AGP Executive Report

Strait of Hormuz Shock to Kuwait’s Oil Exports: Kuwait says it strongly condemns Iran’s attacks on ADNOC-linked vessels in the Strait of Hormuz, warning they violate international law and threaten maritime navigation and global energy supplies. US-Iran Escalation: Trump renewed claims he will soon declare Hormuz a US territory, while Iran dismissed the move and insisted the strait can’t be controlled by force. Kuwait Investment Push: Kuwait’s FDI momentum got a major boost as KPC signed the $16bn Shaheen Project, a sale-and-leaseback for crude oil pipelines expected to generate $7.85bn upfront to fund capex and support production targets. Kuwaitization in Co-ops: The Social Affairs ministry announced Kuwaitization of a branch supply manager role in 12 cooperative societies, with further vacancies planned. Local Infrastructure Progress: The Qurtuba project reached 82% completion, with sewage and stormwater networks at 97% and telecom and street lighting also progressing. Energy Reliability: Power was restored to Fahaheel after a technical fault at the Fahaheel (A) Main Substation. Industry & Skills: KFAS’s PRE 2026 program wrapped up for gifted students, and Kuwait’s farmers’ union updates highlighted renewed support including subsidized diesel allocation based on farm needs.

Kuwait Investment Push: Kuwait Petroleum Corporation signed a USD 16bn Shaheen Project deal using a sale-and-leaseback model for crude oil pipelines, aiming for about USD 7.85bn in proceeds to help fund capex and lift crude output capacity toward 4 mbpd, with global investors including Blackstone, Brookfield and KKR. Power Reliability: Kuwait’s Ministry of Electricity and Water restored power to Fahaheel after a technical fault took the Fahaheel (A) Main Substation out of service, affecting only a limited area. Strait of Hormuz Shockwaves: Kuwait condemned Iranian attacks on ADNOC tankers in the Strait of Hormuz, calling them violations of UN Security Council Resolution 2817 and urging an immediate, full reopening of the strait. Regional Security Signals: Kuwait also weighed in on the Mecca Joint Defense Agreement narrative, with commentary highlighting how the Saudi-Turkiye-Pakistan pact could strengthen security and stability—relevant for shipping and energy planning. Energy Tech Contract: Silverwell won a multi-million-dollar Middle East contract to deploy Digital Intelligent Artificial Lift (DIAL), enabling remote gas-lift optimization to cut costly interventions and protect production.

Power & Utilities: A technical malfunction at the Fahaheel (A) Main Conversion Station knocked out power to a limited area in Al-Fahaheel, with emergency teams from the Ministry of Electricity, Water and Renewable Energy working to restore service. Maritime Security & Energy Trade: Kuwait joined Qatar, Egypt and Bahrain in strongly condemning Iran’s attack on two UAE ADNOC tankers transiting the Strait of Hormuz, calling it a violation of UN Security Council Resolution 2817 and urging de-escalation plus the full, unconditional reopening of the strait. Oilfield Tech & Production Efficiency: Silverwell won a multi-million-dollar, multi-well Middle East contract to deploy its Digital Intelligent Artificial Lift (DIAL) technology, enabling remote gas-lift valve optimization and reducing costly interventions. Regional Defense Cooperation: Coverage also highlighted the Pakistan–Saudi Arabia–Türkiye tripartite defense pact and related alliance details, underscoring how Gulf security planning is shifting amid Hormuz-linked tensions. Industry & Innovation: KIT reported a hybrid solar system that pairs photovoltaics with passive daytime radiative cooling, aiming to deliver power and cooling from one surface. Health Snapshot: A global diabetes ranking placed Kuwait among the highest-prevalence countries, with 2024 age-standardised diabetes prevalence cited at 25.6%.

Gulf Shipping Security: A Saudi-led 14-nation maritime defense coalition is moving toward operational activation to protect Red Sea and Bab al-Mandeb trade and energy routes, with Kuwait among the signatories. Hormuz Pressure on Industry: US Defense Secretary Pete Hegseth says the blockade of Iranian ports can be maintained “indefinitely,” while Iran rejects US claims of normal Strait of Hormuz passage—keeping shipping disruption and higher costs front and center for the region’s energy-linked businesses. Kuwait Oil & Tech: Kuwait Oil Company signed a multi-year technology collaboration with Baker Hughes for the Ahmadi Innovation Valley upstream push, and KUFPEC is evaluating new Alberta (Canada) exploration opportunities after completing engineering risk work on its Quebec-Doverney stake. Kuwait Governance & Market Oversight: Kuwait’s Commerce Ministry reported 17,135 complaints in Q2 2026 via Sahel and its portal, with inspection teams issuing 5,155 violation reports and closing 52 shops. Airport Commercial Moves: PACA obtained conditional SAB approval to award seven Kuwait International Airport tenders worth KD 7.006m, covering terminal leasing for ads, food outlets and baggage services. Youth & Skills: talabat and AIESEC in Kuwait ran the Next Tech Gen session to expose young talent to AI, product, data and digital platforms.

