Private firms fail to hit new Kuwaitisation targets - report

EMPLOYMENT RULES: Many of Kuwait's private companies have reportedly failed to hit new targets for employing Kuwaiti nationals. (Getty Images)

A large number of private companies in Kuwait have failed to meet new rules on employment ratios for nationals, it was reported on Thursday.

The Ministry of Social Affairs and Labour issued a new Kuwaitization law in November 2008, giving firms six months to meet new targets but many have fallen short, officials claim.

As a result, the Ministry has stopped issuing violating companies transaction and work permits, Kuwait Times reported.

An official source told the paper that the new ratio law for national labour in the private sector included a target of 60 percent for banks, 56 percent for telecommunications companies, 40 percent for marketing and investment companies and 30 percent for petrochemicals and oil refinery businesses.

Expats account for nearly 95 percent of Kuwait's private sector workforce, totaling more than 2.4 million compared with 1 million citizens.

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READERS' COMMENTS

Kuwait is ignoring important facts.
Posted by Mano on Sunday 17 May 2009 at 10:25 UAE time


I understand why such regulations are out. In this economic crisis all employees including Kuwaitis are facing the threat of being laid off or their salary being reduced. Thus, as a privilege to Kuwaitis, the government is trying to give them a bigger share of the private sector which mainly employs expatriates.

However, Kuwait government is ignoring important facts:
1. Although, many Kuwaitis are well educated, this high percentage might force private sector to employee unqualified resources.
2. Losing foreign direct investors to other markets in the area such as Dubai or Bahrain is a big risk.
3. There is the risk of losing qualified expatriates to other markets.

??? Does Kuwait know we are in a global recession
Posted by The Analyst on Thursday 14 May 2009 at 22:59 UAE time


I will make this short. Good job Kuwait in forcing companies to leave Kuwait for greener pastures. Why would foreign companies want to stay in Kuwait when you are forcing them to hire individuals that will not enhance they're bottom line?? These companies open up in your country to make money NOT lose it! There are other countries welcoming these companies...which ever of them actually stay open and survive this crisis! Cheers to all!

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