AGP Executive Report

Kuwait Security & Defence: Kuwait condemned fresh Iranian attacks, saying its air defences intercepted missiles and drones aimed at US facilities, while Iran claimed it struck the Ahmad al-Jaber Air Base and vowed retaliation after a reported wedding strike in Iran that Washington says it is investigating. Regional Energy & Trade: The renewed US-Iran escalation is again rattling Strait of Hormuz shipping and oil flows, with officials and markets watching whether disruptions return and how quickly supply routes can stabilize. Education Reform: Kuwait’s Ministry of Education approved a secondary school “tracks” curriculum system for a pilot in 12 schools during 2026/2027, with the existing system continuing for students not opting in. Labour & Workplace Safety: Kuwait urged businesses and consumers to protect outdoor workers as extreme summer heat risks persist, even after the midday outdoor work ban ended. Carbon Capture & Industry Supply: Gulf Cryo said it is expanding regional liquid CO₂ capacity to 1,300 MTPD by end-2026, supported by long-term carbon capture projects across the UAE, Kuwait and Saudi Arabia. Logistics & Trade Links: Oman’s Duqm Port received one of the world’s largest RoRo vessels from China, highlighting growing vehicle-shipping capacity for GCC markets. Health Procurement: Kuwait’s Ministry of Health has 10 contracts at the Central Agency for Public Tenders awaiting bid openings, including upgrades tied to healthcare modernization.

Middle East Security: Iran’s army says it launched missile and drone strikes on US bases in Kuwait (Ahmad al-Jaber Air Base) and the UAE (Al Minhad), targeting communications, radar and hangars, as Kuwait reported intercepting incoming threats. Energy & Trade Impact: The renewed US-Iran escalation is again rattling oil flows and shipping through the Strait of Hormuz, with Kuwait’s crude exports reported down versus pre-war levels and analysts warning of wider supply disruption risk. Local Community Pressure: An AFP report says a Persian restaurant in Kuwait removed “Iran” from its name amid heightened sensitivity for Kuwait’s Iranian community since the war resumed. Port & Logistics: Oman’s Port of Duqm welcomed one of the world’s largest Ro-Ro car carriers (about 9,200 vehicles), with allocations for GCC markets including Kuwait—highlighting regional vehicle-shipping capacity. Industry Finance: Carlyle-backed VLCC raised Rs 110 crore from BlackSoil Capital to fund growth, with operations spanning multiple countries including Kuwait. Industrial Capacity Expansion: Gulf Cryo plans to nearly double CO₂ production capacity across the GCC, including a Kuwait ramp-up to 350 MTPD by end-2026. Workplace Tech: A BCG report finds 93% of GCC frontline workers now use AI regularly, with Kuwait among the leaders in adoption.

Kuwait Security & Sovereignty: Kuwait condemned fresh Iranian missile and drone attacks that hit several sites, including a residential complex in Kuwait City; the Kuwait Fire Force said a hostile drone sparked a blaze that was contained with no injuries reported. Regional Maritime Risk: Kuwait also condemned Iran’s attack on the Saudi-flagged tanker Sidr in the Strait of Hormuz that killed two Filipino sailors, warning it threatens freedom of navigation and global energy supplies. US-Iran Escalation: The US and Iran exchanged their biggest strikes since July, with Washington targeting air defences, radar, maritime assets, mine-laying and communications sites near the Strait of Hormuz, while Iran retaliated with missile and drone attacks reported across Bahrain, Kuwait, Jordan and Iraq. Energy Markets: Oil prices stayed volatile as Brent hovered near mid-$90s and WTI above $91 amid renewed Hormuz disruption fears. Kuwait Industry & Sustainability: KISR is seeking government approval to use recycled tyres in road paving after local trials showed strong durability in Kuwait’s hot conditions. Energy Research: Kuwait University announced its Ninth International Conference on Energy Research and Development (Nov 17–19), focusing on renewables, energy efficiency and future energy systems. Governance & Economy: Kuwait’s economy is gearing up for a “slow” year-end recovery, supported by buffers and continued capital spending, while Opec+ is expected to keep output policy unchanged.

