22 Low-Cost Online Business Ideas in Kuwait to Launch Today

Explore profitable online business ideas in Kuwait with low upfront costs that you can execute easily from home.

Here’s some profitable online business ideas and tips to launch your entrepreneurial journey in Kuwait.

7 Must-Haves In Your Retail Store Business Plan: A Comprehensive Guide 

Burst onto the Kuwait retail scene with a winning retail store business plan that covers all your bases.


Start on the right foot and build your small business with strategic planning.

Looking for a Business Partner in Kuwait? The Do's and Don'ts 

Looking for a business partner in Kuwait? Discover 8 essential tips to find the perfect match for your startup success.

<a href="https://kemkuwait.com/blog/how-to-start-a-small-business-in-kuwai" id="">Starting a business</a> is always a big step, but launching a new venture in another country like Kuwait comes with the additional challenge of looking for a business partner in Kuwait.&nbsp;‍Besides the obvious challenges of venturing solo, like navigating cultural norms, establishing local connections, and managing daily operations, there’s the legal one. In Kuwait, having a local partner is often a must when opening a new business.&nbsp;‍Like anywhere else, selecting a business partner in Kuwait is challenging. You need to know who you’re dealing with professionally and personally—things like trustworthiness and dependability, but also practical business matters like their credit history, management style, and local connections.&nbsp;‍To help you simplify the process, this article provides eight essential tips for finding an ideal Kuwaiti partner who is truly invested in the venture's success.&nbsp;‍[Starting a new business in Kuwait? Manage finances and payments with your co-founder easily with next-gen transactions. Mobile, instant, online — download the Kem app for free on <a href="https://play.google.com/store/apps/details?id=com.kem.android&pli=1" id="">Google Play</a> and <a href="https://apps.apple.com/gb/app/kem-payments-made-easy/id6447648155" id="">Apple </a>today.]‍<h2 id="">Understanding the business landscape in Kuwait&nbsp;</h2><a href="https://www.business.hsbc.com/en-gb/business-guides/kuwait" id="">Kuwait is a prime business opportunity</a> for foreign entrepreneurs and expats, with a globalized market and affluent consumer base, especially in the rapidly growing e-commerce sector. However, success requires navigating Kuwait City's relationship-driven business culture rooted in Arabic traditions.‍Legally, foreign investors are generally required to partner with Kuwaiti nationals, who must own<a href="https://www.meed.com/setting-up-a-company-in-kuwait/" id=""> at least 51% of the company's capital</a>. However, there are exceptions for certain sectors where 100% foreign ownership is permitted with a foreign investment license from the Ministry of Commerce and Industry.‍<h2 id="">Finding your perfect business partner in Kuwait</h2>One key factor in <a href="https://kemkuwait.com/blog/how-to-start-a-new-business-in-kuwait-without-stress" id="">starting a new business in Kuwait without stress</a> is partnering with the right person. Your partner can make or break your entry into the Kuwaiti market. Not any part-Kuwaiti, part-foreigner company will do; you need to find a local partner genuinely aligned with your vision and ready to go all-in on making the venture a success. An inactive or mismatched partner can cause major headaches and roadblocks.‍So, how do you go about looking for a business partner in Kuwait for your specific business? Here are some key tips:‍<h3 id="">1. Defining your business goals and needs</h3>Clarifying objectives upfront prevents later misunderstandings. As a prospective business owner<a href="https://www.nerdwallet.com/article/small-business/business-plan" id=""> outlining your startup's business plan</a>, you need to clearly define what strengths or resources you will need when looking for a business partner in Kuwait. Think Arabic or English fluency, local market knowledge, access to networks, financial investment, or specific technical or operational expertise.‍Compatible partners easily compromise to advance shared goals. Identify necessary technical, financial, or operational strengths while respecting different ways of working collaboratively. Agree openly on responsibilities, schedules, and investment expectations to establish accountability and gauge commitment levels to develop an effective business plan and marketing strategy for the local market.‍<h3 id="">2. Establishing trust</h3><a href="https://www.forbes.com/sites/katevitasek/2022/12/21/taking-a-closer-look-at-the-role-of-trust-in-business-partnerships/" id="">Trust is fundamental in any business partnership</a>, particularly in Kuwait's tight-knit business landscape, where reputations spread quickly. Trust develops through consistency, so follow on promises while respecting different perspectives. In addition, compromise demonstrates putting the venture above personal egos between partners, building the essential cooperation needed for success.‍<h3 id="">3. Prioritizing cultural compatibility</h3>If not properly understood,<a href="https://istizada.com/doing-business-in-the-middle-east/" id=""> cultural norms in the Middle East</a> can be major issues in cross-cultural partnerships. When evaluating potential Kuwaiti partners, look beyond their professional backgrounds. Discuss deal-breakers and problem-solving styles to uncover compatibility beyond ambitions.&nbsp;‍Are your values, communication styles, and workplace expectations seemingly compatible? Finding a cultural match will make the partnership smoother. Look for complementary skill sets, shared core values, financial capacity, strong ethics, an influential network, and personal rapport.‍<a href="https://www.linkedin.com/in/ahmed-hatem-8b349ab4/" id="">Ahmad Hatem</a>, Legal Consultant and Partner at Al Safar and Partners Law Firm highlights communication, saying, "Clear communication is the compass that keeps it on course. In the world of partnerships, it's crucial to establish and maintain open lines of communication. When partners communicate effectively, they can address issues, share ideas, and make informed decisions together.”