How to Open a Bank Account in Kuwait?

Although HSBC, Citibank and BNP Paribas operate in Kuwait, they do not offer personal banking services. However, many international banks, including Qatar National Bank, Doha Bank and Mashreq Bank, do. These are most useful if you are from another Middle Eastern country or will be visiting these countries frequently. Mashreq Bank offers accounts in USD, while QNB and Doha Bank allow you to open accounts in USD, GBP, or EUR.

Opening a Bank Account in Kuwait

Many expats in Kuwait opt to have an overseas account while maintaining their accounts back home. However, with excellent local and international banking options available, your choice will ultimately depend on your personal circumstances.

Banking in Kuwait

In Kuwait, there are 11 domestic and 12 foreign banks, all regulated and supported by the Central Bank of Kuwait.

The state adopted a Friday and Saturday weekend in 2007, shifting from the previous Thursday and Friday schedule. Most banks are open on weekdays from 8 AM to 3 PM, though operating hours can vary by branch and region. Some may reopen for a few hours in the evening, and many airport branches are open 24/7.

The Importance of Opening a Bank Account in Kuwait

Many expatriates in Kuwait have financial commitments in their home countries, requiring them to send significant amounts of money back. Consequently, many choose to open an offshore account in their home currency to avoid paying extra taxes on their earnings. However, local and international banks also offer accounts in USD, GBP, and Euro. While there is no income tax in Kuwait, you will need a local or offshore account for your salary if you wish to avoid being taxed on it in your home country.

To open a bank account in Kuwait, you must be a resident. When you're ready to open a local account, the bank will require your residence visa and a No Objection Certificate (NOC), which your employer or sponsor will typically help you obtain before you arrive. Some banks may also ask for photographs, your rental agreement, and your passport.

Most banks require a minimum deposit or opening balance, which can be higher for foreigners than for citizens. Since the Kuwaiti Dinar has such a high value, this can be a substantial amount. For instance, the National Bank of Kuwait (NBK) requires a minimum of 500 KWD to open a current account, which is roughly equivalent to $1600 USD or £1300 GBP.

Most banks offer current, salary, and savings accounts. Many banks permit joint accounts, but some foreigners have reported being denied a joint account as a married couple, citing Kuwait's high divorce rate. If you cannot open a joint account and your spouse does not work in Kuwait, they can open their own account with your permission as their sponsor.

The terms and conditions are often in Arabic, so if you don't speak the language, ensure you have a fluent speaker to review everything for you before you sign up for an account.

Choosing a Bank in Kuwait

As Kuwait is a Muslim country, there are numerous Islamic banks operating here. If you wish to open an Islamic bank account that complies with Sharia law, Kuwait's local Islamic banks are Al Ahli United Bank, Kuwait International Bank, Boubyan Bank, and Warba Bank. The foreign Islamic bank, Al-Rajhi Bank, also has branches in Kuwait.

Non-Islamic Banks in Kuwait

There are five local non-Islamic banks in Kuwait: NBK, Commercial Bank of Kuwait (CBK), Gulf Bank, Al Ahli Bank of Kuwait (ABK), and Burgan Bank. Gulf Bank offers current and savings accounts. They also provide foreign salary accounts for newly-hired, first-time expatriate employees working in the government, private, or oil sectors with a monthly salary over 400 KWD. ABK has two salary accounts, depending on your income, as well as savings accounts.

Commercial Bank of Kuwait and Burgan Bank also have salary, current, and savings accounts, with the Commercial Bank having the lowest opening balance requirement at just 100 KWD.

NBK is the most popular among expats, with a range of current and savings accounts, including an 'express' account that is free and requires only a 10 KWD opening balance. However, it requires an expat salary of 400 KWD per month (250 KWD for Kuwaitis) and is only available in Kuwaiti Dinar. Their standard current accounts can be opened in KWD, USD, and GBP, but the required opening balance is higher (500 KWD).

Although HSBC, Citibank, and BNP Paribas have operations in Kuwait, they do not offer retail banking services. However, several international banks do, including Qatar National Bank (QNB), Doha Bank, and Mashreq Bank. These are most beneficial if you are coming from or will be frequently visiting other Middle Eastern countries. Mashreq Bank offers accounts in USD, while QNB and Doha Bank allow you to open accounts in USD, GBP, or EUR.

How to Open a Bank Account in Kuwait?

If you are considering moving to Kuwait, you are not alone, as expats make up 70% of the country's population. The country's currency is the Kuwaiti dinar, which is currently the world's highest-valued currency, worth over 3.20 USD. No matter which country you move to, you will generally have similar banking options. For example, if you have income or bills to pay back home, you may find it useful to keep your current account. Alternatively, you can open an account with a local or international bank in your destination country, which may be required by your employer and reduce ATM fees. In some countries, offshore banking may be the most sensible option.