Canada to reduce the number of temporary foreign workers
The Canadian Prime Minister calls the measure "fair" for both Canadian and foreign workers. During a press conference on Monday, August 26, Justin Trudeau announced a likely reform of the Temporary Foreign Worker Program (TFWP). Highly appreciated by businesses, this program allows temporarily hiring a foreigner to cover the unavailability of skilled Canadians. After the policy was eased to deal with COVID-19, the number of temporary work permits jumped to nearly 183,820 in 2023, up +88% compared to 2019.
However, associations defending foreign workers describe the policy as "slavery" and report numerous abuses committed by companies. The UN joins them with numerous complaints (underpaid foreign workers, various abuses, etc.). Employment and Social Development Canada (ESDC) believes that the TFWP has diverted from its original purpose of employing foreigners at a low cost. The Prime Minister himself acknowledges the mistreatment and exploitation of foreign workers.
To combat this practice, he intends to reduce the number of temporary foreign workers, especially low-wage workers and permanent residents. While the Prime Minister acknowledges the essential nature of immigration, he reiterates that the country wants to welcome foreigners better, considering the ongoing housing crisis. The reform will come into effect on September 26.
Should we expect a complete overhaul of the Canadian Immigration Plan?
On August 26, the Minister of Immigration, Marc Miller, also announced in a TV interview an upcoming revision of immigration levels. The government's roadmap has already undergone several adjustments. The number of new immigrants is capped at 500,000 until 2026. Several measures have been introduced to reduce the number of students and foreign workers. Miller supports reforming permanent immigration levels in Canada, although he hasn't provided further details. However, it will not be just minor adjustments.
Miller recalls the importance of economic immigration, which accounts for 60% of immigration levels in Canada. He emphasizes the role of foreign workers during the health crisis, which helped Canada avoid recession. Immigration is one of the main drivers of the Canadian economy and demographics. According to analysts, a demographic decline would have negative repercussions, not only on the labor and economic markets but also on a social level (funding for pensions, education, etc.).
Quebec announces a partial freeze on the Temporary Foreign Worker Program
A few days before Justin Trudeau's press conference, François Legault, the Premier of Quebec, announced (on August 20) a partial freeze on the TFWP. The measure comes into effect on September 3 and will last 6 months. Four categories of foreign workers are concerned: low-wage workers (wage below the median income: CAD 27.47 per hour or CAD 57,000 gross annually), foreigners working for a company located in Montreal, first-time TFWP applicants, and applicants for a renewal of the TFWP. Applications received before September 3 will be processed.
Other expatriates may be affected by the measure, such as holders of a closed permit that will soon expire or foreigners holding an International Mobility Permit that will soon expire. Holders of an expiring open permit who have not yet obtained permanent residency will also be affected. Expat families are also concerned – spouses and children only benefit from a dependent visa/study permit if the expatriate holds a valid permit. A refusal to renew a visa will result in the loss of their visa.
Foreign workers whose permits are about to expire (within 6 months) could, with their employer, apply for a Labor Market Impact Assessment (LMIA)/Quebec Acceptance Certificate (CAQ) before September 3. Those with a wage below the median income have no choice but to find a higher-paying job. However, temporary foreign workers holding a CAQ and a pending permanent residency application are eligible for a transitional open work permit (TOWP).
Quebec: Overseas recruitment missions slow down
Coming to power in late 2018, François Legault quickly became known for his strong tackles against a federal government that was considered too lenient on immigration. In June, Legault pinpointed Trudeau for contributing to the rising immigration figures. But at the same time, the Legault government multiplied its overseas recruitment missions called "Journées Québec". There were more than 60 missions between 2019 and 2024, with approximately 1,000 to over 4,000 foreigners recruited. Most continents were targeted, from Latin America to Africa and Europe. But these missions have a cost: nearly CAD 1.4 million.
However, the government has now decided to partially freeze the TFWP and reduce overseas recruitment missions. While some missions are still in the pipeline, the government assures it will reduce the scope or cancel trips. Internally, these missions are criticized as unprofessional, as recruitments target too many professional sectors (agribusiness, video games, transportation, etc.). The missions' high human and logistical costs have also been pointed out. The government plans to reduce international recruitment to key sectors, particularly health, education, and construction. The Ministry of Immigration confirms a possible overhaul of the Journées Québec recruitment program.
