Kuwait is increasing its efforts to increase the presence of national talent in its oil sector, with Oil Minister Tariq Al-Roumi reinforcing the commitment to Kuwaitization during a recent board meeting with the Kuwait Oil Company (KOC) Workers Union.  

During the meeting, Al-Roumi highlighted the creativity and excellence of Kuwaitis in the industry and stressed the importance of providing a supportive work environment. He assured employees that their demands, raised through the union, would be addressed, reaffirming that national workers are the foundation of Kuwait’s future.

What is Kuwaitization Policy?

The Kuwaitization Policy was initiated and implemented by the Kuwait Petroleum Corporation (KPC) and its subsidiaries. It aims to increase national talent in the oil and gas industry, striving for a 100% local workforce in key roles, including engineering and technical positions.

In addition to this policy, KPC also implemented a Manpower Contractors Kuwaitization Initiative in 2002 to enforce minimum wage, benefits, and job continuity for Kuwaitis in the oil sector. Furthermore, KPC's another initiative - Strategy 2040 - outlines plans to further integrate national talent into the industry.  

Impact of Kuwaitization policy on expat workers in Kuwait's oil sector

In 2021, KPC reported a diminishing number of expatriate workers in the sector with only 2,671 non-Kuwaiti employees. The breakdown given in the report was as under:

• Kuwait Oil Company - 1,832 expatriates (largest share)
• Kuwait National Petroleum Company - 657 expatriates
• Kuwait Integrated Petroleum Industries Company - 76 expatriates
• Petrochemical Industries Company - 23 expatriates
• Kuwait Oil Tanker Company - 29 expatriates
• Gulf Oil Company - 11 expatriates
• Kuwait Foreign Petroleum Exploration Company - 39 expatriates
• Kuwait Petroleum International Company - 3 expatriates
• KPC Administrative Building - 1 expatriate

In addition to this, there were 194 expatriate petroleum engineers, of which 97 worked at Kuwait Petroleum Corporation, 89 at Kuwait Oil Company, and 4 each at Gulf Oil Company and Kuwait Foreign Petroleum Exploration Company.

The report added that the Kuwaitization policy has raised Kuwaitization rates from 86.5% in 2014-2015 to 91% by the end of 2020 (excluding Ahmadi Hospital staff). KPC and its subsidiaries plan to hire 4,500 Kuwaitis by 2026, including fresh graduates and experienced professionals. It also added at the time, that it still relies heavily on non-Kuwaiti contract workers to perform many activities. 

Why Kuwaitization is important?

In 2024, Sheikh Nawaf Al-Saud Al-Sabah, CEO of Kuwait Petroleum Corporation (KPC), emphasised the efforts needed to fully nationalise the oil sector. And as part of this strategy, the focus is on increasing the number of Kuwaiti workers and removing barriers to their employment. He also emphasized supporting Kuwaiti employees and ensuring their job security.  

He has urged the CEOs of KPC’s affiliated companies to review the cases of national workers, especially those in private contracting companies, and to resolve any job security issues. Private oil companies will be held accountable for laying off Kuwaiti workers, and open channels will be provided for employees to voice their concerns. 

Additionally, Kuwaiti nationals joining the KPC’s Manpower Contractors Kuwaitization initiative are entitled to a rewards and benefits scheme along with diversified training programs designed to enhance their performance and deepen their technical knowledge. This initiative aims to support and develop local talent while ensuring job continuity and career growth within the oil sector.

Therefore, the key measures include prioritising national employment by expanding job opportunities for Kuwaitis across both public and private oil companies, ensuring job security by holding private oil firms accountable for workforce reductions and addressing employment concerns, launching new projects by developing petrochemical and oil-related initiatives in partnership with the private sector to create more jobs, and strengthening oversight by monitoring the employment status of national workers, particularly those in private contracting firms.  

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What is the current Kuwaitization rate?

According to the statistics, Kuwait has already achieved high Kuwaitization rates across major oil companies. The Kuwait Oil Company has an 86.84% Kuwaitization rate, while the Kuwait National Petroleum Company reports over 90% Kuwaiti employees until the end of 2023. The Kuwait Petroleum Corporation employs 767 Kuwaitis out of 768 employees, and the Petrochemical Industries Company has 264 Kuwaitis out of 305 employees. And, the Ministry of Oil employs 543 people, 537 of whom are Kuwaitis.  

As Kuwaitization amps up, the focus remains on building a sustainable, locally driven oil sector while ensuring job stability, fair treatment, and long-term career growth and job security for its national workforce.