New Kuwaitization Scheme Threatens Expatriate Private Sector Jobs

Kuwait is considering creating some 17,000 private sector jobs exclusively for Kuwaiti nationals.

Meetings begun last month are progressing with the plan to create around 17,000 new private sector jobs aimed at Kuwaiti nationals. The Kuwaiti government is in conference with major trade unions to facilitate the replacement of expatriate workers with Kuwaitis on a permanent basis by making the private sector more attractive to locals. According to a spokesperson, the plan is part of the ongoing adjustment of the emirate’s demographic balance now dominated by expat labour.

Local authorities are planning studies aimed at increasing the required number of local workers companies must employ by reclassifying certain industry sectors, with the move originally intended to simply decrease the number of foreign workers but now including and extra impetus for change in the form of a hike in the labour allowance granted for Kuwaiti employees. Business sectors affected by the changes will include media and journalism, due to be transferred from its present social services sector to the business services sector, and engineering companies, law firms and other advisory businesses will also be affected.

Exceptions for certain businesses in the construction industry will be cancelled, forcing companies to hire a far higher number of local workers, and the quota of jobs in contracting and general trading is due to see an increase of four per cent. No details as to the legal and immigration implications of expatriates losing their jobs have as yet been issued.

Meanwhile in Muscat, single expats are worried that a new housing law may mean they will become homeless or be forced to relocate into less safe areas. Muscat’s Municipality seems to be cracking down in certain residential areas by forcing landlords to obtain permits permitting single occupancy. Although the law applies to landlords, single expatriate residents are afraid they will be evicted as a result.