Al Kufah, Iraq

Capital City

Living costs in this Iraqi city are a fraction of Western prices, but chronic instability and infrastructure challenges make it an unlikely choice for most expats. The population of 171,305 inhabits one of Shia Islam's holiest cities, located 170km south of Baghdad along the Euphrates River.

Originally founded in 638 CE as a military garrison city, Kufa evolved into a major religious and intellectual center. It served as the final capital of Caliph Ali ibn Abi Talib and later became the founding capital of the Abbasid Caliphate. The city gave birth to the distinctive Kufic script and was home to influential Islamic scholars, though its political importance declined after the Abbasids moved their capital to Baghdad in 762. Today, while the city maintains deep religious significance with numerous holy sites and mosques, including the Great Mosque of Kufa where Ali was fatally wounded, its infrastructure and economy remain underdeveloped by modern standards.