Under Sheikh Mubarak Al Sabah (1896 – 1915), the political and commercial importance of Kuwait increased substantially, bringing with it the need for a palace that would be a fitting centre of power. Sheikh Mubarak already owned a house that overlooked the sea – opposite the building were stables and storerooms, and it was on this site that Sheikh Mubarak ordered his palace, which came to be known as Seif Palace, to be built.
Sheikh Mubarak had a close relationship with Sheikh Khazaal Bin Merdaw, a prominent tribal leader on the east coast of Shatt Al-Arab, and it was Sheikh Khazaal who sent an architect from Baghdad to design and construct a palace worthy of the ruler of Kuwait. The architect suggested adding a wing to the western part of the stable in addition to enlarging the original building. The floor was covered in yellow tiles brought from the town of Al Emara, which lies to the north of Basra.
External walls and the staircase were built, and doors, windows and wooden arches decorated with stained glass were also added. The palace was built in 1324 A.H , 1906/1907 A.D.