Kuwait: Localisation in the GCC (page 1 of 3)

Where to start investigating Kuwaitisation? How about a consulting firm specialising in this? Tawteen (Arabic for 'localisation'), with branches in Qatar and Saudi Arabia and joint projects with Tanmia in Dubai, is a division of HumanSoft, a diversified HR and training group owned by private shareholders in Kuwait. As explained by Sadek Jafar, General Manager of the Kuwait Branch of Tawteen, the company is focused on helping in the Kuwaitisation process. Contracted to place over a thousand Kuwaitis in the private sector by the Manpower and Government Restructuring Programme of the Ministry of Planning, Tawteen is trying to play its part in the dramatic expansion (but still small numbers) of Kuwait Nationals working outside of the Government.

Tawteen, founded in 2000, is not just a placement agency. It evaluates job seekers using assessment tools like SHL's OPQ, offering career counselling and planning advice, running assessment centres and filtering out unsuitable applicants. "The younger generation here do need career counselling," insists Sadek Jafar. "They need to be aware of their responsibilities, the behaviours expected of them, and how they should deal with their managers and colleagues at work. Many still have a problem with their work values," - i.e. they are not used to doing a lot.

Compared with other Gulf States - such as the UAE and Qatar - Kuwaitis make up a substantial proportion of the inhabitants of their country. Of a 2.5m total population, Kuwaitis number around 950,000, only slightly outnumbered by the 1.5m expatriates. In arguing for the prospects for successful Kuwaitisation, Sadek Jafar suggests that "more than the nationals in other Gulf countries, the Kuwaitis are well-educated and travel extensively, not to mention the government sponsorship of overseas education, which applies to both men and women. As a result people here are more open and have more international exposure. There are fewer Indian expatriates here than in the UAE, for example, and these are more likely to be labourers than managers. Otherwise the expatriates are Egyptians, Syrians, Jordanians, Lebanese - other Arabs."

One of the main drivers in increasing Kuwaiti participation in the private sector has been the creation of a 'social allowance' or extra pay for nationals. Five years ago, 98% of the Kuwaiti workforce was working in the Government sector, and there were only about a thousand Kuwaitis in private industry, and they were mostly in banking. Things are changing now that the private sector pays better - there are now around 14,000 Kuwaitis working in private companies. "There has been a big increase since 2000," explains Sadek Jafar, "and last year there were only 7,000". This has mainly been the result of the 'social allowance' initiative. For example, a high school graduate can earn 250 KD in a government job, which used to compare badly with 150 KD in private industry. But now he or she can get an extra 200 KD 'social allowance', and in this respect, pro rata, the private sector is paying 30-50% more than the government. Brian Dawes of Ahlia Industrial Projects mentioned the two-tier salary structure at his company, including the social allowances paid, adjusted according to the age, educational and marital status of employees. Numbers of Kuwaitis in private industry are expected to continue to rise, but perhaps more slowly than the doubling over the last year.

Meanwhile around 10,000 fresh Kuwaiti graduates enter the workforce every year, from Kuwait University and from the diploma programme of the Public Authority for Applied Education and Training.