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WORK PERMITS

Swedish Migration Agency: Entrepreneur’s 35,000 kronor salary ‘too low’ for work permit

The Swedish Migration Agency rejected Hazem Ashour's work permit application, stating that his salary was too low compared to industry standards.

Hazem
In an email to The Local, Ashour conveyed deep frustration with the lengthy and challenging work permit process he has faced. Photo and screenshot: Hazem Ashour

At 32, Hazem Ashour is a celebrated entrepreneur in Sweden, having been honoured in 2021 by King Carl XVI Gustaf for his contributions to the tech industry.

Ashour, originally from Egypt, co-founded Hemavi, a platform that helps exchange students find housing in Sweden, during his studies at Lund University in 2020.

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The company quickly grew, attracting tens of thousands of users and securing over ten million kronor in investments.

Yet, despite his successful track record, Ashour is now embroiled in a fight to remain in the country he has come to call home.

Hemavi: A successful business story

Hemavi was founded on October 15th, 2020, by Ashour and his business partner and has since become a respected player in the international relocation industry.

As Ashour told The Local after regional newspaper Sydsvenskan first reported his story, the company was created with the aim of transforming the experience for international students and young professionals moving across borders.

“We wanted to provide them with safe housing, friends with similar interests, and administrative support in their new country,” Ashour said.

The company’s journey began with a strong start.

In November 2020, just a month after its founding, Hemavi secured its first investment of 615,000 kronor.

By December of the same year, Ashour had signed his first employment agreement with Hemavi and submitted a work permit application to the Swedish Migration Agency, after taking on the role of CEO.

Hemavi’s growth accelerated in June 2021 when the company raised an additional 4,050,000 kronor.

This influx of capital allowed Hemavi to expand its team and begin the development of its core tech platform.

As the company scaled, Ashour’s salary was adjusted to 30,000 kronor, reflecting the increased demands of his role.

In November 2021, Ashour’s entrepreneurial efforts were recognised when he was awarded the HMK Kung Carl XVI Gustafs pris Årets Nybyggare (“settler of the year”), honouring him as one of southern Sweden’s top foreign entrepreneurs.

The year 2023 marked a significant turning point for Hemavi.

The company transitioned from offering free services to generating revenue, earning 890,000 kronor for the first time.

This success was bolstered by a new investment of 3,000,000 kronor in October 2023.

As Hemavi prepared to expand geographically, particularly with its planned launch in Copenhagen, Ashour’s salary was increased to 35,000 kronor in November 2023, then to 42,000 kronor in December 2023.

In 2024, the company continued to expand, successfully launching in Copenhagen and achieving a growth rate of 2.5 times year over year. Hemavi also secured a pilot programme with one of Japan’s largest real estate conglomerates, enabling it to list thousands of properties in Tokyo for expats, Ashour told The Local.

Hazem Ashour

Hazem Ashour, photographed in his office, in August 2024. Courtesy of: Hazem Ashour

At risk of deportation

The initial success convinced Ashour to stay in Sweden and apply for a work permit in late 2020. However, several years later, he finds himself at risk of deportation.

After nearly three years of waiting, the Swedish Migration Agency rejected his application in December 2023, citing that his salary as CEO was too low compared to industry standards.

This decision came at a time when Ashour had been unable to leave Sweden for almost three years due to the pending status of his application.

In November 2023, Ashour was earning 35,000 kronor per month – just below the agency’s benchmark of 40,000 kronor for CEOs. Sweden’s minimum salary threshold for work permits currently stands at 28,480 kronor, but salaries should also be in line with industry standards, meaning the threshold is higher for some professions.

Although he raised his salary to 42,000 kronor before the agency made its final decision, the increase wasn’t considered in its ruling.

Ashour, who says he had deliberately taken a lower salary to reinvest in his company, appealed the decision – with success. His appeal led to the annulment of the initial ruling, and the Swedish Migration Agency is now re-examining his case.

“The court has annulled the Migration Agency’s decision that my salary is insufficient and referred the case back to the Migration Agency for further processing. The court has ruled that I have presented evidence in the form of, among other things, employment contracts, pay slips, and transaction receipts,” Ashour said.

“The documents show that I have received the stated salary of 42,000 kronor since December 2023,” he added.

Despite this, Ashour noted, “the Migration Agency ignored this evidence in their decision and our first and second appeal.”

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Ashour’s case also involved a disputed claim by the Migration Agency, which stated that they had sent him a letter on August 31st, 2023, informing him that the lowest market salary for his profession was 39,000 kronor and offering him an opportunity to respond

However, Ashour clarified, “I informed them in my appeal that this is incorrect, and I have never received such a letter.”

The Migration Court found that case documents showed returned envelopes received by the Migration Agency on September 21st, 2023, contradicting their claim that the letter had been successfully sent.

A ‘super frustrating’ process

Ashour has been unable to travel to meet with international investors or visit his family for nearly four years, leaving him in limbo.

The prolonged process has significantly affected his personal and professional life.

In an email to The Local, Ashour conveyed deep frustration with the lengthy and challenging work permit process he has faced.

“Of course, it’s super frustrating! I don’t think words can properly describe how this whole process feels,” he said, highlighting the emotional toll it has taken on him.

“It took me, an entrepreneur recognised by the king and running a tech company valued at 40 million kroner, over three years, countless unanswered phone calls and emails to the Migration Agency, and an appeal to the migration court just to get my salary approved – something that should have been straightforward from the start.