‍‍ <blockquote id="">“When partners communicate effectively, they can address issues, share ideas, and make informed decisions together.” – Ahmad Hatem, Legal Consultant and Partner at Al Safar and Partners Law Firm</blockquote>‍<h3 id="">4. Conducting due diligence</h3>Thoroughly research potential partners’ experience, reputation, and credibility within networks by<a href="https://mscategorymanagement.com/reference-checks/" id=""> contacting multiple referees honestly</a> when looking for a business partner in Kuwait. Verify educational and professional claims to prevent surprises later.‍Examine past business involvements, transactions, and any legal issues to avoid incompatible or high-risk partners. In addition, scrutinize proposed capital or expertise contributions and discuss intentions frankly to cement understanding. After all, clarity at this stage prevents future disputes through realistic partner and opportunity assessments.&nbsp;‍<a href="https://www.linkedin.com/in/karl-hougaard-128a6b13/" id="">Karl Hougaard</a>, Founder and Managing Partner at Trade License Zone in the UAE, recommends, “Thorough research is imperative before venturing into any market. Entrepreneurs must grasp the nuances of each partner country’s business culture, regulations, and consumer preferences. A comprehensive understanding of the competitive landscape ensures informed decision-making.”‍<blockquote id="">“Thorough research is imperative before venturing into any market.” – Karl Hougaard, Founder and Managing Partner at Trade License Zone</blockquote>‍<h3 id="">5. Negotiating terms and agreements&nbsp;</h3>Be sure to contract out decision-making powers, roles, responsibilities, and equity splits to avoid ambiguity. This includes<a href="https://blog.hubspot.com/marketing/marketing-plan-examples" id=""> outlining a marketing strategy</a> and determining who will oversee key functions like business development, operations, finance, human resources, etc.‍Address potential issues proactively through compromise instead of ignoring them. Remember to record terms legally to formalize understanding and protect all parties’ interests with professional guidance.‍<h3 id="">6. Leveraging networks</h3>In Kuwait's tight-knit business circles, personal connections can open doors and forge trust faster than anything else. Attend community events, join the<a href="https://www.ekcci.org.kw/newweb/" id=""> Kuwait Chamber of Commerce and Industry</a>, and tap<a href="https://www.internations.org/activity-group/20783/activities" id=""> expat networking groups</a> to activate partner search efforts.‍Respectfully ask about complementary individuals approaching business similarly to increase compatibility chances. Maintain networking sincerely even after the search to cultivate valuable long-term industry relationships.‍Network extensively through professional events, organizations, and contacts. Use online platforms like LinkedIn as well. Identify candidates with complementary skills for specific business opportunities, whether it's expertise in operations, <a href="https://kemkuwait.com/blog/manage-a-small-business" id="">business management</a>, finance, marketing, business development, or other key areas.‍<h3 id="">7. Seeking professional assistance</h3>Various organizations aimed at facilitating foreign business and investment in Kuwait are able to assist in finding&nbsp; you a good business partner. Groups like the Kuwait Direct Investment Promotion Authority (KDIPA) and the <a href="https://www.ekcci.org.kw/newweb/" id="">Kuwait Chamber of Commerce and Industry</a> could potentially provide guidance or partner leads.‍<a href="https://www.linkedin.com/in/abdullah-alaiban-aqrbnnas/" id="">Abdullah Alaiban</a>, a Kuwaiti Certified Business Solutions Consultant, also recommends local consultants for locating partners and suppliers: "A local consultant can help you find business partners and suppliers in Kuwait. This can be essential for building a successful business in the country.”‍<blockquote id="">“A local consultant can help you find business partners and suppliers in Kuwait.” – Abdullah Alaiban, Certified Business Solutions Consultant</blockquote>‍<h3 id="">8. Adopting financial transparency</h3>Finding the right business partner in Kuwait goes beyond having a shared vision and complementary skills. It's crucial to ensure you and your business partner prioritize financial transparency.&nbsp;‍In a joint business venture, financials are like the heartbeat of the company. If any of the two founders lack a clear view of the finances, the professional relationship will be skewed and lead to problems.&nbsp;‍Using a modern payment system enables transparency. For example, using a streamlined point-of-sale (POS) system with <a href="https://kemkuwait.com/blog/instant-payments" id="">instant payments</a> gives a clear view of your business’ revenue.&nbsp; Real-time sales data allows for collaborative decision-making, fostering trust and open communication.‍Financial transparency, first and foremost, fosters trust – and translates to a smoother workflow, improved cash flow, and a more profitable venture for both of you.‍Kem is widely used among Kuwaitis as a peer-to-peer payment app for easily sending and requesting money. The platform also offers powerful payment tools for small businesses in Kuwait and Saudi Arabia. Kem's integrated point-of-sale (POS) system and instant payment capabilities provide an all-in-one solution for merchants to run their operations smoothly.‍[Starting a small business with a co-founder in Kuwait? Kem is a flexible P2P payment platform that powers small businesses with instant online payments. Signing up takes less than a minute. Download the Kem app for free on <a href="https://play.google.com/store/apps/details?id=com.kem.android&pli=1" id="">Google Play</a> and <a href="https://apps.apple.com/gb/app/kem-payments-made-easy/id6447648155" id="">Apple </a>today!]<h2 id="">Takeaways</h2><ul id=""><li id="">Research potential partners' backgrounds, reputations, and financial situations to avoid surprises later.</li><li id="">Formalize an agreement outlining decision-making power, equity splits, and responsibilities for each partner.</li><li id="">Consider consulting with organizations like KDIPA or local business consultants for assistance in finding a suitable partner.</li><li id="">Look for a partner who prioritizes financial transparency and utilizes modern tools like point-of-sale (POS) systems.</li><li id="">Kem provides a POS system with instant payments, which is useful for managing personal finances between partners and potentially even micro-transactions within the business.</li></ul>

