KUWAIT: People in Kuwait are bracing for a potential war or military operations due to the unstable situation in the region after the killing of top Iranian commander Qasem Soleimani in Iraq by the US. The current situation has impacted various economic sectors in Kuwait, as well as the stock market, and may change the behavior of consumers.

According to economist Hajjaj Abu Khadour, the economic situation of Kuwait is strong. "I don't expect a war to happen, but if serious events take place, they won't last for long - maybe only for a few days. The effect of such operations may last for a month or two, which includes closing the Strait of Hormuz, which also can't last for long," he told Kuwait Times.

The disruptive actions will have a limited effect. "An example is the attacks on Saudi oil facilities three months back. Oil production resumed within two days. Kuwait has oil reserves in China and the US. We have alternative sources to compensate, and oil exports will not stop. If people read history carefully, they will realize that Iran will not take any irrational decisions, as they want to preserve their political regime," Abu Khadour said.

Abu Khadour does not foresee any economic or food problems. "Kuwait has large food stocks. Furthermore, land borders are open, so we don't necessarily need to get them by sea. Moreover, Kuwait has experience dealing with crises, as we endured the worst experience during the invasion in 1990," he explained.

"People in Kuwait and the GCC region have a culture of consumerism. So the consuming motivation controls decisions. There should be some awareness campaigns in such situations. Also, during the last few years, a 'grumbling' culture has spread among people, who complain about everything," concluded Abu Khadour.

Another economist, Dr Abdullah Marafi, agreed that Kuwaitis are avid consumers. "We are not used to save, so even if people feel worried about the situation or the future, austerity won't be noticeable. In general, people depend on their salaries for spending, and if their salaries don't change, their spending behavior won't change too," he pointed out.

"The current period is unstable, but we don't know until when it may last - but I think it will be resolved within a few months. I don't expect the situation to reach the danger level. The region is troubled, but people have got used to this situation - this also includes earthquakes and not just political issues," stressed Marafi.

He is optimistic about oil prices. "Currently, the oil price is below the fair price of oil, and I expect it to rise in the coming months. Supply and demand and alternative energy, which is still more expensive, will affect oil prices. The closure of the Strait of Hormuz will cause a collapse for the whole world, and I think it's almost impossible to happen. International oil tankers pass from there, so even if it is closed, this can't last for long. In case this happens, we will be affected of course," Marafi added.

By Nawara Fattahova