Quebec wants fewer international students and workers
Quebec also wants to reduce the number of international students and workers. This announcement was also made on August 20 by François Legault and Christine Fréchette (Minister of Immigration). While the cap on the number of international students concerns the entire province of Quebec, reducing the number of foreign workers primarily focuses on Montreal. It also targets "low wage” workers in the province, except for professionals working in sectors under pressure: health, construction, agriculture, food processing, and education. The government blames companies for not prioritizing locals, considering high unemployment figures. Still, companies claim they have significant foreign labor needs.
The scheme regarding international students is unclear, although the Prime Minister indicated his desire to end abuses observed in some universities. For example, there is no information regarding the universities impacted by the measure. The Prime Minister mentioned ongoing discussions (notably on the involvement of anglophone universities) and stated that a bill will soon be introduced.
United States: extended waiting times for student visas depending on the country of origin
During the health crisis, the Biden administration invoked force majeure to explain its delays in processing student visa applications. Understaffing due to non-renewed retirements also explained these delays. Since then, the US government has made significant efforts to reduce waiting times. Embassies in major Indian cities indeed note a substantial reduction in delays—23 days in New Delhi, compared to 245 days in 2022. Kolkata and Mumbai record equally spectacular progress—25 days this year, compared to 129 and 143 days in 2022, respectively.
Conversely, other countries record incredibly long delays. Applicants must wait a year in Accra, (Ghana) and in Kathmandu 318 days. In Dhaka (Bangladesh), international students must wait 236 days. Things have improved slightly in Cotonou (206 days), Lagos (133 days), and Yerevan in Armenia (112 days). Understaffing remains the main reason for the extended waiting times. On-site agents struggle to respond to appointment requests in states with a large number of applicants.
To reduce waiting times, the United States plans to eliminate in-person interviews for foreigners holding a valid visa in the past five years. They also rely on fast-tracked interviews while emphasizing that these measures remain linked to the number of agents on-site.
Student visa: the American strategy to reduce bureaucracy
The interminable waiting times are one of the visible consequences of American bureaucracy. The State Department acknowledges that bureaucracy hampers the growth of international mobility and proposes several changes: waivers of in-person interviews, better consideration of international students' projects, acceleration of the transition to digital, etc. Agents are encouraged not to deny visa applications for unconvincing reasons (for example, when the applicant enrolls for English as a second language).
While the Department praises its efforts, international students and professionals in the sector speak of "symbolic" changes that do not remove the "discretionary power" of embassy officials. Students confirm having been denied visas without an explanation. The increase in student visa applications for the United States has resulted in a higher rate of visa denials: 36% in 2023. Students denounce an "arbitrary" and "unequal" system, especially African expatriates.
According to a report by the Alliance of American College and University Leaders, more than 60% of visa applications from African students are denied. The same students have to apply several times to have a chance of obtaining their visa. While the State Department acknowledges the problem, it invokes other causes of processing delays, such as political and/or economic instability in the country of departure.
Visa holders H-4 retain the right to work in the United States
A federal appeals court (District of Columbia) has recognized the right to work for holders of the H-4 visa. As a reminder, the H-4 visa is a dependent visa, allowing the spouse to join the holder of an H visa (work visa). Holders of H-4 visas are authorized to work in the USA under certain conditions. Spouses of holders of H-1B/H-1B1 visas (specialized skilled workers), H-2A visas (agricultural workers), H-2B (non-agricultural workers), or H-3 visas (trainees) were not allowed to work.
The federal appeals court decided to maintain a program established in 2015 under the Obama era. This program grants work permits to highly qualified spouses of expatriates holding an H-1B visa, a very popular visa in Tech. But as early as 2015, the organization "Save Jobs USA," representing the interests of US-born tech workers, filed a lawsuit against this program. In their opinion, the rule is illegal and not in the interest of Americans (by not prioritizing Americans). The Trump administration planned to eliminate the program but never finalized its reform.
The Biden administration retains the 2015 program. Tech giants (Amazon, Apple, Microsoft, Google, etc.) support the measure, as allowing both spouses to work is an effective way to attract foreign talent. Holders of the H-4 visa are relieved. However, they know that the legal battle could resume if Save Jobs USA decides to appeal to the Supreme Court.