Maritime Security: Saudi Arabia is pushing a new 15-country maritime defense coalition toward activation, with 15 states signing to protect navigation and energy routes around Bab al-Mandeb, the Red Sea and the Gulf of Aden—Kuwait is among the signatories. Sustainability & Environment: Ahmadi Governorate, with EPA and Kuwait Oil Company, launched an introductory “Sustainable Conservation” seminar aimed at building governorate-level environmental data and carbon footprint tracking. Energy & Upstream: KUFPEC is evaluating new exploration and production opportunities in Canada’s Alberta, including engineering risk work tied to its Quebec-Doverney stake. Aviation & Infrastructure: Kuwait International Airport cleared seven tenders worth KD 7.006m for passenger-terminal leasing (ads, baggage services, food outlets) after conditional SAB approval. Public Oversight: Kuwait’s Commerce Ministry reported 17,135 complaints via Sahel in Q2 2026, with 5,155 violation reports and 51 shop openings plus 52 closures. PPP Projects: KAPP referred a KD 2.15m consultancy tender for re-tendering 23 state real-estate projects to the State Audit Bureau for review. Oil Tech Collaboration: KOC signed a multi-year technology collaboration with Baker Hughes for the Ahmadi Innovation Valley to boost upstream performance and deploy digital/AI solutions. Finance: KIPCO posted KD 5.3m net profit for H1 2026, while GFH reported higher Q2 and first-half net profit. Youth & Tech: talabat and AIESEC Kuwait ran the “Next Tech Gen” session to expose young talent to AI, product, data and digital platforms.

Strait of Hormuz Shockwaves: Iran says the Strait will stay closed unless the US accepts Tehran’s conditions, while Trump insists the US has “total control” and reroutes more commercial ships—59 vessels redirected so far—keeping shipping traffic thin and energy markets jittery. Kuwait Energy Update: Kuwait Petroleum Corporation reported record consolidated net profit of KD 2.155bn ($6.9bn) for FY2025/26, citing resilience despite Iranian attacks and crude production fallout. Local Logistics Pressure: Kuwait’s MoCI met shippers over rising transport and logistics costs tied to Hormuz disruptions, with firms shifting routes, using GCC pickup/delivery and alternative ports to protect supply and prices. Security at Home: Kuwait foiled an alleged ISIS-linked drone-and-explosives plot targeting a vital facility, arresting a Kuwaiti suspect before any operation. Regional Security Architecture: Turkey said it hopes the Makkah Joint Defence Agreement (Türkiye-Saudi-Pakistan) will expand beyond the three states, as the pact aims to stabilize a conflict-hit region and protect navigation routes. Red Sea Spillover: A new Saudi-led 14-state maritime coalition was announced to counter Ansar Allah threats around the Red Sea and Bab el-Mandeb, with Kuwait among signatories.

Logistics Pressure: Kuwait’s MoCI met shipping firms over rising transport and logistics costs tied to Strait of Hormuz disruptions, with companies shifting to alternative GCC routes and ports to keep goods flowing and prices stable. Energy Governance: Kuwait PM chaired the 133rd Supreme Council for Petroleum meeting, approving KPC’s 2025/26 final accounts and reviewing key energy strategies and projects. KPC Profit Update: KPC recorded consolidated net profit of KD 2.155bn for 2025/26, citing resilience amid regional shocks including attacks on tankers, refineries and KPC facilities. Security & Risk to Industry: Kuwait’s Interior Ministry said it foiled an ISIS-linked plot targeting a vital facility, with the suspect trained in explosives and drones. Compliance Crackdown: MoCI fined companies KD 141,500 in Q2 across 83 cases in gold/silver jewelry, precious metals and gemstones, and real estate brokerage, issuing corrective orders and warnings. Regional Maritime Order: Saudi Arabia announced a 14-state maritime defense coalition to protect Red Sea and Gulf routes, with Kuwait listed among signatories. Hormuz Standoff Impact: Iran and the US remain deadlocked on reviving a ceasefire framework, while IEA warns renewed hostilities are tightening global oil supply and inventories. Retail Expansion: Lulu opened a new hypermarket at Jaber Mall, bringing its Kuwait stores to 19 and expanding logistics plans.

