Although Kuwait was ranked earlier this year as the second least expensive Gulf country in the 2025 World Cost of Living Index, many residents feel that the prices of certain goods or services remain disproportionately high compared to other countries. While essential services — such as electricity, water, and fuel — are heavily subsidized and therefore inexpensive, other aspects of life, including housing, entertainment, and branded products, often carry a much steeper cost.

Therefore, according to economic expert Dr. Amer Al Tamimi, the root of the issue lies not in government policy, but in people’s behavior — whether it’s business owners inflating prices or consumers adopting high-cost lifestyles. Each year the state allocates no less than KD 6 billion in subsidies for electricity, water, fuel, and even certain food items. “In fact, the government has made life remarkably affordable for citizens — perhaps even too affordable.” But while basic goods may be inexpensive, the same cannot be said for luxury and lifestyle products. According to Al Tamimi, the high standard of living and strong purchasing power among Kuwait’s resident’s fuels intense demand for premium items — from cars and watches to high-end services and entertainment.

“These items might be cheaper elsewhere, but in Kuwait, the appetite for luxury pushes prices higher,” he explained. Even mid-range categories, such as transportation and clothing, are considered expensive when compared to regional or global averages. Social behavior plays a significant role in shaping price dynamics. “Some individuals, despite earning modest incomes, make choices driven by appearances,” said Al Tamimi. “Someone earning KD 1,000 might buy a car with KD 500 monthly installments just to keep up an image.”

This desire to showcase wealth creates an artificial demand for high-end goods and services. As demand rises, so do prices, creating a feedback loop that affects everything from café menus to car dealerships. “There’s a culture of excessive consumption. People need to rethink their habits, as rational consumption can lead to lower prices overall,” he suggested. This culture of overspending is reflected in many lifestyle choices. “I am surprised to see people pay for coffee delivery when they can simply an easily make it at home,” said Altamimi.

While some spending habits may be avoidable, others — like housing — are fundamental and affect nearly everyone. Al Tamimi pointed to Kuwait’s real estate market as one of the most significant contributors to the high cost of living, citing the soaring price of land. “Land alone accounts for around 70 to 75 percent of the total cost of any building,” he explained. “This is very different from many other countries, where land is more affordable and makes up a smaller portion of overall costs.” This imbalance has driven up both property prices and rent, placing a heavy burden on households and businesses alike. For many residents, housing expenses consume a large share of their monthly income.

Another key issue, Al Tamimi argued, is the lack of competition in certain markets. “Some goods are effectively monopolized by one, two, or three importers,” he noted. This concentration of market power gives a small number of players the ability to set prices with little competitive pressure. To address this, he urged efforts to open up the market. “Breaking these monopolies and encouraging more entrepreneurs to enter different sectors could help,” he said. “We need to streamline business procedures and reduce bureaucratic hurdles that currently discourage new players. In many cases, we only have a handful of stores selling certain products. More competition will ultimately benefit the consumer.”

KUWAIT: His Highness the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah received at Bayan Palace on Monday the Ambassador of India to Kuwait Dr Adarsh Swaika. The meeting was attended by Acting Head of the Prime Minister’s Diwan Sheikh Khaled Mohammad Al-Khaled Al-Sabah. — KUNA

KUWAIT: Deputy Chief of Staff of the Kuwaiti Army, Major General (Pilot) Sheikh Sabah Jaber Al-Ahmad Al-Sabah, on Monday underscored the strategic importance of the National Security Network project in strengthening the military’s communications infrastructure and ensuring a secure and integrated electronic environment. In a statement issued by the General Staff, Major General Sheikh Sabah made the remarks during a visit to the Signal Corps, where he was briefed on the unit’s key responsibilities, ongoing technical projects, and future modernization plans aimed at aligning with the latest advancements in military communications.

He praised the high professionalism and technical competence of the Signal Corps personnel, stressing the need to accelerate the completion of the National Security Network development project in accordance with the highest technical and cybersecurity standards. Major General Sheikh Sabah emphasized the importance of routinely testing the network under various operational scenarios to ensure its efficiency, address potential vulnerabilities, and proactively resolve any technical issues before full deployment.

He also called for sustained coordination with relevant authorities and continued efforts to train and qualify personnel, ensuring the long-term effectiveness and resilience of the network. He noted the critical need to remain aligned with rapid advancements in communication technologies. During the visit, the Deputy Chief of Staff received a detailed presentation on the National Security Network development initiative, which is regarded as one of the military’s key strategic projects. The initiative aims to establish a robust, secure communications system connecting various military and security entities through cutting-edge infrastructure that adheres to international standards for network protection and reliability.

Service registration

In another development, the General Staff of the Army announced on Monday the launch of a new digital service allowing citizens to register for National Military Service through the unified government electronic services application, Sahel. In a press statement, the General Staff explained that the new feature aims to streamline the registration process, enabling eligible individuals to complete the procedure quickly and efficiently via the mobile platform.

To access the service, users must log in to the Sahel app, select the “Services” section, then choose the Ministry of Defense, followed by the “National Military Service” option, and proceed to complete the registration. The General Staff affirmed that the initiative reflects ongoing efforts to enhance digital transformation and simplify procedures for Kuwaiti citizens, particularly those required to fulfill their national service obligations. — KUNA