When looking for a business partner in Kuwait, these eight tips will help you make the right decision and avoid the headache.

Business for Sale in Kuwait: Your Guide to Owning the Next Big Thing

From finding a deal to doing due diligence, here is how to buy a small business for sale in Kuwait and then leverage digital platforms to get paid.

Finding a small business for sale in Kuwait can be a good idea, but it's important to learn how to manage the deal.

How to Start a Small Business in Kuwait: An Entrepreneur's Guide

Want to know how to start a small business in Kuwait? Get all the information you need to kickstart your entrepreneurial journey!

An entrepreneur’s guide to cover all the bases for starting a small business in Kuwait.

How Recurring Revenue Models Give Small Businesses The Edge

Need help finding the right subscription model for your business? Here’s everything you need to know and more about recurring revenue.

How to create new avenues for predictable revenue and cash flow.&nbsp;‍

How to Calculate The Break-Even Point For Service Businesses And Maximize Profits

Find out how to calculate the break-even point for service businesses and improve your chances of long-term profitability and success. 

“How to Calculate The Break-Even Point for Service Businesses”.&nbsp;‍If you saw this title in a bookstore, you probably wouldn’t buy it, but investing a small period of time in finding out the answer could be worth a fortune to your new business.‍A break-even analysis, including your fixed and variable costs, is one of the smartest things you can do when launching a business. It’s one of the first factors <a href="https://kemapp.io/blog/kuwait-entrepreneurs" id="">the most successful entrepreneurs</a> look for when working out if a venture is to be profitable.‍Your break-even point (BEP), will tell you what you need to do to make back your business outlay and start making gross profit.&nbsp;‍Some financial experts even say it’s critical to your business’s success. “Mastering break-even analysis is an invaluable skill for small business owners,” says accounting specialist <a href="https://www.linkedin.com/in/glenn-perlinger-3750258/" id="">Glenn Perlinger</a>. “By understanding this concept, you can set realistic sales goals, determine appropriate pricing, and make informed decisions about your business's future.&nbsp;‍<blockquote id="">“Mastering break-even analysis is an invaluable skill for small business owners” — Glenn Perlinger, financial expert </blockquote>So, if you’d like to know how to calculate the break-even point for service businesses, then read on as we cover everything you need to know to get an accurate BEP.‍Running a business stressing you out? <a href="https://kemapp.io/" id="">Kem</a>’s QR code payments app makes all business transactions easier, with instant payments and built-in money management features.‍<h2 id="">What is the break-even point?&nbsp;</h2>A business’s break-even point is the level at which your revenue is the same as your costs.‍In other words, it’s the point where you cover all your expenses and start to make a profit for each further sale you make.&nbsp;‍The BEP is the base from where you can start to reduce your costs (including labor and materials) and/or adjust your pricing.&nbsp;‍Many businesses neglect their BEP, which puts them at a disadvantage. If you don’t know your bottom line, then it’s difficult to know what to do to achieve a net profit.‍The good news is that finding your BEP takes just minutes if you know what you’re doing.‍<h2 id="">How to calculate the break-even point for a service business</h2>The following formula will help you find your BEP in seconds. All figures are for monthly amounts, but you can do it on a yearly or even weekly basis.‍Break-Even Point = Total Fixed Costs ÷&nbsp; (Sales Volume Per Unit - Variable Cost Per Unit)‍Note (i) A service business may not sell products (or units), so for “units” we can use number of customers instead.Note (ii) The second part of the equation (sales volume per unit - variable cost per unit) is known as the Contribution Margin, a term you’ll see later on in this article.‍How to calculate the break-even point for a service business<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:751px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="751px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a31948abfbba54ac121f7_rsogTzwQ1hlY64wbnoRqVypsG_XTvmcGbbulHfYZxN9TxzfBrn9ekAIE-Oo9JZUlbMTLtXJD1hLUo2ihjQQnGBVtY98EPAQzFfyKK3Xau8djIaPCdQw2JOU-PJUNfI86pH7YW5S_8QHli3WQRioteS4.png" width="auto" height="auto" alt="" loading="auto" id=""></div></figure>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Source: <a href="https://www.shopify.com/blog/break-even-analysis" id="">Shopify</a>‍To make this break-even point formula work we need to know exactly what to put into each section of the break-even point equation, so let’s run through these terms.