: http://www.paaet.edu.kw
Role of governing body: Supervises and plans programmes for applied education and training.
ADMISSIONS TO HIGHER EDUCATION
Admission to non university higher education studies
Name of secondary school credential required: Shahadat Al-Thanawiya-Al-A'ama
Minimum score/requirement: 65%
For entry to: All
Alternatives to credentials:
Students from British schools may present the International Certificate of General Secondary Education (ICGSE); students from French schools may present the Baccalaureat. Transcripts with grades.
Entrance exams required:
Admission test with minimum mark of 65% for technical colleges run by PAAET.
Admission to university-level studies
Name of secondary school credential required: Shahadat Al-Thanawiya-Al-A'ama
Minimum score/requirement: 65%
For entry to: All
Alternatives to credentials: Religious Secondary Education Certificate (only to enrol in the College of Arts and Education, the College of Law, or the College of Islamic Law and Islamic Studies). International Certificate of General Secondary Education; the Baccalauréat.
Foreign students admission
Admission requirements: A limited number of foreign students may be admitted, subject to availability of relevant resources and facilities. Selection is based on merit and national interest. Applicants should have a Bachelor's degree with a GPA of at least 2.67 on a scale of 4. For acceptance for scholarships, certificates must be either in Arabic, English or French or translated into one of these languages and authenticated. It must be attested by the Ministry of Education and the Ministry of External Affairs and the Embassy of Kuwait in the student's country. To obtain a scholarship students must be chosen to study in Kuwait by the students' government or by an institution, or a corporation accredited by the Government. The Kuwait National Commission for Education, Science and Culture is the only organ that has the right to consider each application and take a decision.
Entry regulations: Study visas are necessary for foreign students.
Language requirements: Students must have a good knowledge of Arabic or English. A minimum language score is necessary for admission to Master's degree programmes. Each applicant must satisfy one of the language proficiency requirements for the programme to which they are seeking application.
Recognition of studies & qualifications:
Studies pursued in foreign countries (bodies dealing with recognition of foreign credentials):
Kuwait University
Head: Nader Al-Jallal, President
Administrative officer: Essam Al-Robiyan, Secretary-General
PO Box 5969KhaldiyaSafat 13060Kuwait
Tel: +965 4811188
Fax: +965 4848648
EMail: nader@kuco1.edu.kw
WWW: http://www.kuniv.edu.kw
Special provisions for recognition:
For access to university level studies: Courses taken abroad may be approved according to the following conditions:1) the institution must be recognized by Kuwait University; 2) the courses must be within the scope of the programme, at graduate level, and must not have been taken by the student as part of an undergraduate programme; 3) the student's grade in any of these courses must not be less than 3 points on a scale of 4 or the equivalent.
Multilateral agreements concerning recognition of foreign studies
Name of agreement: Convention On the Recognition of Studies, Diplomas and Degrees in Higher Education in the Arab States
Year of signature: 1978
References to further information on foreign student admissions and recognition of studies
Title: Graduate Catalog
Publisher: Kuwait University
STUDENT LIFE
Main student services at national level
Student Affairs Unit, College of Graduate Studies
Kuwait UniversityPO Box 5969Safat 13060Kuwait
Health/social provisions
Social security for home students: Yes
Social security for foreign students: Yes
Foreign student social security provisions: Essential medical care is offered free of charge.
Special student travel fares:
By air: Yes
Available to foreign students: Yes
Student expenses and financial aid
Student costs:
Home students tuition fees: Minimum: 0 (Kuwaiti Dinar)
Foreign students tuition fees: Minimum: 0 (Kuwaiti Dinar)
GRADING SYSTEM
Usual grading system in secondary school
Full Description: A=90-100%=Excellent; B=80-89%=Very good; C=70-79%=Good; D=60-69%=Pass; F=0-59%=Fail.
