Kuwait is the second-cheapest country in the Gulf in terms of cost of living
In the 2025 edition of the World Cost of Living Index, Kuwait has emerged as the second least expensive Gulf country in terms of overall cost of living. The country ranked 12th in the Arab world and 80th globally out of 139 countries evaluated.
Understanding the World Cost of Living Index
The World Cost of Living Index is an annual report that compares the cost of living in various countries based on five primary criteria. These include average rental prices, overall cost of living (including rent), grocery prices, restaurant prices, and the purchasing power of the local currency, with New York City serving as the reference point.
Kuwait’s Cost of Living Breakdown
Kuwait scored 40.4 points on the overall index, meaning that the cost of living in Kuwait is 40.4% of the cost of living in New York City, which is used as the baseline with a score of 100 points.
Breakdown of Kuwait’s Rankings in Key Criteria:
- Rental Prices: 21.9% of the cost of New York City
- Overall Cost of Living (Including Rent): 32.2% of the cost of New York City
- Grocery Prices: 33.7% of the cost of New York City
- Restaurant Prices: 40.8% of the cost of New York City
- Purchasing Power: 174% (1.74 times higher than the US dollar in New York)
Kuwait’s Position in the Gulf Region
In the Gulf region, Kuwait ranks second for the lowest cost of living, following Oman. The ranking is as follows:
- Oman
- Kuwait
- Saudi Arabia
- Qatar
- Bahrain
- UAE
Kuwait’s Cost of Living Compared to Other Countries
Globally, countries with the lowest cost of living according to the index include:
- Pakistan
- Libya
- Egypt
- India
- Afghanistan
- Madagascar
- Bangladesh
- Russia
- Paraguay
On the other hand, countries with the highest cost of living are:
- Switzerland
- US Virgin Islands
- Iceland
- Bahamas
- Singapore
- Hong Kong (China)
- Barbados
- Norway
- Papua New Guinea
- Denmark
How the Cost of Living Affects Kuwait’s Residents
Despite the relatively lower cost of living, the purchasing power in Kuwait is notably higher. The local currency, the Kuwaiti dinar, is stronger than the US dollar, which significantly impacts daily expenses, making it easier for residents to maintain a higher standard of living.