‍<h2 id="">Fixed costs</h2>These are costs that are not affected by your sales. The most common (and important) one is your mortgage or rent payment, but it might also include<ul id=""><li>Equipment</li><li>Property taxes</li><li>Insurance</li><li>Fixed labor costs (i.e. contracted work)</li><li>Software subscription</li><li>Advertising</li></ul>‍Add all of these together to get your total fixed cost amount. Using an Excel spreadsheet is a good idea for this as it will automatically add the amount up for you.&nbsp;‍Example: Let’s say you run a small restaurant in Kuwait. Your fixed costs for the month (including equipment leases, waiter/chef salaries, utilities, and building insurance) come to KWD 6,500.&nbsp;‍How your fixed costs spreadsheet might look&nbsp;<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:699px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="699px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a319464a543629fde2762_7ujouLx7_Pc1Jz8DQNXYWwnxvhqOyiMRg-pGToAKqppWLCGJBydjUYWym4KkpRmyAQHheFHPnHWH7unem87zYXOaKco2oV3dfZ_ONNlRJKHTbFMQt_r6rZXubnw9rSICMPKVw8MILPSAug-IWSZS2y4.png" width="auto" height="auto" alt="how to calculate break even point for service businesses" loading="auto" id=""></div></figure>‍<h3 id="">Variable costs&nbsp;</h3>Variable expenses do fluctuate according to your total sales volume. Make a list of these.‍Here are some of the most common examples.<ul id=""><li>Product raw materials</li><li>Production costs</li><li>Commission</li><li>Energy bills</li></ul>‍Note: It’s possible that some costs will fall into either the fixed or variable categories. Wages for example might be salaries (fixed) or commission-based/cover staff (variable).‍Example: The total variable costs of your restaurant (including food and beverage costs, hourly staff wages, kitchen supplies, and marketing and advertising) come to KWD 6,800 per month.&nbsp;‍Let’s say you had 250 customers: your variable cost or price per unit is 6,800 ÷ 250 = KW 27.2.‍How your variable cost spreadsheet might look<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:979px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="979px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a319485c2c703cd787486_H6CWaHwQfByBItYyPP8HdatYX8VT42omUgFletZfzDU4gXEVuq6fIJXm3sYWZAoGcEyW_U1EWfGM1IPmL0kvL8r5addYZjUHX83etnBkNaddblUBrYBIrHLUz5TAxun7FcpAEipSQ7x73d4WCD_iwVo.png" width="auto" height="auto" alt="" loading="auto" id=""></div></figure>‍<h3 id="">Sales volume per unit</h3>This is simply the total revenue you generate divided by the number of units, or customers, you have.‍Let’s say your restaurant brings in KWD 15,000 for the month.&nbsp;‍You can work out your sales revenue per unit by dividing that figure by the number of customers you had, which in our example was 250 for the month.&nbsp;‍Your sales volume per unit for the month was (15,000 ÷ 250) = KWD 60‍Now, let’s put all of the above information into the equation to work out your BEP.‍<h2 id="">Contribution Margin per Customer</h2>We can start by working out our contribution margin per customer, which we then use to divide our fixed costs‍As a reminder: Contribution margin per customer = average sales per customer - variable costs per customer.‍In the restaurant’s case, the contribution margin per customer is the average sales per customer (KWD 60) minus variable cost per customer (27.2).&nbsp;‍Contribution margin per customer = KWD 60 - KWD 27.2 = KWD 34.80‍<h2 id="">Break-Even Point (in Customers)</h2>Break-Even Point (in customers) = total fixed costs contribution margin per customerBreak-Even Point (in customers) = KWD 6,500 ÷ &nbsp;KWD 34.80 ≈ KWD 186.78This means we need to get 187 customers through the door each month to break even.&nbsp;‍<h2 id="">Break-Even Point (in KWD):</h2>Break-Even Point (in KWD) ≈ 186.78 customers x&nbsp; KWD 60 ≈ KWD 11,206.80We need to hit a monthly revenue of KWD 11,206.80 to break even (i.e. cover all monthly fixed and variable costs)Following this guide step-by-step but applying your own figures should lead you to your business’s BEP. Good luck!‍<h2 id="">The benefits of finding your break-even point </h2>Once you know how to calculate the break-even point for a service business, you’ll be in a much better position to run your business and look ahead to the future.&nbsp;‍We might even say that your BEP isn’t just a number, but a compass for navigating the business world more confidently.