Kuwaitization: A Mirage or Reality

Lubna Al-Kazi, Ph.D.Kuwait University

Nationality and Sex1994 2008

N % N %Kuwaiti 162,636 17.3 332,516 16.0

Male 111,604 15.2 185,322 11.8Female 51,032 25.2 147,194 28.4

Non-Kuwaiti 776,142 82.73 1,753,161 84.01

Male 624,819 84.8 1,382,529 88.22

Female 151,323 74.8 370,632 71.63

Total Labour Force 938,778 100 2,085,677 100Total Male 736,423 100 1,567,851 100Total Female 202,355 100 517,826 100

Table 1

Percentage Distribution of Kuwaitis / Non-Kuwaitis in the Labour Force 1994 to 2008

1 6% males and 16% of females – not stated.2 52.0% are labourers (715,000).358.8% are labourers (domestic servants).

Sources:1994: Progress of demographic features in the State of Kuwait. 1994-2001, p. 282008: Annual Statistical Abstract, 2009, Kuwait. Ministry of Planning, p 110.

Age Groups

2003 2008

15 – 19 0.6 1.3420 – 24 29.53 40.9725 – 29 61.24 78.9530 – 34 60.08 76.9935 – 39 58.85 70.6440 – 44 57.72 53.5145 – 49 48.43 42.350 – 54 37.32 27.7855 – 59 20.01 20.7060 – 64 9.22 12.8465+ 3.21 4.00Total 37.23 43.21Number 104,121 149,956

Table 2

Kuwaiti Female Participation Rate by Age Group

Source: 2003 & 2008 Essential Features of the Population and Labour Force, June 2003, and Dec 2008, Ministry of Planning, Kuwait, p. 48.

Kuwaiti Female Participation Rate by Age Group

15 –

19

20 –

24

25 –

29

30 –

34

35 –

39

40 –

44

45 –

49

50 –

54

55 –

59

60 –

64

65+

0

20

40

60

80

20032008

Figure 1

Gender1995 2000 2008

N % N % N %Male 2,060 82.8 1,773 75.4 8,777 44.7Female 429 17.2 578 24.6 10,829 55.3

Total 2,489 100 2,351 100 19,606 100

Table 3

Unemployment Distribution for Kuwaitis by Sex 1995 - 2008

Source: 1995-2000: Activating Kuwaiti Women’s Role in Society, Division of Planning and Future Studies, Feb, 2007, p. 96-97. Ministry of Planning, Kuwait,

2008: Annual Statistical Abstract, 2009, p. 110, Ministry of Planning, Kuwait.

82.8

17.2

1995

44.755.3

2008

MaleFemale

Unemployment Distribution for Kuwaitis by Sex 1995 - 2008

Figure 2

Source: 1995: Activating Kuwaiti Women’s Role in Society, Division of Planning and Future Studies, Feb, 2007.

2008: Annual Statistical Abstract, 2009, p. 110, Ministry of Planning, Kuwait.

Kuwaitization

• The Manpower and Government Restructuring Program (MGRP) was established in 1997.

• To deal with the crisis of Kuwaitis laid off from the Private Sector.• To redistribute new entrants away from the government sector.• The National Assembly passed the Law 19/2000 to encourage

Kuwaiti to work in the Private Sector• By paying an allowance to Kuwaiti workers in Private Sector in

addition to their salary.• KD. 50 social allowances for every child of the employee, similar to

government employees.• It state the percentage of Kuwaiti required in each economic

activity.• The MGRP also trains new recruits to write CVs and gives training

to job seekers.• It pays unemployment benefits for those seeking jobs for one year.

Economic Activity %

Banks 60Communications 56Finance and Investment 40Child Care Centers 30Insurance 16Real Estate and Business 15Money Exchange 13Private Arabic School 10Private Foreign Schools 5Agriculture and Animal Husbandry 2Manufacturing Industries 2

Table 4

Percent of National Work Force in Non-Government Sectors as required by Ministerial Decree 1104, in 2008.

Form of Payment Males Females Total

Social Allowance 23,869 27,151 51,020

Unemployment or Job Search benefit 138 490 628

Table 5

Kuwaitis receiving payment from MGRP, 2011-04-05

Source: Manpower and government restructuring Program (MGRP) State of Kuwait.

Percent of Unemployment among National Labour Force 2001 – 2010

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

1

2

3

4

5

6

7

8

9 8.58.3

7.16.5

5.95.4 5.1

4.9

5.9

4.9Percentages

Figure 3

Source: Manpower and government restructuring Program (MGRP) State of Kuwait.

New Recruits to Private Sector 2001 2005 20101112 6032 15317

Table 6

2001 2005 20100

2000400060008000

1000012000140001600018000

New Recruits to Private Sector

200120052010

Figure 4

Source: MRGP, Civil Service Commission, Kuwait

Table 7

Distribution of Kuwaitis and Non-Kuwaiti in the various sectors, 2000-2009

Sectors2000 2009

Kuwaiti % Non-Kuwaiti % Kuwaiti % Non-Kuwaiti %Male Female Male Female Male Female Male Female

Government 92.4 94.6 9.6 8.1 79.9 76.2 6.1 8.8

Joint 0.18 0.18 0.3 0.1 0.15 0.18 0.19 0.06Private 6.2 4.46 74 20.7 15.7 17.5 74.6 22.5Family - 0.05 15.1 70.3* - - 18.4 66.0Unemployed 1.17 0.7 0.7 0.6 4.2 6 0.6 2.5

% 100 100 100 100 100 100 100 100

*Domestic Servants

Sources: Annual Statistical Abstracts 2000 and 2009, Ministry of Planning, Kuwait.

Year Male Female Total

2001 2 5 72002 9 3 122003 17 10 272004 44 29 732005 71 37 1082006 73 51 1242007 43 55 982008 72 56 1282009 122 145 2672010 88 92 180Total 541 483 1024

Table 8

Kuwaiti New Recruits to Private Sector, 2001 – 2010 by Gender

Source: MRGP, Civil Service Commission, Kuwait

2001 2002 2003 2004 2005 2006 2007 2008 2009 20100

20

40

60

80

100

120

140

160

MaleFemale

Figure 5

Kuwaiti New Recruits in the National Bank of Kuwait, 2001 – 2010 by Gender

Total in Oil Companies

Kuwaiti Non-Kuwaiti TotalMale Female Total Male Female Total Male Female Total

2005 9942 1018 10,960 2536 585 3121 12478 1603 14,081

% 90 9.3 100 81.3 18.7 100 88.6 11.4 100

2011 11979 1766 13745 2802 638 3440 14781 2404 17185% 87.2 12.8 100 81.5 18.5 100 86.0 14.0 100

Table 9

The Workforce in the oil sector by Nationality and Gender 2005 – 2011

Kuwait Social Security

• Social Security law was established in 1977 with minimum 15 years of service as the rule.

• 1992, Law was passed to add an age along with years of service as a condition.

• 1995, Law was repealed.

• 2001, Law was passed to put age as a condition along with years of service.

• 2003, Law was put into practice with graduate rise in age.

2011 – 43 years for women retiring.

2020 - Women - 50 years of age - Men - 55 years of age

Percent distribution of retired workers receiving pension by place of work, 2000 - 2009

Education

Health

Other Minist

ries

Other Govt

Sevid

es

Oil Related Se

ctor

0

10

20

30

40

50

6050

1520

114