Consumer Confidence Returns to High Levels

ARA Research & Consultancy released its Consumer Confidence Index for Kuwait for July 2025, sponsored by Lexus.

The ARA General Index increased by 9 points in July after months of consecutive decline, returning to its elevated levels and recording 118 points. This increase compensated for the previous losses and brought the index close to its previous level, at the beginning of the year (120 points). All sub-indexes making up the General Index increased. Confidence increased among both Kuwaitis (by 7 points) and Arab residents (by 12 points), as well as among Females (by 14 points) and Males (by 8 points).

Confidence in the Current and Expected Economic Situation Increases to Record Levels

The Current Economic Situation Index recovered, increasing by 9 points in July to record 114 points. This is its highest level in a year. This level is considered high, as the Current Economic Situation Index has rarely surpassed 110 points, since the establishment of the ARA Index in 2007. The increase was comparable for Kuwaitis and Arab residents alike, at 8 and 9 points respectively.

The Expected Economic Situation Index also compensated for the losses recorded during the current year, increasing by 11 points to reach 124 points in July, close to its January level (125 points). This significant increase was mainly driven by an increase of 16 points in confidence among Kuwaitis compared to an increase of 6 points among Arab residents. With this increase, the Expected Economic Situation Index attained levels seldom seen, having rarely surpassed 120 points.

Several factors may have contributed to strengthening the consumer confidence, both in Current and Expected economic situation:

• The relative increase in oil and natural gas prices since the last quarter of July, despite continued price volatility and uncertainty in market stability.
• Balanced performance of the stock exchange and gains achieved.
• Government support for non-oil economic sectors and increase in the share of this sector during 2025. The Kuwaiti state strategy, including the enactment of the Finance Law and securing liquidity, contributed to raising the growth rate and implementation of a large proportion of planned projects. Non-oil sector growth is expected to increase by 2.5 percent this year.

Current Personal Income Index Surpasses the 100 Point Threshold

The Current Personal Income Index adjusted to its level, as Arab residents regained most of the loss recorded in the previous month, increasing by 19 points in July. In contrast, the index decreased by 7 points among Kuwaitis, which was 1 point more than the increase recorded in June. Consequently, the Current Personal Income Index recorded 106 points in July, increasing by 7 points during the month and stabilized at a medium level.

Expected Personal Income Index Maintains Its Levels

The Expected Personal Income Index increased by 3 points, recording 112 points. It also compensated for the previous decline among Arab residents, increasing by 8 points. In the case of Kuwaitis it decreased by 5 points, which was 1 point more than the gain recorded in June. Thus, confidence in Expected Personal Income persisted at its elevated level for more than two years.

Employment Opportunities Index Recovers

The Employment Opportunities Index jumped by 33 points, reaching 159 points at the end of July, overcoming the sharp decline of the previous month. The index made up  for its earlier losses among Arab residents, increasing by 51 points, while it continued to increase among Kuwaitis, gaining 21 points.

Purchase of Durable Goods Index Continues to Increase

The Purchase of Durable Goods Index recorded 122 points in July, increasing by 15 points during the month. The index increased especially among Kuwaitis (by 22 points) and among Arab residents (by 5 points). The index generally increases during the summer months, driven by higher household demand when children spend more time at home due to school holidays.

LEXUS SETS NEW GLOBAL SALES RECORD AND

DRIVES ELECTRIC VEHICLE INNOVATION

Lexus reaffirmed its strategic focus on the battery electric vehicle technology with the world premiere of its new RZ luxury electric SUV in Brussels. Lexus revealed that this model will introduce both a steer by wire system and Interactive Manual Drive, a software-based system which replicates the experience of manual gear shifting.

Rapid Growth Through Electrified Powertrain Strategy

The RZ will be one of three new BEVs Lexus will launch in the next 12 months. These announcements were made against the backdrop of record sales achievements and rapid growth in customer demand for Lexus’ battery electric and plug-in hybrid models.

This robust global growth was further supported by the brand’s outstanding performance in Europe, where sales rose by up to 20% to over 88,000 units, capturing a 2.5% market share—Lexus’ largest ever in the region. The sales momentum has carried out in 2025, with the first two months showing a continued increase of more than 20%.

The new Lexus RZ Reveal in Europe

The new Lexus RZ advances EV innovation with several key features. It introduces Lexus’ first steer-by-wire system for smooth, intuitive control, and debuts the Interactive Manual Drive in the RZ 550e F SPORT, providing a mechanical-like paddle shifting experience. Enhancements to the DIRECT4 all-wheel drive system allow for more balanced power distribution, boosting stability and traction.