Okay first of all, I don't believe this will every fly. While it is great in theory, reality is that Kuwait doesn't want people to stay long-term and they certainly don't want potential new citizens (refer to the Bedoun cases still on-going). Which brings me to another point: Why should the Bedoun (those who can prove that they should be granted Kuwaiti nationality) not get citizenship first before even discussing the idea of others getting it?
Second, LOTS of people are making money from the current sponsorship system, both legally and illegally, so yes, "cause chaos in the local markets" is quite true. How else would sponsors make money? Ethically? OMG! Shiver the thought!
Legally - Take, for example, the number of companies in Kuwait who sponsor Westerners. KRH used to be a dumpy little office downtown with bad air conditioning; housed in the same building as Baba Tahir Restaurant. Look at 'em today after scoring the CSA sponsorship deal.
Illegally - Unscrupulous business owners who offer TCNs visas for crrrrraaazy amounts of money. My former maid had to pay 700KD a year! How could she afford to do that?
While I would love to be able to make a life here, own land/property, add to the long-term economy of Kuwait; realistically, I don't see that happening. I can buy property in the US and rent it out to Kuwaitis on vacation, but I can't own a home here. Even if I wanted to buy a yacht and live on it, I would need a Kuwaiti sponsor (co-signer) unless I paid cash outright. So much for being an "adult". I even need a co-signer to buy a car. I feel like I'm 16 all over again. Ridiculous! Have they never heard of credit reports/history? When I bought my first car here, the guy at the bank where I was financing it looked down his nose at me and snydly remarked, "You need a Kuwaiti kafeel (co-signer)." I gave him my best F-you smile and said, 'What family would you prefer?' (and rattled off a few family names of Kuwaiti friends willing to help.) Dude, I'm paying YOUR bank almost $4,000 in interest ("profit") and you treat me like that?
So staying here IS in my mind. I love Kuwait (on the good days) and want to stay, but it looks like my only option might be to marry a Kuwaiti. And I'm not adverse to a trade: US Green Card for Kuwaiti nationality. (My goal: 6 months here, 6 months there. Any takers?) But wait... the Kuwaiti government has just put a hold on naturalizing wives of Kuwaitis also! It used to be possible to marry a Kuwaiti man, pop out a kid, and immediately be granted Kuwaiti nationality. Not anymore - for a woman of any nationality. (Men marrying Kuwaiti women are never granted Kuwaiti nationality.) What marriage to a Kuwaiti would do for me is the ability to remain here under his sponsorship. Fine. I could do that (and I make a mean steak as part of the deal).
I strongly believe Kuwait needs to do something about this archaic sponsorship system, but .... the country is in such disarray from so many different agles, with more being piled on every day; when will there ever be time to fix everything?