Kuwait will disburse some 240.5 million dinars (780 million dollars) to support Kuwaiti citizens employed in the private sector as part of efforts to soften the impact of the coronavirus pandemic, the finance ministry said on Tuesday.
The ministry said that the Public Authority for Manpower would transfer sums to Kuwaiti business owners and private sector employees for six months effective from June.
“Only around 70,000 Kuwaiti citizens work in the private sector, where most employees are foreigners.
“As companies have laid off large numbers of foreign workers, the government has sought to retain Kuwaitis,’’ it added.
Most Kuwaitis work in the state sector, which has not experienced mass layoffs during the coronavirus crisis.
Kuwait, like other oil-dependent Gulf monarchies, has long tried to encourage more of its citizens to accept private sector jobs, and gives such workers extra government benefits.
The finance ministry approved the disbursal this week following a June 1 request from the manpower authority, which said the payments were “to preserve the national employment gains in the private sector and enhance job security for this segment”.
Kuwait’s finances have been squeezed by the twin shock of the coronavirus pandemic and low oil prices.
The International Monetary Fund has estimated that in spite of its vast wealth, the country could see its deficit widen to over 11 per cent of gross domestic product (GDP) this year from a 4.8 per cent surplus in 2019.
In June, a government official said Kuwait is considering making an annual 10 per cent transfer of state revenue to its wealth fund conditional on budget surpluses as it seeks to bolster its finances.
Report says the country is unable to tap the international debt markets due to parliamentary opposition to a debt law proposed by the government.
