Council of Ministers Resolution No. 651 of 2026. New Council of Ministers Resolution Establishes Residency Pathway for KDIPA-Licensed Investors

At a glance

The Council of Ministers of Kuwait has issued Resolution No. 651 of 2026 setting out the conditions, procedures, and criteria for granting residency permits to foreign investors in investment entities licensed by the Kuwait Direct Investment Promotion Authority (KDIPA) under the Foreign Direct Investment Law No. 116 of 2013 on Promotion of Direct Investment. The Resolution was signed by Acting Prime Minister Fahad Yousef Saud Al-Sabah and takes effect from the date of its publication in the Official Gazette.

Background

Law No. 116 of 2013 on Direct Investment Promotion provides the framework under which non-Kuwaiti investors may obtain a license from KDIPA to establish and operate an investment entity in Kuwait. Prior to the issuance of this Resolution, the specific conditions, and procedural requirements for granting residency permits to investors and their families were not formally codified in a single instrument. Resolution No. 651 of 2026 fills that gap and establishes a clear, structured pathway for foreign investors, their partners, senior management, and families to obtain and maintain residency status in Kuwait.

Who is eligible?

The Resolution identifies four categories of beneficiaries who may be granted a residency permit on the basis of an KDIPA-licensed investment entity (Article 2):

• Owners of the investment entity
• Partners in the investment entity
• Senior management and members of the entity's board holding job titles approved by KDIPA
• Family members (parents, spouses, and children) of the people in the above categories

Key Conditions for granting residency (Article 3 & 4) 

An investor wishing to obtain residency for any of the eligible categories must satisfy all of the following:

Investment Thresholds (Article 4)

Operational Requirements

• The investment entity must hold a valid investment license issued by KDIPA.
• The entity must have an actual headquarters and conduct real operational activities inside Kuwait.
• The entity must comply with Kuwaitisation requirements (minimum ratio of Kuwaiti employees) as determined by KDIPA in coordination with the competent authorities.

Personal Requirements for Applicants

• The applicant (investor, partner, manager or board member) must be registered within the investment entity and hold job titles recognized by KDIPA.
• Their job titles must appear on the approved list maintained by KDIPA and competent authorities.
• The applicant must submit a clean criminal record certificate confirming no criminal conviction that would bar issuance of a residency permit under Decree-Law No. 114 of 2024.
• The applicant must hold a valid passport with at least six months' remaining validity.
• The investment entity must assume full legal responsibility for the investor's residency.

Application process (Article 5 & 6) 

Persons who satisfy the conditions and criteria set out in the Resolution may apply to KDIPA for a residency permit following the procedures established by the Authority (Article 5). The application process works as follows:

Renewal of residency (article 7) 

KDIPA may issue a renewal of residency for any of the eligible categories under Article 2 of the Resolution, provided the investment entity continues to meet the conditions and criteria set out in this Resolution. Renewal applications must be submitted to KDIPA at least 60 days before the residency expiry date.

Termination and cancellation of residency (article 8)

A residency permit granted under this Resolution is terminated (before or upon its expiry) in any of the following circumstances:

• Cancellation of the investment license under Decree-Law No. 114 of 2024.
• A final criminal judgment against any of the eligible categories mentioned in Article 2, for crimes specified in Article 22 of Law No. 2 of 2016 (Anti-Corruption).
• Loss or lapse of any of the conditions and criteria specified in the Resolution.
• Submission of false or incorrect data or documents to obtain the residency permit.
• The investment entity ceasing to conduct its activities in practice, or failure to take the required steps to operate during the specified license period.
• The investment entity is suspending its activities for more than one year without KDIPA's prior approval.
• Cancellation of the investment entity's license under Law No. 116 of 2013.

KDIPA must notify the General Administration for Residency Affairs at the Ministry of Interior upon the occurrence of any of the above circumstances for cancellation of the residency permit.

Transitional provisions (article 9) 

All previously issued residency permits that have already expired, or that expire before they are renewed, are treated as having expired under the current law, irrespective of the reason. However, the legal status of deceased holders or persons who have lost legal capacity is protected: the residency permits associated with them remain in force until they would otherwise have expired.

An investor who is currently present in Kuwait may remain in the country for up to 90 days from the date of residency expiry to settle any outstanding rights or obligations.

The General Administration for Residency Affairs – upon KDIPA's request and subject to KDIPA's recommendation – may extend this 90-day period for a maximum of 180 days in total, subject to the applicable regulations.

Consequences for non-compliance 

Persons who do not meet the conditions and criteria set out in the Resolution are not permitted to apply for a residency permit under it. Any application submitted on an incorrect or incomplete basis will be rejected once the 30-day cure period expires without the required information being provided. Misrepresentation or submission of false documents is an express ground for termination of any permit already granted.

Deloitte observations 

Resolution No. 651 of 2026 is a significant development for foreign investors operating in Kuwait through KDIPA-licensed entities. Several points are worth highlighting:

• The KWD 5,000,000 investment threshold and KWD 1,000,000 paid-up capital requirement are material conditions. Groups that have received KDIPA licenses should assess whether their existing investment levels satisfy these thresholds.
• The Kuwaitisation obligation (minimum ratio of Kuwaiti employees) is a continuing condition. Failure to maintain the required ratio may jeopardize residency status for the entity's investors and senior management.
• The 60-day advance renewal requirement is operationally important. Entities should calendar renewal deadlines to avoid inadvertent lapses.
• The 90-day (extendable to 180-day) grace period for settlement upon residency expiry provides a limited window. Investors should not rely on this as a routine buffer.
• Family residency (parents, spouses, and children) is available as part of the package, which may be attractive for investors considering longer-term presence in Kuwait.
• The competent Minister has discretion to adjust the financial thresholds on KDIPA's recommendation. Clients should monitor any subsequent amendments.

How Deloitte can assist 

Our Kuwait International Tax & Advisory team has extensive experience advising multinational groups and foreign investors on KDIPA licensing, investment structuring, and regulatory compliance in Kuwait. We can assist with:

• Assessing whether your investment entity qualifies for investor residency under the new Resolution
• Reviewing existing KDIPA licenses and investment structures against the new eligibility thresholds
• Preparing and submitting residency applications on behalf of investors, partners, and senior management
• Advising on Kuwaitisation obligations and structuring employment arrangements accordingly
• Managing renewal timelines and compliance monitoring
• Advising on the implications of the Resolution for investment planning and corporate structuring in Kuwait