Gulf Security Shock: Iran and the US traded fresh strikes after a US wave hit Iranian targets near the Strait of Hormuz, with Iran firing missiles and drones at US-linked sites across Kuwait, Bahrain, Jordan and Iraq; Kuwait reported a drone strike on a residential complex in the Capital Governorate with no injuries, while air defences intercepted incoming threats. Shipping & Energy Pressure: The renewed fighting is again raising the risk premium for oil as Hormuz disruptions and tanker incidents intensify; Brent pushed back toward the mid-$90s and crude futures extended gains, while oil shipments to India faced delivery hurdles as refiners scrambled for alternative cargoes. Tanker-for-Tanker Escalation: US actions included strikes on Iranian government-linked tankers, framed as retaliation for attacks on commercial shipping, while Iran’s IRGC warned vessels against following unauthorized routes. AI & Workforce Shift in the Region: A GCC-wide report says 93% of frontline workers use AI several times a week, and many expect AI agents to take on major parts of their roles—an angle that matters for Kuwait’s industrial productivity and skills planning. Logistics Cold-Chain Expansion: GWC Group expanded frozen bulk vessel cold-chain operations in Oman and boosted cross-border distribution into Qatar and Kuwait, adding truckloads and long-term storage capacity.

Strait of Hormuz Tensions: Iran renewed pressure on the Hormuz corridor with attacks on tankers carrying Saudi oil, while the U.S. said it began striking IRGC targets after attempted attacks on shipping; Kuwait reported drone intercepts as regional air defenses engaged. Kuwait Energy & Industry Abroad: KPI-backed Nghi Son refinery in Vietnam is inviting investors into a site-sharing model to turn byproducts into higher-value outputs, signaling a shift toward an integrated industrial hub. Kuwait Business Regulation: Kuwait issued new anti-money laundering and terrorism-financing rules for gold traders and real estate brokers, requiring risk-based controls, beneficial-owner checks, reporting, and recordkeeping. MEICA Expo 2026: Kuwait City will host the 7th Middle East Instrumentation, Cybersecurity & Automation Expo (15–16 Sept) with 800+ attendees and 50+ exhibitors. Finance Markets: IILM reissued $1.353bn in short-term sukuk, oversubscribed 2.43 times, reflecting strong demand for Islamic liquidity instruments. Shipping Risk for Kuwait-linked Trade: Fitch warned GCC ratings could face pressure if Hormuz disruption drags into 2027, noting Kuwait’s buffers help but prolonged trade/export constraints could weigh on some issuers. Kuwait Enforcement: Kuwait referred 71 suspects to court over alleged farm and livestock allocation corruption.

Kuwait Municipality Crackdown: Kuwait has expanded commercial inspection campaigns across sectors, warning businesses that operating without proper municipal and technical approvals can bring fines of KD4,000–KD5,000 and closure orders, while unapproved modifications can also trigger penalties. Food & Aquaculture Boost: Kuwait Institute for Scientific Research opened the country’s first advanced marine hatchery in Salmiya, aiming to strengthen aquaculture know-how, cut reliance on imported fingerlings, and support food security. Health Regulation Tightening: Kuwait’s Health Ministry issued new decrees tightening controls on narcotic and psychotropic substances, updating rules for cosmetic surgery and setting steps to speed medical shipments and strengthen cancer surveillance. Graft Case in Agriculture: Public prosecution referred 71 defendants to court over alleged agricultural land graft, citing about KD8.66m in misappropriated public funds plus bribery, forgery, money laundering and illegal profit. Kuwait–India Defense Push: Kuwait and India are moving to deepen their strategic partnership, with defence cooperation highlighted through joint committee work and training/exercises. Hormuz Shipping Risk: A tanker was hit by three projectiles near Oman in the Strait of Hormuz, with UKMTO urging heightened caution as renewed US-Iran exchanges keep energy and logistics risk elevated.

