Indians Can Save Big on Gold in Kuwait – Here's What You Need to Know on Customs Duty and Limits

14/03/2025

KUWAIT CITY, March 14: Kuwait, particularly its bustling capital, Kuwait City, is renowned for its exceptional gold. The city is a treasure trove of vibrant souqs, brimming with an exquisite array of jewelry and gold bars in various weights. What sets Kuwaiti gold apart is its unparalleled purity, thanks to the government’s stringent quality controls that ensure every piece is free from adulteration. While gold prices are consistent globally, savvy shoppers know to check the daily price per gram before making a purchase. Merchants won’t sell below market value, but the real game-changer is the making charge—your negotiation skills can make all the difference in how much you pay. It is the same whether you’re in Kuwait, Dubai, India, or anywhere else in the world.

For Indian buyers, Kuwait offers a compelling cost advantage, even after accounting for import duties. As of 14th March 2025, 24K gold in Kuwait is priced at KD 288.740 per 10 grams, roughly Rs 77,933. Compare that to Mumbai, where the same quantity costs around Rs 89,780, giving Kuwait a 14.121% edge. This price gap is fueled by Kuwait’s tax-free policies and fiercely competitive gold market. Even after adding a 6% customs duty when importing to India (totaling Rs 82,608 per 10 grams), buyers still save approximately Rs 7,172 per 10 grams compared to Mumbai prices. For gold enthusiasts, Kuwait isn’t just a shopping destination—it’s a golden opportunity.

Why is Gold Cheaper in Kuwait?

Gold prices in Kuwait are generally lower than in India due to differences in tax policies and import duties. Unlike India, Kuwait does not impose high value-added taxes on gold, making it more affordable.

Over the years, Kuwait has established itself as a significant gold market in the Middle East, benefiting from its strategic location and duty-free policies. Additionally, Kuwait’s refining industry ensures high-quality gold at competitive prices. In contrast, India imposes a 3% GST and other taxes on gold, making it 15–20% more expensive than in Kuwait. The lack of advanced refining and storage facilities in India also contributes to higher gold costs. Besides this adulteration of gold is high in many South Asian countries.

Legal Framework for Gold Import into India

India regulates gold imports under the Passport Act of 1967, which allows Indian-origin passengers or valid passport holders to carry up to 1kg of gold back to India. Duty-free allowances are capped at 20 grams for men and 40 grams for women, with a maximum value of Rs 50,000 and Rs 1 lakh, respectively. Children are also eligible for similar allowances based on gender.

These exemptions apply to travelers returning after at least six months abroad, provided they have not previously availed of this benefit during short visits. This structured policy ensures that individuals can legally bring gold into India while adhering to customs regulations.

Custom Duty on Gold Imports

The Indian government enforces customs duties based on a predefined tariff value rather than the actual purchase price in Kuwait. This maintains uniform taxation and ensures revenue collection. As of February 28, 2024, the Central Board of Indirect Taxes and Customs set the gold tariff price at KD 248 per 10 grams, a reduction from KD 288, aimed at balancing legal imports with tax revenue.

Where to Buy Gold in Kuwait?

Kuwait boasts a thriving gold market, with numerous locations for buyers:

Souk Al-Watiya: Located in Kuwait City, this traditional market offers a vast selection of gold jewelry, bullion, and coins at competitive prices. This is also a great spot to purchase gold or jewelry, and on Fridays and Sundays, the entire area resembles a mini India Town and Filipino Town.

Gold and Jewelry Shops in Salmiya and Hawally: These areas house many renowned jewelers, catering to both investors and casual buyers.

Kuwaiti Gold Souq: 21 carat gold ornaments are more here, as you will find Arabic/ Kuwaiti designs
The central Gold Souk (Souk Al-Dahab Al Markazi): This area houses the government office where gold can be tested for purity and hallmarked. It offers an impressive collection of gold and a diverse range of jewelry styles on display. Visitors can also have custom designs made, but it's essential to request a certificate of authenticity.
Fahaheel Gold Shops: Located about 25 miles south of Kuwait City, this suburb is home to numerous gold shops

The affordability of gold in Kuwait makes it an attractive destination for Indian buyers. With lower taxes and high-quality refining, gold remains cheaper compared to India. Despite the import duties, purchasing gold from Kuwait remains cost-effective for Indian consumers, provided they comply with legal import limits and regulations.

Traveling with Gold from Kuwait?
Here’s what you should know before leaving Kuwait if you’ve purchased gold. Travelers must provide proof of ownership, such as a purchase invoice, along with their identification documents. They must also submit these details to the Air Cargo Customs Department at Kuwait Airport at least one day before travel. Upon arrival at the airport, travelers must present the issued statement to customs inspectors for a smooth journey.

The rule applies to all gold bars and coins, regardless of size, as they are considered monetary assets rather than personal items like jewelry. This process ensures transparency and safeguards travelers by proving their ownership and good faith.

For gold jewelry, reasonable quantities for personal use do not require a statement. However, excessive amounts may trigger standard customs procedures, with inspectors using their discretion to assess each case.

By JCF

Al-Seyassah/Arab Times Staff