The PAM study highlights several critical changes aimed at increasing the employment of Kuwaitis in the private sector. One of the most significant proposals is the increase in fines for companies that fail to meet the mandated Kuwaitization rates. The penalty is set to rise from KD 100 to KD 300, emphasizing the government’s commitment to enforcing these quotas.

Sector-Specific Kuwaitization Quotas

- Oil Sector: The study proposes increasing the Kuwaitization rate in the oil sector to 50%, reflecting the sector's strategic importance to the national economy.

- Other Sectors: In other industries, the Kuwaitization rate could be raised to around 30%, ensuring a more significant presence of Kuwaiti employees across various economic areas.

Protecting Kuwaiti Workers in the Private Sector

To further support Kuwaiti workers, the study suggests imposing strict penalties on private companies that unjustifiably terminate national employees. These penalties may include suspending the company’s operational files, effectively halting their business activities.

Addressing Disparities Between Public and Private Sector Salaries

Another focus of the study is the disparity in salaries and job benefits between public and private sector workers. The government aims to narrow this gap to make private sector jobs more attractive to Kuwaiti citizens, thereby reducing the reliance on government employment.

Recent data from the Public Authority for Civil Information shows that as of mid-2024, there were approximately 404,900 Kuwaiti workers in the government sector, compared to 397,500 at the end of 2023. Meanwhile, the number of Kuwaitis employed in the private sector stood at about 72,800 by the end of June 2024. These figures underscore the ongoing challenges in shifting the workforce balance towards the private sector.

The increased fines and stricter regulations reflect Kuwait’s ongoing efforts to enforce Kuwaitization and ensure the integration of more Kuwaiti youth into the private sector. As these policies are implemented, the private sector must adapt to meet these new requirements, ensuring compliance and contributing to the nation’s economic goals.