Anti-Corruption Crackdown: Kuwait’s public prosecution has referred 71 defendants to court over alleged agricultural land graft, saying KD 8.66m in public funds was misappropriated, alongside bribery, forgery, money laundering and illegal profit. Food Safety Enforcement: Kuwait’s food authority destroyed 88kg of meat of unknown origin and shut another facility in the Capital after inspectors found spoiled products, thawed meat sold as fresh, hygiene and licensing breaches, and ordered closures plus legal action. Aquaculture & Food Security: KISR opened Kuwait’s first advanced marine hatchery in Salmiya, designed to boost local fingerling production and cut reliance on imports through integrated breeding, incubation, quarantine and seawater treatment systems. Drug Control & Health Rules: Interior officials honored teams behind Kuwait’s biggest Lyrica crackdown, while the Health Ministry issued new decrees tightening controls on narcotics/psychotropics and overhauling cosmetic surgery rules. Municipal License Sweeps: Kuwait Municipality’s engineering licensing campaign warned businesses about operating without proper approvals, with closure orders and fines for violations. Regional Security Watch: CENTCOM again disputed Iran-linked claims about Strait of Hormuz mine threats, while Kuwait-Turkey defense procurement cooperation was highlighted by the Turkish ambassador.

Food Safety Crackdown: Kuwait’s General Authority for Food and Nutrition shut a Capital Governorate facility after inspectors found spoiled/non-compliant products, including frozen meat being thawed and sold as fresh; 10 violation reports were issued, the site was closed, and 134.116kg of bad food was destroyed. Kuwait Work Schedule: The Civil Service Commission confirmed government offices will return to regular morning and evening shifts from Sept 1, ending the summer working-hours system. Hormuz Trade Pressure: With the Strait of Hormuz still under threat, Gulf states are accelerating investment in ports, pipelines and rail links to reroute oil and cargo via alternatives like Saudi Red Sea routes and UAE Fujairah terminals. Shipping Rules at IMO: Greek shipowners back a Liberia-Panama proposal at MEPC 85 that aims to set emissions targets based on what low-emission fuels can realistically be supplied at viable cost. Kuwait-India Defence Talks: Kuwait and India held their first joint defence committee meeting in New Delhi, moving cooperation into a more institutional phase. Iran War Escalation: The US struck Iranian rocket launchers on Larak Island and Iran retaliated with missile attacks on US targets in Jordan, keeping regional shipping and energy markets on edge. Digital Services Expansion: TechDigital Labs announced an expanded integrated digital marketing and software development offering for businesses seeking one connected partner.

Kuwait–India Defence: Kuwait and India held their first Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, exercises, military medicine, defence industry links and R&D. Tender & Infrastructure: CAPT pushed back the deadline for bids to study, design and supervise the Public Authority for Food and Nutrition (PAFN) HQ to Sept 27, with the wider project covering inspection facilities, cold storage and parking. Real Estate Policy: Kuwait’s progressive fees on undeveloped plots and enforcement of Law 126/2023 are credited with breaking market stagnation by reducing land monopolies, boosting plot supply and stabilising prices. Food Industry Focus: Kuwait’s food waste challenge is spotlighted, with restaurants and catering flagged as major surplus sources and calls for better handling after events. Urban Planning & Housing: Kuwait Municipality is urged to clarify how homeowners can use “setbacks” in front of houses for greenery instead of blanket restrictions. Security & Industry Compliance: A major Abu Futaira/Al-Qurain Markets crackdown logged hundreds of traffic and commerce violations and led to arrests of residency violators and wanted individuals. Regional Energy Risk: US strikes on IRGC positions near the Strait of Hormuz followed reports of preparations to launch sea mines, keeping the oil chokepoint’s disruption risk front and centre.