Highest on scale: A=90-100%=Excellent
Pass/fail level: D=60-69%=Pass
Lowest on scale: F=0-59%=Fail
Main grading system used by higher education institutions
Full Description: Kuwait University Grading System: A+ (4.00 points=Distinction); A (3. 67=Distinction); B+ (3.33=Very good); B (3.00=Very good); B- (2.67=Very good); C+ (2.33=Good); C (2.00=Good); C- (1.67=Good); D+ (1.33=Pass); D (1.00=Pass); F
Highest on scale: A+ (4.00=Distinction)
Pass/fail level: D (1.00=Pass)
Lowest on scale: F (0=Fail)
Other main grading systems
Technical Training Centres Grading System: A (90-100%=4 points=Distinction); B (80-89.9%=3=Very good); C (70-79.9%=2=Good); D (60-69.9%=1=Pass); F 0-59. 9%=0=Poor) Technical Colleges: ...
NOTES ON HIGHER EDUCATION SYSTEM
For scholarships, students must be chosen to study in Kuwait either by their own government or institution, or by a corporation accredited by the Government of Kuwait. The announcement of scholarships is made in January every year, and the deadline for receiving applications is June 1.
Data for academic year: 2005-2006
Source: IAU from Kuwait National Commission for UNESCO, October 2005
http://www.unesco.org/iau/onlinedatabases/systems_data/kw.rtf
India-Kuwait Relations
India and Kuwait enjoy traditionally friendly relations. These are based in history and have stood the test of time. Geographic proximity, historical trade links, cultural affinities and presence of a large number of Indian expatriates continue to sustain and nurture this long standing relationship. India has been a natural trading partner and a destination for higher learning. Until 1961, the Indian Rupee was legal tender in Kuwait.
High level visits from Kuwait to India have included those by the His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, Amir of the State of Kuwait from June 14-19, 2006 accompanied by senior Ministers and officials. The Amir held talks with the President, the Vice President and the Prime Minister of India. In New Delhi the Amir addressed a luncheon meeting of representatives of apex Indian Chambers of Commerce and Industry ASSOCHAM, CII and FICCI. In Mumbai, the Amir met the Governor of Maharashtra and addressed a meeting organised by CII.
Three Agreements were concluded during the visit. These included a Avoidance of Double Taxation Agreement and for the Prevention of Fiscal Evasion with respect to Taxes on Income (DTAA); an Agreement on Drug Demand Reduction and Prevention of Illicit Trafficking in Narcotic Drugs, Psychotropic Substances and Percursor Chemicals and Related Matters; and an Executive Programme for the Cultural and Information Exchanges between India and Kuwait for the years 2006 – 2008.
The Foreign Minister Sheikh Mohammed visited India in August 2004. During the visit to India, three bilateral agreements were signed in addition to the Indo-GCC Framework Agreement for Economic Cooperation. There has been regular exchange of visits at Ministerial level. Visit to India includes those of Dr. Ismael Khudhur Shatti, then Minister of Communications on June 28, 2006 and Engr. Falah Fahed Mohammad Al-Hajri, Minister of Commerce and Industry to Bangalore to attend the CII Partnership Summit in Bangalore on January 17-19, 2007.
From India, visits have included those of Minister of State for External Affairs Mr. E. Ahamed on April 16-17, 2006 on a bilateral visit; on October 16, 2006 for meetings with the Kuwaiti leadership; on November 26-27, 2006 to co-Chair the first meeting of the Kuwait-India Joint Ministerial Commission; on March 10, 2006 to canvas for India’s bid to host the 17th Asian Games in Delhi in 2014; from January 29-31, 2008; and on May 15, 2008 to convey condolences on the demise of the Father Amir His Highness Sheikh Saad Al-Abdullah Al-Salem Al-Sabah on behalf of Government of India to the Royal Family and the people of Kuwait.
India and Kuwait both share common perceptions on various regional and international issues and have cooperated with each other in regional and international fora. There have been several high level discussions and consultations at political and senior diplomatic levels as well as exchange of visits between the two countries.
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Indo-Kuwaiti Agreements
India and Kuwait have signed various Agreements to provide a framework for the development of bilateral relations. These include:
Cultural Agreement between the Government of the Republic of India and the Government of the State of Kuwait signed on November 2, 1970.
Trade Agreement between the Government of India and the Government of the State of Kuwait signed on February 13, 1974.
Cooperation Agreement between the Government of India and the Government of the State of Kuwait signed on February 15, 1992.
MOU on cooperation in the field of telecommunication between the Government of India and the Government of the State of Kuwait signed on February 19, 1992.