‍Here’s a run-down of the benefits of doing a break-even calculation.‍<h3 id="">It helps cash flow</h3>Small business owners know that cash is king.&nbsp;‍Your break-even point will help you stay on top of your finances as you’ll know how much cash you’ll need to cover your costs.&nbsp;‍By using the above BEP template, you’ll have a better idea of unit selling prices, contribution margins, and sales targets, and you’ll be able to adjust each one to keep your cash flow in check and avoid any nasty surprises later on.‍<h3 id="">It helps with strategic business planning</h3>A solid business plan is essential, whether you’re launching a new startup or launching a new product.‍A break-even analysis will help you crunch the numbers that will go into the plan, including realistic sales projections and making informed decisions about a pricing strategy.&nbsp;‍This will make it much more likely to secure lending (should you need it), and you’ll even be able to impress your bank manager by talking about contribution margin ratios and analysis formulas!‍<h3 id="">It guides you toward smarter business decisions</h3>Running a small business involves numerous decisions, each critical to its success, and the success of these decisions improves in line with the depth of our knowledge.‍Let’s go back to the example of the restaurant above. Its owner, now with a clear understanding of their BEP, can confidently decide pricing and sales forecasts.&nbsp;‍Without it, they would be simply guessing, something that is dangerous for any business decision-maker.‍<h2 id="">Knowing your BEP gives you the tools to maximize profitability</h2>Entrepreneurs know that it’s all about the bottom line.‍Break-even point analysis gives you tools to optimize your returns because you understand the relationship between sales volume, unit selling prices,&nbsp; and profit margins better than before.‍This lets you fine-tune your pricing structure so that you strike that perfect balance between attracting customers and making a profit.&nbsp;‍<h2 id="">How to lower your break-even point</h2>Now that you know how to find your break-even point, you might be wondering how to lower it and <a href="https://kemapp.io/blog/kuwait-business-ideas" id="">make your business more profitable</a>.&nbsp;‍Here are some strategies to consider.‍<h3>1. Reduce fixed costs&nbsp;</h3>Your fixed costs are the main component of your BEP. While tricky, you could lower them by switching utility providers, cutting down on energy usage, or even renegotiating your rent or mortgage payments.&nbsp;‍Getting this figure as low as possible will bring down your BEP and help you reach profitability quickly.‍<h3 id="">2.&nbsp; Increase sales volume&nbsp;</h3>You can boost your sales by launching new marketing campaigns, expanding your service offerings, or targeting new customer segments.‍While this will push up your costs temporarily, it may have the long-term effect of bringing down your BEP by spreading it over a larger revenue figure.&nbsp;‍<h3 id="">3.&nbsp; Improve efficiency</h3>Small business owners often overlook efficiency in a bid to reach a certain sales figure, but streamlined work processes and reduced waste can help boost revenue.&nbsp;‍Take a look across your business and identify areas that you can tighten up.&nbsp;‍In the case of a restaurant, this might include installing a restaurant point-of-service system to minimize wait times and boost order accuracy, or cross-training staff to handle multiple roles effectively.&nbsp;‍<h3 id="">4. Raise prices</h3>If your BEP is too high, then you may not be charging your customers enough. Often, you can do this without sacrificing sales volume.‍Conduct market research to determine if there's room to raise prices without pricing yourself out of the market. If justified, modest sale price increases will boost your revenue and bring that BEP down.‍<h3 id="">5.&nbsp; Diversify revenue streams</h3>Offering new products or services helps spread risk and potentially boosts your gross margin.‍Doing it well can reduce dependence on any single source of income and lower your break-even point over time.‍You don’t have to put all these strategies fully into action right away, but aiming for gradual improvements in each area is your best chance of lowering that BEP and putting your business on track to long-term success.‍Want to boost your business’s efficiency to bring down your BEP? Kem’s QR-code-powered app will save you time and money when it comes to receiving payments or paying bills. <a href="https://kemapp.io" id="">Sign up today</a> and get started within seconds.

