Press release
Increased flow of Expatriates makes Kuwait the top destination in vehicle leasing
Vehicle Leasing Industry in Kuwait expanded with a CAGR of ~16.9% in 2021 and is poised to climb furtherKuwait's Vehicle Leasing Industry is expecting long-term growth on the back of an improving economy and a reduced reliance on the oil and gas sector. Kuwait automobile industry is supported by multiple factors such as labor availability, R&D efforts, geographic advantage and government support. It has been witnessed that people in the country specially millennials who lease vehicles prefer to change their vehicle in every 2-3 years so to drive a newer model.
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Expatriates account for more than 70% Kuwait's population, including Arab and Asian expatriates, FY'22
About ~67% of the total population in Kuwait are expatriates. The largest expat communities in the country are Indians and Egyptians. Amid strong demand for automotive vehicles, several domestic and foreign OEM manufacturers are planning to expand their production bases in Kuwait. Increase in working expats in Kuwait from different countries during this period increased the demand for car leasing services.
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Future scope of the vehicle leasing market in Kuwait
Leasing will continue to dominate in Kuwait. The SUV/MUV segment will see an increase in their revenue share. Vehicle Dealers will continue to dominate. Advertisement strategy will be useful on platforms such as Facebook, Instagram to increase the user base and tap different segments of the market. Specific target audience can be targeted using algorithms build by these platforms.
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