AGP Executive Report

Infrastructure: Kuwait’s Public Works Ministry is expanding GIS across projects and service networks to improve planning, field monitoring and decision-making. Energy Cooperation: Kuwait and Saudi Arabia signed an electricity and renewable-energy MoU, with plans to develop technical cooperation, digital systems and local expertise. Oil Sector: KPC says it will maintain customer commitments despite regional disruption, while KUFPEC aims to raise production from about 83,000 to more than 120,000 barrels of oil equivalent a day by 2030. Industry and Jobs: KNPC is preparing a phased Kuwaitization drive at Al-Zour refinery, beginning in key operating units. Kuwait and Algeria also discussed cooperation in pharmaceutical production and medical supplies.

Energy Cooperation: Kuwait and Saudi Arabia signed an MoU covering grid links, renewable power, energy storage, smart grids and efficiency, with plans to localize energy products and services. Kuwait also joined the International Energy Forum meeting in Riyadh, where officials stressed supply resilience amid Hormuz disruptions. Defence Procurement: Kuwait’s £370 million MARSS air-defence contract will combine radars, jammers, interceptors and AI-enabled command systems. Production in Bristol is expected to create 100 UK jobs, while the system will help protect Kuwait from missile and drone threats. Infrastructure Investment: Government spending and new infrastructure awards are supporting Boursa Kuwait’s recovery, with potential benefits for construction, real estate and services firms. Supply Risks: Gulf shipping disruptions and attacks on energy infrastructure are adding pressure to oil and refined-product markets, reinforcing the need for secure export routes and resilient energy systems.

Defence Industry: Kuwait’s £370 million air-defence deal with UK firm MARSS will supply AI-enabled systems to counter missiles and drones; production in Britain is expected to create 100 engineering and manufacturing jobs. Energy Cooperation: Kuwait and Saudi Arabia agreed to deepen cooperation on electricity, renewables, grid links, energy storage and smart grids, with plans to localise related products and services. Investment and Markets: Government spending on major projects and infrastructure contracts is helping Boursa Kuwait recover, analysts say, supporting listed firms in construction, real estate and services. Competition Policy: Kuwait will chair the Arab Competition Network for two years, leading work to strengthen cooperation and address cross-border anti-competitive practices.

Market Regulation: Kuwait will chair the Arab Competition Network for two years, with a mandate to deepen cooperation on competition rules and cross-border monopolistic practices. Ports and Logistics: Shuwaikh Port is moving to a cloud-based terminal operating system to improve cargo handling and supply-chain visibility; separately, Kuwait plans a new postal law and is studying a public-private partnership to modernize postal services. Industrial Investment: Gulf Cryo plans to lift its Kuwait liquid CO₂ capacity to 350 tonnes a day as part of a GCC expansion, supporting demand from manufacturing, food and other sectors. Aviation Skills: Bahrain’s BAS Aircraft Engineering Training Centre won Kuwaiti approval to offer aircraft maintenance and Airbus type-training courses to citizens and residents. Travel Disruption: Kuwait Airways cancelled Riyadh flights after the airport closure, underscoring the wider risks to regional air links.

Postal Modernization: Kuwait plans a new postal law and an international review of options for a public-private partnership, aiming to upgrade technology, efficiency and services for businesses and residents. Port Logistics: Shuwaikh Port is adopting a cloud-based terminal system to improve cargo handling, vessel planning and supply-chain visibility. Industrial Gases: Gulf Cryo plans to expand Kuwait’s liquid CO₂ capacity to 350 tonnes a day by the end of 2026, as demand grows across food, manufacturing and other sectors. SME Support: Boubyan Bank and delivery platform Keeta are offering restaurant and café businesses banking and digital services to support daily operations and growth. Industrial Integration: Kuwait is also backing closer Gulf cooperation on industrial standards and investment, with proposals including an “industrial passport” for regional products. AI and Technology: Kuwait joined the Global AI Summit in Amsterdam, where discussions included digital sovereignty, investment and building stronger links between government, research and business.

Energy Projects: Kuwait’s major power-generation projects are still awaiting contract awards, while KPC has set a 2050 net-zero target in its new sustainability report. Kuwait is also on track to meet its oil production target, though offshore development remains challenging. Defence Industry: Kuwait agreed to buy a £370 million air-defence system integrating radars, jammers and interceptors to counter drones and missiles. Gulf Industry: Kuwait is backing closer regional industrial integration and standardisation, alongside proposals for a shared “industrial passport” for Gulf products. Oil Logistics: Tanker shortages and soaring freight costs are adding pressure to energy markets as Gulf exporters adapt to Strait of Hormuz disruption. Food Safety: Inspectors destroyed 773kg of spoiled fish in Fahaheel during a joint market campaign.

