Important Concerns for all of us.-Please give your valuable remarks

Hello there msax2001in!

Well yes it is true that oil prices have been falling and are close to their lowest levels ever. And recent trends show that they are not going to go up soon. If this lasts for a long time the economy will suffer.

But I am pretty sure that the GCC countries and the OPEC will device a strategy to arrest the fall in prices soon, although it will take some time before they can show an upward trend. Kuwait has enough reserves to withstand any temporary shocks like this. And the rents are already high and inflation has been prevalent before the drop in oil prices so this will not have a major impact on them.

To be frank, my job is going on fine. I still get the usual inquiries for Apartments and new people are still coming to Kuwait. So there is no immediate need to press the panic button yet. Try to contact with your prospective employer/Co. and make sure that the terms that were offered to you before are still effective and valid and have not been revised.

That is what I can put as my two cents in response to your queries.

Dear MK,

Hope you are doing well,

The one of the main reason of falling the oil price is, the ban which was posed on Iran has been removed and now all the countries can buy an oil from iran, iran sell the oils in very low rate so the oil industries of Kuwait, Saudi, etc are suffering but hope it will be sorted out soon. (I am NOT SURE that this is only the reason of falling the oil price)

About job and salary, me and I can tell on the behalf of 300 employees working in our company, that we don't even realize about the price and it did not affected at all for our salary and job, even we got bonus LOL  . (I know about all 300 employees because i work in HR  )

Hi Ayyaz and Nilesh,

This is my concern as well for which I have created a new topic few days back.

Electricity, water and petrol - prices are expected to go up once subsidies are lifted. Saudi has spiked petrol by 50% and Qatar by 30%. News articles say next is Kuwait's turn.

Once subsidies on all the three are lifted, what will be the impact on our savings ?  I am afraid with the increase in fuel, electricity, inflation will further grow up and the rent would shoot up further. 2015 went away unaffected what about 2016 ?

Experts need your expertise.

Hi Ayyaz,Nilesh and Anim

Thanks for putting positive feedbacks and concerns. Being an expats we always worried about these types of issues which may or may not effect all.
But I am very sure things will improve shortly,may be in  few months.

Keep mentioning your feedbacks.

Thanks
MK

Hello again Amwims,

Again there is no need to worry too much about lifting of subsidies on petrol. It will hardly matter because  at the moment. Mineral Water is more cheaper than petrol here. And water and electricity is mostly included in the rent already unlike in India. So the Landlord cannot charge additional if the subsidy on petrol & gas is lifted.

I agree with Nilesh that since Iranian oil has been flooding the market the prices have nosedived. But I am sure it is going to be arrested in the long run.

I am sure because the OPEC and other oil producing and exporting countries will not just sit back and do nothing if the prices continue to fall. Steps will be taken sooner or later to arrest the situation and save their economies. Also it will not be in Iran's interest to continue to sell at cheap prices for a long time.

So all in all, the situation will stabilize in some time.

Many thanks for the reply Ayyaz.

There is no doubt that things are getting tougher for expats!
The Kuwaiti government is committed to cutting 30% of expats in all its ministries.
The revenue from its oil has nearly halved.