“I moved to Sweden almost six years ago, completed my studies, and built a company that employs people, pays taxes, and provides a service that people appreciate. Yet, in return, I’m being treated like a criminal. It just doesn’t feel right!” he said, adding that his personal life has largely influenced his decision to stay in Sweden.

“If I didn’t have a girlfriend here, I would have probably moved the company somewhere else by now,” Ashour said.

Despite the recent victory in court, he remains concerned.

“It’s worth mentioning that this is not the end of it. The Migration Court sent the case back to the Migration Agency to review the rest of the components of my employment conditions, such as the insurance, vacation days, and others,” he said.

“Let’s hope it doesn’t take the Migration Agency another three years to do that.”

Proposed changes to Sweden’s immigration policies

As Ashour awaits the outcome of his case, Sweden is also reviewing its broader immigration policies.

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Proposed changes include a wage requirement for work permits that matches 100 percent of the median wage in Sweden.

However, the proposals also suggest that certain occupations might be exempt from these new rules, with any changes expected to take effect in June 2025.

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POLITICS

Who is Johan Forssell, Sweden’s new migration minister?

Johan Forssell, who until recently was the minister for aid and trade, took over from Maria Malmer Stenergard as migration minister on Tuesday. But who is he?

Who is Johan Forssell, Sweden's new migration minister?

A Moderate for over 30 years

Forssell was born in 1979 in Stockholm, and has been affiliated with the Moderates since 1992, when he joined MUF, the youth wing of the party, aged 13.

He became leader of MUF in 2004, at the age of 25, and remained leader until 2006.

Following the 2006 election – the best election for the Moderates since 1928 – Forssell was appointed stabschef or chief of staff for prime minister Fredrik Reinfeldt. He later became the party’s planning manager for the 2010 election, which the Moderates again won.

While the Moderates were in opposition from 2014-2022, Forssell had a number of different roles in parliament, such as vice chair and later chair for the committee on social insurance, member of the justice committee and justice spokesperson for the Moderates.

In 2022, after the Moderates took power alongside the Liberals and Christian Democrats with the support of the Sweden Democrats, Forssell became the Minister for Foreign Trade and International Development, sometimes referred to as the Minister for Aid and Trade.

What has he done with his time in government so far?

In his time as aid and trade minister, the government slashed development aid by 7.3 billion kronor in 2023, and another 2.3 billion kronor in 2024 – around a 15 percent reduction from what the previous left-wing government had planned. It also abandoned the former foreign aid target of 1 percent of gross national income.

Forssell also announced plans earlier this year to end development aid to Iraq, with the aim of phasing it out completely by the end of June next year.

At the time, he also told reporters that Swedish development aid was too fragmented, as it was distributed to over 100 countries.

“When aid is distributed to so many countries at the same time it makes control and evaluation of it more difficult. We will work in fewer countries than before and expand the work in the countries where we actually are.”

His role as aid and trade minister also means that he has an understanding of Sweden’s reputation abroad – be that good or bad.

In April this year, Forssell announced government plans to put together a new group to boost Sweden’s international reputation, following a series of disinformation campaigns after Quran burnings in 2023.

“We as a government have spent a lot of time on these issues. I myself have made trips to the region to meet political leaders and business people. Last autumn, I probably thought that the consequences for trade would be greater than they were,” he told Swedish newspaper Dagens Nyheter at the time.

Despite expectations, trade between Sweden and the Middle East increased during this period, but Forssell said at the time action was still needed to strengthen the country’s image.

To do this, he told the Swedish Institute to form a new group called “Team Sweden”, to focus exclusively on boosting Sweden’s international reputation.

Promoting Sweden as an innovative country, with a particular focus on digitalisation and being an environmentally sustainable economy and society, is one of the group’s main objectives.

What’s his educational background?

Forssell uses the professional title civilekonom (civil economist), which traditionally refers to someone who holds a degree (either bachelor or master) in business administration and economics.

He studied at Stockholm School of Economics, graduating in 2004. He also spent a semester abroad at London School of Economics (LSE).

Perhaps unsurprisingly for someone with a degree in economics, he has a large stock portfolio – in a 2022 review by newswire TT prior to the election that year, his portfolio was actually the joint-largest in parliament, alongside Sweden Democrat Oscar Sjöstedt.

MPs must declare any holdings that exceed 94,600 kronor in a single company. In 2022, Forssell declared 38 holdings worth at least 94,600 kronor each.

Forssell’s portfolio at the time contained Swedish mobile gaming company LeoVegas and American online casino company Rush Street Interactive, as well as a holding in Swedish defence group Saab.

In addition to Swedish shares he also held stakes in Apple, Amazon and Alphabet, among others. 

“For me, it is an obvious question, we have some of the world’s finest companies in Sweden,” he said at the time. “Being able to invest in them means that you get a greater interest in economic policy and what creates growth. I think this makes me a better member of parliament and that more people should do it.”

These holdings clearly show a knowledge of the Swedish market, so it perhaps comes as no surprise that he underlined the importance of highly-qualified labour migration for Swedish companies when he took over as migration minister earlier this week.

It appears that he sold his individual shares when he joined the Swedish government, investing in funds instead, perhaps to avoid a potential conflict of interest. He told Swedish tabloid Aftonbladet in November 2023 that he “did not own any individual shares”, and that he chose instead to invest in a wide range of funds. He added that his fund holdings at the time included a number of developing markets, including Taiwan, South Korea, China, Brazil and India.

His personal holdings at the time of that article were around 6.2 million kronor.

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