Protocol between the Council of Scientific and Industrial Research (CSIR) of the Republic of India and Kuwait Institute for Scientific Research (KISR) for Scientific and Technical Cooperation signed on June 16, 1995.
Memorandum of Understanding between the Ministry of External Affairs of the Republic of India and Ministry of Foreign Affairs of the State of Kuwait on the Conducting of Bilateral Consultations signed on July 9, 2000.
Agreement between the State of Kuwait and the Republic of India for the Encouragement and Reciprocal Protection of Investment signed on November 27, 2001.
Academic Agreement between Jamia Millia Islamia, New Delhi and Faculty of Arts, Kuwait University signed on December 2003.
Agreement on Mutual Legal Assistance in Criminal Matters signed on August 25, 2004.
Extradition Treaty between the Republic of India and the State of Kuwait signed on August 25, 2004.
MOU for Establishment of Indo-Kuwait Strategic Consultative Group signed on August 25, 2004.
Agreement on Juridical and Judicial Cooperation in Civil and Commercial Matters signed on August 16, 2005.
Agreement on Drug Demand Reduction and Prevention of Illicit Trafficking in Narcotic Drugs, Psychotropic Substances and Percursor Chemicals and Related Matters signed on June 15, 2006.
Avoidance of Double Taxation Agreement and for the Prevention of Fiscal Evasion with respect to Taxes on Income (DTAA) between India and Kuwait signed on June 15, 2006.
Executive Programme for the Cultural and Information Exchanges between India and Kuwait for the years 2006 - 2008 signed on June 15, 2006.
MoU on Labour, Employment and Manpower Development signed on April 10, 2007.
MoU on Cooperation between the Comptroller and Auditor General of India and Kuwait’s State Audit Bureau signed on July 15, 2008.
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Bilateral Trade and Economic Cooperation
Kuwait is a relatively open economy. It has always offered a highly competitive and affluent market for capital and consumer goods and for project exports. While Indian companies did well until the 80s in terms of project exports,
there has been little progress on the investment front since the 90s. However bilateral trade between India and Kuwait has risen in the post-liberation period.
India-Kuwait Bilateral Trade FY 2002-07
In Rs. lakhs
Period
2002-03
2003-04
2004-05
2005-06
2006-07
Indian Exports to Kuwait
121,259.26
145,945.92
182,965.56
227,428.27
302,818.46
Indian Imports from Kuwait
86,869.56
65,471.41
133,478.01
204,276.26
2,967,744.00*
Total
208,128.83
211,417.34
316,448.06
431,503.46
3,270,562.46*
Source: Directorate General of Commercial Intelligence & Statistics (DGCI&S), Kolkata
* The sharp increase in trade figures in 2006-07 is due to the inclusion of figures of Petroleum & its products (POL) whichwere not included in the previous financial years. POL imports accounted for Rs. 2,557,078 lakhs in the year 2006-07.
In US $ million
Period
2002-03
2003-04
2004-05
2005-06
2006-07 (April-Sept.)
Indian Exports to Kuwait
250.56
317.61
407.21
513.73
298.73
Indian Imports from Kuwait
179.50
142.48
297.07
461.85
2892.07
Total
430.06
460.09
704.29
975.59
3190.80
Source: Directorate General of Commercial Intelligence & Statistics (DGCI&S), Kolkata All figures on FOB basis
Total bilateral trade between India and Kuwait grew by 65% from Rs. 431,503.46 lakhs (US$ 974.63 million) in FY 2005-06 to Rs. 713,484.46 lakhs (US$ 1.57 billion) in FY 2006-07.
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India’s Exports to Kuwait
Source: DGCI&S, Kolkata
India’s exports grew by 33.15% from Indian Rupees 227,428.27 lakhs (US$ 513.69 million) in 2005-06 to Indian Rupees 302,818.46 lakhs (US$ 669.22) in 2006-07.
Above is a pie-chart showing the share of top 10 items of
imports from India during 2006-07. This shows that the major items imported from India were rice (basmati), meat & its preparations, machinery & instruments, manufactures of metals, glass products, gems & jewelry, cotton & its accessories, iron & steel and transport equipments.