Launching the "parole in place" program
In June, Biden announced a program to assist undocumented immigrants married to American citizens. Named the “parole in place” Program, it allows undocumented immigrants residing for at least 10 years in the United States to apply for permanent residency. This measure also concerns the children of undocumented immigrants.
Effective August 19, 2024, the Keeping Families Together program also allows eligible individuals to stay on American soil and apply for a work permit. They are protected against any deportation threat and will have three years to apply for permanent residency. US Citizenship & Immigration Services (USCIS) has published a guide for eligible immigrants. The application is exclusively online.
There is an application fee of USD 580, another USD 470 for the work permit, and another USD 1,440 for permanent residency. For stepchildren, the fees amount to USD 625 per person. USCIS alerts eligible individuals against potential scams. Candidates are invited to contact an accredited lawyer or approach assistance associations in case of doubt.
Australia caps the number of student visas in 2025
New restriction have been announced for international students in Australia. The federal government proposes a reform to limit the number of student visas to 270,000 in 2025. According to government estimates, this new cap would be distributed as follows: approximately 145,000 new international students in public universities and about 95,000 in vocational institutions. According to the Ministry of the Interior, the number of student visas has already dropped by 60,000 places compared to 2023. The universities that host the most international students will be subject to more severe limitations. However, the new quotas do not concern schools, higher education research programs, non-degree programs, and the ELICOS English system programs.
International students will face new fee increases: visa processing fees rise from AUD 710 to AUD 1,600. However, experts warn of a possible drop in Australia's attractivity. Considering the accumulation of restrictive measures, international students might turn to other, more affordable destinations.
New Zealand announces an increase in visa fees
The New Zealand government has enacted new fee increases, effective October 1, 2024, and affecting most visa categories. International students in New Zealand are among the most affected, with visa costs almost doubling (from NZD 375 to NZD 750). The cost of the post-study visa increases by more than +50% (from NZD 699 to NZD 1,670). The cost of the visitor visa goes from NZD 211 to NZD 341, while that of the qualified resident visa rises from NZD 4,290 to NZD 6,450. The family visa is not spared, as its cost jumps to NZD 5,360, compared to NZD 2,750 before the reform. The cost of a retired parents' visa also increases from NZD 5,260 to NZD 12,850.
The fee increases will be beneficial to public finances: the state anticipates profits exceeding NZD 563 million (approximately USD 338 million) by 2028. The Minister of Immigration, Erica Stanford defends the measure as "social justice." According to her calculations, the current immigration system is primarily financed by New Zealand citizens. She supports a reform that shifts the cost of immigration onto the actors of the system. She nonetheless reminds us that New Zealand remains more competitive than Australia or the United Kingdom, which have considerably tightened their immigration policies.
Indonesia strengthens control over companies recruiting foreigners in Bali
"Pora Bali," the foreign worker surveillance agency, is strengthening its controls, targeting companies in the tourism sector that employ many foreigners and companies managed by foreigners. The controls aim to verify compliance with immigration rules (visa, work permit).
The authorities have already warned that there will be no preferential treatment for foreigners in violation, regardless of their status (tourists, employees, managers, investors, business owners, etc.). However, for the police (Pora Bali also includes the provincial police of Bali), "zero tolerance" can rhyme with a "sympathetic approach." There will be no surprise raids, but rather, contact business leaders to ensure they are aware of the rules regarding the employment of a foreigner: visa, work permit, and adequate license for the business.
Pora Bali mainly targets Bali's restaurants, beach resorts, and nightlife venues, where it expects more violations. It calls on nationals to report any infringement involving foreigners. In 2 years, the authorities have noticed a significant increase in the number of foreigners working without a work permit. Some of them pinpoint the boom of digital nomadism, which has led some foreigners to believe it was possible to work in Bali with a simple tourist visa. However, Indonesia has created a specific digital nomad visa. The Pora Bali operation aims to reestablish a clear separation between work and tourism.
Residence permits for returning Indonesian expats
The government has launched a unique program for former Indonesian citizens residing abroad. The program, "Visa Diaspora Indonesia," will allow the diaspora to return to Indonesia for 5 or 10 years. Therefore, it is not a tourist visa but a long-term residence permit. The visa will also allow them to work in Indonesia and buy real estate. Visa holders will have access to social services: health, education, social assistance, etc.
