AGP Executive Report

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.

OPEC+ Oil Policy: Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman agreed to keep November output targets unchanged, with crude prices staying above $100 amid Iran-linked supply risks and Strait of Hormuz disruption. Kuwait Media Overhaul: Kuwait’s Official Gazette published Decree-Law No 102 of 2026 establishing a unified Media Regulation Law, replacing three older laws and setting a six-month timeline for executive regulations and license regularisation. Influencer Impact: The same law brings social media advertising and digital news under one framework; licensing rules for influencers will be detailed in forthcoming executive regulations, with a grace period for existing operators. Road Works: Kuwait’s Public Works Ministry is intensifying maintenance across 13 main roads and 42 areas in all governorates, including major highways and Seventh Ring Road asphalt works toward Fintas. Energy & Environment: Research highlights how attacks on oil and energy infrastructure in the Persian Gulf are compounding ecological damage, threatening marine life and coastal ecosystems. Business Diplomacy: KCCI said the UK remains a vital strategic partner for Kuwait, urging more joint business events and investment cooperation. Climate Coordination: The Arab Energy Organization held a Kuwait-based meeting to align member states on climate positions ahead of COP31.

OPEC+ Oil Policy: Kuwait and six other OPEC+ producers agreed to keep November oil output targets steady, maintaining September-required levels after a virtual meeting as exports remain disrupted by the Iran war and Strait of Hormuz risks. Maritime Security: India confirmed the rescue of five Indian nationals after a Kuwait-flagged tanker (MT Kazimah III) was struck by a projectile in the Strait of Hormuz; Oman coordinated the evacuation and all were shifted ashore safely. Kuwait Media Overhaul: Kuwait issued a new Media Regulation Law (Decree-Law No. 102 of 2026) replacing three older media laws, bringing newspapers, broadcasters, electronic news and social media advertising under one framework; outlets have six months after executive rules to regularize or risk license cancellation. Local Industry & Telecom Supply Chain: CITRA chair visited a Taihan Kuwait fiber optic cables factory, stressing that local cable manufacturing can support digital infrastructure growth, reduce import reliance, and build specialized industrial know-how. Housing Sector Showcase: Kuwait’s Public Authority for Housing Welfare presented its housing and smart-city direction at the Gulf Housing Week in Bahrain, highlighting integrated community planning and future-ready city intelligence.

Maritime Security: India confirmed five of its nationals were rescued after the Kuwait-flagged tanker MT Kazimah III was hit by a projectile in the Strait of Hormuz; the crew was shifted ashore safely with Omani support, as authorities keep a close watch on shipping risks. Oil Market Watch: OPEC+ monitoring is set to review compliance and the current oil market at the Joint Ministerial Monitoring Committee meeting, with Kuwait among the group’s key members. Local Energy Workforce: KNPC reported a major staffing surge, topping 7,650 employees by mid-2026, driven by restructuring and Kuwaitization hiring. Telecom Manufacturing Push: CITRA chief visited a fiber optic cable factory, stressing that local cable production can speed digital infrastructure growth and reduce reliance on imports. Housing Reform: Kuwait’s housing overhaul moves ahead with a draft decree-law on mortgage financing for PAHW beneficiaries, aiming to cut waiting times and bring in private developers. Aviation/Logistics: Kuwait’s regulator blocked Jazeera Airways’ planned restart of transit services at Kuwait International Airport. GCC Energy Prices: G7 plans to release emergency oil and diesel stocks to cool prices, while oil prices held steady around $100.

Maritime Security: Kuwait-flagged crude tanker MT Kazimah III was hit by a projectile in the Strait of Hormuz; five Indian nationals on board were safely rescued and shifted ashore with Omani coordination, as authorities investigate the source and damage. Housing & Construction: Kuwait approved a draft decree-law on mortgage financing for housing welfare beneficiaries, aiming to shorten waits and enable purchases from developers, with rules covering subsidized and unsubsidized financing. Digital Payments & Labour: The Central Bank of Kuwait launched the Kuwait Wage Payment System (KWPS) to move private-sector salaries electronically via local banks, improving speed, transparency and compliance monitoring. Food Safety Enforcement: Kuwait’s food authorities destroyed hundreds of kilograms of expired or contaminated products in Hawally and the Capital Governorate, issuing violation reports and closing a kitchen. Energy Prices Watch: G7 leaders agreed to release emergency oil and diesel stocks, including a substantial diesel release in the first 20 days, as global fuel prices stay pressured by the Iran-related supply crunch. Business Expansion: FREELANDER unveiled a phased Middle East-first expansion roadmap, starting with UAE dealer partnerships and plans to broaden across MENA before moving to other regions.

Maritime Security: Two more tankers were reported struck in the Strait of Hormuz, bringing the week’s total to six ships and underscoring how the conflict is disrupting regional shipping and oil flows. Food Safety Crackdown: Kuwait’s food authorities shut down violations in Hawally and the Capital Governorate, destroying about 357kg of expired/unfit and contaminated food and issuing multiple violation reports. Payments & Labour Compliance: The Central Bank of Kuwait launched the Kuwait Wage Payment System (KWPS) to route private-sector salaries through local banks, improving transparency and enabling faster employer compliance monitoring. Energy & Oil Market Watch: OPEC+ is expected to keep November output targets unchanged, while Hormuz LNG traffic hit its best month since the war began—still leaving Europe exposed due to a large storage gap. Kuwait Business & Trade: NBK said Kuwait’s non-oil activity is rebounding despite conflict-linked pressures, with oil production recovering toward pre-conflict levels. Aviation/Travel: Kuwait’s regulator blocked Jazeera Airways from restarting transit/transfer services at Kuwait International Airport. Industrial/Logistics: flydubai Cargo launched a freighter network with scheduled B737-800 cargo flights, including Kuwait among targeted routes.

OPEC+ Oil Policy: OPEC+ is set to keep November crude output targets unchanged, extending a pause after earlier phased increases, as actual supply still lags amid Strait of Hormuz disruption. Shipping Security: A Kuwait-flagged VLCC (Kazimah III, owned by KOTC) reportedly caught fire after a projectile hit in the Strait of Hormuz, with crew safe and environmental impact unclear. Kuwait Energy Exports: KPC-backed Nghi Son is moving polypropylene to global clients, selling 8,000 tons, while the refinery ramps operations to above design capacity. Industrial Partnerships: PIC and AmCham Kuwait signed an MoU to expand petrochemical investment ties. Hydrogen Research: KISR hosted GCC hydrogen experts to discuss regional projects and cooperation. Food Safety: Kuwait’s PAFN and Interior carried out Farwaniya inspections, issuing violations, destroying 98.7kg of unfit food, and taking legal action. Labor Compliance: PAM warned private employers again about restrictions on women working in unsafe, tough, or health-risk jobs. Trade Access: Kuwait opened imports for fresh papaya from Brazil, while Syria opened for Brazilian corn. Business & Tech: Samsung plans a $1bn investment in U.S. AI infrastructure via Helix, backed by KIA and Nvidia among others.