The number of Kuwaitis employed under contractor contracts with Kuwait Petroleum Corporation (KPC) and its subsidiaries fell by 246 in a year, dropping to 5,236 in Q1 2025 from 5,482 in the same period last year. The Kuwaitisation rate also fell from 23% last year to 20% in the first quarter of 2025, highlighting slow compliance by private oil companies with KPC’s national employment targets.
The decline reflects challenges in attracting Kuwaiti talent, as private contractors reportedly fail to meet employees’ expectations and deny benefits comparable to those at KPC-affiliated firms. KPC is now reviewing a comprehensive plan to enhance Kuwaitization, which could increase the national employment quota in private oil companies from 30% to 60%, covering the roughly 13,000 nationals currently working under such contracts.
The proposed measures aim to secure employees’ rights, including timely salary payments, proper promotion and evaluation practices, housing support, and mandatory inclusion in the sector’s health insurance policy. Contractors would also be required to transfer salaries on fixed dates, with penalties for delays, addressing long-standing issues, some extending up to a decade.
If approved, the plan is expected to improve job opportunities for Kuwaitis in the private oil sector, ensuring fair compensation, benefits, and career development while strengthening technical skills and workforce continuity across the industry.
Source: Zawya