Energy & Utilities: Kuwait’s next power projects are nearing award, including the $2bn Al-Khairan water and power plant and a 500MW Shagaya solar project. KPC says expansion plans are on track and has set a 2050 net-zero target. Defence Industry: Kuwait agreed to buy a £370m UK-made air defence system combining radar, jammers and interceptors, with delivery work running through 2027. Industrial Ambitions: Silk City features among the Gulf’s megaprojects, while Kuwait is pushing an “industrial passport” for Gulf products and backing closer regional industrial integration. Workplace & Food Safety: A worker died from an electric shock at a Salmiya construction site; separately, inspectors destroyed 773kg of spoiled fish in Fahaheel and issued four violations. Industrial Safety: Firefighters contained a blaze at a garage shop in Shuwaikh Industrial Area, with no significant injuries reported.

Power Projects: Kuwait’s estimated $2 billion Al-Khairan independent water and power plant and the 500MW Al-Shagaya solar project are awaiting contract awards. Energy Transition: KPC released its 2023–25 sustainability report, setting out environmental and workforce progress and a target of net-zero emissions by 2050. Industrial Growth: Kuwait’s Public Authority for Industry is pushing to improve local manufacturers’ competitiveness and expand access to Gulf markets; 14 Kuwaiti factories showcased products at Bahrain’s Made in the Gulf forum. Workplace and Food Safety: An Egyptian worker died after an electric shock at a Salmiya construction site, while inspectors in Ahmadi shut down three illegal home-based food businesses and issued eight violations.

Food Safety: Kuwait inspectors shut down three homes in Ahmadi being used as illegal food businesses, issuing eight violations over unsafe handling, unlicensed trading and missing worker health certificates. Energy Transition: KPC released its 2023–25 sustainability report, detailing environmental and workforce initiatives and setting a net-zero emissions target for 2050. Manufacturing: The Public Authority for Industry is pushing to expand Kuwaiti manufacturers’ access to Gulf markets; 14 local factories showcased products at Bahrain’s Made in the Gulf forum. Workplace Safety: An Egyptian worker died after being electrocuted by a generator at a Salmiya construction site. Authorities are investigating.

Oil & Gas: KPC and KDIPA hosted international suppliers to outline oil-sector procurement and investment opportunities, highlighting more transparent contracting and wider access for qualified suppliers. Kuwait Petroleum International also discussed energy projects with Kazakhstan, including aviation-fuel supply, fuel retail and sustainable aviation fuel. Gulf Manufacturing: Kuwait backed deeper GCC industrial integration, with talks on local-content standards, strategic storage for essential goods, customs rules and factory digitalization. Kuwait has also proposed an “industrial passport” for Gulf products, while the GCC approved five joint industrial investment opportunities. Supply Resilience: NSRP says it has processed ten crude grades beyond Kuwait Export Crude since beginning feedstock diversification in late 2025, expanding its options amid volatile energy supplies.

Gulf Industry: Kuwait backed stronger GCC industrial integration, including common rules for Gulf-made products, digital upgrades in factories and possible strategic storage zones for food and medicine. Oil-Sector Investment: KPC and KDIPA brought local and international suppliers together to explain procurement rules and investment opportunities; recent legal changes aim to widen competition and simplify access to contracts. Water Security: At a KFAS-hosted dialogue, Kuwait’s electricity and water minister called for stronger regional links and resilient infrastructure to protect essential supplies during emergencies. Digital Infrastructure: Samsung and affiliates pledged $1 billion to data-centre developer Helix, whose founding investors include the Kuwait Investment Authority, Nvidia and KKR.

Oil and Gas: Kuwait Petroleum Corporation says it will maintain its expansion plans, investing $9–10 billion annually to reach oil production capacity of 4 million barrels a day by 2035 and raise domestic gas output by 2040. Gulf Industry: Kuwait has proposed a digital “industrial passport” to cut paperwork and speed the movement of compliant products across GCC markets. Projects: GCC contract awards fell 37.2% year on year to $47.4 billion in the third quarter, with geopolitical tensions weighing on activity. Oil Markets: OPEC+ kept November production targets unchanged as war-related disruptions continue to hold actual output below quotas.

Kuwait Crackdown on Illegal Trade: Farwaniya security sweeps arrested 15 workers and shut illegal businesses, including unlicensed grocery and tailoring operations plus expired food and seized tobacco. Border Smuggling Hit: Customs stopped 53,314 cigarette cartons at Al-Salmi, uncovering a falsified declaration; a Syrian driver, a Yemeni customs worker and an Indian loader were arrested. Power Reliability Watch: MEWRE warned of up to four-hour outages in 19 areas due to substation maintenance. Industrial Integration Push: Kuwait proposed a “Gulf Product Industrial Passport” to create a single digital product file for GCC trade, cutting repeated paperwork for compliant manufacturers. Legal & Business Facilitation: Cabinet approved amendments to Kuwait’s notarization law, including electronic/remote notarization and shifting corporate document authentication to the Commercial Registry. Energy Expansion: KPC says it remains on track with major expansion plans despite regional disruption, including higher oil and gas output targets. Bilateral Economic Ties: Kuwait’s PM met Italy’s enterprises minister to boost cooperation in investment and industry. GCC Industrial Agenda: GCC backed “Made in GCC 2026” to strengthen Gulf manufacturing, standards and product protection. Security Aftershocks: U.S. approved about $400m for Patriot missile repair and support for Kuwait amid ongoing drone/missile threats. Aviation Connectivity: Air India Express announced its Winter 2026 schedule with 40+ new routes and higher weekly flights.

