All Indexes Decline Following a Series of Increases

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

The ARA General Index recorded 114 points by the end of September, decreasing by 7 points from its August level. The decline affected both Kuwaiti citizens and Arab residents, males and females alike. Five out of the six sub-indexes that make up the General Index decreased, while the Purchase of Durable Goods Index increased.
 ARA analysts consider this decline to be natural after a series of consecutive increases that pushed the index to its highest level in over a decade. They note that despite the declines across most indexes, overall consumer confidence remains high.

Slight Decline in the Current and Expected Economic Situation Indexes

The Current Economic Situation Index recorded 108 points in September, decreasing by 3 points within a month. The index dropped by 5 points among Kuwaitis and by 1 point among Arab residents. It also decreased by 4 points among females and 2 points among males.

Similarly, the Expected Economic Situation Index fell by 4 points to 121 points by the end of September. The index decreased by 8 points among both Kuwaitis and females, and by 1 point among Arab residents and males.

Meanwhile, Kuwait’s economy continues to improve, driven by several factors:

• A total of 141 development projects has been approved for the 2025–2026 fiscal year, including 17 newly added projects.
• The Kuwait Investment Authority invited real estate development companies to apply for prequalification for three housing projects: Al-Mutlaa City, and the East and West Saad Al-Abdullah Cities.
• Actual revenues reached 22.057 billion Kuwaiti dinars at the final closing of the 2024–2025 fiscal year, exceeding the budgeted figure by approximately 3.139 billion dinars. The deficit level also decreased by around 4.5 billion dinars from approximately 5.6 billion to 1.1 billion Kuwaiti dinars.
• The International Monetary Fund projects Kuwait’s growth at 2.6% in 2025, a notable increase from the 1% growth recorded in the first quarter, driven by higher oil prices and increased oil production by Kuwait.

Current Personal Income Index Drops by 13 Points

The Current Personal Income Index recorded 101 points by the end of September, decreasing by 13 points within a month. The decline was most evident among females, with a loss of 19 points, and among Kuwaitis, where it lost 17 points. The index also dropped by 9 points among males and 7 points among Arab residents.

This decline reflects several negative factors that have weakened confidence in current personal income. ARA analysts attribute it to wages stagnation or only minimal salary adjustments following expenditures and allocation controls process. In addition, purchasing power has declined due to rising prices of foodstuff, beverages, services, and other necessities by more than 5%, despite the containment of monetary inflation in Kuwait. Price increases are linked not only to inflation rates but also to higher shipping costs from nearby ports.

Expected Personal Income Index Maintains its Optimistic Levels

The Expected Personal Income Index recorded 112 points by the end of September, decreasing by 2 points only within a month. The minor decline in this index reflects consumers’ continued confidence in their future personal income. While the index remained stable among Arab residents, it decreased by 4 points among Kuwaitis, by 3 points among females, and by 2 points among males.

Purchase Intent Maintains its Levels

The Purchase of Durable Goods Index was the only one among the six sub-indexes to increase, adding 1 point to reach 119 points by the end of September. A closer look reveals a sharp contrast between Kuwaitis and Arab residents; the index rose by 10 points among Kuwaitis while it declined by 8 points among Arab residents.

Obviously, at this time, many Arab residents tend to return from their summer vacations, which they usually spend at their home countries, leading to higher spending and shopping levels. Accordingly, the purchasing index had recorded three consecutive increases among Arab residents, and the current decline indicates a normalization of spending, returning to early summer levels.

Employment Opportunities Index Declines

The Employment Opportunities Index fell to 144 points by the end of September, decreasing by 35 points within a month. The decline affected all social groups.

This index tends to fluctuate widely because of its relatively small base point. After recording high levels in July and August, it dropped back below 150 points in September.
 It is worth noting that many companies reduce hiring in the last quarter of the year to maintain net profit levels and increase their market value.

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