The Kuwaitis' pride in their history, heritage and national progress has given rise to an identity which is uniquely Kuwaiti. An identity which is worthy of emulation by all nations in the world.

Kuwait Education Sector

Educational is inevitable linked to the economic and social conditions prevailing in any society. A more structured education system came into being in 1936, when a Council of Education was set up. In Kuwait, schooling is compulsory for all children between the ages of six to 14. All stages of education, including higher education are free for Kuwaiti nationals. There are three basic levels of school level education in Kuwait - elementary, intermediate, and secondary. Each level involves four years of study.All schools and institutes, public and private, are subject to regulations formulated by the Ministry of Education and the Ministry of Higher Education. There are numerous private schools in Kuwait. These private schools receive some Government subsidies, but are not free.The Private Education Department of the Ministry of Education supervises all foreign schools in Kuwait, which must be registered with the Department.

In Kuwait, there are two major entities for higher education. Kuwait University and Public Authority for Applied Education and Training (PAAET). Kuwait University, the only government-sponsored university, was established in 1966, with the aim of providing academic, professional, and supplying with scientifically and practically qualified manpower in different fields. PAAET provides technical and vocational training. In addition, there are a few private universities / colleges that have opened recently.
Additionally, there are several private institutions in the country that offer a variety of full and part-time courses in various subjects such as business studies, secretarial skills, computing and languages.

The Kuwait Government spends nearly KD 6 million each year on private educational facilities, and also allots land for schools, distributes text books etc. Government spending on education as a percentage of per capita GDP is around 23 percent for Kuwait, as compared with 14 percent for Jordan and 18 percent for Turkey

Demand for education at all levels, in Kuwait is relatively high and increasing rapidly, as a result of the growth in population (5.3% for 2003) and the relatively high proportion of young population. The total number of students at school in Kuwait is currently over 465,000.
The demand for higher and technical education is linked to the employment prospects. Kuwaitis represent between 15% to 18% of the total work force in Kuwait.
Over 51% of the Kuwaiti population is below the age of 19. As high as 86.5% of the Kuwaiti population is below the age of 44 (broadly accepted as the average upper limit on re training). For non Kuwaitis, the respective percentages are 17% and 41%. This in itself, broadly indicates the potential demand for educational services, especially on a going forward basis, taking into consideration the population growth rate of over 5%.
The total number of Kuwaiti graduates is around 69,000 as of June 2004. This results in a huge supply gap of an estimated 100,000 Kuwait graduates, taking into account the number of employed non Kuwaiti graduates and the norms for employment of Kuwaitis. The relatively high number of unemployed Kuwaitis and the demand for Kuwaiti graduates on the other hand, indicates a serious need to address education and training requirements for Kuwaitis, focused on the requirements of the job market.

Economic Expansion -Drivers in Kuwait

Kuwait's economic growth during 2004, was largely fuelled by higher oil prices, leading to increased Government spending and generally higher level of domestic economic activity. Kuwait closed the 2003/4 fiscal year with a record surplus of KD 1.41 billion. In 2004, Kuwait export crude price averaged over 20% higher than 2003 and estimated production increased by nearly 6% over 2003. Optimistic investment climate and adequate liquidity resulted in a generally positive economic and investment outlook, upward movement in the Kuwait Stock market index and rising price trends in the real estate sector.
Estimates show that real GDP growth is likely to be around 7% in 2004. Capital spending by the Government has increased, oil, petrochemicals and power remain the focus sectors. Infrastructure development (ports, airports and roads), the development of two large islands, are other visible focus areas of Government spending. Capital spending by the Government includes spending on development and maintenance projects of power, water and general public works.
The development of significant additional production capacity in the oil sector is likely to provide numerous opportunities for private sector participation in oil field services related projects.
Non oil private sector activities should also continue to pick up on the back of both Government spending and private investment. Services and trade, as expected were the main contributors to growth in the non oil sector. Iraq related contracts and other business / service activity, however, slowed down in 2004 as a result of the security situation. However, the flow of contracts related to supporting international efforts in Iraq continued to lift demand and prospects for suppliers of services based in Kuwait.
Overall economic growth is also based on the demographics, rising income levels and rapid expansion in consumer lending. The demographic profile includes a large 'young' population. Over 60% of the country's residents, and over 80% of the labor force are expatriates. The population (Kuwaiti nationals and expatriates) is currently growing at over 5% each year. The expatriate population grew by over 82,000 during the first six months of 2004, as compared with 97,000 for the entire 2003.

Privatization is another key Government initiative. Privatization of the country's over 100 petrol stations, through the First Company for Local Fuel Marketing is an immediate step in the process. 76% of the company's shares are planned to be offered to the public.

Electricity and water works projects (development and maintenance): Government spending increased by over 50% in 2004, over 2003. The 2004 Government budget for capital projects in this sector was KD 825 million. The program for building the country's infrastructure to support economic growth is evident in the large capital budget build up.
Besides the oil sector, other contributors to economic growth during 2003 were the following:

Financial services
Real estate development and construction
Educational services, establishment of private universities; and
Wholesale and retail trade

Imports of intermediate goods, including fuels & lubricants, spares and transport equipment, rose by nearly 18% in 2003. This is a strong indicator of local industrial growth. Capital goods imports rose by over 35% during 2003, however, much of that growth included re-exports to Iraq.