The Influence Of Expats On The Economy Of Kuwait

Name: Professor’s Name: Course: Date: The Influence of Expats in Kuwait Introduction Every country in the world faces the issue of expatriates. The impact of this group of people is indeed felt on a nation’s economy but first, it is essential that one understands what the term expats or expatriate means. An expatriate is defined by the Merriam-Webster Online Dictionary as “to withdraw (oneself) from residence in or allegiance to one’s native country.” Another definition comes from the Business Dictionary which defines an expatriate as “a person who has citizenship in at least one country, but who is living in another country.” Kuwait is an oil-rich country which decided to open its doors to foreign citizens. However, recently, there have been reports which seem to indicate that the country is apparently tired of having foreign nationals within its borders. Alan Turner (np) reported that Kuwait was ready and was actualizing a bill which would see that the number of expats in the country is reduced by a whopping 800,000 people. The number does seem high but it is important to acknowledge that the country’s workforce is significantly foreign with more than 70% coming from different countries. The effects these expats have on the country are not obvious but like immigrants, expatriates do impact the state of a country. Numerous studies have discussed and tried to determine the direct impact of expatriates on the host country. Noor, Isa, Said, and Jalil note that “studies on the impact of foreign workers have been looking at areas such as: the effect on economic issues, social aspect, labour productivity or total factor productivity as well as substitution or complementary between local and foreign labour” (172). The truth is, expats, do leave an imprint on the host nation’s economy and a country like Kuwait has benefitted greatly from the presence of expats. However, one is inclined to ask how real or measurable is this effect, especially on the economic and market front? Is the impact or influence measurable? It is on the basis of the above questions that this article seeks to determine in greater depth the impact of expatriates on the Kuwaiti economy and markets. Impact or Influence of Expats on the Economy of Kuwait Any country that opens its doors for foreigners is bound to be affected and while these effects may not be obvious or immediately discernible, they do indeed happen. First of all, Kuwait is a GCC country and “all GCC labour markets share two fundamental outcomes: (i) private labour markets largely dominated by foreigners and (ii) the outsized role of government in the employment of nationals” (Gulf Labour Markets and Migration, 4). This dependence on foreign labor can be traced back to the events after the Second World War. After WWII, a majority of the GCC countries lacked skilled labor and therefore, were highly dependent on labor from foreign countries. Apparently, a majority of the locals are found in the public sector as reported by Osman Gulseven in the Labor Markets Dynamics in the GCC States report of 2015. The report indicates that “most Kuwait citizens seek and find employment in the public sector, whereas private businesses hire mostly imported labor” (14). It continues to state ...