KUWAIT has a population of around five million, including approximately 1.4 million Kuwaiti citizens, with the remainder made up of expatriates and illegal residents (Bedoun). Expatriates represent a significant portion of resident families and contribute considerable purchasing power to the economy. Hence, any imbalance in this demographic structure can directly impact local markets.
Therefore, when the government raises fees on expatriates, it places financial pressure on families, often forcing them to make difficult choices - to either send their families home and stay in Kuwait as bachelors, or leave the country for neighboring countries that welcome skilled workers with attractive incentives. In both scenarios, Kuwait loses a vital component - the social balance provided by resident families and their purchasing power, which drives the local market. A society dominated by single residents can negatively impact community stability. Countries aiming to preserve social stability and boost purchasing power typically encourage higher consumer spending. Companies and institutions employing resident workers would be forced to increase prices and service charges to cover the additional costs, leading to higher inflation and, ultimately, economic slowdown. Experts agree that such a strategy has well-known negative consequences for everyone.
Therefore, when the government raises health insurance fees for residents, it inevitably triggers the negative effects mentioned above. The national economy needs further stimulus measures, particularly amid intensified regional competition to attract capital, investors, and new projects. Observers question whether Kuwait has sufficient national manpower to address the shortage of skilled and tradespeople, and indeed, in all sectors currently occupied by expatriates.
Are there enough Kuwaiti construction workers, service providers, and technicians to fill the gaps left by non-Kuwaitis who may relocate to neighboring countries? Do these measures align with the “New Kuwait 2035” vision and its goal of transforming the country into a global financial and commercial hub? Will employing the roughly 200,000 retirees, most of whom live outside Kuwait, truly benefit the commercial sector or help address the labor shortage? Most Kuwaiti university graduates either seek employment in the public sector or take on administrative roles.
Regardless of their numbers, can they realistically fill the existing labor gap? Does the shift toward a predominantly single population contribute to social and economic stability? Do the recent decisions issued by some ministries actually strengthen the economy? Or have they instead increased pressure on companies and institutions through higher fees, penalties for late payments, and stricter licensing requirements? Aren’t these measures hindering project completion and worsening the crises faced by companies?
Therefore, any decision made without a thorough study will only exacerbate the crisis, particularly since the negative repercussions are not short-term but have long-lasting effects. We should recall the experience of 2016, when the government raised gasoline and diesel prices, triggering a subsequent rise in prices and labor costs. In contrast, neighboring countries with similar economies have focused on providing maximum comfort for their residents, offering numerous incentives and benefits.
These countries have opened their doors to everyone, both workers and tourists, implementing policies that have stimulated their economies. Fees have been reduced or even frozen in some cases, coinciding with the launch of multiple entertainment and leisure projects, which have further attracted tourists. Thousands of Kuwaitis and residents travel to neighboring countries during holidays to enjoy themselves, as they are met with a somber atmosphere here. Although Kuwait has long been known among Gulf citizens as a hub for restaurants, raising fees now threatens to damage this reputation, adding to the existing negative factors.
The country still lacks sufficient entertainment and recreational projects for citizens and residents, which forces many to travel to neighboring countries. It seems that economic policies are being implemented in a random manner rather than based on thorough studies. This approach only amplifies negative effects. The national economy needs stronger incentives, as seen in other countries worldwide. In conclusion, Your Highness the Prime Minister, we urge you to stimulate economic, industrial, and agricultural activities. Imposing additional fees on these sectors does not generate wealth. Instead, support and encourage businesses first, and then impose fair taxation. This is far more effective than burdening or penalizing business owners.
