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Kuwaitization policy

We are currently working on a Korean company project with Kuwait Oil Company and would like to know — according to the Kuwaitization policy — how many Kuwaitis we have to employ in line with the decisions of the Ministry of Social Affairs and Public Institution for Social Security.

For example, if we mobilize 100 workers how many Kuwaitis do we have to employ and until when do we have to keep these Kuwaitis employed — for example, if our manpower is reduced by 20 or 25 how many Kuwaitis do we have to keep on our strength.

Name withheld
As a general rule, 25 per cent of all such manpower should be Kuwaiti but it all depends on the type of contract and the type of skilled/unskilled/administrative manpower required for the project. You must look at your contract where it will must be mentioned what percentage of local/Kuwaiti manpower must be hired in compliance with Kuwaiti laws on the subject.

As we don’t know the exact nature of your work nor the terms of your contract, we can’t give you an exact figure of Kuwaitis you need to hire. For this purpose you need to look at the “small lines” on the contract and if there is no mention of the same you must check with the concerned department of Kuwait Oil Company. Depending on the skilled manpower required for completion of various projects, the Kuwaitization percentage will be different for different projects. Such contracts on Kuwaitization are related to the Civil Service Commission order which requires 90 per cent employees of all public sector companies to be Kuwaitis.

While we are on the subject, we would like to mention that the following is the current ratio law for national labor in the private sector which stands as follows: 66 percent for banks, 62 percent for telecommunications companies, 40 percent for marketing and investment companies, 30 percent for petrochemicals and oil refinery businesses, 30 percent for educational facilities, 65 percent for insurance companies, 15 percent for real estate companies, 13 percent for credit companies, 10 percent for Arabic private schools, five percent for English private schools, two percent for agricultural companies and two percent for manufacturing industries.

Please also remember that with the reduction in the number of employees on the project, the number of Kuwaitis that you have to hire will also be reduced – because the hiring of Kuwaitis in this regard is linked to a certain percentage and not numbers.

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