The government allows a simple procedure, accessible online, to reach the largest number of expats. To be eligible, one must be a former Indonesian citizen who has acquired another nationality. The applicant must have lived abroad for at least 5 years, have a valid passport (at least 1 year), and prove they can support themselves. They must also prove their Indonesian roots (birth certificate, expired Indonesian identity papers, etc.).
The last requirement, not without consequences for potential candidates, is that the government requires an investment of at least 35,000 US dollars within 90 days of arrival in Bali. The investment will concern state bonds, shares, or bank deposits, which serve to show commitment to Indonesia.
Greece increases investment thresholds for Golden Visas
Greece still resists pressure from the European Union (EU) to end the Golden Visa. However, facing the housing crisis and the discontent of residents, Greece has progressively tightened the rules of its program. After the first step in March, the Greek government enacted a new rule. From September 1, the investment threshold for real estate rises to 800,000 euros (approximately USD 890,000) in the most popular regions of Greece, which is far from the 250,000 euros (approximately USD 278,000) required in 2023.
At the time, the government already planned higher investment thresholds (500,000 euros) for tourist regions. Greece then presented itself as one of the most attractive countries for the Golden Visa. However, the influx of foreign investors has caused real estate prices to soar, with repercussions for local economies. Between 2022 and 2023, housing prices rose by nearly 11%. The significant crisis worsened this year: according to Eurostat, housing represents almost 40% of the average salary. The government has raised the investment thresholds for the Golden Visa to curb the housing crisis. Consequently, wealthy investors rush to Greek real estate to escape the new scale.
Bulgaria streamlines visa rules to attract foreigners
The Minister of Tourism, Evtim Miloshev, and the Deputy Minister of Foreign Affairs, Maria Angelieva, are considering a program to facilitate the issuance of tourist and work visas. According to them, non-European investors are the main tourists in Bulgaria. Facilitating their entry will likely increase potential investments in Bulgaria. The same logic applies to non-European workers. Maria Angelieva intends to increase the presence of agents in consular offices in cities with the most work visa applications (Dubai, Cairo, Riyadh, Istanbul, Doha, etc.).
Turkey, for instance, will benefit from special relaxation, allowing its citizens to receive their tourist visas more easily. Bulgaria follows the example of Greece, which established an "express visa" in April, allowing Turkish nationals to obtain their tourist visa upon arrival in Bulgaria. As a reminder, Bulgaria partially entered the Schengen area on March 31, 2024. Identity checks at air and sea borders were abolished, but not at land borders.
Denmark: Changes in the declaration of expats' salaries
Starting September 1, salary declarations must mention the salary in Danish kroner. The Danish Agency for International Recruitment and Integration (SIRI), responsible for verifying that the salary meets Danish standards, will reject applications that declare the salary in foreign currency. Employment contracts mentioning a salary in foreign currency must include an amendment stating the salary in Danish kroner.
SIRI reminds us that Danish standards also apply to the first application or renewal of a residence and work permit: the salary and employment conditions must comply with immigration rules. However, renewal applications for work permits (for an initial permit issued before September 1) presenting a salary in foreign currency will still be accepted. The foreign currency will be converted into local currency. Expressing all salaries in Danish kroner allows SIRI to update its income statistics.
Italy doubles income tax for wealthy foreigners
In 2017, the government adopted a very generous tax regime (a lump sum tax) to attract wealthy foreigners. Although unpopular, this measure remains in place. Valid for 15 years, the tax regime extends to families. On Wednesday, August 7, the Meloni government voted on a decree that raises the lump sum tax from 100,000 to 200,000 euros per year. Mired in a housing crisis, Italy needs to get back on track. The economy is sluggish, and the population suffers from the soaring cost of living. Georgia Meloni says she understands the discontent of Italians who believe wealthy expatriates are primarily responsible for the crisis. The tax increase will help fill the budget deficit: in 2023, it shattered the limit set by the EU (3%) to peak at 7.4% of GDP.
