Dušana Alshatti Schmidt – Comenius University in Bratislava, Faculty of Management, Odbojárov 10, 820 05 Bratislava 25, Slovakia

 DOI: https://doi.org/10.31410/ERAZ.S.P.2020.25

6th International Conference – ERAZ 2020 – KNOWLEDGE BASED SUSTAINABLE DEVELOPMENT,  Online/virtual, May 21, 2020, SELECTED PAPERS

Published by: Association of Economists and Managers of the Balkans – Belgrade, Serbia
Conference partners: Faculty of Economics and Business, Mediterranean University, Montenegro; University of National and World Economy – Sofia, Bulgaria; Faculty of Commercial and Business Studies – Celje, Slovenia; Faculty of Applied Management, Economics and Finance – Belgrade, Serbia

ISBN 978-86-80194-34-9, ISSN 2683-5568, DOI: https://doi.org/10.31410/ERAZ.S.P.2020

Abstract

 The novel coronavirus (COVID-19) outbreak has already left a mark on the economic activities
and labor markets in both advanced and developing countries. While the impacts on the economy vary
considerably, the oil dependent economies have been hit harder. Along with the impact of the pandemic
disease, they have been contending with a major collapse in oil prices. Kuwait is the world’s seventh largest
exporter of oil. Falling oil demand might affect the future growth of Kuwait’s economy in the long run, and
if the crisis continues, possibility to provide employment opportunities will be challenged. The aim of this
paper is to analyze potential pandemic’s impact on employment in Kuwait in comparison with the financial
crisis from 2008-2009, what is of crucial importance for the businesses in the region to understand. The
paper is based on a systematic review of the secondary data gathered by international institutions.

Key words

COVID-19, Oil, GDP, Labor market, Policy.

References

Al-Hashem, S., & Martin, G. (2020). COVID-19’s Implications for Foreign Labour Outflow in Kuwait.
Retrieved from https://blogs.lse.ac.uk/mec/2020/05/19/covid-19s-implications-for-foreign-
labour-outflow-in-kuwait/
Al-Mutairi, A., Naser, K., Fayez, F. (2020). Factors discourage Kuwaiti employees to participate
in the private sector labor force (Kuwaitization). International Journal of Organizational Analysis.
https://doi:10.1108/ijoa-07-2019-1839
Arab Times. (2020a). Temporary law permitting salary cuts in private sector. Retrieved from: http://
www.arabtimesonline.com/news/temporary-law-permitting-salary-
cuts-in-private-sector/
Arab News. (2020b). Kuwait Airways to lay off 1,500 foreign employees. Retrieved from: https://
www.arabnews.com/node/1681206/business-economy

Arezki, R., Yuting Fan, R., & Nguyen, H. (2020). Covid-19 and Oil Price Collapse: Coping with a
Dual Shock in the Gulf Cooperation Council. Retrieved from: https://erf.org.eg/publications/
covid-19-oil-price-collapse-coping-dual-shock-gulf-cooperation-council/
Azour, J. (2020). COVID-19 Pandemic and the Middle East and Central Asia: Region Facing Dual
Shock. Retrieved from https://blogs.imf.org/2020/03/23/covid-19-pandemic-and-the-middleeast-
and-central-asia-region-facing-dual-shock/
Baldwin, R., Weder di Mauro, B. (2020). Mitigating the COVID Economic Crisis: Act Fast and Do
Whatever It Takes. Retrieved from: https://voxeu.org/content/mitigating-covid-economic-crisisact-
fast-and-do-whatever-it-takes
Bensirri Public Relations. (2020). COVID-19 Kuwait Business Survey. Retrieved from https:// kuwaitimpact.
com/
Blas, J., Smith, G., & Ansary, K. A. (2020). OPEC Meets to Extend Cuts That Trump Says Saved Oil
Sector. Retrieved from: https://www.bloomberg.com/news/articles/2020-06-05/opec-meets-toextend-
cuts-that-trump-says-saved-oil-industry
Debnath, P. (2010). The Impacts of the Global Economic Crisis in Migration in the Arab World. Retrieved
from: https://www.mei.edu/publications/impacts-global-economic-crisis-migration-arabworld
Georgieva, K. (2020). IMF Managing Director Kristalina Georgieva’s Statement Following a G20 Ministerial
Call on the Coronavirus Emergency. IMF Press statement. Retrieved from: https://www.
imf.org/en/News/Articles/2020/03/23/pr2098-imf-managing-director-
statementfollowing-a-g20-ministerial-call-on-the-coronavirus-emergency
Gulf Business. (2020). Covid-19: Kuwait begins three-week complete lockdown from May 10. Retrieved
from: https://gulfbusiness.com/covid-19-kuwait-begins-three-week-complete-lockdown-
frommay-10/
Gulf News. (2020). COVID-19: Kuwait to lay off 6000,000 marginal workers. Retrieved from:
https://gulfnews.com/world/gulf/kuwait/covid-19-kuwait-to-lay-off-600000- marginal-workers-
1.71553943
Gulf News. (2020) Coronavirus: Kuwait to move to 12-hour curfew from Sunday. Retrieved from:
https://gulfnews.com/world/gulf/kuwait/coronavirus-kuwait-to-move-to-12- hour-curfew-fromsunday-
1.1590695104779
International Labor Organization. (2020). COVID-19: Labour Market Impact and Policy Response
in the Arab States. Retrieved from: https://www.ilo.org/wcmsp5/groups/public/—arabstates/—
robeirut/documents/briefingnote/wcms_744832.pdf
International Monetary Fund. (2020a). Confronting the COVID-19 Pandemic in the Middle East and Central
Asia. World economic outlook. Retrieved from: https://www.imf.org/en/ Publications/REO/
MECA/Issues/2020/04/15/regional-economic-outlook-middle-east-central-
asia-report#MENAP
International Monetary Fund. (2020b). Policy responses to COVID-19. Retrieved from: https:// www.
imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-COVID-19#K
International Monetary Fund. (2020c). Real GDP Growth. Retrieved from: https://www.imf.org/ external/
datamapper/NGDP_RPCH@WEO/OEMDC/KWT?year=2020
International Monetary Fund. (2020d). Regional Economic Outlook. Middle East and Central Asia.
Retrieved from: https://www.imf.org/en/Publications/REO/MECA/Issues/2020/04/15/regionaleconomic-
outlook-middle-east-central-asia-report
KPMG. (2020). Kuwait: COVID-19 Government relief measures. Retrieved from: https://home. kpmg/
kw/en/home/insights/2020/04/kuwait-covid19-government-relief-measures.html
Kuwait News Agency. (2020)a. Kuwait confirms 3 coronavirus cases coming from Iran’s Mashhad.
Retrieved from: https://www.kuna.net.kw/ArticleDetails.aspx?id=2864385&language=en