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India’s Imports from Kuwait
Indian imports from Kuwait have gone up by 101% from Rs. 204,276.26 lakhs (US$ 461.39 million) in FY 2005-06 to Rs. 410,666 lakhs (US$ 907.56 million) in FY 2006-07, as per DGCIS statistics.
A pie-chart showing the share of top 10 items of exports
from India during 2006-07 is given below. This shows the major items (excluding crude oil) imported by India as metalifier ores & metal scrap; organic chemicals; fertilisers; sulphur & unrstd iron pyt; inorganic chemicals; artificial resins, plastic materials, etc.; textiles, fabrics & clothings; machinery except electric & electronic; and leather.
Source: DGCI&S, Kolkata
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Joint Ministerial Commission
An “Agreement between India and Kuwait for the promotion of Economic, Commercial and Technical Cooperation” was signed in Kuwait in February 1992 during the visit of then EAM Shri Madhavsinh Solanki. At the same time both sides also agreed to set up an “Indo-Kuwait Joint Ministerial Commission on Economic and Technical Cooperation”. During the visit of the Amir to India in June 2006, it was decided that the Joint Commission for Economic and Commercial Cooperation would hold its first meeting in the last quarter of 2006.
Accordingly, the first meeting of the India-Kuwait Joint Ministerial Commission for Trade and Economic Cooperation took place in Kuwait on November 25-27, 2006. The meeting was co-chaired by Mr. E. Ahamed, Minister of State for External Affairs on the Indian side and Mr. Bader Meshari Al-Homeidhi, Finance Minister from the Kuwaiti side. Discussions were held in four Working Groups dealing with Labour and Employment; Trade, Investment and Finance; Energy, Petroleum, Petrochemicals and Fertilisers; and Science & Technology,Information Technology and Communications, Health and Education.
The second meeting of the India-Kuwait Joint Ministerial Commission was held in New Delhi on July 1-3, 2008. It was co-chaired by Mr. E. Ahamed, Minister of State for External Affairs from India and His Excellency Mr. Mustafa Jassim Al-Shamali, Minister of Finance from Kuwait. Among the notable decisions of the JMC include forming of a Joint Working Group (JWG) on Hydrocarbons whose first meeting would take place in last quarter of 2008. Both sides also agreed to set up a technical level mechanism to review the implementation of the decisions arrived at the Joint Ministerial Commission Meeting which will meet in the interim periods in each other’s capitals. The first such meeting will be held in the first quarter of 2009 in Kuwait City.
Kuwait is among the largest supplier of crude oil to India and the second largest supplier from the Gulf region. Crude oil imports in 2006-07 by India from Kuwait were 11.38 mmt which went up to 12.6 mmt valued at around US$ 6.7 billion.
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Bilateral MOUs in the Economic Field
MoU between the Public Authority for Industry (PAI) of Kuwait and Indian Importers Association (IIA) based in New Delhi in May 2006 wherein IIA will promote the export, re-export and sales of Kuwaiti manufactured non-oil industrial products in its appointed territory for the Kuwaiti manufacturers introduced to it by PAI.
The Kuwait Chamber of Commerce & Industry (KCCI) signed an MoU with the Associated Chambers of Commerce & Industry (ASSOCHAM) during the State Visit to India from June 14-19, 2006 by His Highness Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, the Amir of the State of Kuwait. The MoU foresees promotion of trade, investment, scientific and technical cooperation between the India and Kuwait.
Indian Companies’ Presence in Kuwait
TCIL, LIC (International), LIC Housing Finance, New India Assurance Company, Oriental Insurance Company and Indian (including Air India and Indian Airlines) have their offices in Kuwait, in association with local Kuwaiti sponsors, as per the
prevailing regulations. Besides, there are Indian companies like L&T, Bridge & Roof, Punj Lloyd who have secured large projects, particularly in the oil sector, and thus have sizeable establishments in Kuwait.
Kuwaiti Investment in India
According to the figures released by the Department of Industrial Promotion & Policy’s Secretariat for Industrial Assistance (SIA), Kuwaiti investment in India has been modest or may be said to be negligible.
