Cash withdrawals remain predominant in Kuwait despite a push towards digital payments
Despite significant increases in digital payment methods, cash withdrawals from ATMs continue to represent a considerable share of overall financial transactions.
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The total financial payment withdrawals in Kuwait during 2023 reached approximately 45.795 billion dinars, showing an 8.5% increase from the previous year. Even with a slight decline in ATM withdrawals, these still made up roughly 23.5% of all transactions, totaling 10.722 billion dinars.
The volume of transactions at point-of-sale terminals reached 17.519 billion dinars, and online payments experienced a notable surge to 17.553 billion dinars. The Kuwaiti government has implemented measures to minimize cash usage, including prohibiting cash transactions for real estate and pharmacy purchases exceeding 10 dinars, as part of efforts to combat money laundering.
However, the continued reliance on cash can be attributed to factors such as increased household expenditures due to inflation and a significant segment of the workforce being unbanked.
The black market also significantly influences the high rate of cash withdrawals, especially for money transfers and illegal activities such as drug trafficking. Despite regulations aimed at preventing money laundering, a preference for cash transactions exists among some individuals to elude monitoring.
Kuwait stands out for its financial digitalization within the Gulf region, yet reducing cash transactions poses a challenge. With digital payments projected to hit $11.95 trillion globally by 2025, the trend indicates a move away from cash worldwide. Although countries like Sweden have made strides in diminishing cash usage, Kuwait faces ongoing challenges in shifting away from cash transactions, underscoring the necessity for enhanced measures to foster the adoption of electronic payments.
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Saudi Arabia ranked first among countries for the non-oil exports of national origin with BD201 million (22%)
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Bahrain’s non-oil exports of national origin decreased by 6% to BD894 million ($2.37 billion) in Q2 2024 compared to the same period in 2023. The top 10 countries accounted for 64% of the total export value.
According to the Information & eGovernment Authority (iGA) in its Q2 2024 Foreign Trade report, Saudi Arabia was the leading destination for these exports, totaling BD201 million (22%). The US followed with BD75 million (8.4%), and the UAE with BD73 million (8.2%).
Unwrought aluminum alloys were the top exported product in Q2 2024, amounting to BD267 million (30%), followed by agglomerated iron ores and concentrates alloyed at BD159 million (18%) and non-alloyed aluminum wire at BD49 million (5%).
Non-oil re-exports
Non-oil re-exports increased by 4% to reach BD206 million during Q2 2024, compared to BD198 million for same quarter in 2023. The top 10 countries accounted for 86% of the re-exported value. The UAE ranked first with BD58 million (28%) followed by Saudi Arabia with BD39 million (19%) and UK with BD17 million (8%).
As per the report, turbo-jets worth BD65 million (32%) were the top product re-exported from Bahrain, followed by private cars with BD11 million (5%) and four-wheel drive with BD9 million (4%).
The value of non-oil imports has decreased by 4% reaching to BD1.41 billion in Q2 2024 in comparison with BD1.47 billion for same quarter in 2023. The top 10 countries for imports recorded 68% of the total value of imports.
China Bahrain’s biggest importer
China ranked first for imports to Bahrain, with a total of BD191 million (14%), followed by Brazil with BD157 million (11%) and Australia with BD112 million (8%).
Non-agglomerated iron ores and concentrates were the top product imported to Bahrain worth BD200 million (14%), followed by other aluminum oxide with BD101 million (7%) and parts for aircraft engines with BD41 million (3%).
As for the trade balance, which represents the difference between exports and imports, the deficit logged was BD310 million in Q2 2024 compared to BD322 million in Q2 2023.
Chris Dixon, a partner who led the charge, says he has a ‘very long-term horizon’
Americans now think they need at least $1.25 million for retirement, a 20% increase from a year ago, according to a survey by Northwestern Mutual