Kuwait News Agency. (2020)b. Official: Kuwait’s schools, universities suspended for 2 weeks starting
March 1. Retrieved from: https://www.kuna.net.kw/ArticleDetails.aspx?id=2868841&language=
en#
Kuwait News Agency. (2020)c. Kuwait has already cut oil output voluntarily – minister. Retrieved
from: https://www.kuna.net.kw/ArticleDetails.aspx?id=2888349&Language=en
Kuwait News Agency. (2020)d. Gov’t to provide Kuwaiti private sector employees six-month support.
Retrieved from: https://www.kuna.net.kw/ArticleDetails.aspx?id=2897013&language=en
Kuwait News Agency. (2020)e. Kuwait suspends work in gov’t departments March 12-26-spokesman.
Retrieved from: https://www.kuna.net.kw/ArticleDetails.aspx?id=2876449&language=en#
Kuwait Times. (2020). Housing authority terminates 135 expat employees. Retrieved from: https://news.
kuwaittimes.net/website/housing-authority-terminates-135-expat-employees/
Ministry of Health. (2020). COVID-19 Updates. Retrieved from: https://corona.e.gov.kw/En/
National Bank of Kuwait. (2020a). Economic impact of Covid-19 on Kuwait. Retrieved from:
https://www.nbk.com/dam/jcr:9b8f bb3f-e89f-4dd9-81de-b9285ec0a225/NBKCOVID19ImpactonKuwait20200510.
pdf
National Bank of Kuwait. (2020b). Kuwait: Population growth moderates in 1H19; expats employment
softens further. Retrieved from: https://www.nbk.com/dam/jcr:d708761b-fca6-45a0- aa94-b0300bb8a737/
NBKEUPOP&LF20191007E.pdf
Nicola, M., Alsafi, Z., Sohrabi, C., Kerwan, A., Al-Jabir, A., Iosifidis, C., Agha, M., & Agha, R. (2020).
The socio-economic implications of the coronavirus pandemic (COVID-19): A review.
International journal of surgery (London, England), 78, 185–193. https://doi.org/10.1016/j. ijsu.2020.04.018
Oxford Business Group. (2020). Kuwait’s coordinated response to COVID-19. Retrieved from: https://
oxfordbusinessgroup.com/news/kuwait-s-coordinated-response-covid-19
PwC. (2020). Middle East Tax and other measures in response to COVID-19. Retrieved from: https://
www.pwc.com/m1/en/services/tax/me-tax-legal-news/2020/middle-east-tax-other-measures-response-
to-covid-19.html
Reuters. (2020) Kuwait expands curfew, extends public sector work suspension. Retrieved from: https://
www.reuters.com/article/us-health-coronavirus-kuwait/kuwait-expands-curfew-extends-public-
sector-work-suspension-idUSKBN2222QE
Sharif, A., Aloui, C., & Yarovaya, L. (2020). COVID-19 pandemic, oil prices, stock market, geopolitical
risk and policy uncertainty nexus in the US economy: Fresh evidence from the wavelet-based
approach. International Review of Financial Analysis, 70, 101496. https://doi. org/10.1016/j.
irfa.2020.101496
Sharifi, H., Jahani, Y., Mirzazadeh, A., Gohari, M. A., Nakhaeizadeh, M., Shokoohi, M., & Haghdoost,
A. A. (2020). Estimating the number of COVID-19-related infections, deaths and hospitalizations
in Iran under different physical distancing and isolation scenarios: A compartmental
mathematical modeling. https://doi.org/10.1101/2020.04.22.20075440
Statista. (2020). Employment by economic sector in Kuwait 2019. Retrieved from: https://www. statista.
com/statistics/438879/employment-by-economic-sector-in-kuwait/#statisticContainer
Tatlıyer, M. (2017). The 2008–2009 Financial Crisis in Historical Context. Contributions to Economics
Global Financial Crisis and Its Ramifications on Capital Markets, 3-17. http://doi:10.1007/978-3-
319-47021-4_1
World Bank Middle East and North Africa. (2020). How transparency can help the Middle East
and North Africa). Retrieved from: https://openknowledge.worldbank.org/bitstream/handle/
10986/33475/9781464815614.pdf
World Health Organization. (2020). Rolling updates on coronavirus disease (COVID-19). Retrieved
from: https://www.who.int/emergencies/diseases/novel-coronavirus-2019/events-as-they-happen