Kuwait Aviation Rules: The Cabinet approved a draft decree-law to regulate drones, light sport aircraft and air sports, setting registration, licensing, permits, obligations and penalties, with the Public Authority of Civil Aviation as the main overseer. AI & Education: Kuwait’s ambassador to South Korea backed deeper university cooperation in AI to build national cadres, as a KFAS STEAM initiative brought 20 Kuwaiti students for briefings on Korea’s tech progress. Youth Focus: On International Youth Day, Kuwait’s youth and sports minister urged young people to shape the future through initiative and hard work, while local youth programs highlighted STEM learning and youth-led leadership in fields like geology. Kuwait–Indonesia Trade: Indonesia’s ambassador said bilateral trade rose from $547.5m (2024) to $606m (2025) and pointed to plans for an Indonesian-Kuwaiti energy forum and continued growth. Regional Shipping Shock: With Iran insisting the Strait of Hormuz stays closed unless US meets its conditions, shipping attacks around the Gulf and Red Sea continued, while US energy chief said Gulf oil flows have climbed to about 15m bpd via strait recovery plus pipeline/export routes. Digital Payments: stc pay Bahrain launched “Secure Approve” for online card payments, letting users review and approve transactions inside the app instead of OTPs. Airline Impact: Jazeera reported H1 2026 profit down 10.3% to KD8.6m, blaming higher fuel costs and Kuwait airport disruption during the Iran war, while noting a rebound after services resumed.

Aviation Rules: Kuwait’s Cabinet approved a draft decree-law to regulate drones, unmanned aircraft, light sport aircraft and air sports, setting registration, licensing, permits, obligations, prohibited activities and penalties, with the Public Authority of Civil Aviation overseeing implementation. Energy & Trade: Indonesia-Kuwait trade rose to $606m in 2025, and Kuwait’s LNG imports climbed to about 803,000 tons in July—the highest since the Hormuz disruption began—signaling tighter energy logistics. Oilfield Services: Baker Hughes won a multiyear Kuwait Oil Company technology contract for the Ahmadi Innovation Valley project, while Action Energy pledged $1m to the Kuwait Emergency Response Fund and said its backlog and dividend outlook remain strong. Digital & Telecom: stc completed Kuwait’s first AI-powered real-time voice translation trial, and Ooredoo Kuwait launched an employee upskilling learning series. Industry Talent: Zain and KFAS-backed IN Camp wrapped up with 2,560 children trained in STEM activities, while the Kuwait Earth Sciences Society pushed youth into geology leadership. Aviation Business Impact: Jazeera reported H1 2026 profit down 10.3% to KD 8.6m, citing higher fuel costs and airport disruption effects. Crisis Readiness: Kuwait Emergency Response Fund contributions reached KD 75.37m from 68 entities.

Consumer Protection Crackdown: Kuwait’s Commerce and Industry issued seven enforcement reports against cooperative societies in the Capital Governorate after inspectors found pricing and labeling breaches, with cases referred for legal action. Market Oversight Push: In Q2 2026, the ministry logged 17,135 consumer complaints via Sahel and its portal, issued 5,155 violation reports, opened 51 shops and closed 52. Housing Digital Services: PAHW said it delivered 223,000+ e-services in H1 2026, including 133,432 via Sahel and 78,931 via chatbots, as it expands access to housing-related services. Food Prices Under Watch: Kuwait kept fish and shrimp prices stable despite high levels, citing limited local catches and monitoring of shrimp auctions; inspections covered auctions and compliance. Emergency Funding Boost: Kuwait’s Emergency Response Fund hit KD 75.37m from 68 public and private contributors, with technical reviews underway for new requests. Non-oil Exports Continue: Kuwait issued 4,989 certificates of origin for non-oil exports in Q2 worth KD 481.6m, led by GCC shipments. AMR Lab Capacity: KISR, with PAAAFR and WHO support, ran a workshop on accrediting veterinary laboratories to strengthen biosecurity and antimicrobial resistance readiness. Industrial Tenders: Kuwait’s Electricity, Water and Renewable Energy sought to confiscate a winning bidder’s deposit after missed contract steps, while CAPT approved street-lighting maintenance awards.

