Kuwait introduces higher fees for foreign workers to boost local employment under Vision 2035

In a move aimed at reducing reliance on foreign labour, Kuwait has announced plans to increase fees for companies that hire foreign workers in roles deemed suitable for its citizens. The new policy, part of the country’s Vision 2035 economic strategy, is designed to encourage more Kuwaiti nationals to take up private-sector jobs.

Encouraging Kuwaitization

The announcement, made by the Public Authority for Manpower, aligns with Kuwait's broader ambition to create a balanced and sustainable workforce. According to the Kuwait Times, the government’s plan is to reduce the number of expatriates in certain sectors and make private-sector jobs more appealing to Kuwaitis.

“Kuwaitization is central to the National Vision 2035,” said Mohammad Al Muzaini, Director of Public Relations and Media at the manpower authority. He emphasised that the reforms would focus on raising hiring fees for foreign workers, narrowing the wage gap, and revising labour policies to attract more Kuwaiti talent.

The initiative also includes new legislation, specialised training programs, and financial incentives to further incentivise businesses to employ Kuwaitis. Additionally, universities and schools will collaborate with businesses to introduce curriculum changes, conduct awareness campaigns, and implement mandatory internships to better prepare students for careers in the private sector.

New Labour Relations Department

In a bid to protect workers’ rights, the authority has established a Labour Relations Department, which will also be responsible for creating incentives for firms hiring Kuwaitis. However, despite these initiatives, there are challenges in encouraging Kuwaitis to leave the public sector, where jobs are perceived to offer greater job security, shorter working hours, and better benefits such as maternity leave.

Private sector growth and youth potential

Muhannad Mohammad Al Sane, a board member of the Kuwait Direct Investment Promotion Authority, stated that the private sector has long been the engine of growth in key sectors like banking, finance, real estate, and services. He believes young Kuwaitis are well-positioned to lead the country’s economic diversification and innovation efforts.