AGP Executive Report

Kuwait Business Compliance: Kuwait Chamber of Commerce and Industry seminar highlighted new beneficial ownership and anti-commercial concealment rules, aimed at boosting transparency and protecting Kuwait’s market integrity. KPC Performance Push: Kuwait Petroleum Corporation reported record consolidated profits of KD 2.155bn for FY2025/26, citing efficiency gains and stronger global sales, including jet fuel and diesel exports. Kuwait-India Trade & Food Security: Kuwait and India discussed deeper cooperation in trade, industry and food security, with renewed talks ahead of GCC-linked free trade discussions. Dorra Offshore Progress: Larsen & Toubro won an “ultra-mega” offshore EPCIC contract tied to Dorra gas development in the Neutral Zone between Saudi Arabia and Kuwait. PSO-KPC 50 Years: Pakistan State Oil Company marked 50 years of partnership with KPC, pointing to expanded product cooperation and logistics alliances. Regional Energy Pressure: China’s FM Wang Yi met Kuwait’s foreign minister in Beijing, urging de-escalation as the US ramps up economic measures targeting Iran and Hormuz tensions threaten shipping and oil flows. Banking Rewards: Commercial Bank of Kuwait launched its “One Card… Two Ways to Be Rewarded” Mastercard campaign with cashback on travel and entertainment plus UEFA Champions League prize draws.

US-Iran Pressure: Iran’s foreign ministry says repeated US sanctions will “yield no results,” warning they hit ordinary people and violate free-trade and sovereignty. Gulf Shipping Risk: Iran’s PGSA issued a “Non-Compliant Vessels” list, threatening fines, detention and seizure for ships it says breach its Strait of Hormuz rules. Kuwait Energy Trade: KPC propane and butane exports fell 4.5% in FY ending March 31, with disruptions and a shift toward domestic supply cited. Kuwait-India Industry & Food Security: Kuwait and India discussed deeper cooperation in trade, industry, and food security, including resilient supply chains and strategic stockpiles. Municipal Enforcement: Kuwait Municipality stepped up inspections across governorates, issuing citations and warnings over shop and advertising regulation breaches. Healthcare Training (GCC): DataFlow’s TrueProfile.io partnered with MediLearning to add DHA-accredited CPD/CME courses for healthcare professionals across Kuwait and the GCC. Defense Cooperation: Kuwait and Ukraine advanced defense ties, with Ukraine offering expertise and drones under the 2018 agreement. Regional Diplomacy: China’s FM met Kuwait’s leader in Beijing, urging de-escalation as Gulf tensions over Iran intensify. Chemicals M&A Watch: Reports say Exxon and LyondellBasell (plus Apollo and KPC’s chemicals arm) are among suitors for Shell’s US chemicals assets valued up to $8bn.

Municipal Enforcement: Kuwait Municipality stepped up field inspections across six governorates, with Jahra teams checking commercial and industrial areas, issuing 15 citations for shop and advertising violations and 28 warnings, and promising more visits over coming weeks. Food Safety Crackdown: Kuwait’s food authorities shut two Salmiya health institutes for cash-transaction and licensing breaches, while Hawally inspectors found 23 food-safety violations including expired licenses and improper hygiene, and Farwaniya ordered closures over adulterated/unknown-origin food. Energy Exports Watch: Kuwait Petroleum Corporation reported propane and butane exports fell 4.5% in FY ending March 31, citing regional logistics disruptions and a shift toward meeting domestic supply needs. Kuwait-India Food Security: Kuwait’s Commerce and Industry Minister met India’s ambassador to boost food security, strategic stockpiles, and wider trade and industrial cooperation. Defense Cooperation: Kuwait and the U.S. wrapped the 16th Joint Military Commission, focusing on interoperability and maritime security, while Ukraine’s ambassador said drones and integrated defense expertise are on the table under the 2018 cooperation framework. Industry & Trade Events: LuLu launched Kerala’s Onam promotion in Kuwait, and Kuwait joined UN efforts on desertification and land degradation via UNCCD COP17 participation.

