Kuwait’s Freelancing Localisation: Protecting Citizens or Limiting Growth?

In September 2025, Kuwait announced a sweeping change to its labour market: 120 freelance job

categories were restricted exclusively to Kuwaiti citizens, barring expatriates and even other Gulf

nationals from engaging in them. The regulation, part of Ministerial Resolution No. 168, is a bold

expression of localisation policy. It seeks to empower Kuwaiti citizens to take greater control of their economy while reducing long-standing dependence on expatriate workers. Yet while the move may open new opportunities for nationals, it also raises important economic and social questions about skills, competitiveness, and long-term sustainability.

The new rules apply to a wide range of sectors, from consultancy and design to real estate, tourism, photography, and promotional services. In practice, these are the very fields in which expatriates have historically played a dominant role, often supplying specialised expertise and international networks. By excluding them, Kuwait is attempting to re-centre its freelance economy around its own people. To make this feasible, the government has simultaneously introduced reforms to make freelancing more attractive for nationals: licences are now valid for four years instead of one, and minimum capital requirements have been slashed to just KD 50.

This combination of restriction and facilitation reflects a calculated strategy—close the door to outsiders while lowering the barriers for insiders. Economically, the potential advantages are clear. Freelancing could become a meaningful alternative to the public sector, where most Kuwaitis remain employed despite government efforts to diversify. Easier licensing and reduced capital thresholds may encourage a wave of young Kuwaitis to experiment with entrepreneurship, boosting innovation and broadening income sources. In turn, this could help the government tackle structural challenges such as youth unemployment and over-reliance on oil revenue.

For policymakers, localisation represents not only a social compact but also a way to ensure that more wealth generated in Kuwait stays within its borders. Yet the risks are equally significant. Many of the excluded freelancers—particularly in creative industries and consultancy—were expatriates with niche expertise that may not be easily replaced. Their sudden exclusion could lead to skill shortages, higher prices, or even reduced quality in some services. Businesses and consumers may find themselves paying more for less, at least in the short term, as nationals develop the experience to fill the gaps. Moreover, by narrowing opportunities for expatriates,

Kuwait risks signalling to foreign investors and skilled migrants that its business environment is

becoming less open, potentially discouraging the very diversity and competition that fuel innovation.

Another challenge lies in enforcement. Although licences are now easier for nationals to obtain, the government must ensure compliance to prevent “fronting,” where expatriates continue to operate businesses informally under the names of citizens. Without robust oversight, the policy could create shadow markets rather than empowering real entrepreneurship. In addition, expanding the number of Kuwaiti freelancers will require more than just licences—it will demand training, mentorship, and infrastructure to help small ventures succeed in markets that can quickly become saturated.

At its core, Kuwait’s freelancing localisation policy represents a trade-off. On the one hand, it strengthens opportunities for citizens, builds economic sovereignty, and aligns with wider national strategies of Kuwaitisation. On the other, it risks curbing competition, creating skill gaps, and narrowing the country’s global outlook. If the policy succeeds, it could transform freelancing into a dynamic driver of national employment and private-sector diversification. If it fails, it may instead become a symbol of protectionism that slows growth while limiting Kuwait’s ability to benefit from the very global expertise it needs.

The outcome will depend on balance: whether the state invests in building citizens’ capacity while

preserving enough openness to keep markets innovative and competitive. In this way, Kuwait’s

localisation policy is not just a bureaucratic rule but a test of how a resource-rich society navigates the tension between protecting its people and embracing the global economy.