Kuwait Advances Kuwaitization Policy: Expat Contracts Conclude by March 2025
In a decisive move to bolster national employment, Kuwait’s Civil Service Commission (CSC) has reaffirmed its commitment to the Kuwaitization policy, aiming to replace expatriate workers with Kuwaiti nationals across government sectors. As per Civil Service Council Resolution No. 11/2017, contracts of non-Kuwaiti employees in positions deemed non-specialized will not be renewed beyond March 31, 2025.
This policy is part of Kuwait’s broader strategy to reduce dependence on foreign labor and increase opportunities for local citizens in government jobs. Over the years, the country has been implementing measures to localize the workforce, but the latest directive accelerates the transition. With thousands of expatriates working in various ministries, the upcoming changes are expected to bring a significant shift in the labor market.
Policy Implementation and Affected Sectors
The Kuwaitization initiative targets various job categories with specific localization percentages:
- 100% Kuwaitization: Information systems and technology, maritime, arts, media, public relations, development, administrative follow-up, statistics, and administrative support.
- High Kuwaitization Rates: Criminal evidence, prevention, and rescue (98%); social services, education, and sports (97%); engineering (97%); sciences (95%); finance, economics, and commerce (95%); law, politics, and Islamic affairs (88%); crafts (80%); services (85%); livestock, agriculture, and aquatic resources (75%); teaching, education, and training (70%).
This strategic plan focuses on sectors with a significant presence of expatriate workers. According to the Public Authority for Civil Information (PACI), as of December 2024, approximately 120,502 non-Kuwaitis were employed in the government sector, representing 23% of the total public workforce. The upcoming changes will significantly impact these numbers, paving the way for a more localized workforce.
Ministries with Highest Expatriate Workforce
The following ministries employ the largest number of expatriates and are expected to experience substantial transitions:
- Ministry of Health: 38,829 expatriates
- Ministry of Education: 27,012 expatriates
- Ministry of Defense: 15,944 expatriates
- Ministry of Interior and Ministry of Awqaf & Islamic Affairs: Approximately 11,500 expatriates combined
Collectively, these five ministries account for 77.3% of non-Kuwaiti employees in the public sector. The Ministry of Health and the Ministry of Education, in particular, rely heavily on foreign professionals, especially in specialized roles such as doctors, nurses, and teachers. The reduction in expatriate contracts in these sectors may require additional measures, including training programs to prepare Kuwaiti replacements.
Progress and Challenges in Kuwaitization
Significant strides have been made in certain government entities. For instance, the Ministry of Electricity, Water, and Renewable Energy reduced its non-Kuwaiti workforce from 1,362 in 2017 to 871 by the 2023/2024 fiscal year, achieving a 97.5% Kuwaiti staff ratio. Similar efforts are being carried out in other ministries to increase local participation in key roles.
However, challenges persist. The Audit Bureau reported a 21% increase in expatriate workers over the past three years, from 1,275,053 in 2021 to 1,545,078 in 2023. This growth suggests that despite Kuwaitization efforts, many positions still rely on foreign labor. The Bureau emphasized the need for an integrated program to replace expatriate workers with nationals without disrupting economic activities. The challenge lies in ensuring that Kuwaiti workers have the necessary skills and experience to take over the roles being vacated by expatriates.
Impact on the Economy and Workforce
The departure of expatriates has led to labor shortages in sectors like health and education. The Economic Observer noted that the exodus of skilled expatriates has resulted in stagnant economic conditions and increased labor costs, as the private sector struggles to fill positions traditionally held by foreign workers. While replacing foreign workers with nationals is a long-term goal, the immediate impact on productivity and service delivery remains a concern.
In addition to labor shortages, there are concerns about wage inflation. With fewer foreign workers available, salaries for some roles may increase, leading to higher costs for businesses and the government. Some companies in the private sector have already reported difficulties in finding qualified Kuwaiti workers to fill specialized roles, leading to disruptions in operations.
Balancing Kuwaitization with Economic Needs
While the Kuwaitization policy aims to address demographic imbalances and promote national employment, it is crucial to balance these objectives with the country’s economic needs. Ensuring that the transition does not adversely affect performance in critical sectors requires careful planning and implementation. To address potential labor shortages, the government may need to invest in extensive training and development programs to equip Kuwaiti workers with the necessary skills.
Additionally, experts suggest that a phased approach may be more effective in ensuring a smooth transition. Instead of a complete and immediate replacement of expatriates, a gradual plan that includes knowledge transfer and skills development could help maintain stability in essential services.
As the March 31, 2025 deadline approaches, the effectiveness of these measures will be closely monitored, with the hope that Kuwaitization will successfully enhance national employment without compromising the nation’s economic vitality. The coming months will be critical in determining how well the policy is implemented and whether it achieves its intended objectives without creating unintended economic challenges.
Do follow gulf magazine on Instagram
for more information click here