Non-oil trade push: Kuwait’s Ministry of Commerce and Industry issued 4,989 certificates of origin for Q2 2026 non-oil exports worth KD 481.6m, with GCC markets taking the biggest share (KD 351.8m). Digital services: PAHW says it delivered 223,000+ e-services in the first half of 2026 via Sahel, its website and chatbots, with 325,412 users. Food supply pressure: Despite 826 tons of fish and shrimp reaching Kuwait markets, prices stayed high as limited local catches and deep-sea fishing restrictions continue; inspections monitored shrimp auctions. Biosecurity & AMR: KISR, with PAAAFR and WHO, is running a workshop on accrediting veterinary labs to strengthen animal health and antimicrobial resistance readiness. Municipal crackdown: Kuwait Municipality continued its “no encroachments” campaign, warning against diwaniyas and fences built on state property and sidewalks. Business compliance: Farwaniya inspections found 28 licensing/advertising violations and issued warnings, while Kuwait also moved to tighten commercial concealment rules with jail and fines. Energy investment: Brookfield, KKR and Blackstone agreed to buy a 49% stake in a Kuwait Petroleum Corporation pipeline JV in a deal valued around $16bn, bringing about $8bn upfront to the state. Tender enforcement: Kuwait’s electricity/water ministry asked CAPT to confiscate a winning bidder’s deposit after missed final payments and contract signing.

Food Safety Enforcement: Kuwait’s General Authority for Food and Nutrition carried out Farwaniya warehouse inspections, issuing five violation reports and ordering the destruction of 173kg of unfit food. Regulatory Crackdown on Foreign Economic Activity: Kuwait introduced strict penalties for commercial concealment, targeting arrangements where foreigners conduct business without proper legal compliance or via fronts, with jail and fines up to KD100,000. Energy Supply Shock Costs: Reports highlight how the Strait of Hormuz disruption has forced Gulf states to fly in necessities like food, pushing up living costs, with Kuwait among the hardest hit. Solar for Retail Infrastructure: AEPCo will develop an 8.77MW solar project at Souk Sharq under a deal with Marasi United, combining rooftop and carport arrays and supporting Kuwait’s renewable targets. Defense Diplomacy: Kuwait’s foreign minister congratulated Pakistan on the Makkah Joint Defence Agreement with Türkiye and Saudi Arabia, amid ongoing regional security concerns. Aviation Disruptions: UAE airlines’ service changes include Etihad cancellations to Bahrain and Kuwait and limited flydubai operations, with passengers urged to check flight status. Energy Industry Finance: Action Energy reported H1 2026 results, including a 96.6% jump in net profit to KD4.4m and an interim cash dividend of 3 fils per share. Medical Infrastructure: The Jaber Al-Ahmad Kidney Dialysis Center in Ahmadi opened with 83 dialysis units and capacity for over 600 patients when fully operational. Agriculture Investment Push: Kuwait is mulling ways to boost agriculture investment, including attracting partnerships and empowering local talent, with modern methods like hydroponics and vertical farming. Regional Trade and Logistics: Kuwait-linked regional energy storage plans are gaining momentum, with Pakistan preparing customs-bonded petroleum storage options involving suppliers from Kuwait and Saudi Arabia.

Agriculture Investment Push: Kuwait is reviewing a plan to reverse a sharp fall in agricultural FDI, with food security as the priority and a focus on attracting partnerships, empowering Kuwaiti farmers, and using modern methods like hydroponics and vertical farming. Public Health & Compliance: Kuwait Municipality launched a campaign urging businesses to get licensed correctly, warning violations can bring fines up to KD 5,000 and closure. Energy & Water Projects: The Electricity, Water and Renewable Energy ministry is awaiting State Audit Bureau approval for nine water and power network contracts, including high-voltage line maintenance and new water pumping facilities. Healthcare Expansion: The Jaber Al-Ahmad Kidney Dialysis Center opened in Ahmadi with 83 dialysis units and capacity for 600 patients, adding services like labs and emergency care. Banking for Young Professionals: NBK introduced the “Plus” package for customers transitioning from its Youth Package after their first salary, with cash rewards and lifestyle benefits. Regulatory Crackdown on Foreign Business: Kuwait tightened commercial concealment rules, targeting arrangements where foreigners conduct economic activity without proper licensing, with penalties including jail and fines up to KD 100,000. Consumer Pressure on Food Prices: Kuwait consumers are calling for a fish boycott over high prices, urging action against monopolies and speculation. Finance & Oilfield Services: Action Energy reported H1 2026 results with revenue up 34.4% and net profit up 96.6%, plus a first interim dividend of 3 fils per share. Security & Regional Diplomacy: Kuwait welcomed a UN Security Council statement condemning Houthi missile attacks on Saudi Arabia and attacks on commercial vessels, reaffirming support for maritime navigation safety. Market Watch: Kuwait gold closed last week at $4,342 per ounce, up more than 7%, as US labor data softened rate-hike expectations.

