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Gold investment should be a long-term play: Experts

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Experts urge focusing on bullion, investing according to one’s financial ability

KUWAIT: With gold markets roiled by economic uncertainty and mounting geopolitical crises, many people are watching closely — hoping to seize the right time to invest. Speaking to Kuwait Times, Mohamed Salah, Operations Manager at a Gold bullions Company, emphasized that gold remains one of the most effective tools for protecting wealth against inflation, economic volatility, and geopolitical uncertainty, noting that two key methods dominate today’s gold investment landscape which is exchange-traded funds (ETFs) and physical gold bullion.

He explained that while ETFs are suitable for some investors, physical gold is the preferred option due to lower manufacturing costs compared to jewelry, which carries high markups. “Bullion is available in various weights, and the larger the bar, the lower the cost per gram. For example, a one-kilogram bar is significantly more cost-efficient in the long term than buying multiple one-gram bars.”

Regarding the timing of investing, Salah pointed out that the best time to buy gold depends on the investor’s objective. “If the goal is to preserve wealth against currency depreciation especially during periods of high inflation and a weakening US dollar, like now, then any time is a good time to buy.”

He pointed to the global trade wars, initiated under US President Donald Trump through tariff increases, as a major catalyst for economic tension, which has pushed gold prices higher. These economic pressures, in turn, reinforce gold’s appeal as a safe-haven asset.

Salah stated that gold is not a short-term profit but a long-term hedge, explaining that despite its lack of direct income, gold increases in value over time in response to crises. He cited data showing that gold returned over 20 percent in the past three years, with even higher gains recorded in the first quarter of this year. Leading financial institutions like Goldman Sachs and JP Morgan forecast a 40 percent chance of a US recession this year, reinforcing gold’s appeal amid declining global growth and escalating trade tensions.

One key factor pushing gold higher, according to Salah, is the significant weakening of the US dollar, which has lost over 11 percent of its value since the beginning of the year. As gold traditionally moves inversely to the dollar, this depreciation is a clear upward driver for gold prices. “Any reversal could trigger a correction. Still, the overall outlook favors continued growth, particularly as pressure mounts on the Federal Reserve to cut interest rates, which would likely further weaken the dollar and boost gold.” Salah concluded by recommending that investors allocate at least 15 percent of their portfolios to gold, emphasizing that times of economic uncertainty and high inflation are ideal for diversifying with precious metals.

Mohamed Fadel, General Manager of Gold Jewelry shop, said the amount invested in gold depends on available capital. For amounts under KD 5,000, he recommends gold coins or small bars (50–100 grams), while larger investments are better suited to 999.9-purity Emirati bullion, which carries lower fees than Swiss-made products.

Fadel pointed out that the rise in awareness fueled by social media has led to a notable increase in demand for physical gold, with many individuals withdrawing bank deposits to invest in bullion, which often yields higher returns than fixed interest savings.

However, he warned against short-term investments in gold, saying: “Those needing liquidity within months shouldn’t invest in it, as selling during a downturn could result in losses. Gold is better suited for surplus funds that can be locked away long-term.” He advised new investors to watch for price before buying and to invest incrementally. “Buy based on your financial ability even half a coin at a time. Every surplus can be turned into gold gradually.”

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Exit permit now mandatory for expat workers

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KUWAIT: A decision mandating expatriates working in the private sector to obtain an exit permit with the prior approval of their employers comes into effect on Tuesday, July 1, 2025. Employees need to apply through the Sahel app or the Public Authority of Manpower’s website. The employer must then approve the request online before the authority issues the permit. The decision applies to private sector employees who have residency under article 18. Those who have article 19 residency – self-sponsored – are not required to obtain the exit permit.

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410 students benefit from Educational Care Bank project

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KUWAIT: Al-Safa Charitable Society announced that 410 students across various educational stages have benefited from the Educational Care Bank project for the 2024-2025 academic year. The initiative, implemented in collaboration with the General Secretariat of Endowments, provided a total of KD 100,000 (approximately $330,000) in educational support within Kuwait. Chairman of Al-Safa’s Board of Directors Mohammad Al-Shaya said in a press statement on Monday that the project reflects a shared commitment to supporting future generations by creating an educational environment free from financial obstacles. He emphasized that the initiative also aims to alleviate the financial burden faced by low-income families amid ongoing economic challenges.