Once you find your break-even point (BEP), you’ll never look back.

8 Most Profitable Retail Businesses for Gains in the Middle East 

Find out how the most profitable retail businesses leverage forward-thinking digital strategies in the Middle East’s booming retail sectors. 

We took a look at the GCC’s booming retail sector and infused our study with the latest marketing strategies to give you 8 of the most profitable retail businesses worth considering now.‍

Minimum Wage in Kuwait: What Employers Must Know and Do

Understanding the laws surrounding minimum wage in Kuwait will help you stay legally compliant and plan your business finances. 

Knowledge of the minimum wage in Kuwait is essential if you want to <a href="https://kemkuwait.com/blog/how-to-start-a-new-business-in-kuwait-without-stress" id="">start a new business</a> in the country on the right foot.&nbsp;‍Paying workers below the minimum wage can result in legal troubles with the Ministry of Social Affairs and Labor (MSAL).&nbsp;‍More importantly, since paying workers well is crucial to maximising their productivity, the minimum wage should be a benchmark that you will use to design appropriate wages and salary structures.&nbsp;‍Also, since salary payment is the bulk of the operating expenses of most firms, understanding what it will cost to employ needed workers is a crucial part of financial planning.&nbsp;‍In what follows, we will consider the minimum wage in Kuwait, the average salary earned by workers in Kuwait, and all you need to know about paying workers rightly in the country:&nbsp;&nbsp;‍<ol id=""><li>What is the minimum wage in Kuwait?</li><li>What is the average salary in Kuwait?</li><li>How to pay employees in Kuwait</li></ol>‍[Do you want a fast, seamless, and cost-effective way to receive payments from your customers? <a href="https://kemapp.io/" id="">Download the Kem app</a> to start using our efficient POS system and payments app.]‍<h2>1. What is the minimum wage in Kuwait?</h2>Before 2018, the minimum wage in Kuwait per month was 60 KWD (Kuwaiti dinars). Now, the minimum wage is 75 KWD, equivalent to $242 at the time of writing.&nbsp;‍As seen in the chart below, this amount is so far away from the highest and lowest minimum wages across the globe:&nbsp;‍<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:1491px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="1491px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a2d78cd0373f3f68d7e38_KHNppcZvwMgLI5YYUhrjYUOfZPLIJH3ijxXYLIEZZKOsZVieLhu6edXPfrNzb_7qDM4H2BPjrxDhMQi3TbOZSUa1nKOE7dtx2hb-dNbOl3CRhp5B9F8zi3Z_xcYz6njqtr66CSocnD8FlxwSPpmeIOI.png" width="auto" height="auto" alt="minimum wage kuwait" loading="auto" id=""></div></figure>Source: <a href="https://www.papayaglobal.com/countrypedia/country/kuwait/" id="">Papaya Global</a>‍More relevant to us is how Kuwait's minimum wage compares to other countries in the Arab States region.&nbsp;‍According to 2019 data from the <a href="https://www.ilo.org/wcmsp5/groups/public/---arabstates/---ro-beirut/documents/publication/wcms_660002.pdf" id="">International Labour Organisation</a>,‍<ul id=""><li>The minimum wage is BD300 in Bahrain, though it only applies to public sector workers. This was worth $798 in 2019 but is now worth $796 at the time of writing.&nbsp;</li><li>It is JOD220 ($310.34 at the time of writing) in Jordan for nationals and JOD150 ($211.60 at the time of writing) for expatriates.</li><li>In Oman, the minimum wage is OMR325 ($844.20 at the time of writing) though it only applies to nationals.&nbsp;</li><li>The minimum wage is QAR750 ($206 at the time of writing) in Qatar and it applies to all workers</li><li>There is no legal minimum wage in Saudi Arabia, Yemen, and the UAE</li></ul>‍In dollar value, the legal minimum wage in Kuwait is behind Oman, Bahrain, and Jordan (for nationals) and ahead of Qatar and Jordan (for foreign workers).&nbsp;‍Interestingly, Kuwait has one of the most inclusive minimum wage laws, covering all employees (national or migrant) working in the private sector.&nbsp;‍Also, according to ILO, Kuwait, unlike most other countries, covers domestic workers in its minimum wage laws (except that the minimum wage that applies to them is KWD 60).&nbsp;‍<h3 id="">Kuwait's minimum wage per hour</h3>The minimum wage in Kuwait is stated as a per-month figure.&nbsp;‍However, part-time workers and daily wage workers might be interested in the minimum wage per hour.&nbsp;‍There is currently no legal minimum wage per hour. Therefore, the only path we can take is to translate the monthly minimum wage of KWD75 ($242) to a per-hour basis.&nbsp;‍Given that Kuwait has a 48-hour work week, this will give us KWD0.39 ($1.26) per hour.