Concern Raised Regarding Economic Fallout From Demographics Law

The official government position is that it supports wholeheartedly the demographic law recently approved by the National Assembly, to limit the expats in the country and change the demographics, however, there are government concerns over the economic effects that may crop up due to the enforcement oflaw, especially with regard to high labor wages, Al Qabas daily reported.

During official deliberations, ministers issued warnings regarding hasty decisions in addressing the demographic imbalances in a manner that is not commensurate with the economic reality and the country’s employment needs for skilled expat professionals.

Noting many decisions implemented reflect the government’s seriousness in addressing the demographic imbalances, ministerial sources said to the daily there was an urged need to carefully study the issue and its implications,

A source warned that the demographic law will inevitably lead to a decrease in the workforce, but such wages that were once sufficient to maintain an expat workforce, would not be feasible for citizens.

The sources pointed out the demographics issue is the focus of the government’s attention, since it started to implement the Kuwaitization policy, to replace expats in various public sectors with Kuwaitis as one of the ways to reduce the demographic imbalances.

The source stressed the regulations and decisions require some flexibility to face any developments or circumstances, and pointed out there are many jobs where expat professionals are needed due to the unavailability of citizens to fill those roles.

The government had presented a detailed plan to the Parliamentary Human Resources Committee when discussing the demographic law that was recently approved by the National Assembly, and indicated that its plan has developed short and long-term solutions to find solutions the issue, which is to move towards smart recruitment of labor. Under the Demographics Law approved by the Council stipulated that the Council of Ministers shall issue a list of procedures to address the demographic imbalances where expats outnumber Kuwaitis within a year from the date this law comes into effect.

Moreover, it will take into account the preparation of procedures that include controls to set a quota for expatriate workers. The Council of Ministers issues annual executive decisions whenever required to put the aforementioned list into practice, while providing the National Assembly with annual reports in this regard after the published regulation comes into effect.

The government pointed out in August that between 2005 and 2019, the population of Kuwait increased by double, reaching 4.42 million. Although Kuwaiti citizens increased by 55 per cent during that period, the number of expats grew by 130 per cent, increasing from 1.33 million in 2005 to 3.08 million in 2019.

The topic of demographic imbalance has gained momentum recently, as the governmental officials and MPs call on shifting the imbalance as Kuwait undergoes economic difficulties from the coronavirus pandemic.

 

SOURCE: ARABTIMES KUWAIT

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