Challenges to Employing Kuwaitis in the Private Sector

Abstract

Challenges to Employing Kuwaitis in the Private Sector by Osman Gulsevenil producing countries in the Gulf region witnessed a dramatic increase in oil wealth throughout the 1960s and 1970s which contributed to rapid urban development.As these countries had a very limited labor force due to sparse populations, they imported millions of guest workers from mostly low-income Asian and Arab countries.Initially, expatriate workers were needed typically for infrastructure projects.Later on, 'expats' also dominated the service industry in the private sector because low wages and working hours were unappealing to citizens.Today the immigration rate in the Gulf Cooperation Council (GCC) states has reached such levels that locals have become a minority in the private labor force in every Gulf Cooperation Council state except Saudi Arabia.Even after the initiation of nationalization policies, this remains the case, and Kuwait is no exception.According to the latest statistics from the Kuwait Public Authority for Civil Information, the population of Kuwait hosts about 2.8 million expatriates compared to a local population of about 1.3 million citizens.Kuwait's dependence on guest workers has created both opportunities and challenges for the employment of Kuwaitis in the private sector.