The number of graduates from Kuwaiti universities ranges from 4,000 to 6,000 annually. This has been the norm in Kuwait for decades. This leads to an increase in the funds allocated for salaries in the state budget each year and the figure continues to rise annually. It should be noted that the National Fund for Supporting Small and Medium Enterprises was established to support and encourage young Kuwaitis to work in various sectors outside government institutions. This is an important step towards diversifying income sources, especially since a large number of young people have established unprecedented enterprises, while a certain percentage of beneficiaries have opted for traditional jobs.
The youths who benefited from this support faced many obstacles, particularly during the COVID- 19 pandemic, which forced many of them to cease operations. Some young business owners ended up behind bars, while others relocated their businesses to neighboring countries as a result of restrictions imposed on their activities. A segment of young Kuwaitis turned to self-employment, foregoing the assistance provided by the National Fund for Supporting Small and Medium Enterprises, as well as the subsidy for Kuwaitis working in the private sector.
Former Minister Adel Al-Jarallah Al-Kharafi stated in his article published by Al-Seyassah daily that these youths faced many difficulties due to the issuance of decisions which not support the development of their enterprises. In fact, some of them were even left at a disadvantage due to such decisions. Is the government capable of employing all graduates in the public sector, especially with the increasing reliance on technology? Many countries have started exploring alternative ways to absorb fresh graduates and reduce the number of government employees. Do state institutions really need such a huge number of employees? This leads us to a more serious discussion. In recent years, many opportunities have emerged for young citizens, yet they did not received support from the government.
Neighboring countries, especially those whose economic and social structures are similar ours supported individual initiatives and facilitated every avenue for young people to succeed in the fields of technological innovation or entrepreneurship. Government support went beyond financial assistance to include guidance and mentorship. Some countries even granted these young people access to state-owned properties, free of charge. For example, Saudi Arabia allowed entrepreneurs, and even established investors, to benefit from the free use of state properties for five years.
In Kuwait, there are several steps that can be built upon, such as the Anti-Commercial Concealment Law, which guarantees the right of citizens to work in their own establishments and for their own benefit, and prohibits subletting licenses to expatriates who might exploit them as they please in exchange for an annual fee paid to the citizens. This is a positive step, but several ministerial decrees were issued, restricting the movement of Kuwaiti business owners, although they initiated self-employment and did not cost the state anything. These individuals are suffering a lot today. We should have learned from the COVID-19 pandemic and its negative consequences, particularly the strict policies of banks toward young entrepreneurs, even if their financial difficulties were beyond their control.
Financial institutions could have used many financial alternatives to help young people and business owners, instead of prosecuting them and throwing them in jail. These young people desperately need simplified procedures and facilities, so that the country does not face the disguised unemployment problem due to the bloated public sector workforce. According to recently published financial reports, the budget for public sector salaries is expected to reach KD34 billion in 2035. It is worth noting that young people constitute around 60 percent of Kuwaiti society.
