Kuwait 2035: A new economic model driven by private sector growth, Kuwaitization, youth empowerment

A dynamic and empowered private sector that grows in parallel with the state’s public sector forms a central pillar of Kuwait’s national development plan, the New Kuwait 2035. This vision seeks to ensure sustainable development, improve the quality of life for citizens, and integrate qualified Kuwaitis at every stage of project implementation and operation.

The plan emphasizes that development cannot be confined to infrastructure expansion alone — such as airports, ports, and bridges — but must extend to creating an investment environment that attracts capital and encourages active private-sector participation.

By sharing responsibility for financing and executing projects, the private sector can ease the burden on the state’s budget while driving national transformation, reports Al-Qabas daily,

At the heart of this approach lies Kuwait’s recognition that the private sector is pivotal in diversifying income sources, creating quality jobs for nationals, and raising the country’s competitiveness across regional and international markets.

Employment of nationals in the private sector remains a key priority. The Public Authority for Manpower (PAM) has announced new measures to strengthen Kuwaitization in line with the 2035 plan.

Mohammed Al-Muzaini, Director of Public Relations and Media at PAM, explained to the Kuwait News Agency (KUNA) that both qualitative and quantitative targets have been set to raise the share of Kuwaitis in private enterprises. Legislative amendments have already been introduced to enforce higher Kuwaitization quotas, with stricter penalties for companies that fail to comply.

Additional steps include:

• Reserving certain professions exclusively for Kuwaiti employees.
• Launching specialized training programs to prepare national cadres.
• Increasing recruitment fees for expatriates in fields where Kuwaiti expertise is available.

Al-Muzaini acknowledged, however, that challenges remain. Some sectors, such as insurance, investment, and hospitality, require expertise not readily available locally. Moreover, the shorter working hours and perceived job security of the government sector continue to attract citizens away from private employment.

To address this, PAM has drafted a decree-law to amend Article 63 of Labor Law No. 6 of 2010, introducing a system to review and adjust minimum wages for Kuwaitis in the private sector every five years, in line with inflation.

The Authority also submitted studies to the Council of Ministers proposing greater incentives for companies to employ Kuwaitis, as well as stronger protections against arbitrary dismissal through the establishment of a dedicated Labor Relations Department.

The Kuwait Direct Investment Promotion Authority (KDIPA) highlighted the longstanding role of the private sector in supporting the national economy. Board member Muhannad Al-Sanea told KUNA that private enterprise has been integral since the 1960s in building Kuwait’s commercial strength.

He stressed that sustainable cash flows and operational resilience have enabled the sector to withstand global financial crises. Industries such as banking, financial services, and brokerage have provided alternative financing tools, safeguarded liquidity, and fostered investment growth.

Al-Sanea emphasized that Kuwaiti youth are well-prepared to manage this sector, keeping pace with technological and economic advancements. He underlined that they are capable not only of leading private enterprises but also of helping the state reduce its wage bill by creating jobs outside the public sector.

Economist and former Finance Ministry advisor, Mohamed Ramadan, noted that job security—not salaries—has become the primary driver of Kuwaiti preference for government employment. With around 80 percent of citizens working in the public sector, the imbalance between the two sectors remains a pressing challenge.

Ramadan argued that reforms must create stronger incentives for citizens to join the private sector. Measures could include regulating wage structures, limiting the availability of certain government jobs, and linking recruitment fees for expatriates to workforce size—making it more cost-effective for companies to hire Kuwaitis.

Kuwait’s 2035 vision underscores that the nation’s future lies in striking a balance between state-led development and private-sector dynamism. By expanding opportunities for nationals, strengthening Kuwaitization, and fostering an attractive investment climate, the country aims to chart a sustainable economic path that secures both prosperity and stability for future generations.

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