Kuwait is one of the fastest developing countries in the 21st century. What lies behind it? Their growth is mostly powered by their oil reserves. However, their economy is powered by multiple sectors that have witnessed immense growth in recent years.
In this situation, salary trends are shifting due to the local and global conditions. If you are planning to get a job in Kuwait or move there, this is the first question to ask: What is the average salary in Kuwait? This is an essential attribute to consider your expenses and determine if you can afford a quality living standard in the country. Let us show some of the latest trends about how salaries are changing in an array of industries and what factors impact Kuwait’s job market in the current year.
Economic Conditions – Overview
Kuwait’s economy has a massive reliance on oil. The oil reserves contribute immensely to its GDP and public sector employment. Yet, the government is now trying to expand its economy through multiple sectors. The economy has an influence on salary structures in numerous sectors.
The government’s Vision 2035 is the latest initiative that has been launched as a financial and trade hub. It will bring higher investments in technology, and education to boost the overall economy. These developments cause noteworthy changes in Kuwait’s salaries. Keep note that some industries have faster wage growth than others.
The global economic climate is paramount – fluctuations in oil prices are highly influencing. Plus, the lingering effects of the COVID-19 pandemic have brought notable challenges and benefits as well. Adding to the list, regional geopolitical factors can influence salary trends. Inflation rates have risen slightly and this affects the cost of living.
Average Kuwait Salary by Sector
The average Kuwait salary is entirely dependent on the industry. Conventionally, the oil and gas sector has been the highest-paying. Harem you can find a plethora of generous compensation packages for locals and expatriates. In sectors such as technology and finance, the packages are higher owing to the increase in investment and demand for experts.
Let us start with the tech industry. Here, the salaries have reported a notable rise due to the growing demand for IT professionals, and software developers. This is similar to the salary trends across the globe. The government is compelling for growth in terms of technology, and this creates multiple golden opportunities for local talent and foreign specialists in this niche.
Similarly, the healthcare sector has witnessed a surge in salaries. It is because of a high focus on better healthcare infrastructure and services.
Finance and banking remain highly profitable. The salaries in this sector are a representation of the country’s ambition to become a regional financial hub. Professionals in risk management and investment banking can expect better compensation packages that will exceed the national average.
If we talk about sectors such as retail and administrative services, the salaries are much lower. It is below the national average. Even in these fields, there has been a gradual increase in response to inflation and the rising cost of living.
Public vs. Private Sector Salaries in Kuwait
Here is another important query. The average Kuwait salary shows a significant imbalance between public and private sector wages. The public sector is dominated by Kuwaiti nationals, and this has high salaries, along with generous benefits. Plus, it grants better job security. Government employees can receive perks such as housing allowances, and pension plans, so these positions are highly demanded.
The private sector consists of a huge number of expatriates. They mostly provide lower base salaries, but they can be compensated with performance-based bonuses and flexible working conditions. Private sector in industries such as technology, and finance can sometimes surpass public sector wages.
Expatriate Salaries: How Do They Compare?
Here is a surprising fact: 70% of Kuwait’s population are foreigners. The industries are heavily reliant on expatriates in the public sector. The average Kuwait salary for expatriates can be variable according to the skill level and industry. Western expatriates who are working in specialized fields have higher salaries, and this is complemented by beneficial packages. It can include housing, transportation, and education allowances.
Expatriates who are working in lower-skilled roles, such as construction and retail, mostly get lower salaries. It will barely cover the cost of living. Recent labor reforms are aiming to sort out the wage disparities and improve working conditions, but numerous hurdles exist.
Factors that Impact Salaries in Kuwait
A plethora of factors contribute to the changing average Kuwait salary trends. Education and qualifications massively influence your job position and salary requirements. Anyone with higher degrees and specialized certifications will get better-paying opportunities. Professionals with international experience or fluency in multiple languages, such as English and Arabic, are also in high demand.
Another attribute is experience. As your experience in an industry grows, so is your salary. Experts with a guaranteed track record in their niches can negotiate higher salaries. This effect is paramount in finance, technology, and engineering. Networking and personal connections to high authority people, known locally as “wasta,” can also influence salary negotiations.
In a Nutshell!
Kuwait is trying hard to expand its economy and decrease its reliance on oil reserves. Being in the modern era, Kuwait is launching projects for better growth in terms of technology. Keeping this in mind, experts suggest an increase in salary trends.
Even though the oil and gas sector remains a stronghold, emerging fields such as technology and healthcare have a remarkable influence on the average Kuwait salary. You must consider Kuwait’s salary dynamics to make a better decision about your career choices.