KUWAIT CITY, Nov 24: In Kuwait, a wave of anticipation surrounds a vital decision that could reshape the lives of expatriates aged 60 and over who do not hold university degrees. The prospect of canceling mandatory health insurance fees for this group gained traction after the Court of Appeal upheld a verdict that was issued on March 2024 that nullified Administrative Decision No. 27 of 2021. This decision, which previously governed work permit regulations, was deemed invalid by the Court of First Instance, marking a significant moment in the legal landscape.
As the nation awaits formal implementation, the Public Authority for Civil Information (PACI) disclosed statistics saying by the end of June 2024, the number of expatriates in this specific category stood at 123,235, with 8,956 cases remaining unspecified. These figures underscore the sizeable demographic affected by the ruling. Meanwhile, another crucial development unfolded within the small and medium enterprises (SME) sector.
The Public Authority for Manpower announced a reduction in the minimum period for transferring workers within SME projects from three years to just one, contingent on sponsor approval. However, sources clarified a key restriction – workers from SMEs cannot transfer to larger private sector companies.
This policy adjustment was attributed to operational challenges faced by many SME projects, including faltering initiatives and difficulties in sustaining operations. The reduction in transfer time aims to provide flexibility within the SME ecosystem, ensuring better workforce utilization without compromising the sector’s stability. PACI’s comprehensive report shed light on the broader composition of Kuwait’s expatriate workforce, revealing a striking disparity in educational qualifications: The report put the number of University Graduates at 143,488, of whom only 6,561 hold advanced degrees (Master’s or PhDs); illiterate workers, 82,040; Basic Literacy (Read and Write): 954,747; Primary Education, 112,933; Intermediate Education 654,738; High School Graduates: 246,851; Diploma Holders: 79,902 and Unspecified Educational Levels: 707,931. Overall, 2.9 million expatriates aged 20 and above lacked university qualifications, out of a total expatriate population of 3.36 million.
These intertwined developments highlight Kuwait’s effort to strike a balance between economic necessities, labor market optimization and social welfare. The potential cancellation of health insurance fees offers financial relief to older expatriates, while the revised SME workforce rules seek to address the operational challenges of small businesses. For policymakers, the challenge lies in implementing these changes while maintaining fairness and efficiency across sectors. As discussions continue, many expatriates and businesses alike await clear directives, hoping for reforms that prioritize inclusivity, economic growth and stability in a rapidly evolving labor market.
PACI’s comprehensive report reveals a stark educational divide among Kuwait’s expatriate workforce:
1. Total University Graduates: 143,488 • Advanced Degrees (Master’s or PhDs): 6,561
2. Illiterate Workers: 82,040
3. Basic Literacy (Read and Write): 954,747 4. Primary Education Holders: 112,933
5. Intermediate Education Holders: 654,738
6. High School Graduates: 246,851
7. Diploma Holders: 79,902
8. Unspecified Educational Levels: 707,931 9.
Total Expatriate Population: 3.36 million
• Expatriates Aged 20 and Above Lacking University Qualifications: 2.9 million
By Najeh Bilal and Fares Al-Abdan
Arab Times/Al-Seyassah Staff