Defense Partnership: The 16th U.S.-Kuwait Joint Military Commission wrapped up at the Pentagon, focusing on interoperability, maritime security, and integrated air and missile defense, with both sides stressing the growing role of unmanned aircraft systems. Food Safety Crackdown: Kuwait Public Authority for Food and Nutrition inspectors ordered the closure of two Jleeb Al-Shuyoukh restaurants in Farwaniya after finding adulterated products of unknown origin, with intensified monitoring to continue. Hospital Incident: Kuwait’s Ministry of Health said a minor electrical short circuit in a computer at Jaber Al-Ahmad Hospital (away from care areas) caused smoke odor; patients were temporarily moved and services resumed normally. Co-op Compliance: Kuwait’s Social Affairs sector urged cooperative societies to strictly follow PAFN food-safety rules, including safe storage temperatures, separating food from chemicals, and preventing sale of expired or unfit items. Water Security: GCCIA held a workshop on feasibility of GCC water interconnection projects, with Kuwait’s electricity ministry participating as the region weighs urgent supply resilience steps. Housing Enforcement: Kuwait Municipality formed field teams to monitor bachelors in private/model residential areas, warning of fines and possible electricity disconnection for violations.

Food Safety & Co-ops: Kuwait’s cooperative societies are being urged to follow Public Authority for Food and Nutrition rules, including strict separation of food from detergents/chemicals, correct storage temperatures, and removing expired or damaged items from shelves. Hospital Operations: A minor electrical short circuit in a computer at Jaber Al-Ahmad Hospital triggered smoke in some wards, but safety procedures contained it; patients were temporarily moved and services resumed normally. Housing Enforcement: Kuwait Municipality has deployed field teams to monitor bachelors living in private and model residential areas, with possible warnings, fines, and even electricity disconnection for violators. Water Security: GCCIA held a workshop on feasibility of GCC water interconnection projects, with Kuwait’s electricity ministry participating; officials called it urgent amid regional pressures and the need to diversify water sources. Local Crime: An Egyptian building guard in Khaitan was arrested for stealing a TV and selling it cheaply before shipping it to Egypt. Regional Energy Shock: Strait of Hormuz traffic has reportedly dropped to about 6% of normal as Iran keeps the corridor effectively closed, while oil prices rise on sanctions threats tied to Iran. Kuwait-US Defense Talks: Kuwait and the US reviewed joint cooperation at the annual Joint Military Committee meeting, focusing on maritime security, integrated air and missile defense, and countering unmanned aircraft threats. Psychotherapy Ban: Kuwait banned Reiki, energy/spiritual healing and other non-scientific psychotherapy practices, setting licensing and compliance rules for specialized centers.

Kuwait-US Defense Talks: Kuwait and the US reviewed joint cooperation at the annual Joint Military Committee meeting at the Pentagon, covering maintenance and training, maritime security, and integrated air and missile defense, with a new MoU signed with the Maryland National Guard. Psychotherapy Crackdown: Kuwait’s Health Ministry banned Reiki, EFT and other non-scientific psychotherapy/energy and spiritual healing practices, setting licensing and compliance timelines for specialized centres. Oil & Shipping Shockwaves: Oil prices stayed supported as the US escalated “toughest sanctions in history” threats on Iran, keeping Strait of Hormuz disruption fears front and centre for Gulf supply chains. Hormuz Power Play: Trump again claimed the US is “controlling” strategic straits tied to Iran, while regional talks on passage arrangements were discussed as shipping remains disrupted. Kuwait in the Market Mix: Kuwait was cited among countries facing curtailment pressures as traders priced tighter Middle East supply. Gulf Industry Push for Water: A report highlights how Gulf AI and data-centre ambitions depend on water availability, with Abu Dhabi’s massive AI infrastructure plans underscoring the resource bottleneck. Beauty Retail Expansion: AXIS-Y launched in Kuwait and Bahrain with a multi-day activation and new retail presence, signalling continued GCC consumer spending in skincare. A&M Rare Investment: A foreign-funded €40m water bottling project (exporting including to Kuwait) is already operating at scale, with further market expansion planned.

Oil & Shipping: Oil prices held near $94/bbl and stayed on track for a second weekly gain as the US threatened “toughest sanctions in history” on Iran’s trading partners, keeping Strait of Hormuz traffic below normal and raising fears of longer supply disruptions that also hit Kuwait-linked flows. Kuwait Energy/Industry: Hunting PLC cut FY26 EBITDA guidance after delays to Kuwait Oil Company tender activity, underscoring how regional instability is still slowing advanced manufacturing and OCTG-related work. Solar Supply Chain: United Solar in Oman started ramping polysilicon production outside China, aiming to diversify solar-grade supply—an important signal for GCC energy and renewables value chains. GCC Business & Retail: AXIS-Y launched in Kuwait and Bahrain with a multi-day brand activation, while Mark & Save ran an Onam campaign across the UAE with value deals and community events. Aviation/Travel: Jazeera Airways’ new Aswan route adds to Kuwait’s Egypt connectivity, as Kuwait’s airport terminal setup continues to shift for long-weekend planning. Defense/Regional Risk: Reports say a US F-15E pilot was shot down twice in the Iran conflict, and Pentagon casualty figures put injuries at 757—raising the stakes for regional security and industrial continuity.