But is it such a significant measure? The non-retroactive decree only applies to wealthy foreigners who are now settling in Italy. The approximately 1,186 super-wealthy individuals who have already transferred their tax residence to Italy are not concerned. Although Italy no longer wants to be perceived as a "mini tax haven," it still retains other very favorable measures for wealthy foreigners. In reality, the country intends to keep its wealthy expatriates, but without rolling out the red carpet. The decree voted on August 7 is primarily a political operation aimed at aligning with the declaration of G20 countries, ready to "cooperate" for greater taxation of the super-rich.
United Kingdom: Calls for an immigration reform to support foreign nurses
In its latest report, the Royal College of Nursing (RCN) highlights that a foreign nurse is twice as likely to face financial difficulty as a British nurse. The report blames the hardening of the immigration policy enacted by the previous government.
Among the restrictions is the non-recourse to public funds (NRPF) for temporary visa holders. This rule excludes the expatriates concerned by access to aid qualified as "public funds": housing assistance, family allowances, universal credit, etc. But it's worth noting that temporary foreign workers do not have access to health aids that are subject to resource conditions. The rule exists, although these workers pay taxes and thus contribute to the health insurance system. In case of prolonged sick leave, these workers risk receiving no income.
Another restriction is the 15% increase in the fees for caregivers applying for and renewing their visas and a 20% increase for permanent residence permit applications. However, the union recalls the essential contribution of caregivers trained abroad during COVID. They remain indispensable for the NHS: 49.4% of the new recruits in the nursing sector (March 2023-February 2024) were trained abroad. The RCN calls for an urgent immigration reform, which would include the abolition of NRPF for temporary visa holders, reduction of visa costs, respect for the rights of foreign workers, and strengthening of support structures. According to the RCN, the absence of reform will expose the NHS to the departure of its foreign health professionals.
Should foreign technicians expect stricter recruitment rules?
Will the new Labour government hear the call of the RCN? Its reflections on the fate of foreign technicians raise doubts. While the previous Sunak government targeted the health sector, the new Starmer government seems to target the ICT (information and communications technology) and engineering sectors. Both sectors suffer from significant labor shortages and rely heavily on foreign talent.
But like the Sunak government, the Starmer government wants to lower net immigration. According to the report by the Migration Advisory Committee (MAC) for the Minister of the Interior, ICT is one of the sectors most dependent on foreign workers. The MAC has 9 months to deliver its conclusions. One of the avenues considered to reduce dependence is raising salaries, but there have been some changes since. Initially scheduled for August, the increase in the minimum income required to bring a family member has been postponed. In April, a first increase had been validated by the Sunak government: £ 29,000, compared to £ 18,000 previously. The threshold was to rise to £ 34,500 in August and above £ 38,000 in 2025. However, the minister has postponed the increase pending the conclusions of the MAC report.
New plan to strengthen border security
On August 21, Minister of the Interior Yvette Cooper presented her new plan to strengthen border security. The plan includes recruiting 100 specialized intelligence agents to dismantle criminal networks linked to illegal immigration and human trafficking. Seventy investigations involving international partners are underway; they target major criminal networks of human trafficking.
Another issue for the minister is expulsions. The Starmer government gives itself 6 months to reach "the highest rate of expulsion." In a spirit of zero tolerance for illegal foreigners, immigration and asylum rules will be strictly enforced, particularly concerning asylum seekers rejected since 2018. The government will ensure that the rules of return to the border are applied properly. To facilitate expulsions, the number of places in temporary detention centers will be increased (290 additional beds).
The minister also targets unscrupulous British employers who employ illegal foreigners. Sanctions include fines, business closures, and legal proceedings. Irregular workers caught in the act will be deported quickly. These sanctions will be part of the new ministerial program to combat illegal work and strengthen border security.
Britons in Spain need to obtain a "TIE" card
The TIE card (Tarjeta de identidad de extranjero) is the identity card for foreigners residing in Spain. The TIE card is issued to non-Europeans legally residing in Spain and serves as a residence card. It includes the NIE (Número de Identificación de Extranjeros), a number used to carry out administrative procedures.
The British embassy in Spain urges Britons to apply for their TIE card before the implementation of the European Union's (EU) new entry and exit system (Entry/Exit system – EES) on November 10. From that date, all non-European nationals will have to go through the new electronic EES system, designed to strengthen border controls. The EES will record the traveler's biometric and personal data, the dates and places of entry and exit; fingerprints and a facial photo will also be recorded (every 3 years). The data will be stored in a secure space for 3 years, sparing travelers who have already passed through the EES from new checks.
