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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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Kuwaiti PM rep. reaffirms commitment to dialogue, regional security

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 ALULA, Saudi Arabia: Representing His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, First Deputy Prime Minister and Interior Minister Sheikh Fahad Yusuf Saud Al-Sabah stressed Wednesday that Kuwait’s participation in Munich Security Conference (MSC) Leaders Meeting, reflects commitment to regional dialogue and cooperation.

In remarks to KUNA, on the sidelines of the meeting in AlUla city, Sheikh Fahad condemned Israeli aggression against Qatar and Gaza as a violation of international law, emphasizing that the assault posed a direct threat to Gulf collective security and broader regional stability, urging urgent international attention.

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He noted that the meeting provided a vital platform to discuss pressing global and regional security challenges, particularly the escalating conflicts and humanitarian tragedies in Gaza and the occupied Palestinian territories, where participants agreed sustainable security remains impossible amid ongoing Israeli aggression.

He warned of grave consequences from escalating conflicts caused by Israeli occupation’s aggression, stressing risks to Gulf stability, while noting deliberations also addressed maritime and energy security, non-proliferation, food and water security, economic challenges, and shared transnational threats facing the international community.Reaffirming Kuwait’s commitment under its current presidency of the GCC, Sheikh Fahad stressed the importance of bolstering collective security, unifying Gulf positions, and strengthening regional and international partnerships, while praising Saudi Arabia’s warm hospitality and MSC’s role in organizing this vital meeting. — KUNA

 

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Deliveroo Kuwait unveils exclusive global dishes

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KUWAIT: Deliveroo Kuwait is serving up a global culinary journey with the launch of the new dishes from “The Exchange Program”. The first-of-its-kind initiative sent four of Kuwait’s top chefs abroad to explore viral food trends. Each created a fusion dish inspired by their journey, available exclusively on Deliveroo.

The program kicked off with Chef Khaled Al-Baker of Young Po, who took inspiration from the bustling streets of Seoul, South Korea, to introduce Rabokki. The dish combines chewy rice cakes and ramen noodles in a spicy, savory sauce, bringing the authentic flavors of Korean street food straight to Kuwait.

From Rome, Italy, Chef Faisal Al-Nashmi of San Ristorante is introducing the Maritozzi Box. Featuring indulgent cream-filled buns, the dish captures the essence of Italy’s sweet traditions while adding Chef Al-Nashmi’s modern touch. Chef Sawsan Daana of Matbakhi is channeling the spirit of Athens, Greece, with the Savory Souffra. Inspired by the communal dining tables of the Mediterranean, this dish celebrates togetherness through a vibrant spread of flavors that highlight the richness and warmth of Greek cuisine.

Finally, OH G!’s Chef Ghalia Hayat is bringing a taste of London, England, with the Donut Pudding Ice Cream. Reinventing classic British desserts, this whimsical dish brings together Hayat’s salted caramel pudding ice cream with a decadent chocolatey fudge swirl and chunks of donut, to deliver a unique sweet experience that will surprise and delight.

Deliveroo Kuwait’s Exchange Program is more than just a menu — it’s a cultural experience. By spotlighting Kuwaiti chefs and their creative reinterpretations of international dishes, the program bridges food trends with local talent, inviting customers to explore the world without leaving their homes. All dishes are available now and for a limited time, exclusively on Deliveroo Kuwait.

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Kuwait to standardize recognition of foreign high school diplomas

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KUWAIT: Kuwait’s ministers of education and higher education are working on a unified system to recognize foreign high school diplomas, a move that comes amid long-running concerns over fairness in the government’s scholarship program.

Every year, thousands of Kuwaiti high school graduates compete for all-expenses-paid government scholarships to study abroad. While students from public, private, and foreign schools can apply, critics have repeatedly accused the program of favouring graduates of foreign-language private schools — a claim officials have repeatedly denied.

On Wednesday, Minister of Higher Education and Scientific Research Dr Nader Al-Jallal and Minister of Education Jalal Al-Tabtabai held a joint meeting to discuss a standardized process. Senior officials from both ministries and representatives from higher education institutions also attended.

In a joint statement, the ministers said they focused on “organizational and technical aspects of the recognition process in a way that limits grade inflation and ensures fairness and equal opportunity for graduates of the Ministry of Education who wish to join various higher education institutions inside and outside the country.”

They also emphasized “the importance of continuing coordination and working in a team spirit between the two sides to reach an integrated and fair system that reinforces confidence in the mechanisms for recognizing foreign secondary school certificates” and committed to implementing the agreed-upon measures “to ensure swift completion and achieve the desired goals.”

The ministries said the effort will help unify procedures to meet the requirements of the coming phase and serve the public interest of students and their families. — Agencies

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