Kuwait Energy & Markets: Oil prices stayed near $94/bbl Brent as the US-Iran standoff and expired truce kept supply risk elevated, with Kuwait named among key producers facing curtailment concerns. Kuwait Business & Industry: Kuwait’s Municipality is set to align business classifications with international ISIC Rev.4 codes, backed by a “License Your Business” awareness push to help investors pick the right activity and improve compliance. Utilities & Smart Energy: Kuwait’s Electricity, Water and Renewable Energy ministry is backing AI for smart-meter efficiency, aiming to use consumption-pattern analytics to boost conservation and energy efficiency. Oil & Gas Operations: KNPC’s LPG bottling-plant merger under its umbrella is credited with higher output and sales, with cooking gas cylinder production and domestic sales rising across Shuaiba and Umm Al-Aish. Water Tech & Research: KISR researchers will showcase a wastewater-reuse wetland system for reverse-osmosis effluent at an international invention exhibition in Guangzhou. Public Health Regulation: Kuwait introduced tighter rules on psychotherapy, banning energy/spiritual healing and other non-scientific practices, while requiring in-person training and accredited qualifications. Infrastructure Progress: Yarmouk infrastructure works reached 92% completion, with sewage and stormwater drainage fully done and telecom and lighting networks near completion. Regional Trade & Security: US President Trump again claimed the US is “essentially controlling” strategic straits tied to Iran, while markets watch the knock-on effects for shipping and energy costs. Corporate Results: UK-listed Hunting trimmed FY EBITDA guidance after delays tied to Kuwait Oil Company’s OCTG tender, citing softer activity even as subsea and perforating systems held up.

Municipal Modernisation: Kuwait Municipality is moving to replace local business classifications with UN’s ISIC Rev.4 codes, backed by its “License Your Business” campaign to help investors pick the right activity and comply with regulations. Energy Efficiency Push: The Electricity, Water and Renewable Energy ministry is backing an AI project using smart-meter data to improve consumption analysis and boost conservation. Water Innovation: KISR researchers will showcase a wastewater treatment and reuse wetland system for reverse-osmosis effluent at an international invention exhibition in Guangzhou. LPG Output Boost: KNPC’s merger of liquefied gas bottling plants is lifting performance, with cooking gas sales topping 17 million cylinders and both Shuaiba and Umm Al-Aish plants recording growth. Infrastructure Update: Yarmouk area works are at 92% completion, with sewage and stormwater drainage fully done and telecom and lighting networks nearing finish. FATF Compliance: Kuwait’s PM chaired a meeting on FATF observations, focusing on anti-money laundering and counter-terrorist financing readiness across key ministries and regulators. Advanced Air Mobility: Knetco and Skyports signed an MoU to develop Kuwait’s advanced air mobility infrastructure, including helipad development and ecosystem planning. Power Disruption: A transformer fault at Salwa (A) substation caused limited outages in Salwa blocks 7 and 10. Safety Incidents: Two separate cases were registered after a construction worker died from a fall in Al-Qusour and a three-vehicle crash on the Seventh Ring Road injured an Indian expatriate and killed a Nepalese resident.

Kuwait’s FATF Readiness: The Prime Minister chaired a meeting on Kuwait’s observations and requirements under the Financial Action Task Force, focusing on anti-money laundering and counter-terrorist financing coordination across state bodies. Economic Courts Push: Kuwait’s Justice Minister backed a new law creating economic courts with special circuits across First Instance, Appeals and Cassation, aiming to speed case prep, expand e-litigation and improve enforcement of rulings. Energy Infrastructure Tendering: The Central Agency for Public Tenders approved five bids for underground cable works to extend and strengthen the grid in Amghara Industrial Area, supporting rising industrial electricity demand. Food Safety Crackdown: Kuwait’s food inspectors issued violations at Jleeb Al-Shuyoukh Market, destroyed 100kg of meat of unknown origin, and deported one individual. Building Materials Rules Updated: Kuwait amended distribution rules for subsidized building materials, tying eligibility to Kuwait Credit Bank loans and civil ID, and setting new procedures for demolition and rebuilds. National Guard Camp Expansion: National Guard undersecretary visited the extension of Sheikh Salem Camp to review readiness for relocation of units. Human Capital in Banking: NBK launched four new cohorts of its Middle Management Program, adding modules on digital leadership and AI applications. Regional Energy Shock—Hormuz: Multiple reports say the Strait of Hormuz remains volatile, with the US claiming an open corridor and Iran disputing control, while tanker shortages and insurance risks are driving record shipping costs—an issue directly tied to Kuwait’s export exposure. Diplomacy: South Korea’s foreign minister will meet Kuwait’s counterpart in Seoul next week to discuss cooperation including energy security. Business & Jobs: talabat renewed its sponsorship of CODED’s Academy X to support women’s empowerment in tech and entrepreneurship in Kuwait.

