Private sector expected to play bigger role in Kuwait economy in World Economy News 12/05/2026 The number of companies in the private sector reached 181,134 by the end of 2025, while 25,926 companies remain under review and 7,289 companies hold expired licenses, according to the latest statistics issued by the Public Authority for Civil Information (PACI). The newspaper obtained a copy of the PACI statistics, showing that the number of Kuwaitis employed in the private sector reached 67,224 by the end of December, compared to 395,385 in the public sector. Finance Minister Dr. Yaqoub Al- Rifai said the government is relying on the private sector to help diversify sources of income in view of the continuous State budget deficits. The private sector is also expected to contribute to addressing employment issues. This raises the question of whether diversifying income sources requires a competent and productive private sector capable of adding real value to the national economy and increasing gross domestic product (GDP). When economic experts were asked about the extent to which the private sector is prepared to play a central role in the plan of the government, as well as the most difficult challenges and obstacles it faces, they said “government agencies must activate this sector and enable it to boost non-oil revenues.” Economist Bader Al-Arbash stressed that the approach of the Ministry of Finance toward stimulating the private sector and enabling it to contribute to diversifying income sources entails first addressing all obstacles to its growth. He said foremost among these is eliminating bureaucracy by simplifying procedures related to obtaining commercial and industrial licenses. He also emphasized the need to expand import and export opportunities for the private sector and eliminate monopolistic practices in the importation of goods. He called for attracting foreign and Arab tourists to the country to revitalize the private sector. He argued that the small population of Kuwait does not encourage the sector to expand its local activities, pointing out that limited population growth led to the stagnation of shopping centers due to low commercial activity. He asserted that overcoming this challenge is possible through the development of domestic tourism, which he described as a “magic wand.” He explained that revitalizing tourist facilities and public parks throughout the country will push the private sector toward greater expansion and growth. He added that if tourism expansion is achieved through simplified entry procedures governed by clear regulations, the local private sector could emerge from its current stagnation through increased consumer spending. He believes such growth will also encourage the opening of more hotels, resorts and entertainment facilities. He stressed that tourism growth will lead to an increase in food processing plants and other manufacturing industries. “It will also encourage the private sector to establish factories producing gas stoves, chairs and other restaurant supplies,” he elaborated. He went on to say that diversifying income sources necessitates easing access to industrial plots for serious small, medium, and large industrial enterprises, in addition to providing marketing support to the private sector. Agricultural and food security expert Mohammad Al-Furaih called for expanding private sector activities, particularly through diverse investment projects, to contribute to diversifying State reve