Expatriates’ 60-Year-Old Policy Under Review. Kuwait’s Public Authority for Manpower (PAM) is considering significant changes to Decision No. (34/2022), a policy that has shaped the landscape for expatriate workers aged 60 and above who hold only a high school diploma or lower.

Introduced nearly three years ago, this policy has had far-reaching consequences on the labor market, prompting calls for reform to alleviate its negative effects.

The Impact of the 60-Year Policy on Kuwait’s Labor Market

The enforcement of this policy has led to the departure of thousands of skilled expatriates from various critical sectors. Many of these workers, possessing essential expertise in trades and services, have faced prohibitive costs for renewing or transferring residency.

The annual renewal cost, set at approximately 1,000 Kuwaiti Dinars, has proven burdensome, particularly for lower-wage workers, leading to a labor shortage in sectors reliant on their skills.

Key Concerns Highlighted by Labor Market Experts

Experts agree that the ongoing policy has hindered the availability of skilled labor, especially in jobs that are difficult to fill with local candidates. Sectors such as tailoring, construction, and maintenance, where national workers are less likely to fill positions, have been severely impacted.

Furthermore, specific issues, such as the “tailors’ crisis,” resurface during peak demand periods like major holidays, underscoring the strain this policy places on certain professions.

Government’s Commitment to Reform

Reflecting Kuwait’s commitment to address these pressing labor issues, First Deputy Prime Minister and Minister of Defense and Interior, Sheikh Fahad Al-Yousef, has initiated several corrective measures aimed at labor market revitalization. Notable decisions include:

1. Decision No. (8/2024): This allows workers employed under government contracts to transition to other sectors, albeit under specific conditions.
2. Removal of the University Degree Requirement: Workers can now move from government to private sector roles without a university degree, broadening opportunities for lower-educated expatriates.
3. Decision No. (6/2024): Domestic workers may now transfer to the private sector after a specified period, facilitating workforce flexibility.

These reforms represent a pivotal shift in Kuwait’s labor policy, providing more adaptable solutions for expatriates and enabling a broader range of employment opportunities.

Potential Amendments to the 60-Year Policy

In light of recent policy adjustments, analysts suggest that a revision of the 60-year policy could be imminent. Stakeholders argue that the restrictions tied to age and educational qualifications overlook the practical experience and expertise many expatriates bring to Kuwait.

They stress that an overemphasis on academic qualifications may not align with the real needs of the labor market, where hands-on experience is often invaluable.

Below is a table summarizing the key elements of recent reforms impacting expatriate labor:

Addressing Workforce Shortages and Economic Stability

For Kuwait to achieve a more resilient labor market, the 60-year policy’s provisions must be evaluated to ensure they support the needs of both small and large businesses.

Since many roles impacted by this policy are not appealing to local citizens, the policy does not substantially support Kuwaitization efforts. Experts warn that the continuation of this policy without reform could have serious economic consequences, depriving sectors like construction, maintenance, and other specialized trades of necessary skills and experience.

Calls for Policy Revision

There is growing pressure on Kuwaiti authorities, especially Minister Al-Yousef, to either revise or abolish the 60-year policy.

This change is essential to address the skilled labor shortage and to ensure Kuwait’s economic resilience. Observers emphasize that age and educational qualifications should not be the sole criteria for labor policies. Instead, they advocate for a balanced approach that values both the experience and the economic contributions of expatriates.

Future of Expatriate Labor Policy in Kuwait

The anticipated policy changes align with Kuwait’s broader vision of sustainable economic growth and labor market stability.

Addressing workforce shortages with well-considered amendments to the 60-year policy will enhance Kuwait’s appeal as a labor destination, ensure smooth operations across various industries, and foster an adaptable, experienced workforce.

Conclusion

The revision of Kuwait’s expatriate labor policies is a necessary step to secure the country’s economic future while supporting its strategic objectives for labor market resilience.