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The hidden drivers behind high prices in Kuwait

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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.”

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Kuwait, Turkey reaffirm ties | Kuwait Times Newspaper

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Erdogan gifts Amir Turkish-made EV • Leaders hold official talks • Key agreements inked

KUWAIT: Turkish President Recep Tayyip Erdogan and an accompanying delegation arrived in Kuwait on Tuesday on an official visit. Heading the reception at Kuwait International Airport were HH the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah and HH the Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah. Also present were HH the Prime Minister Sheikh Ahmad Al-Abdullah Al-Ahmad Al-Sabah and senior ministers and state officials.

HH the Amir Sheikh Meshal received a gift from Erdogan at Bayan Palace. The gift, an emblem of Erdogan’s appreciation and pride in the bilateral ties between the two nations, is a Turkish-made Togg electric vehicle. HH the Amir voiced his sincere appreciation for this generous gesture, wishing the President and the Turkish people further progress and prosperity.

HH the Amir held official talks at Bayan Palace with Erdogan, attended by HH the Crown Prince, HH the Prime Minister and senior officials from both sides. Minister of Amiri Diwan Affairs Sheikh Hamad Jaber Al-Ali Al-Sabah said during the talks, the two sides reviewed bilateral relations between Kuwait and Turkey, discussed means of strengthening cooperation in various fields and exchanged views on key regional and international developments of mutual concern.

The meeting reflected the spirit of friendship and understanding between the two countries, affirming their mutual desire to enhance cooperation across all domains in a manner that serves their common interests and promotes regional stability. Preserving the hard-won ceasefire recently achieved in Gaza between the Zionist entity and the Palestinian group Hamas is critically important, Erdogan said Tuesday, according to a statement by the Turkish Communications Directorate. “Emphasizing the critical importance of maintaining the strenuously achieved ceasefire in Gaza, President Erdogan stated that a two-state solution is imperative for lasting peace, and highlighted the significance of the Islamic world’s common stance on this matter,” said the directorate.

The statement also said that Erdogan “stressed Turkiye’s resolve in upholding Syria’s political unity and territorial integrity, and expressed the desire to move forward together with the brotherly Arab states in building a promising future for the Syrian people.” On bilateral ties, Erdogan said the existing cooperation between Turkey and Kuwait in the fields of investment, energy, trade and the defense industry carries strategic importance. “President Erdogan stressed the potential to further enhance the deep-rooted bilateral ties,” the statement said.

“President Erdogan expressed appreciation for Kuwait’s efforts to promote regional stability as the current Chair of the Gulf Cooperation Council, and remarked that the free trade agreement, still under negotiation between Turkiye and the GCC, would further strengthen Turkiye’s commercial relations with the brotherly Gulf countries,” it added.

HH the Amir then held a banquet in honor of Erdogan and his accompanying delegation. Later, in the presence of HH the Amir and Erdogan, HH the Crown Prince and HH the Prime Minister, a number of agreements were signed at Bayan Palace between Kuwait and Turkey. The agreements include a maritime transport agreement and a memorandum of understanding on the mutual recognition of seafarers’ certificates; a memorandum on cooperation in the energy sector; and a memorandum on cooperation in the field of direct investment incentives. Erdogan and his accompanying delegation then departed from Kuwait, heading to Qatar. Bidding him farewell at the airport were HH the Crown Prince, HH the Prime Minister and top state officials. – Agencies

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KISR launches upgraded version of digital repository

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KUWAIT: The Kuwait Institute for Scientific Research (KISR) on Tuesday launched the upgraded version of its digital repository (KDR), marking a significant step in strengthening the national infrastructure for scientific research and promoting a more open and sustainable knowledge-based society. Head of the digital repository project at KISR’s National Center for Scientific and Technological Information, Fadhila Taqi, said in a press statement that the development of the repository aligns with the institute’s strategic vision to adopt digital preservation solutions, which serve as a key pillar for safeguarding institutional knowledge and ensuring continuity while protecting it from loss or damage.

Taqi explained that the upgraded KDR is built on a modern digital system that keeps pace with the latest technologies, enhancing performance efficiency, expanding the scope for handling diverse scientific content and providing researchers with easy access to the institute’s scientific outputs. She added that the platform also contributes to strengthening knowledge exchange among scientific institutions.

The project began several years ago with the aim of preserving KISR’s scientific production, starting with technical reports on research projects and documenting Kuwait’s local scientific output. The initiative ensures that these resources remain accessible to current and future generations, serving as a foundation for ongoing and future research. The first phase of the project involved establishing an integrated digital laboratory to carry out digitization operations using specialized devices and a digitization management system (DAF) developed in collaboration with the Bibliotheca Alexandrina. This partnership enabled the addition of advanced features to the KDR platform.

The phase resulted in the digitization of over 10,000 scientific and technical reports, along with studies, government initiatives and other documents, thereby facilitating open access to research outputs and enhancing the circulation of knowledge both nationally and internationally. Taqi commended the Bibliotheca Alexandrina for its pivotal role in developing the new version of the digital repository. She noted that the memorandum of understanding signed with the institution in 2011 has allowed KISR to benefit from its expertise in building and managing digital repositories, including technical architecture, content management standards, and user-friendly data access. 

She added, “This achievement represents a milestone in realizing the goals of the strategic plan for the science and technology sector and would not have been possible without the strong support of the institute’s senior management.” Taqi expressed hope that the upgraded KDR will serve as a qualitative addition that aligns with Kuwait’s aspirations for an advanced scientific and knowledge-driven society.- KUNA

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Kuwait and Kozo ink deal for wastewater treatment plant

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KUWAIT: Minister of Public Works Dr Noura Al-Mashaan on Tuesday signed a contract with the Turkish company Kozo for the construction, operation, and maintenance of a wastewater treatment plant in South Al-Mutlaa City, along with its complementary works. In a press statement, the Ministry of Public Works said the project is part of the ministry’s development plan and is designed to serve the residents of Al-Mutlaa City.

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The plant will produce around 400,000 cubic meters of triple-treated water daily for agricultural and other beneficial uses. The ministry added that the facility represents a pioneering step in the adoption of alternative energy technologies, reflecting Kuwait’s commitment to sustainable infrastructure development and environmental conservation. — KUNA

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