There a number of modalities. First, unlike in most countries (for instance the US) in the Arab countries, refugees have no "birth rights" to citizenship. Refugees may sometimes finds ways to emigrate outside their host countries, but rarely out of the refugee camps into the local economy. If you do a search on UN and Refugees, I think you will find the means by which they enforce the policy. If you applied Kuwait citizenship laws to "Palestinian Refugees", maybe 20% of them could even claim Palestinian citizenship. Kuwait citizenship is only for those that can show through their father line birth within Kuwait from 1913 on. Most Palestinians refugees do not meet that criterion, since a lot immigrated into Palestine (from as far as Islamic parts of Russia, and mostly neighboring countries) as the land was being developed and provided labor opportunities early in the century.
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