Government initiative eyes higher Kuwaitization rates across industries

• Kuwait employed about 11.2 thousand Kuwaitis as of the end of last December, equivalent to about 77 percent of the total employees in banks, which is higher than the percentage set for the sector.

• The Federation of Kuwaiti Industries aims to boost Kuwaitization, but faces hurdles due to government obstacles. These include benefits that make government jobs more appealing than private sector roles.

• The Union of Banks proposed stopping entry visas for expatriate workers in qualifications available to Kuwaiti job seekers, provided there are lists of qualified local candidates for those positions.

From banks to companies and the industrial sector, officials at the Public Authority for Manpower recently conducted a series of individual meetings with representatives from various business sectors.

This government initiative aims to determine whether companies can increase the rate of Kuwaitization if the current rate is raised, and to identify the obstacles that each sector faces in achieving this goal.

In this regard, relevant sources revealed to Al-Rai newspaper that the change in the government’s approach to the Kuwaitization file this time is an attempt to gather opinions from the private sector on identifying the obstacles that, from its point of view, hinder efforts to increase the level of Kuwaitization, rather than simply informing companies of the increase in the percentage of Kuwaitis and requesting their implementation. This contrasts with the traditional approach of previous governments. The discussions held by the authority officials indicate a genuine government desire to listen to the views of each sector on this matter.

Increasing the Kuwaitization percentage

The sources explained that in line with this change, a specific national employment percentage that the labor force aims to raise in the future was not discussed in all the meetings held. Instead, the main question directed to representatives of the business sectors was: What prevents you from increasing the Kuwaitization percentage? It was noted that the applied percentages vary from one sector to another.

The sources indicated that representatives of each sector reviewed their Kuwaitization data and discussed opportunities to increase the possible percentage, and outlined its requirements. Meanwhile, sectors that do not meet the required percentages presented the challenges they face.

The sources said that banks were among the most prominent sectors strongly present in the discussions. It was emphasized that the banking sector is the largest employer of national labor in the private sector and the most attractive to graduates seeking distinguished job opportunities.

According to official data published by the Union of Banks, Kuwait employed about 11.2 thousand Kuwaitis as of the end of last December, equivalent to about 77 percent of the total employees in banks, which is higher than the percentage set for the sector.

They explained that it is difficult for banks to significantly raise the currently applied ratio for several reasons, the most important of which is the slowdown in operational data in the past period. They added that working in banks helps achieve the ambitions of young national cadres by encouraging creativity and success.

Additionally, the sector contributes to qualifying and training them to keep pace with global developments in the banking industry, aligning with sustainable development goals.

They noted the need for a link between relying on banks to absorb more employment of Kuwaitis and implementing sustainable projects that enable banks to do so.

They pointed out that banks indirectly contribute to increasing the employment of national workers through their role in financing various projects and activities, which provides job opportunities for citizens and raises growth rates in the national economy.

Degree of employment

On a related note, the sources explained that the industrial sector occupied a significant part of the Kuwaitization discussions. The most prominent question posed to its representatives at the meeting was why Kuwaitis do not prefer the industrial sector.

Representatives of the Federation of Kuwaiti Industries stated that they are keen to increase the percentage of Kuwaitization, but several challenges prevent them from achieving this target as expected.

They said that the strongest challenges hindering their plans are the constant obstacles posed by government agencies to the private sector. These obstacles include generous benefits, grants, employment opportunities, vacations, and other incentives that companies cannot match, leading the majority of citizens to prefer government jobs. They pointed out that the work environment in the industrial sector is different from that of private and governmental sector institutions.

The required professions are technical, involve production lines, and demand significant effort, which many Kuwaiti citizens avoid, especially given the availability of more comfortable job alternatives. Additionally, social and cultural reasons contribute to this reluctance, requiring time and effort to change.

The sources pointed out an additional obstacle related to the lack of commitment to supporting local products and giving them due priority over others.

In contrast, Gulf States have explicitly prioritized their local products within their legislation, including over Gulf products, which has greatly impacted their localization policies and increased employment rates for their citizens. They emphasized the need to approve financial benefits for workers in the industrial sector or allocate financial resources to them, considering the challenging work environment.

The union proposed submitting a proposal to the Council of Ministers to establish a committee affiliated with it. The committee would include specialized ministers and representatives, such as the Minister of Education, the Minister of Higher Education, the Minister of Trade and Industry, the Minister of State for Cabinet Affairs, the Public Authority for Manpower, the Civil Service Commission, Kuwait University, the Supreme Council of Private Universities, and other relevant bodies.

Studying educational outcomes

They pointed out that the committee specializes in studying educational outcomes and the labor market’s needs, identifying specializations that exceed market demand and halting enrollment in them. It also determines the specializations needed, especially in the industrial sector, and provides guidance for them. They suggested that the committee’s work timetable be determined and that final recommendations be presented to the Council of Ministers for appropriate action.

The union called for the establishment of a system to incentivize companies with the highest employment rates by offering benefits such as projects, contracts, and exceptional services. They also proposed stopping entry visas for expatriate workers in qualifications available to Kuwaiti job seekers, provided there are lists of qualified local candidates for those positions.

The sources noted that there is consensus in the business sector regarding the launch of development projects as the main gateway to increasing Kuwaitization rates in the private sector. They emphasized that any increase in the percentage of national employment must be linked to the volume of sustainable development work carried out in the coming period.