STUDY REPORTS THAT POPULATION DISPARITIES PERSIST IN KUWAIT IN PROPOTION TO POPULATION

  • 28/01/2022

Kuwait City: The labor market in Kuwait continues to have a disproportionate population ratio, according to a study. The inability of the government to replace foreign workers with domestic workers in many sectors is creating a major crisis in the labor market. The labor market needs hundreds of workers in areas where Kuwaitis are not ready to work. There are currently thousands of vacancies in key sectors such as health and education due to labor shortages. 


The return of foreigners following Covid will also hamper the country's economic growth, according to a study by Economist Intelligence. The migration of expatriates has been the biggest crisis in the private sector, which is highly dependent on foreigners. The fact is that most Kuwaitis do not want to do many of the jobs that foreigners do. At the same time, the private sector prefers low-wage foreign workers. Higher wages for locals than for foreigners increase costs and affect corporate margins. 

In the meantime, the Government of Kuwait is preparing to strengthen measures to address the imbalance in the domestic-foreign ratio in the country. Currently 70% of the country's population is foreign. The vast majority of the foreign population is Indian. The second largest foreigners are the 6 million Egyptians. In 2021 alone, Kuwait deported more than 18,000 expatriates, leaving more than 257,000 permanent residents. The aftermath of the corona epidemic and repatriation are thought to be the main reasons for foreigners to leave the country. Kuwait is expected to continue implementing the policy in the current situation. The government is preparing to implement Kuwaitisation in various fields of employment in stages.  

There are also plans to expand localization, including contract work in the public sector. Government schemes will also require a certain percentage of natives. There is also a move to bring in an annual plan to provide employment to the natives in the banking sector. The move to restrict senior positions, including managers in private companies, banks and local financial institutions, to nationals is a major concern for expatriates, including thousands of Indians working in the sector. 

Gulf countries such as Saudi Arabia, UAE, Qatar and Bahrain are announcing a number of benefits to attract foreign investment. Attractive offers such as permanent residency and foreign ownership are attracting thousands of foreigners to those countries. The study noted that the country's bureaucratic barriers and immigration laws prevent foreign investment and push it to other countries in the region. 

The report says that by 2021, 41,000 domestic workers will have left the country permanently and that the shortage of workers in the domestic sector will create a severe crisis. The government should encourage the establishment of private nurseries and create more employment opportunities for Kuwaiti women in the sector, according to a report submitted by Economist Intelligence. The report also suggests that more Kuwaiti women should be employed in jobs dominated by foreign workers in the retail and healthcare sectors. However, the report said that decisions should be made taking into account the circumstances that led to the corona crisis. 

Related News

Discounts Don't Affect Return/Exchange Rights
  • 08/02/2025
Kuwait Arrests Reckless Driver After Viral Wedding Video
  • 08/02/2025
Shifa Al Jazeera Medical Group to Host Shifa Excellence Awar ...
  • 08/02/2025
Kuwait Bans Water Pistols and Balloons
  • 07/02/2025
Kuwait Tops Global Hunger Index 2024 as Least Hungry Country
  • 04/02/2025
MoI: Implementation of new traffic fines on April 22
  • 04/02/2025
Kuwait Council of Ministers Holds Weekly Meeting at Bayan Pa ...
  • 04/02/2025
Kuwait population increases every 5 minutes
  • 03/02/2025
Kuwait Stabilizes Market Ahead of Ramadan
  • 29/01/2025
Kuwait Arrests Egyptian Expat for Forging Medical Documents
  • 29/01/2025
Kuwait Ministry of Education Cuts School Bag Weight by 50%
  • 27/01/2025
Security campaigns in Jleeb and Ahmadi
  • 27/01/2025