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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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Al-Nuwaisib Customs foils smuggling of 620 cartons of cigarettes hidden in vehicle tires.

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KUWAIT: As part of the ongoing efforts by the General Administration of Customs to combat smuggling, customs inspectors at the Nuwaiseeb border crossing foiled an attempt to smuggle cigarettes out of the country.

When a vehicle arrived at the inspection area, the inspector did a routine check and didn’t find anything illegal inside except for 20 packs of cigarettes that were visible.

After inspecting the vehicle and passing it through an X-ray machine, abnormal densities were found in the four tires, and a manual inspection revealed 620 packs of cigarettes professionally hidden inside the tires.

 A report was filed on the incident, and the seized items and suspects were referred to the competent authorities to complete the remaining legal procedures against them.

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Family visit visas to Kuwait valid for up to one year: official

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KUWAIT: Family visas for expats are valid from one month to one year like tourist visas, a top interior ministry official announced on Wednesday, a day after the ministry said all expats can bring in their extended families to the country without the need for a salary cap condition.

Deputy director of the electronic services at the Residency Affairs Department Col Abdulaziz Al-Kandari told reporters at the government communications center that family visas can be for a single entry for one month, or two months or three months.

It can also be for multiple entries for between three months to one year, provided any single stay should not exceed one month, he said.

Kuwait on Tuesday said that family visas for expats was open for everyone with a valid residence permit, thus abolishing the salary cap condition that restricted the majority of expats from bringing in their wives and children to Kuwait.

The ministry also said family visas were expanded to include four-degree relatives and third-degree relatives by marriage.

Kundari said that expats willing to bring their relatives can apply online at Kuwaitvisa platform or application by uploading the necessary documents.

Relatives allowed to be brought by expat residents include a wide range of relatives from wives, children, parents to parents of the wife, aunts and uncles, brothers and sisters, nephews and nieces, grandfathers and grandmothers, grandchildren of both the applicants and their wives and others.

They also include the father’s wife for both applicants and wives, the son’s wife, the daughter’s husbands and similar relatives.

For a majority of applications only a birth certificate is required and a marriage certificate is needed for some cases to establish the relationship. Col Kandari said that all documents must be in Arabic and documents in other languages must be translated into Arabic from authorized offices.

Kandari also announced a large number of professionals residing in GCC states and who can obtain a tourist visa either on arrival or online through the Kuwaitvisa platform.

They include chairmen of companies, their deputies and assistants, diplomats and embassy staff, general managers, managers and their assistants and deputies, judges, public prosecutors and lawyers, university academics, holders of golden visas, investors, businessmen and partners and others.

They also include real estate owners, consultants and their assistants, experts and assistants, senior jobs in travel and tourism business, accountants, auditors and financial analysts, doctors and surgeons and their assistants, pharmacists and their assistants, nurses and their assistants, medical technicians, engineers and their assistants, school teachers and assistants, information analysts and alike, pilots and air stewards and others.

They also include referees and coaches and their assistants, journalists and media men, in addition to professions that come under physicists, chemists, geologists, marketing officer, advisor, vessel captain and alike.

Permitted professions can be checked through the Kuwaitvisa platform while applying online.

Kundari said that applicants must also state their address in Kuwait or the address of their hosts.

Kandari said that all types of visas are open to all nationalities except for the Israeli nationality which is barred by an Amiri decree. He also said that holders of travel documents can obtain a visa with the approval of the interior minister.

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Sadu House workshop sheds light on hand-weaving

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KUWAIT: Sadu House held a workshop titled “Embroidery Using the Nafash Needle Technique,” as part of the 17th edition of the “Summer Cultural Festival” organized by the National Council for Culture, Arts, and Letters (NCCAL). The workshop was led by trainer Anfal Al-Azmi that attracted participants interested in handicrafts and traditional arts. Al-Azmi explained that the “Nafash Needle” technique is a type of hand-weaving that involves inserting the needle into a piece of cotton fabric to create various designs and patterns.

She added that this technique is commonly used to decorate bags, carpets, and clothing, as well as to produce distinctive art pieces. Al-Azmi noted that while learning the craft is relatively easy, it requires some training to master the stitching properly. The workshop included hands-on practice with a simple sample to give participants their first practical experience. The “Summer Cultural Festival” serves as a platform to revive heritage and promote arts and handicrafts, and offer diverse cultural and artistic events suitable for all age groups. — KUNA

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