Since Brexit, the United Kingdom has become a third country. British expatriates in Spain are subject to the same regulations as other non-European nationals. However, to be exempt from the EES, British residents must present a valid biometric card; in Spain, this card is equivalent to the TIE. Non-biometric residence documents in Spain (green certificates) or any other document issued before Brexit are not valid.
New visa exemption system in the European Union
The EU is preparing to deploy "ETIAS," its new border management system, which includes travel authorization (European Travel Information and Authorization System). With the EES, ETIAS is part of the plan to strengthen European borders.
Similar to the American ESTA, ETIAS is a travel authorization costing 7 euros, requested by non-European nationals authorized to travel in the Schengen area without a visa (for a maximum of 90 days). About thirty non-European countries, including the United Kingdom, are concerned. Scheduled for 2025, the ETIAS system will exempt non-European nationals concerned from a visa if their stay lasts 90 days or less. A visa will be required for longer stays.
Valid for 3 years, the visa exemption should to be issued within 96 hours from the date of the application and payment of 7 euros. Non-European travelers under 18 and over 70, as well as for family members of European citizens or nationals of third countries who can move freely in the EU, are exempt from these fees. Initially, ETIAS will be deployed "for at least 6 months," with a first start "in the first half of 2025." Applications can be made online.
The UAE grants a two-month grace period for illegal residents
On Wednesday, August 28, the Federal Authority for Identity, Citizenship, Customs, and Port Security (ICP) announced a grace period from September 1 to October 31. However, the amnesty does not cover all illegal residents. It is applicable to foreigners who overstayed their residence visas, visitors who remained after their visas expired, children born in the UAE without residence applications made by their parents, and foreign workers who left their sponsors.
However, individuals who have been issued a deportation order in the UAE or any other Gulf country are not eligible. The same applies to foreigners violating stay rules or fleeing their sponsors after September 1. Amnesty applications can be made at ICP offices across the UAE. The process is free, whether it involves changing visa status or obtaining exit permits. Although penalties incurred before September 1 will be canceled, the exit permit is only valid for 14 days. Fines will be reinstated if one fails to leave within the allotted time.
Kuwait bans contract renewal for expatriates over 60
Kuwait's latest job nationalization policy targets foreign workers over 60, preventing them from renewing their employment contracts. For now, this measure is limited to public sector expatriate seniors. The country has about 480,000 workers in this sector, with foreigners making up 23%. The Civil Service Commission has already set its last working day as March 31, 2025, but details on the implementation of this policy and its impact on the workers' status remain vague.
Foreign qualifications under scrutiny
The Civil Service Commission targets senior expatriates but does not forget other foreigners. An “urgent and important” circular issued on August 1 enables it to conduct stringent checks on foreign workers' university degrees. The Commission urges them to submit all required documents within the notified deadlines to avoid negative assessments by regulatory authorities.
New restrictions for businesses in Kuwait
In early August, the Ministry of Commerce and Industry prohibited foreigners with a residence permit under Article 18 from registering in the commercial register. The so-called “Article 18” or “visa 18” and the standard work permits in Kuwait are subject to sponsorship by a Kuwaiti employer, as stipulated by the Ministry of the Interior. The ministry has noted numerous violations of the foreigner law: despite holding visa 18, many expatriates were partners or managing business partners.
The ministry's decision affects companies already established or undergoing renewal or statutory changes (e.g., statutory amendments). The only way to continue doing business is to meet the eligibility conditions for visa 19 (a self-sponsored permit for foreign investors and partners). Commercial licenses held by expatriates ineligible for visa 19 will be canceled. However, the ministry has not yet provided an implementation date.
More than 40,000 business licenses were suspended. As a direct result of the new measure from the Ministry of Commerce and Industry, the business licenses of foreigners who do not comply with the rules are canceled. The suspension affects all commercial activities undertaken by foreigners with a work permit other than visa 19. Until now, 45,000 foreign entrepreneurs have been affected and are required to regularize their status according to Article 19 of the foreigner law to regain their business status (business partner, associate).