Energy & Shipping Security: The US has set up a shipping corridor through the Strait of Hormuz, with 15–20 tankers reportedly passing nightly via a southern Oman channel and about 10 million barrels/day moving—helping keep Gulf oil exports flowing despite Iran-linked tensions. Regional Trade Pressure: The UAE suspended all trade, commercial exchanges and financial transactions with Iran after renewed missile fire, a move that could further squeeze Iran’s access to re-export routes. Kuwait’s Economic Courts: Kuwait’s Justice Minister backed a new law creating economic courts to handle commercial and investment disputes across all litigation levels, with faster case preparation and more electronic procedures. Food Safety Crackdown: Kuwait’s food inspectors destroyed 100kg of meat of unknown origin at Jleeb Al-Shuyoukh and issued reports and a deportation after adulterated-food violations. Power & Industry Infrastructure: Five bids were approved for an underground cable project in Amghara Industrial Area to strengthen the grid and support rising industrial electricity demand. Construction Materials Rules: Kuwait amended subsidized building-material distribution rules, tying eligibility to Kuwait Credit Bank loans and requiring electronic permits for demolition/rebuild. Local Environment Initiatives: Ahmadi’s green urban committee reviewed 12 landscaping and beautification initiatives, with some deferred for additional approvals. Talent & Digital Skills: talabat renewed sponsorship of CODED’s Academy X for women in tech/entrepreneurship, while NBK launched four new cohorts of its Middle Management Program with added digital leadership and AI modules. Kuwait–Iraq Maritime Tensions: Renewed attention is on the Khor Abdullah waterway dispute, a key shipping route affecting access to Umm Qasr and Kuwait’s Mubarak Al-Kabeer port development.

Strait of Hormuz & Shipping: Iran’s grip on the Strait of Hormuz looks weaker as more than 80% of vessels reportedly shift to the UN-authorised Omani route, underlining how shipping firms are hedging against attacks and toll claims. US-Iran Standoff: Washington says there are no talks with Iran and frames its approach as longer-term pressure, while markets react to the expired ceasefire and renewed escalation risk. UAE Economic Hit: The UAE suspended all trade, commercial exchanges and financial transactions with Iran after detecting ballistic missile launches aimed at maritime traffic, a move that could further disrupt Gulf commerce. Kuwait Consumer Enforcement: Kuwait authorities carried out inspections in Jleeb Al-Shuyoukh, issuing violations for missing prices, no receipts and unclear product origin. Food Safety Crackdown: In Bneid Al-Qar, a restaurant was closed after inspectors found Salmonella-contaminated food, live cockroaches and expired licensing, with legal action initiated. Kuwait Governance: Cabinet approved draft nationality-law amendments and a judiciary reorganization, plus steps to set up specialized economic chambers. Local Agriculture: The Al-Abdaly Farmers Festival for fresh dates and figs opened, with dozens of farmers and multiple varieties drawing early demand. Workforce & Kuwaitization: Kuwait’s consumer cooperatives urged faster Kuwaitization for supply branch manager roles, with a 30-day deadline to act. Business & Finance: PwC promoted Ola Abdallah and Rand Qutub to partner roles in its Middle East Deals practice.

Kuwait–Indonesia People & Skills: Indonesia’s ambassador to Kuwait said the embassy wants to expand opportunities for skilled Indonesians in Kuwait, including healthcare, oil and gas, manufacturing and automotive, as only about 6,000 Indonesians currently work in the country. Food Security at Ports: Kuwait’s customs seized subsidized food supplies hidden in six 40-foot containers bound for Sri Lanka, including pasta, cooking oil, flour, tomato paste and milk, as authorities tighten controls to stop diversion of subsidized goods. Power Reliability: Electricity was restored to parts of Abdullah Al-Salem after a technical fault at a main transformer, with teams working to bring remaining affected areas back online. Digital Banking Push: NBK rolled out new features on its mobile app, including Kuwait’s first fully integrated digital loan journey for housing, consumer and auto loans. Cyber Safety: CITRA warned iPhone users about a phishing scam using fake delivery/shipping messages via iMessage, urging people not to click links and to verify through official apps. Regional Energy Shock Watch: With US-Iran talks off and Hormuz tensions high, shipping disruptions and renewed attacks keep pressure on oil and fuel prices across the Gulf, while Kuwait remains directly exposed through trade and energy routes. Citizenship & Judiciary Overhaul: Cabinet approved draft decree-laws amending nationality rules and reorganizing the judiciary, including electronic issuance of citizenship certificates and limits on voting for naturalized citizens. Local Agri-Trade: The 4th Al-Abdaly Farmers Festival opened with fresh dates and figs and date/fig products, running through August 26.