&nbsp;‍<h3 id="">Minimum wage in Kuwait for Indians</h3>The Indian embassy in Kuwait publishes a <a href="https://indembkwt.gov.in/minimum-wages-schedule.php" id="">minimum wage schedule</a> for Indian workers across various job categories. That is, if you are looking to hire Indian workers, there is a minimum wage you must pay them.‍In 2016, the embassy issued a new schedule to reflect an increase in the cost of living and a fall in purchasing power. According to the schedule, the lowest wage that can be paid to an Indian worker for any type of job is KWD100. This applies to car washers, domestic help, and construction labour, among others.&nbsp;‍Below is a sample of this schedule:&nbsp;<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:1277px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="1277px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a2d788e080faf62194d2d_gtqJMqofo4VyZzaX2_POCcGdxOG6TrWwdSIBnSBoBqefxYyd-IoFqMpYbDsNn0UwH_ZRScICS22uWtSDxRlTnx6toHsB6ljX3ZbU8Avc3XDv-tothtNgoO0rcKRo54wW7jKPqg0lvLSLXhKiDv2t-yA.png" width="auto" height="auto" alt="" loading="auto" id=""></div></figure>Source: <a href="https://indembkwt.gov.in/minimum-wages-schedule.php" id="">Embassy of India, Kuwait</a>‍For some skilled workers (especially those in healthcare), the minimum wage is as high as KWD400. For example, it is KWD450 for medical doctors and KWD420 for nurses with a bachelor's degree.&nbsp;&nbsp;‍<h3 id="">Minimum wage in Kuwait for Filipinos</h3>Philippine workers in Kuwait also have a minimum wage of KWD150 (which increases for more specialized workers), as reported by <a href="https://www.zawya.com/en/legal/minimum-wages-set-for-expat-workers-in-kuwait-g1bvuzss" id="">Zawya</a>, a news agency covering the MENA (Middle East and North Africa) region.&nbsp;‍For domestic workers, it’s relaxed to KWD120.&nbsp;‍(Side note: Kuwait <a href="https://www.reuters.com/world/kuwait-suspends-new-visas-philippines-workers-rights-row-2023-05-26/" id="">indefinitely suspended</a> the issuance of new visas to Filipinos in May 2023)‍More countries – including Bangladesh (KWD100), Egypt (KWD 200 for diploma holders and KWD350 for degree holders), and Ethiopia – are also setting specific minimum wages for their workers in Kuwait.&nbsp;‍Consequently, before hiring foreign workers, you must do some due diligence. Preferably, you can contact the embassy directly for accurate and up-to-date information about the minimum wage.‍<h2>2. What is the average salary in Kuwait?</h2>The minimum wage set for foreign workers by different countries shows that it might not be enough to offer KWD75 for employees in Kuwait.&nbsp;‍Moreover, in competitive labour markets, it helps to know what other employers are paying workers if you hope to compete. Yes, KWD75 might be the minimum wage but if all other employers are offering KWD150 for the role, then you can’t offer the minimum wage except you are the only firm still recruiting for that role.&nbsp;‍Therefore, to make this guide more valuable for you, let’s consider what the average salary is for different categories of workers in Kuwait.&nbsp;‍Data from <a href="https://www.salaryexplorer.com/average-salary-wage-comparison-kuwait-c115" id="">Salary Explorer</a>, a platform providing salary and cost of living data, shows that the average monthly salary (the absence of personal income tax means there is no need to distinguish between gross and net pay) in Kuwait is KWD1,270. They also note that low-income earners earn an average of KWD320 while the high flyers earn an average of KWD5,640.‍Other key data are provided in the chart below:&nbsp;<figure class="w-richtext-figure-type-image w-richtext-align-fullwidth" style="max-width:688px" data-rt-type="image" data-rt-align="fullwidth" data-rt-max-width="688px"><div><img src="https://uploads-ssl.webflow.com/64ee360d2b5ab966af44d6b9/662a2d78be76c5d99f7bda9c_oZ0jmgGlgz004z9vTtTdIjcRm0c9YTFT10RMlrAg1461imsSJPziPQXGpLb7IRwUtAek2DzMUGHLIx-cel2F73Y7xl1jg4M6OeqBJMszr9ZDDUzsOryDfKdMdF9yQ2DNYCQf44BM-opFHwQvdFRdPh0.png" width="auto" height="auto" alt="" loading="auto" id=""></div></figure>‍However, data from <a href="https://blog.wego.com/average-salary-kuwait/#:~:text=The%20average%20income%20for%20both,at%20the%20end%20of%202021." id="">Wego</a>, a travel blog, shows that the average salary for Kuwaitis in both the public and private sector is KWD1,493 while “non-Kuwaiti workers in either sector continue to receive a significantly lower average wage of KWD 338.”&nbsp;‍A study by Al Shall, a business consultancy firm, reported by <a href="https://timeskuwait.com/news/average-monthly-salary-of-kuwaitis-is-1538-dinars-al-shall-report/" id="">Times Kuwait</a>, a news agency, puts the figures at KWD1,538 for Kuwaitis and KWD337 for foreign workers. They also note that these “figures do not include domestic workers, which will leave a significant impact on the wage rates of non-Kuwaitis, if taken into account, nor do they include the impact of employment support given for Kuwaitis working in the private sector.”