KUWAIT CITY — 18 September 2026. Kuwaiti banks have implemented stricter lending criteria for personal and consumer loans for expatriates following the Education Ministry's decision to initiate the first phase of terminating 7,019 teachers of various nationalities.
- Financial institutions are now utilizing an internal grey list of professions deemed susceptible to Kuwaitization, surplus staffing, or contract terminations.
- Minimum salary requirements range between KD 400 and KD 600 per month depending on the lender.
- The maximum combined consumer and housing finance remains capped at KD 95,000.
Financial institutions are now utilizing an internal
'grey list' of professions deemed susceptible to Kuwaitization, surplus staffing, or contract terminations. Under the new credit policies, job security and the stability of the employer are being weighed alongside traditional metrics like salary and credit history. While some lenders have established a minimum salary requirement of
KD 400 per month, others have set the floor at
KD 600. Applications involving new contracts, lower qualifications, or positions within cooperatives and public-benefit organizations are facing heightened scrutiny and reduced credit limits. Conversely, staff with approximately 10 years of service, who possess significant end-of-service benefits, are viewed more favorably, as their indemnity serves as a financial buffer. Certain banks now require written undertakings stipulating that end-of-service payouts must be directed to the lender if employment concludes before the loan is fully repaid. Despite these changes, the maximum combined consumer and housing finance remains capped at
KD 95,000, with monthly installments restricted to
40% of the applicant's net salary.
The
'grey list' of higher-risk professions includes government-school teachers in subjects identified as surplus—such as physical education and Islamic education—alongside select cooperative staff and surplus public-sector roles. Preferred status is maintained by
doctors, engineers, healthcare professionals, technicians, specialists in AI and technology, as well as staff employed by Kuwait Stock Exchange-listed firms or bank-approved employers. This policy shift significantly impacts
Indian, Egyptian, Jordanian, and other South Asian expatriates who rely on their salaries to manage bank EMIs for vehicles, furniture, and school fees.
According to figures identified in an education study, the ministry aims to address an overall surplus of approximately
33,268 posts. The first phase of teacher exits involves
7,019 individuals, comprising 1,551 men and 5,468 women, with the ministry projecting an annual salary saving of approximately
KD 42 million. Currently, expatriates account for roughly
3.7 million of Kuwait's 5.3 million residents. Local accounts and teacher groups have been circulating
Sahel-app termination notices since 7–8 September. Banking sources reported these developments to the
Times Kuwait, Arab Times, and Gulf News in mid-September, following the Ministry of Education's plan reported on 8 September 2026.
