Kuwait: Emerging Trends in a Steady Growth Market

Steady growing, rapidly maturing 

Kuwait's economy has indeed shown resilience in the face of a global slowdown, with a notable growth rate of 8.2%, the highest in the region. However, this growth is projected to slow down to 1.3% in 2023. Despite steady growth, Kuwait faces the challenge of a rapidly ageing population: By 2050, it is predicted that one in five Kuwaitis will be a senior citizen . In addition, rapid urbanisation is contributing to declining fertility rates.  

These demographic shifts cause societal disruption and pose challenges for marketers in addressing the needs of an ageing population.

Healthy thinking, unhealthy living

In Kuwait, there is a striking contradiction between attitudes to health and actual lifestyle habits. Although 79% of the Kuwait population believe that their health is in good shape, and half consider health a top priority, their behaviours do not always reflect this.  

Despite health being a priority, people are not making an effort to maintain a healthy lifestyle. People are more likely to believe that eating well is more important than exercising to achieving good health. Yet, the consumption of unhealthy foods is common.

This dissonance between belief and action contributes to rising health issues, with Kuwait having one of the highest obesity rates in the MENA region.

Digital revolution: reshaping Kuwait's landscape

Kuwait has a sophisticated digital infrastructure and one of the highest internet penetration rates worldwide, hence digitalisation is infiltrating many aspects of people’s lives in Kuwait.

According to Ipsos findings, online shopping has gained significant traction – three in five people shop online and spend more when shopping online and 95% of people with a bank account now use digital banking, showing how digital channels have already acquired massive traction. In addition, e-wallet usage has grown by 25% in the past year alone, showing they are also a key part of this ever-changing landscape.

Kuwait is already well on its way towards reshaping its financial landscape through the seamless integration of technology and finance, and the emergence of non-traditional providers that challenge the conventional narrative. This transformative journey will continue to shape the future of Kuwait's financial sector and enhance the overall customer experience.

Aftab Ellahi

Chief Client Officer, Ipsos in Kuwait & Bahrain