Efforts to Boost National Employment in Kuwait’s Private Sector
Kuwait is ramping up initiatives to integrate more of its citizens into private sector jobs as part of its ambitious Vision 2035 development plan. This strategy aims to diversify the economy, lessen the reliance on public sector employment, and create high-quality job opportunities for the youth population in Kuwait.
Understanding Kuwaitisation
Central to this initiative is the concept of “Kuwaitisation.” This approach is focused on ensuring that local talent takes center stage in the growth of the private sector while striking a balance between the business landscape and national development goals. The objective is not just to fill positions but to empower Kuwaitis to excel in their roles.
Mohammad Al Muzaini, the Director of Public Relations and Media at the Public Authority for Manpower, shared with the state-run news agency KUNA that the plan incorporates various legislative measures aimed at increasing the number of Kuwaiti employees in the workforce. This includes specialized training programs and incentives designed to encourage businesses to hire more nationals.
Legislative Measures and Initiatives
One significant step in the Kuwaitisation effort is the implementation of higher fees for companies that opt to employ foreign workers in roles that could be filled by Kuwaitis. This financial measure aims to motivate employers to prioritize hiring local talent over foreign labor.
In addition to this, Al Muzaini highlighted plans to address wage disparities in the market. The government is revising labor support policies and collaborating with educational institutions to better prepare students for careers in the private sector. This preparation includes awareness programs, changes to curricula, and mandatory internships that equip students with practical experience prior to entering the job market.
The Public Authority for Manpower is also actively proposing incentives for private companies that create job opportunities for Kuwaiti nationals. A newly established Labor Relations Department will focus on safeguarding employee rights, thereby fostering a more equitable work environment.
Navigating the Challenges
Despite these reforms, the transition still faces hurdles. One major issue is the scarcity of specialized skills within the local job market. Additionally, the longer working hours typical of the private sector, along with the attractive benefits offered by public-sector jobs—such as job security, maternity leave, and patient care leave—pose challenges in enticing nationals.
Muhannad Mohammad Al Sane, a board member of the Kuwait Direct Investment Promotion Authority (KDIPA), emphasized the historical importance of the private sector in Kuwait’s economy, particularly in areas such as banking, finance, real estate, and services. He believes that with the right reforms, young Kuwaitis are well-positioned to lead and drive innovation in these sectors.
The Role of Job Security and Policies
Former Finance Ministry advisor Mohammad Ramadan pointed out that job security is often a higher priority for job seekers than wage differences. Nevertheless, he believes that the right mix of policies could enhance the appeal of private sector employment.
Ramadan suggests that improving job opportunities in the private sector, regulating pay scales, and linking fees for foreign labor to the employment of Kuwaitis can make private employment a more viable option. He is confident that a thoughtfully crafted Kuwaitisation policy could broaden job opportunities for nationals without sacrificing productivity in the private sector.
The Path Forward
Kuwait’s drive to integrate its citizens into private sector roles represents a pivotal shift in its economic landscape. As the nation continues to implement reforms and create a favorable environment for local talent, the focus remains on achieving a balanced approach that supports both national employment and economic growth. Through dedicated efforts and strategic initiatives, Kuwait aims to cultivate a workforce that reflects its vision for a sustainable and prosperous future.
