When the Heart Buys What the Mind Does Not Need: An Approach to the Kuwaiti Consumer Economy
In a showroom, a young man in his early twenties stands before the item he intends to purchase, not because he needs it, but because the image of him owning it will be posted on his social media accounts within hours. He signs the installment contract with a smile, while an employee calmly explains the interest rates, the true impact of which he will not realize until three years later. This scene, repeated daily in Kuwait’s shopping malls, is not an isolated incident but a visible symptom of a deeper socio-economic structure, deserving our attention as a fully established “consumption industry,” rather than merely an occasional individual behavior.
The French philosopher Jean Baudrillard stated decades ago that modern humans no longer consume goods for their utility, but consume the “brand” they confer socially.
In Kuwait, a small and socially cohesive society, this phenomenon is amplified; small societies are more sensitive to comparison and more keen on “maintaining a decent appearance” before family, neighbors, and colleagues. Thus, the commodity transforms from a means to an end, and debt becomes a tool for self-affirmation rather than meeting a need.
- Total credit facilities granted to residents in Kuwait reached approximately 54.141 billion Kuwaiti dinars by the end of March 2026.
- Of this total, personal facilities alone accounted for 20.052 billion dinars, representing an annual growth of 3.4% compared to March 2025—a growth rate far exceeding that of real household income.
- These personal facilities are distributed as follows: installment loans valued at 17.369 billion dinars, representing 86.6% of total personal facilities alone—meaning the vast majority of individual borrowing is not for purchasing real estate or investing, but for financing direct consumption (cars, travel, furniture, electronics).
- In contrast, the state budget for the fiscal year 2025-2026 recorded an actual deficit of 7.141 billion dinars, with actual revenues reaching 16.457 billion dinars against expenditures of 23.598 billion dinars.
When read through the eyes of an economic analyst, these figures tell the story of a society that borrows to consume, not to invest or build wealth. The real danger lies not in the number itself, but in its upward trend and the continued dominance of installment loans as a proportion, indicating that an entire generation is building its lifestyle on “permanent debt” rather than “cumulative savings.”
The family, where the culture of “appearance before substance” is inherited from childhood, fails to teach children the difference between desire and need, nor does it train them in delayed gratification—a fundamental psychological-educational skill that classic educational studies (such as the famous “Marshmallow Test”) have proven to be linked to later financial and life success.
The individual consumer, caught between social pressure and unprecedented financial ease, finds that credit cards and “apparently interest-free” installments have made purchasing an act devoid of psychological friction, while the true financial pain is deferred to future months.
The commercial entity, operating within the logic of the free market and seeking legitimate profit, becomes an unwitting partner in amplifying the phenomenon due to the absence of strict regulatory frameworks for certain marketing practices (such as urgent offers and tempting installment plans without a genuine assessment of repayment capacity).
The financial institution, which balances achieving returns with protecting the customer, faces a delicate and concerning equilibrium when employee incentives are tied to the volume of loans granted rather than their quality.
The government, acting as both referee and patron, bears responsibility that extends beyond legislation to include education, media, and urban planning (since mega-malls themselves are part of an environmental design that stimulates consumption).
So, who wins in this equation?
The irony is that every party “wins” in the short term, while everyone loses in the long run: the family is drained, the commercial enterprise loses its customers’ trust when they falter, the financial institution faces rising credit risks, and the government bears the ultimate social cost.
1. From Revelation to Public Policy: Before proposing institutional solutions, we must revisit what Islamic revelation offers as a comprehensive ethical and economic framework to regulate consumption. It is not a call for austerity, but for “moderation” and “centrism,” which lie at the heart of Islamic economic philosophy:
Allah the Exalted said: “And those who, when they spend, do so not excessively or sparingly, but are ever, between that, justly moderate.” (Al-Furqan: 67) This verse alone can serve as a complete “economic theory” based on balance rather than extremism in any direction.
The Prophet Muhammad (peace be upon him) said: “The feet of the son of Adam will not move on the Day of Resurrection until he is asked about… his wealth: from where did he acquire it, and in what did he spend it?” (Reported by At-Tirmidhi). This establishes the principle of “self-accountability” regarding spending, not merely regarding earnings.
2. The Integrated Solution: A Multi-Stakeholder Proposal Toward a Consensus-Based, Non-Exclusionary Resolution: Here lies the essence of the strategic approach: any solution that satisfies one party at the expense of another will practically fail. A sustainable solution must be “win-win” for all five parties:
1. Integrate financial literacy into school curricula starting from the middle school level, not as a theoretical subject, but through practical experiences (such as managing a “hypothetical weekly budget”), thereby serving both the family and the state without harming the interests of merchants or banks.
2. Mandate that financing entities issue a “financial warning card” to be presented before every installment transaction, clearly explaining the true total cost compared to the cash price, in simplified language. This measure is already practiced in several mature markets and protects consumers without prohibiting the financial institution’s operations or halting the commercial enterprise’s activities.
3. Incentivize, rather than penalize, commercial enterprises: through tax incentives or facilitations for shops that adopt “responsible sales practices,” making ethical compliance a profitable business venture rather than a burden.
4. Establish a “free family financial counseling fund” supported jointly by the government and banks, helping debt-burdened families restructure their finances before falling into hardship, thereby protecting both the bank’s rights (recovery of its funds) and the family’s dignity.
5. Launch media campaigns “counter to the consumerist narrative,” which go beyond direct advice (which studies have shown to be weak in impact), and instead use storytelling, drama, and influencers to present alternative models of success unrelated to appearance. This represents a philosophical-educational approach that redefines “success” in the collective consciousness, rather than merely combating its symptoms.
