Kuwait intensifies its push towards 'Kuwaitisation' under Vision 2035 by enacting laws and offering incentives aimed at increasing local workforce participation in the private sector. Key measures include legislation promoting domestic employment over foreign hires and collaborative efforts with educational institutions to prepare future generations.

Kuwait is ramping up its efforts to increase the participation of nationals in private sector jobs, a key aspect of its Vision 2035 development plan. This initiative aims to diversify the economy, lessen dependency on the public sector, and provide meaningful employment opportunities for Kuwaiti youth.

At the heart of this plan lies "Kuwaitisation," which strives to ensure national talent takes a central role in driving growth within the private sector, while aligning with broader market requirements and national development ambitions.

Mohammad Al Muzaini, Director of Public Relations and Media at the Public Authority for Manpower, explained that the plan encompasses legislative actions designed to boost the ratio of Kuwaiti employees. These include specialised training programs and incentives tailored for businesses.

Kuwaitisation Laws

A prominent measure involves increasing fees for hiring foreign workers for roles that can be occupied by Kuwaitis.

Al Muzaini also highlighted initiatives aimed at narrowing wage disparities, revising labor support policies, and collaborating with educational institutions. These efforts focus on preparing students for careers in the private sector through awareness initiatives, curriculum adjustments, and mandatory internships.

The Public Authority for Manpower has further introduced incentives encouraging private companies to generate more job opportunities for Kuwaitis. Additionally, it has set up a Labor Relations Department dedicated to safeguarding employee rights.

Despite these reforms, challenges persist-such as a shortage of certain specialized skills locally available-and concerns over longer working hours in the private sector versus benefits like job security found within public-sector roles.

Muhannad Mohammad Al Sane, Board Member of the Kuwait Direct Investment Promotion Authority (KDIPA), underscored that historically, Kuwait's economy has benefitted significantly from its robust private sector presence across banking, finance, real estate, and services.

He remarked on how Kuwaiti youth are particularly poised to lead and innovate within these industries as reforms continue to unfold.

Former Finance Ministry advisor Mohammad Ramadan emphasized that job security often takes precedence over pay differences when influencing employment choices. Nonetheless, he believes that with an appropriate policy mix-including enhanced private-sector prospects and regulated pay scales-private employment could become a more appealing option.

Ramadan added that implementing a well-thought-out Kuwaitisation strategy could expand job prospects for nationals without undermining productivity within the private sector.