Al-Shaya praised the General Secretariat of Endowments for its continued sponsorship of impactful and innovative projects that serve the community, particularly those focused on education. He noted that the Secretariat’s support for this program underscores its strong belief in education as a cornerstone for societal advancement and sustainable development. He added that Al-Safa Charitable Society, through this partnership, seeks to nurture a knowledgeable and responsible generation capable of contributing meaningfully to national development. The project, he explained, targets students who face difficulty in paying tuition fees, reaffirming the association’s belief in the right to education for all—without discrimination or financial barriers. — KUNA

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97,000 reverts and counting: IPC’s role in spreading Islam

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KUWAIT: Although it has been three months since the end of Ramadan, Islamic da’wah in Kuwait is far from limited to the holy month. Through organizations like the Islam Presentation Committee (IPC) — one of the country’s largest and oldest da’wah institutions — outreach efforts continue year-round. Since its founding in 1987, IPC has helped more than 97,000 people embrace Islam, including 2,702 in the past year alone. With over 3.4 million expatriates living in Kuwait — many from diverse religious backgrounds — the country often becomes more than just a place of work.

For many, it becomes the first space where they encounter Islam in a meaningful way. IPC’s efforts extend beyond traditional settings like mosques and religious centers. Thanks to the organization’s efforts, this Ramadan Kuwait did experience a significant increase in conversions to Islam, marking the highest number of conversions in the past seven years. Approximately 730 individuals from various nationalities embraced Islam by the 29th day of Ramadan.

This achievement is attributed to the efforts of 78 male and female preachers and the success of the “Change Their Lives” campaign, which included lectures and the distribution of preaching materials across the country. Much of IPC’s outreach focuses on laborers and domestic workers, meeting them in everyday environments such as markets, salons, workplaces, hospitals, farms, labor inspection offices, and even deportation centers.

Following initial outreach, new reverts begin a structured learning journey starting with a “Basic Islam” course that covers essential beliefs and practices. As they progress, students can enroll in advanced courses on Quranic interpretation, Tajweed, Islamic jurisprudence, Prophetic biography, and Islamic history — all offered free of charge.

Available in 14 languages

Arabic language classes are also available for non-native speakers, including non-Muslims who wish to understand Islamic texts or culture. IPC also supports lifelong Muslims, recognizing that many — especially those from non-Arabic-speaking countries — may never have had the chance to study Islam formally. “We don’t just teach the students — we create a community for them,” said Haya Alawadhi, head of IPC’s Salmiya branch. “A good circle of friends, emotional support from teachers and staff, and even financial assistance when needed.”

Many new Muslims face personal challenges — including separation from family and friends. IPC responds by fostering a family-like environment where instructors and fellow students offer compassion, inclusion and support. After carefully assessing individual needs, IPC also provides financial aid and job placement assistance to ease the transition. With lectures and materials available in 14 languages, the organization ensures accessibility for newcomers of all backgrounds. In 2024 alone, the committee recorded 8,455 students from 39 nationalities enrolled in its programs.

“We don’t call each other by titles”

“We don’t call each other by titles,” Alawadhi added. “We say ‘sister’ and ‘brother.’ You might find an American sitting next to an Asian or a European, and everyone is treated the same. If someone walks in with bias, it fades once they become part of this place.” To further its reach, IPC has expanded into digital outreach, offering social media campaigns, interactive online lectures, and Islamic content to engage younger audiences and remote learners.

IPC’s da’wah efforts are not limited to blue-collar communities. The organization also engages diplomats, professionals, and high-profile guests, presenting them with traditional Kuwaiti gift boxes that include a translated Quran, a tourism brochure, and Islamic educational materials. In 2024 alone, IPC organized around 881 training courses. Alawadhi also shared that IPC trains new Muslims to become future Islamic educators and preachers. “Some of our most active preachers today were once IPC students who converted to Islam,” she added. IPC runs around 14 branches and centers that are spread across Kuwait’s governorates.

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