Golden Residency: A Gateway for Foreign Investments
Ramadan: A Strategic Step to Consolidate the Transformation into a Financial and Commercial Hub
Bilal Najih
In a strategic move to consolidate the country’s transformation into an attractive financial and commercial hub for investment capital, and in line with its ambitious development vision, Kuwait has recently implemented the long-term “Golden Residency” system. This initiative, which has already borne fruit through coordinated efforts between the Kuwaiti Ministry of Interior, the Direct Investment Promotion Authority, and relevant government entities, was launched by granting a 15-year renewable Golden Residency to a prominent investor and pioneer in the food industries and consumer goods sector. This marks a strong signal of the state’s seriousness in nurturing high-quality investments.
Amid this radical shift in the country’s investment policy, “Al-Siyasa” explores the extent to which the “Golden Residency” serves as one of the most significant factors driving and attracting foreign direct investment (FDI) in Kuwait.
In this context, economic expert and former advisor to the Ministry of Finance, Mohammed Ramadan, emphasized that the decision to grant Golden Residency to foreign investors entails a package of multi-dimensional economic and social benefits. He clarified that the first and most direct benefit of this system lies in stimulating and activating the business environment, encouraging foreign capital to flow into the Kuwaiti market more rapidly and flexibly, leveraging the legal and living stability provided by long-term residency to the investor and their family.
Regarding the second benefit, he stressed that it will undoubtedly and effectively contribute to solving the unemployment problem and restructuring the country’s employment landscape. This is particularly true given that one of the key conditions for granting this residency is that the foreign investor must commit to employing a specific percentage and a suitable number of Kuwaiti national cadres and talents in their project. Consequently, the Golden Residency acquires significant dimensions, exerting a multiplied positive impact on both the economic and social fronts.
Economic Diplomacy
The economic expert stressed that this system should not be limited to domestic efforts; rather, the roles of Kuwaiti embassies and diplomatic missions abroad must be activated to actively promote the Golden Residency. This should be achieved through broad marketing campaigns, including organizing investment conferences and periodic business forums in global economic capitals, as well as designing and distributing digital and printed brochures that explain the advantages and facilitations, while clarifying the precise conditions and criteria that enable capital owners to qualify for the residency.
Ramadan called for the removal of all obstacles in accordance with the established controls and conditions to attract more foreign investments. He noted that foreign direct investment in Kuwait remains extremely weak, still hovering below the 2 billion dinar threshold. This situation has prompted the state to take decisive action and move toward granting further facilitations to attract foreign capital to the country.
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Ramadan concluded his perspective by pointing out that a wide segment of capital owners and global companies are constantly seeking to expand their investments abroad. However, their research always begins with exploring the legislative and economic environment and the level of investment security offered. This factor has historically made Dubai a destination for foreign investments. Therefore, the success of the Kuwaiti experiment hinges on the efficiency of external promotion and the speed of its implementation to remove all obstacles facing foreign investors.
A Message of Confidence
In this context, a government advisor told “Al-Siyasa” that the initiative is a message of profound confidence directed at the business community and global companies, aiming to firmly place Kuwait on the map of regional and international investment. He noted that the Golden Residency system was designed to open broader horizons for successful investment partnerships and to secure a stable and sustainable legislative and living environment for foreign investors and their families, particularly given that such stability serves as the cornerstone for supporting ambitious economic diversification plans aimed at reducing reliance on oil revenues as the primary source of income. Furthermore, it plays a key role in empowering the private sector to take the lead in driving the economy, in line with “Kuwait Vision 2035.”
He pointed out that the criteria for granting Golden Residency in Kuwait reflect the country’s desire to attract entities with high financial standing. The executive regulations stipulate that the investment value of the licensed entity must not be less than 5 million Kuwaiti dinars, with a paid-up capital deposit of at least 1 million Kuwaiti dinars in a bank account within the State of Kuwait. Additionally, the entity must obtain a valid and direct license from the Investment Promotion Authority and conduct genuine, active business operations within the local market, alongside other conditions. He emphasized that all these conditions are characterized by flexibility and will attract significant foreign investments to the country.