Strait of Hormuz Tension: Iran’s IRGC Navy says the waterway is closed to ships without Tehran coordination, pushing back against US claims of cleared lanes—another blow to Gulf energy logistics. US-Iraq Oil Flows: US crude imports from Iraq dropped to zero last week, while Canada and Venezuela kept supplying most barrels. Kuwait–India Defense: Kuwait and India held their first joint defense committee meeting in New Delhi, agreeing to expand training, exercises, military medicine, and defence industry/R&D cooperation. Kuwait–Pakistan Pact: Pakistan and Kuwait signed Protocol Agreement-2026 covering training, border management, intelligence sharing, and defence technology/military manufacturing. Delivery Rules: Kuwait is moving to regulate third-party delivery platforms from Sept 1, capping delivery fees at KD 1 and limiting commissions, sparking concern among operators. Maritime Security: Kuwait Coast Guard campaign in the east region investigated 152 people and flagged 32 abandoned vessels. Business Licensing Reform: Kuwait studies major changes to freelance/micro-business licensing to improve transparency and reduce misuse of licences. Travel Advisory: US updated warnings for Kuwait, citing armed conflict, crime and landmine risks, plus disrupted commercial aviation.

Kuwait-India Defense Boost: Kuwait and India held their first joint defense committee meeting in New Delhi, agreeing to expand training, military exercises, military medicine, defense industry links, and R&D. Freelance Licensing Overhaul: Kuwait’s Ministry of Commerce and Industry is studying structural changes to freelance and micro-business licensing to improve transparency and curb “name-only” registrations. Delivery Rules Kick In: New regulations starting Sept 1 cap delivery fees at KD 1 and limit platform commissions, putting delivery platforms and merchants under a fresh compliance test. Coast Guard Crackdown: Kuwait’s Coast Guard ran a maritime field campaign in the east, investigating 152 people, flagging 32 abandoned vessels, and recording multiple violations. Kuwait-Japan Diplomacy: Kuwait’s FM Sheikh Jarrah visited Japan, underscoring cooperation for regional stability. Logistics & Cold Chain: Gulf Warehousing Company completed early frozen bulk vessel operations in Oman and extended cold storage and distribution links to Kuwait and Qatar. Shipping Pressure Watch: Strait of Hormuz tanker traffic rose week-on-week, but remains far below pre-war levels. Energy Market Mood: Oil prices hover near $90/bbl as traders weigh Gulf uncertainty and shifting demand signals.

Kuwait–Pakistan Defence Boost: Kuwait and Pakistan signed the “Protocol Agreement-2026”, formalising closer military training, education, intelligence sharing, logistics, defence technology, research and even military manufacturing—an expansion of Gulf security ties amid the US-Iran fallout. India–Kuwait Defence Committee: Kuwait and India held the inaugural Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, joint exercises, military medicine, defence industry and R&D. Hormuz Shipping Pressure: Strait of Hormuz tanker traffic rose over the past week (114 transits vs 87), but remains far below pre-war levels; a Kuwaiti tanker was also reported hit, underscoring ongoing risks for Kuwait-linked shipping. UN Calls for Talks: UN chief Antonio Guterres urged the US and Iran to resume negotiations, warning of severe humanitarian and economic damage, including energy and food impacts. Kuwait Airport Operations: Kuwait International Airport (KWI) is operating with Terminal 4 and 5 active while Terminal 1 stays closed for repairs after earlier attacks. Energy Deal Watch: US says it reached a Venezuela oil agreement giving majority control over 65bn barrels, while Venezuela weighs leaving OPEC—developments that could reshape global crude flows.

Kuwait-India Defence Boost: Kuwait and India held their inaugural Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, joint exercises, military medicine, defence industry and R&D, with Kuwaiti and Indian delegations also meeting defence-industry counterparts. Hormuz Shipping Pressure: A Kuwaiti oil tanker, Al-Salam II, was hit in the Strait of Hormuz, causing a small fire but no injuries or reported leaks, as traffic remains far below pre-war levels and the US pushes for safer lanes. Gulf Energy Diversification: With Hormuz disruption driving risk, Gulf states are accelerating investment in ports, pipelines and rail to reroute exports via Saudi Red Sea and UAE eastern routes, aiming to keep trade moving if the chokepoint tightens again. Kuwait-Pakistan Security Pact: Pakistan and Kuwait signed Protocol Agreement-2026, expanding military training, border management, intelligence and defence-industry cooperation, building on the 2023 framework. Local Business/Jobs: Kuwait’s cooperative societies have started Kuwaitising supply manager roles, with a 30-day push to appoint eligible Kuwaiti nationals.