Strait of Hormuz Shock: Oil prices jumped as US-Iran talks stalled and Hormuz supply risks returned, with Reuters citing sharply reduced tanker crossings and renewed concerns for global crude flows. Kuwait Energy Angle: A Kuwaiti oil expert urged the country to redraw Gulf export routes and accelerate GCC pipeline links to cut reliance on Hormuz. Security Disruption: A vessel transiting Hormuz was hit by an unknown projectile, damaging its engine room and injuring a crew member, while Trump reiterated “total control” rhetoric over the strait. Regional Diplomacy: Kuwait and UAE officials intensified de-escalation calls as tensions threaten navigation and energy trade. Iraq Gas Push: Iraq inaugurated a new central gas processing plant at the Faihaa field to curb flaring and boost LPG output, supporting power generation. GCC Investment Outlook: GCC spending in water, circular economy, logistics and smart transport is projected to reach $20.7bn by 2030. Local Enforcement: Kuwait’s interior ministry and manpower authority arrested 68 residency and labor law violators in Fahaheel, while food inspectors closed five facilities in Jahra. Digital & Consumer Tech: LG and stc tv expanded smart-TV streaming access across Saudi, Kuwait and Bahrain via webOS integration. Scam Alert: CITRA warned Kuwait iPhone users about fake delivery messages on iMessage.

Hormuz Flashpoint: Iran says it will shift to a “fully offensive” posture as the 60-day US-Iran MoU expires, warning it could strike to break the US naval blockade if diplomacy fails; shipping is down sharply with only a handful of vessels transiting and a backlog expected to take weeks to clear. US-Iran Diplomacy Deadlock: Washington ruled out extending the ceasefire framework while Iran and Oman discuss a shipping-route understanding, even as Trump escalates threats, including to bomb Oman if it “gets in the way.” Kuwait Energy Risk: Kuwait’s oil export outlook remains tightly linked to Hormuz disruption, with analysts and local experts calling for new export routes and GCC pipeline options to reduce reliance on the strait. Kuwait Security & Compliance: Interior and manpower authorities arrested 74 residency and labor law violators in Fahaheel and shut down 5 food facilities in Jahra for selling unfit food. Digital & Consumer Safety: CITRA warned iPhone users about fake delivery/shipping scam messages on iMessage; Kuwait Fire Force also cautioned against unsafe charging of smart devices. Industry Moves: KOC says it drilled 2,428 oil wells over five years; Kuwait Airways signed a KD 5.8m ASC pact to upgrade planning systems. GCC Investment Push: GCC spending in water, circular economy, logistics and smart transport is projected to reach $20.7bn by 2030.

Kuwait Health Regulation: Kuwait’s Health Ministry has banned Reiki, NLP and other “energy/spiritual” or non-evidence-based therapies, setting a new licensing and compliance timeline for private and government practitioners. Tobacco Rules: Kuwait also tightened tobacco and nicotine controls, banning online sales and deliveries, raising the minimum purchase age to 21, and extending restrictions to e-cigarettes and heated tobacco from Jan 1, 2027. Food Safety Crackdown: Inspectors in Jahra recorded 40 violations and shut five facilities, while authorities seized about 180kg of rotten beef and mutton after seal tampering and foul odors were found. Oil & Shipping Pressure on Kuwait: With the US-Iran 60-day MOU expiring and Hormuz traffic sharply down, reports say covert “dark” tanker shipments via Hormuz and Gulf of Oman are helping keep prices steadier—while Kuwait-linked flows are part of the workaround. Kuwait Energy Earnings: PIC posted KD 23.8m net profit for FY2025/26 despite market headwinds, and Kuwait’s KPC reported a three-year high net profit of $6.9bn. Public Works Tenders: Kuwait’s Public Works Ministry plans to float 24 contracts and tenders in the current fiscal year, including sewage network connections and equipment supply.