Kuwait to disburse $780mn to support citizens in pvt. sector – Saudi Gazette

Kuwait to disburse $780mn to support citizens in pvt. sector – Saudi Gazette

KUWAIT CITY “” Kuwait will disburse some 240.5 million dinars ($780 million) to support its citizens employed in the private sector as part of efforts to soften the impact of the coronavirus pandemic, the finance ministry said.

The Public Authority for Manpower will transfer sums to Kuwaiti business owners and private sector employees for six months effective from last month.

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.

Most Kuwaitis work in the state sector, which has not experienced mass layoffs during the coronavirus crisis.

Kuwait, like other oil-dependent Gulf nations, 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.

Despite its vast wealth, the country could see its deficit widen to more than 11