27/01/2025
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27/01/2025
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Shoppers exploring the vibrant retail scene at The Avenues Mall in Kuwait, one of the country's premier shopping destinations
KUWAIT CITY, Jan 27: Kuwait’s consumer spending reached an unprecedented level in 2024, with total expenditures by citizens and residents hitting 47.81 billion Kuwaiti dinars (KD). This represents a year-on-year increase of KD 2.02 billion, or 4.4%, compared to 2023, when spending totaled KD 45.79 billion, according to official data released by the Central Bank of Kuwait.
Strong Growth in Point-of-Sale Transactions
Spending through point-of-sale (POS) transactions, both domestically and internationally, surged to KD 18.92 billion, marking an increase of KD 1.4 billion or 8.02% compared to KD 17.52 billion in 2023. This growth highlights the increasing adoption of card-based payments for purchases, both in Kuwait and abroad.
Decline in Cash Transactions
Meanwhile, the value of cash withdrawals via ATMs declined significantly, reflecting a shift away from cash transactions. ATM withdrawals totaled KD 10.08 billion, down KD 636 million or 5.93% from KD 10.72 billion in 2023. This trend underscores Kuwait's growing preference for digital and electronic payment methods.
Rising Popularity of E-Commerce
The Central Bank’s data also showed robust growth in online transactions, with the total value of electronic payments, both within and outside Kuwait, reaching KD 18.8 billion in 2024. This represents an annual increase of KD 1.25 billion, or 7.12%, compared to KD 17.55 billion in 2023.
Shifting Consumer Trends
The data highlights a broader trend in Kuwait towards electronic transactions, reflecting the increasing digitization of the economy and the declining reliance on cash. With continued growth in e-commerce and the widespread use of POS systems, consumer spending patterns in Kuwait are rapidly evolving towards more convenient and technologically advanced payment solutions.
This record-breaking consumer spending underscores the resilience and modernization of Kuwait’s economy, as well as the increasing role of digital payments in daily financial activities.