Much of the Kuwaiti investments, however, have gone into India through portfolio management. Kuwaiti FDI has also gone into India through international investment companies or through countries providing tax breaks. This may now change with the implementation of Double Taxation Avoidance Agreement between the two countries effective April 1, 2008. Following the visit to India by His Highness the Amir of the State of Kuwait, there has been considerable interest in the Indian market. The Kuwait Investment Authority (KIA) and some others have shown interest in sectors dealing with infrastructure, power, financial services, real estate, and information technology among others.
The Kuwait Petroleum Company (KPC) through its international arm, the Kuwait Petroleum International (KPI) has also expressed interest in investment in the petrochemical sector.
Until December 1997, the Kuwait Fund for Arab Economic Development (KFAED) has extended concessional loans to India for 8 projects in various sectors (Industry – 2 projects totaling Rs. 3.10 billion; Power – 5 projects totaling Rs. 6.71 billion and Agriculture – 1 project amounting to Rs. 0.80 billion) to the extent of KD. 88.854 million (Rs. 10.61 billion).
The updated figures of total loan advanced upto December 31, 2002 were US $ 270.17 Million working out to a little over Rs. 12.97 billion at the current rate of exchange. However, due to the change in policy in 2003-04, the loans from KFAED were discontinued and repaid.
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India Funds
Authentic and complete information regarding investments made in Indian equities by Foreign Institutional Investors (FIIs) from Kuwait is not available.
The Kuwait Investment Authority has made regular portfolio
investments in the stock market and through leading international financial managers. Many Kuwaiti financial players have shown interest in investing in the Indian financial sector.
Civil Aviation
Following the last round of talks between civil aviation delegations of India and Kuwait held in Kuwait on June 28 – 30, 2007, an MoU was signed with both sides reaffirming their commitment to the Air Services Agreement governing civil aviation relations. Both sides also agreed to increase capacity entitlements of each side from 8,320 to 12,000 seats per week. The designated carriers of Kuwait were granted access to 3 additional points of call in India viz. Hyderabad and Kolkata with immediate effect and Bangalore with effect from the winter 2008 schedule. Both sides reached a common understanding that increases in future traffic rights and
capacity entitlements would be used to serve only the direct India-Kuwait market and not indirect markets to/from third countries through 5th freedom rights.
Kuwait Airways currently operates to Delhi, Mumbai, Chennai, Thiruvananthapuram, Kochi and Ahmedabad. Kuwait’s private airline Jazeera Airways has operations to Delhi, Mumbai and Kochi. Air India/Indian operate to many destinations in India. Jet Airways has also commenced its flights from Delhi and Kochi to Kuwait in January 2008.
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Culture, Science & Technology and Education
In the field of culture, education, science & technology and media, there have been series of regular exchanges between Kuwait and India. A Cultural Exchange Programme, an MoU in the field of Science & Technology and a Memorandum of Understanding between Kuwait University and Jamia
Millia Islamia provide a framework for regular exchanges. During the visit of His Highness the Amir in June 2006, and Executive Programme for Cultural and Information Exchanges for 2006-08 was signed. Cultural troupes have also been exchanged by the two countries.
Indian Community
According to the Kuwaiti Ministry of Interior, there are 579,058 Indians as on July 1, 2008 who constitute the largest expatriate community in Kuwait. The Indian community is regarded by the Kuwaitis as the community of first preference among the expatriates in Kuwait. Kuwait recognizes India’s capabilities as a fast growing economy and also a source of highly qualified professional and technical personnel. Of late, there has been an increase in the number of highly qualified experts in hi-tech areas, especially in the software and financial sector. In the field of health, India not only supplies top specialists but also para-medical staff who enjoy a high reputation. Inwardremittances from Kuwait to India are substantial.
Professionals like engineers, doctors, chartered accountants, scientists, software experts, management consultants,
architects, skilled workers like technicians and nurses, semi-skilled workers, retail traders and businessmen mainly constitute the Indian community. A large proportion of the Indian expatriates are also unskilled and semi-skilled workers.
The MoU on Labour, Employment and Manpower Development signed in April 2007 has been ratified by both countries and has entered into force with effect from October 18, 2007.
There are 17 Indian Schools in Kuwait affiliated to the Central Board of Secondary Education.
There are 164 Indian community Associations registered with the Embassy.
http://www.indembkwt.org/bilateral.php
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