Note that Article 19 allows foreigners to be associates of a commercial or industrial business only if they present two budgets certified by the Ministry of Commerce and Industry. Refusing to change status will prevent them from regaining their business partner or associate status. Nevertheless, the ministry grants a grace period for expatriates who cannot change their status: they will have “time” to liquidate their business.
Suspending business licenses: Consultations with banks
The Ministry of Commerce and Industry also announced a potential meeting with the Kuwait Banking Association. The objective is to gather the sector's views on suspending the business licenses of expatriates who do not hold visa 19. This meeting is not an exceptional measure but part of the usual process. All economic stakeholders involved in the measure are concerned. The banking sector is particularly targeted by these new restrictions imposed on expatriates who do not comply with the foreigner law. The decline in foreign investment could affect the bank's loan system.
The Labor Authorization supports the restrictive measure, reminding that Article 18 (under which at least 10,000 expatriates would be associates or managing partners) does not correspond to the legal status of the entrepreneur. However, economists fear a negative impact on the economy.
Saudi Arabia: Extension of expense coverage for expatriates in the industrial sector
In its competition against the United Arab Emirates (UAE), Saudi Arabia, led by Mohammed bin Salman (MBS), leverages its most powerful tool. To realize its Vision 2030 and transform the country into a new hub for foreign talent, the Cabinet, chaired by MBS, recently approved the extension of state financial compensation for foreign workers in the industrial sector.
Saudi Arabia has been implementing expatriate expense coverage programs since 2018. In 2019, it launched an aid program reserved for expatriates in the industry—now extended until December 31, 2025. The decision comes precisely to revitalize Vision 2030. However, the country must also deal with the policy of saudization of jobs. In this context, in 2019, the same MBS imposed fees on foreign workers to support the recruitment of Saudis. The state had then backtracked by suspending certain fees, notably tuition fees for expatriates' children in the industrial sector. The sector has been growing since the state financial compensation was established, with a +57% increase in job creation and a +55% increase in investments (from 992 billion to over 1.54 trillion Saudi riyals). The Minister of Industry praises the measure, which was designed to strengthen the weight of the Saudi industry in the international market and boost the non-oil sector.
Oman: Certain professional sectors are off-limits to foreigners
This is a new measure taken as part of the policy of nationalization of jobs (Omanization). The Sultanate bans the issuance of work permits to expatriates for six months to promote the employment of Omanis. The Royal Decree No. (53/2023), voted in mid-August, targets 13 professions: construction workers, janitors, transporters, bricklayers, scrap dealers, tailors of female clothing, tailors of male clothing, electricians, specialized electricians, waiters, painters, chefs, and barbers. The measure came into effect on September 1, 2024.
Bahrain: Mandatory IBAN for new foreign workers
To better regulate the relationship between foreign workers and employers, Bahrain has recently instituted a mandatory IBAN for expatriates. The measure, taken by the Labor Market Regulatory Authority, is established in partnership with the Central Bank of Bahrain and private sector companies. An IBAN will be issued upon the expatriate's arrival at Bahrain airport. Explanations will be provided to enable the worker to activate the bank account linked to the IBAN. According to the authority, this new rule will strengthen the fight against human trafficking. It will raise employers' and expatriates' awareness of the importance of bank transactions (to guarantee that the salary has indeed been paid). It will also facilitate the payment of salaries and reduce legal disputes related to remuneration. Additional information is available on the Labor Market Regulatory Authority website.
Turkey introduces new taxes on international online purchases
Since August 21, the Turkish government has introduced new taxes on international online purchases. The measure ends the "privilege" for residents, who enjoyed low rates on their international online purchases: 18% tax on goods purchased domestically or equal to 150 euros bought in the European Union (EU); 30% tax for goods purchased outside the EU. The reform lowers the exemption threshold to 30 euros. The tax rises to 30% for the EU and 60% for goods purchased outside the EU. An additional 20% tax is planned for luxury products.
Opponents of the measure say this is a bad signal, as Turkey has just launched its digital nomad visa. But economists argue that the measure aims to combat unfair competition from international companies and better protect the domestic economy. Locals and foreign residents are encouraged to consume Turkish goods.
The economic slump continues in Turkey despite a new tightening of its policy to curb hyperinflation (over 70%). Independent economists, however, estimate that inflation exceeds 100%. Unlike the previous two years, the Turkish government did not raise the minimum wage on July 1. It relies on foreign capital.