Kuwait’s Air Defence Support: The US has approved a possible $400m Patriot missile repair-and-return package for Kuwait, aimed at keeping existing interceptors ready amid months of Iranian missile and drone attacks. Hormuz Shipping Disruptions: India condemned a projectile strike on the Panama-flagged MT On Peace off Oman that injured 11 Indian crew members, while separate reports said multiple tankers and LNG/LPG vessels were hit in the Strait of Hormuz in early October. Gulf Oil Flows Improve, Risks Persist: Gulf crude and condensate shipments (excluding Iran) recovered to about 81% of pre-war levels in September, helped by Saudi exports, but refined fuel recovery lagged and tanker attacks kept markets jittery. Kuwait Energy Resilience: Kuwait Petroleum Corp and Saudi Aramco leaders warned that Europe and others must help fund storage and infrastructure costs created by the Iran-war disruption. Regional Telecom & Data Centres: S&P says Middle East telecom operators are shifting toward regional data centre and cloud build-outs to support AI demand and compete with hyperscalers. Kuwait Development Agenda: Kuwait urged a reset of the 2030 development agenda at the UN, linking progress to human capital, fiscal space and public-private investment. Local Talent & Industry Skills: Lilly Gulf launched “Nujoom Al Ghad,” a 12-month graduate programme to build UAE national talent for roles across pharma functions.

Oil Security & Shipping: Saudi Aramco CEO Amin Nasser warned global oil stockpiles are “scarily thin” and rebuilding inventories could take up to two years after the Strait of Hormuz fully reopens, as tanker attacks and logistics constraints keep pressure on crude and refined fuel markets. Kuwait Energy Resilience: Kuwait Petroleum Corp. says it is applying crisis-playbook lessons to weather Hormuz disruptions, while Kuwait’s oil sector also reiterated worker safety as a top priority. Hormuz Risk Reality Check: Shipping data shows Gulf crude exports have topped pre-war levels on many days in September, but Marisk flagged a “heightened and increasingly unpredictable” threat for vessels as traffic rises and ship-to-ship transfers near limits. Local Governance & Health Infrastructure: Kuwait’s Municipal Council approved a site in Granada for a Multiple Sclerosis treatment center and advanced several land-use and public-service approvals, including pest and rodent control services in Shuwaikh Industrial Area. Defense & Procurement: The US cleared missile guidance kits for the UAE and Patriot repair services for Kuwait, underscoring ongoing regional air-defense upgrades. Public Finance Focus: Kuwait’s fiscal gap widened, with deficits projected to deepen in 2026/27, raising questions about maximizing returns from existing oil and industrial assets. Road & Delivery Enforcement: Kuwait’s Interior Ministry moved to tighten compliance among delivery companies, warning of enforcement actions against repeat traffic violators. Market & Skills: Boursa Kuwait celebrated CFA Institute Research Challenge winners, boosting financial literacy and applied investment skills.

Water Infrastructure Tender: Kuwait retenders a water pipeline project covering three lines from the Mina Abdullah Water Distribution Complex in Al-Ahmadi, signaling continued focus on upgrading core utilities. Oil & Shipping Security: Saudi Aramco CEO Amin Nasser warns global oil stockpiles are “scarily thin,” saying rebuilding inventories could take up to two years unless the Strait of Hormuz fully reopens; OPEC+ also keeps November output steady as attacks on energy infrastructure and shipping routes keep supply risks elevated. OPEC+ Decision: Seven OPEC+ members (including Kuwait) maintain September-required production levels for November, with the next review set for Nov. 1. Regional Exports Watch: Shipping data shows Middle East crude exports exceeded pre-war levels on multiple days in late September, even as tanker attacks persist. Kuwait Media Regulation: Kuwait’s new media law tightens rules for social media advocates, advertisers and digital promotions, including licensing, disclosures, consumer/child protection, reviews, competitions, gifts and AI use. Security Campaign: Kuwait security authorities arrest 61 violators at Al-Rai’s Friday Market, including wanted persons and labor/visa breaches, with multiple agencies involved. Energy Corridor Plan: Türkiye pushes the Development Road to evolve into an $80B-a-year energy corridor linking Gulf resources to Europe via Iraq and Türkiye. Defense Coverage: AP reports U.S. soldiers injured in the Port Shuaiba drone strike in Kuwait say the military medical system failed them, adding pressure on preparedness and care procedures.