Cost of living

I think it would help if you check a few of the topics of the last 2-3 weeks. Many questions have been answered there
If anything is open after that, just ask again?

Dear Odai,

I haven't responded or contributed on this topic so far but have some useful hints, I think.

The first thing is that purchasing essentials in Kuwait is a bit more expensive than you would think.  Most items are imported and not grown there for obvious reasons, which off course increases the cost of essentials.  Another factor may be that the major retailers like Sultan Center and Al Ghanim are quite dominant, by design possibly, as these companies are run by the ruling trading families in Kuwait.  This has created a somewhat oligopolistic or some might say, monopolistic environment, which off course results in higher margins and therefore higher costs to you, the end customer in Kuwait.

A second factor to take into account in Kuwait is the cost of insurance and getting your work permit.  If your future employer has not clarified this, please do so before arrival.  As a family we spent KD 1,500 up front for the necessary resident visas, work permit applications and annual insurance which I had assumed would be paid for by the company, as elsewhere in the world.  This wasn't the case.

A third factor is that you need to take into account the difficulty to sell the items you furnish your flat with, in case you intend to get an unfurnished flat in Kuwait.  As per point 1, the cost of electronic goods is relatively higher due to the retail situation.  At the end of your contract you have apparently only 30 days before you must leave Kuwait to get the house in order, and there are many examples of expatriates having to sell all their furnishings and belongings in such a short space of time, which would be a loss to you due to having to offer the items at fire sale prices, and therefore a cost overall of you staying there.  Check out some expatriate sites to see the different for sale advertisements.  There are a lot.

A fourth factor is related to the fact that you may face the situation of wanting to shift employers in Kuwait at some point in the future.  Due to the necessity of having to obtain a formal release letter you may find yourself on the bench in between jobs without any salary payments.  This happened to a colleague of mine who spent 6 months trying to get the release letter with a firm offer of employment from a new employer, but no chance of starting work to earn his living.  This is another cost of employment in Kuwait.

A fifth factor which is a potential risk, is where you may face some worse issues, not dissimilar to my own, and many other ex colleagues or respondents to this blog.  The file of cases is growing and it doesn't look pretty.  So far no one has done an article on Kuwait similar to the one on Dubai, the link of which is http://www.theaustralian.news.com.au/st … 8,00.html.  The article is entitled "Dream Jobs Dwindle for Australians in Dubai".  Please read this carefully because the potential for similar problems in Kuwait is a factor to take into consideration.  In effect it is another hidden cost which could be an unwelcome surprise.

Lastly, cars are very cheap in Kuwait as they are not taxed as I understand it.  This means that it would be tempting to get a new car, and employers appear more than happy to provide you the necessary paperwork in support of a carloan, which used to be very easy to obtain.  I also believe many employers will offer you easy credit from their own pockets.  This may at first seem like a very nice deal.  However, it does leave you somewhat exposed should you wish to move, having to pay back the loan to the employer, which could present a headache, or having to pay off the credit to the bank, also a headache, as you should remember that you have a limited timeframe to sell the car in what I assume is a worsening market for second hand cars.  This could also be considered a cost of employment in Kuwait.

Good luck,

Ferdinand
www.balfoort.com.my