"There is a 30 percent drop sales of automobiles and electronic appliances due to economic crisis," said Ahamed Salikh, manager of a prominent business group in Kuwait.

He added "Retail businesses of white and brown goods have taken a toll. Corporate tenders have fallen and public projects of roads and harbors have also shown significant decline."

However, he noted that the sale of luxury cars costing more than 30,000 Kuwait dinars (about US$108,000) is unaffected, "because that sector caters to very high-net worth individuals, whom the slowdown has not really affected still."

A gold merchant in the country's capital Gold Street said retail sales in gold has gone down a bit now for two reasons, firstly because of the economic crisis and secondly because of hike in gold prices.

"We are looking forward to making the most of the shopping festival in February to gain back our losses. Many shops have closed already due to poor business," Salikh said.

Shops are increasingly offering discounts and conducting sale to push their stocks.

Kuwait has been beset with economic woes following the global economic crisis that has also gravely impacted its banking sector and equities market.

According to a recent report, the stock exchange has shed over 30 percent in the last one year.

Global Investment House, the country's biggest investment bank, shocked investors by announcing that it has defaulted on most of its US$3 billion loan, while Islamic lender The Investment Dar said it needs 1 billion Kuwait dinars to repay debts.

Kuwait's third largest lender Gulf Bank had to double its capital after losing 137 million Kuwait dinars last year in derivatives and other instruments.

Tumbling oil prices have been a concern of Kuwait as oil is still the state's key source of foreign revenue.

Amir Tameemi, a local prominent economist and columnist, said the government always plans budget based on an assumed oil prices of 50 dollars per barrel, and when the price hovers below this level for a long time, the country will suffer a deficit.

The oil prices have fallen to around 42 dollars after hitting arecord high of 147 dollars per barrel last July.

The surpluses from the past upswings in oil prices cannot sustain for long as they will be liquidated due to the crisis, Tameemi added.

A head of an investment firm, who declined to give his name said Kuwait is seeing maximum layoffs in the investment sector.

He put the percentage of job losses between 30 and 45 percent.

The industry is facing serious finance crisis, he said, adding that the economic stimulus plan put forward by Central Bank of Kuwait (CBK) recently to the cabinet is not very attractive.

The plan offers only 25 percent guarantee to investment firms from foreign loans, for which the firms will have to mortgage their assets.

This means the investment firms will be unable to move their assets for up to five years or more, while the loans they get will be hardly enough to pay off the debts.

National Bank of Kuwait, Kuwait's largest commercial bank, warned in a research report released recently that the country's economic growth would decline 4 percent on the back of realty sector and falling crude oil prices.

But Kuwait's Finance Minister Mostafa al-Shamali told Al-Watan daily that the government's stimulus package will plant confidence in the country's financial and banking sectors.

The cabinet is expected to approve the plan on Monday which will allow banks to save troubled companies and will guarantee bank facilities to companies.