‍For cross-country comparisons, <a href="https://ceoworld.biz/2023/08/25/countries-with-the-highest-and-lowest-average-salaries-2023/" id="">CEOWorld</a>, a business magazine published the average monthly salaries for 105 countries.&nbsp;‍According to them, the average salary in Kuwait is $1854.45, which puts it at 4th in the Arab world (and in the Gulf Cooperation Council) and 26th in the world.&nbsp;&nbsp;‍<h2>3. How to pay employees in Kuwait</h2>When paying workers in Kuwait, there are some payment guidelines that you must also be aware of.&nbsp;&nbsp;‍That is, it is not enough to pay the minimum salary, you must also be familiar with other important legal requirements.&nbsp;‍The <a href="https://kuvait.mfa.gov.hu/assets/03/54/68/2937dc434147a45919353f5d3aa861cc69e84dcf.pdf" id="">Kuwait Labour Law</a> prescribes that salaried workers must receive payment at least once per month while other workers must have wages paid at least once every 2 weeks.&nbsp;‍Also, the maximum grace period for payment is 7 days. Refusal to pay workers 7 days after the due date agreed with them in their employment contracts can cause legal troubles.&nbsp;‍Other rules regarding the payment of workers include:&nbsp;<ul id=""><li>Every worker should have a detailed employment contract</li><li>Employment contracts must state what wages are to be paid in the local currency</li><li>Payment of wages must be made in the local currency</li><li>Wages must be paid as direct deposits into the local bank accounts of workers</li><li>Receipts of wage payments must be submitted to the MSAL</li><li>Employers must pay 10% of Kuwaitis’ wages in the compulsory pension scheme</li></ul>‍If your workers are working overtime, there are also guidelines you must follow:&nbsp;<ul id=""><li>Overtime hours are limited to 2 hours a day and 3 days a week</li><li>Overtime pay is 125% of basic pay if the overtime hours fall on a normal working day</li><li>Overtime pay is 150% of basic pay if the hours fall on a rest day</li><li>Overtime pay is 200% of basic pay if the hours fall on a public holiday</li></ul>‍As said above, Kuwait has a 48-hour work week (except during Ramadan when there are 36 working hours), which translates to 8 hours per day. However, workers must not be active for more than 5 hours at a stretch; there should be a period of rest within the work day.&nbsp;‍You can find other information regarding leave and termination in the Labour Law quoted above.&nbsp;‍<h3 id="">Experiencing seamless payments in Kuwait</h3>If you are a business owner or getting ready to start your business, you need a trustworthy payment system that is also fast, cost-effective, and seamless.&nbsp;&nbsp;‍Before you can pay your workers at the right time, you must receive timely payments from your workers.&nbsp;‍At <a href="https://kemkuwait.com/" id="">Kem</a>, we provide you with an <a href="https://kemkuwait.com/blog/online-payments" id="">instant payment platform</a> that allows you to quickly collect payments from your customers through QR codes.&nbsp;‍If you are an in-store business, your customers can scan your printed QR code on the Kem app for instant payments. And if your customers want to pay online, you can send them your digital QR code on the app.&nbsp;‍The use of QR codes will save you from the costs of unsuccessful card transactions, help you process payments instantly, and offer convenience and ease to your customers (which makes it likely that they will choose your business).&nbsp;‍Kem protects the data of users through its encryption system (available for public WiFi, private WiFI, 3G, 4G, and 5G) and bank-level fraud detection infrastructure and safety standards. Also, Kem is <a href="https://www.techtarget.com/searchsecurity/definition/PCI-DSS-Payment-Card-Industry-Data-Security-Standard" id="">PCI Data Security Standard (PCI-DSS)</a> Level 1 compliant. You and your customers have nothing to worry about.&nbsp;‍[Do you want to improve your revenue collection so you can pay your workers in a timely fashion? <a href="https://kemapp.io/" id="">Download the Kem app</a> to enjoy the benefits of instant and contactless payments through QR codes.]&nbsp;<h2 id="">Takeaways</h2><ul id=""><li>The minimum wage for private sector workers in Kuwait is KWD75 ($242 at the time of writing).&nbsp;</li><li>Many countries with migrant workers in the UAE have specific minimum wage guidelines for employers looking to employ their citizens.&nbsp;</li><li>While the minimum wage in Kuwait is KWD75, the average monthly salary is above KWD1,000 for Kuwaitis and more than KWD300 for expat workers.&nbsp;</li><li>Employers must pay competitive wages and do so in compliance with the labour law.&nbsp;</li></ul>

Complying with minimum wage laws in Kuwait will help you steer clear of legal issues and establish a positive image for your company.