Kuwait–Pakistan Defence: Kuwait and Pakistan signed the “Protocol Agreement-2026” in Rawalpindi, upgrading military cooperation with training, capacity-building, border management support and defence-tech collaboration under a five-year framework. Hormuz & Gulf Energy Logistics: With the Strait of Hormuz still disrupted, Gulf states are accelerating investment in ports, pipelines and rail to reroute crude and trade—while shipping data shows flows creeping higher but far below pre-war levels. Oil Market Watch: Brent and WTI rose after reports said Washington is not interested in reviving the June US-Iran MoU, easing hopes of a quick oil-flow rebound. Kuwait Social & Co-ops: Kuwait is Kuwaitising cooperative society supply manager roles, with a 30-day deadline and requirements for Kuwaiti nationals; meanwhile, authorities opened the first central market at Mutlaa Cooperative Society in Jahra’s Mutlaa City. Kuwait Budget & Construction Inputs: The state budget allocates KD139.9m to subsidise construction materials, tied to housing welfare and managed through the Supply Department and Sahel applications. Food Safety Enforcement: Kuwait’s Food Authority reported multiple violations in Qurain markets and Hawally inspections, including seized unfit food and adulterated meat. Desertification & Climate Finance: Kuwait Fund for Arab Economic Development discussed expanding cooperation with Mongolia on energy, environment, anti-desertification and infrastructure ahead of COP17.

Counterfeit Crackdown in Salmiya: Kuwait police stopped a nervous Syrian expatriate in Salmiya and found an envelope under the seat containing $7,000 in fake US dollars, with the case reported to Hawalli security. Construction Support: Kuwait’s current budget allocates KD 139.925m to subsidize construction materials, tied to the Sahel application and Kuwait Credit Bank loans for eligible citizens. Insurance FDI Push: Kuwait’s insurance sector FDI fell to 2.76% (KD 54.35m), as authorities cite efforts to update laws, simplify procedures, and drive digital transformation to attract international insurers. Co-op Expansion in Mutlaa: Social Affairs and Jahra Governorate opened the first central market at Mutlaa Cooperative Society, with more services planned for Mutlaa residents. Hormuz Logistics Watch: Reports say crude flows through the Strait of Hormuz are creeping higher (about 6–8m bpd), but security remains fragile; Kuwait and Qatar are also restoring exports via shuttle and ship-to-ship transfers. Defense Ties: Pakistan and Kuwait signed the Protocol Agreement-2026 to expand military cooperation, including training, capacity building, and border management.

Desalination & Water Security: VA Tech Wabag won its first Kuwait order, a DBO contract for the Doha SWRO Desalination Plant with Recarbonation System – Stage II, delivering about 272 MLD (60 MIGD) via a 36-month build plus a 5-year O&M period, with Solar PV to partially power the facility. Oil Sector Updates: Kuwait Oil Company (KOC) announced operational leadership changes, appointing new directors for North Kuwait operations, operations support, and safety management, aimed at boosting efficiency and production stability. Customs Digitisation: Kuwait’s General Administration of Customs and the Public Authority for Industry discussed enabling e-payment for industrial exemption transactions and speeding customs clearance for eligible factories. Food Safety & Inspections: Kuwait’s Public Authority for Food and Nutrition carried out inspections in Ardiya Industrial Area, issuing violations over hygiene, expired licenses, and improper food trading; separate health efforts targeted insect and rodent prevention at the Avenues Mall. AI in HR: A GCC-wide survey found 93% of organisations (including Kuwait) are exploring or piloting AI in HR, but only 1% are ready to scale it enterprise-wide. Energy Reliability: Kuwait’s electricity grid reportedly passed the summer test, supported by conservation campaigns, Gulf interconnection, planned maintenance, and rapid emergency response.