Unconventional elements of strength enjoyed by Kuwait are driven by the strong purchasing power of citizens and residents, and high rates of consumer spending, which is characterized by continuous growth, amidst stability in price levels and inflation rates, which has made Kuwait a destination for retail projects, accommodation and food service providers, not to mention many projects. Others are looking for unconventional purchasing power rates amid a package of other advantages that make it easier for them to engage in activity.
Official figures show that the average consumer spending per capita in Kuwait (citizen and resident) is about 8.8 thousand dinars annually (about 29 thousand dollars), as about 4.79 million citizens and residents during 2022 spent about 42 billion dinars through about 844.5 million purchases or purchases. Withdrawing cash via bank cards, while these numbers did not stop there, as data for the first half of 2023 showed continued growth in spending rates to reach 23 billion dinars in just 6 months, an increase of 10.3%, amounting to 2.138 billion dinars, compared to 20.766 billion dinars spent during the same period in 2022, reports the Q8 press.
With a close look at the numbers, the growth rates of consumer spending in Kuwait give an indication of the continuity that generates opportunities for all investors to have a share of the spending rates, especially amid the radical changes witnessed in aspects of spending via bank cards, as new activities that rely on online payment via the Internet have become popular. With a large share of spending that rivals direct payment operations via points of sale.
Data for 2022 show that spending on direct purchases at points of sale accounted for 39% of the total spending by about 16.3 billion dinars, an increase of 21.6%, amounting to 2.9 billion dinars, compared to 13.4 billion dinars spent through points of sale in 2021, and the total number of direct purchases increased. By 37%, with a number of 141.78 million purchases, bringing the total number of transactions by the end of 2022 to about 525.7 million transactions, compared to 384 million transactions by the end of 2021, which reflects the growth rates witnessed in spending in quantity and quality.
Spending rates through points of sale continued to grow during the first half of 2023, as data showed an increase of 8%, amounting to 645 million dinars, reaching 8.751 billion dinars, compared to spending amounting to 8.106 billion dinars during the same period in 2022.
Amid online spending competing with traditional spending via points of sale, other opportunities are being generated for investors, as spending by citizens and residents via websites accounted for 34.7% of their total spending during 2022, amounting to 14.58 billion dinars, as it increased by 43.6%, amounting to 4.42 billion dinars, compared to the volume of spending.
It reached 10.16 billion dinars in 2021, and by comparing that type of spending during the first half of 2023, it is clear that spending rates continue to grow significantly, as new record rates were recorded, increasing by 22.4%, amounting to 1.572 billion dinars, reaching 8.601 billion dinars during the period from January to The end of June 2023, compared to spending amounting to 7.029 billion dinars for the same period in 2022.
Speaking of consumer spending, we talk about merchandise imports, which are witnessing growth year after year, driven by the high purchasing power in the local market. The numbers show that Kuwait imported about 33.6 million tons of goods in 2022, which witnessed a slight increase of 11,126 thousand tons compared to 2022. 33.59 million tons by the end of 2021, and import growth continued during the first half of the current year, as Kuwait’s imports during the period from January until the end of June 2023 amounted to about 18.7 million tons of goods, compared to 16.8 million tons of goods during the same period in 2022, that is, a growth rate exceeds 11%.
Regarding the most prominent commodities imported by Kuwait, it appears that spending on luxury and durable goods has a large share, not to mention food commodities that occupy a significant share in the country’s imports.
The data showed an increase in Kuwait’s consumption of perfumes and preparations by about 7%, with a value of 14.76, bringing Kuwait’s imports of essential oils, resinous material extracts, perfume preparations, or “cosmetic” or cosmetic “toilet” softening products to about 234.29 million dinars by the end of 2022, compared to 219.53 million dinars by the end of 2021. The value of Kuwait’s imports of perfumes amounted to about 133 million dinars in 6 months, including 66.38 million dinars during the period from January to the end of March 2023 and 66.62 during the period from April to the end of June of the current year.
Kuwait’s imports of precious stones and precious metals increased by 9%, amounting to 61.48 million dinars in 2022, as the value of Kuwait’s imports of natural or cultured pearls, precious and semi-precious stones, precious metals, ordinary metals covered with a veneer of precious metals, and the manufactures of these materials, jewelry, and leashes amounted to about 752.54 million. dinars in 2022 compared to 691.06 million dinars in 2021, and in the first half of 2023, Kuwait’s imports amounted to about 320 million dinars in 6 months, reaching about 143.76 million dinars during the first quarter, compared to 176.23 million dinars during the second quarter of the year.
Imports of watchmaking items and their parts during the year amounted to about 88.748 million dinars, compared to 89.99 million dinars during 2021, while during the first half of 2023, they recorded about 44.7 million dinars, with 23.9 million dinars of watch imports during the second quarter of 2023, and 20.8 million dinars imports in the first quarter of the same year.
Kuwait’s imports of cars increased during 2022 by about 21.6%, amounting to about 260 million dinars, to reach 1.458 billion dinars, compared to 1.199 billion dinars at the end of 2021. Cars also accounted for about one billion dinars of merchandise imports during the first 6 months of 2023, as the value of imports amounted to The country’s number of cars, tractors, bicycles and other land vehicles amounted to about 933.34 million dinars, 488 million during the second quarter of the year, and 445.34 million during the first quarter of 2023.
In line with the high spending capacity in Kuwait, the country enjoys strong and extended trade relations with many countries that enjoy varying economic advantages, which is evident from the volume of trade exchange between Kuwait and those countries, whether import or export, as the list of countries that deal commercially with Kuwait includes countries Great economic powers achieve many common benefits, and increase the ability of projects to deal with these countries as they are strong markets, whether importing or exporting.
Kuwait’s exports to the UAE during 2022 amounted to about 307.7 million dinars during 2022, an increase of 26.6% compared to 243 million dinars during 2021. As for imports, they witnessed a noticeable increase, reaching during the year 2022 about 1.33 billion dinars, compared to 1.143 billion dinars at the end of 2021.
Kuwait’s exports to the Kingdom of Saudi Arabia witnessed remarkable growth during the past year, reaching by the end of 2022 about 258.54 million dinars, an increase of 17.74% compared to 219.65 million dinars in 2021, while Kuwait’s imports from the Kingdom increased by about 14%, as the value of its imports during 2022 reached about 578.12 million. dinars, compared to 508.7 million dinars in 2021.
Kuwait’s exports to China during 2022 amounted to about 167.78 million dinars, compared to 215 million dinars during 2021, while the country’s imports from it witnessed a remarkable growth of about 20%, amounting to 340 million dinars, reaching about 2.06 billion dinars at the end of 2022 compared to 1.7 billion dinars at the end of 2021. .
Kuwait’s exports to India recorded a remarkable growth during 2022, as they increased by about 29% to 272.5 million dinars, compared to 211.7 million dinars during 2022, and the country’s imports from there also recorded a growth of about 20%, reaching during 2022 about 600 million dinars, compared to 500.6 million dinars in imports. In 2021.
Turkey occupies an important place as one of the markets from which Kuwait imports, as the value of Turkish imports to the country during 2022 amounted to about 260.7 million dinars, an increase of 15% compared to 227.7 million dinars imports during 2021.
Iraq is one of the markets that accounts for a good percentage of Kuwaiti exports, as Kuwait’s exports to it in 2022 amounted to about 107.16 million dinars, compared to 152.3 million dinars in 2021.