Kuwait Credit Watch: Fitch affirmed Kuwait’s long-term sovereign rating at AA- with a stable outlook, citing strong fiscal and external buffers but warning that the Iran war and Strait of Hormuz disruptions can still hit oil exports and growth. Energy & Industry: Halliburton won a long-term contract with Kuwait Oil Company to build the Ahmadi Innovation Valley upstream R&D centre, aiming to boost brownfield/greenfield performance using digital tools and AI. Maritime Security: Kuwait’s Interior Minister led an island and port tour to review maritime border readiness, coordination among coast guard, ports and customs, and progress on island construction works. Competition & Investment Climate: Kuwait’s National Competition Policy project reached 96% completion, targeting anti-monopoly practices and tougher penalties to improve market governance and attract foreign direct investment. Food Prices Protest: Kuwait consumers escalated pressure over high fish prices with a boycott campaign using “Don’t Buy, Let It Rot,” blaming monopolization and speculation. Regional Shipping Risk: Kuwait condemned an Iranian missile attack on an ADNOC-linked tanker in the Strait of Hormuz, calling it a violation of international law and a direct threat to navigation and global energy supplies. Renewables Deal Rumor: BP is reported to be in advanced talks to sell Lightsource BP to a Kuwaiti-backed consortium, marking a further retreat from renewables. Oilfield Earnings: Action Energy reported 96.6% profit growth in H1 2026, with record backlog and full rig utilisation. Aviation Deliveries: Boeing said Gulf airlines are not discussing delivery/order restructuring despite the Iran war, pointing to resilient demand. Emergency Fund Boost: Kuwait’s private sector added $12m to the Kuwait Emergency Response Fund, with contributions from multiple firms and societies.

Maritime Security: Kuwait’s Interior Minister Sheikh Fahad Al-Yousef toured Umm Al-Maradim, Qaruh and Kubbar islands, reviewing Coast Guard, ports and customs coordination and pushing for faster completion of island construction plus better living conditions for personnel. Credit & Macro Watch: Fitch affirmed Kuwait’s sovereign rating at AA- with a stable outlook, citing strong fiscal buffers and external assets, while warning that US-Iran tensions and possible Strait of Hormuz disruptions could still weigh on growth and oil-linked revenues. Competition Policy: Kuwait’s National Competition Policy project is reported at 96% completion (KD 8.6m), aiming to curb monopolies and anti-competitive practices to improve the climate for foreign direct investment. Emergency Funding: Private sector donations to the Kuwait Emergency Response Fund climbed by $12m, with contributions from stc, Arzan Financial Group, Kuwait Real Estate Company and others, coordinated via KFAED. Hormuz Risk to Shipping: Kuwait condemned an Iranian missile attack on an ADNOC-affiliated tanker in the Strait of Hormuz, calling it a breach of international law and a direct threat to navigation and global energy supplies. Aviation Fuel Trade: Dangote Refinery kept its edge as Europe’s top imported jet fuel supplier for a second straight month, supplying about 400,000 tonnes in July (around 20% of Europe’s imports). Power & Investment: Vistra reported weaker Q2 profit due to unrealised losses on commodity hedges, while committing capital to Helix Digital Infrastructure, an AI power venture backed by KKR and the Kuwait Investment Authority.

Strait of Hormuz Talks: Iran is pushing to reopen the Strait of Hormuz while seeking to restrict US Navy warships from using it, as Oman mediates between Tehran and Washington; a preliminary Oman-Iran framework is said to be close, but key terms—like any Iranian fees or vessel limits—remain a sticking point. Kuwait Credit Watch: Fitch affirmed Kuwait’s “AA-” sovereign rating with a stable outlook, pointing to exceptionally strong fiscal and external buffers even as the US-Iran war continues to pose risks to growth and oil-linked activity. Energy Trade Shift: After Hormuz disruptions, India has changed LPG sourcing, with the US emerging as a bigger supplier while Gulf deliveries (including Kuwait) fell sharply. Kuwait Airport Status: Kuwait International Airport remains operational but Terminal 1 stays closed after structural damage; flights are routed via Terminals 4 and 5. Regional Security Architecture: Saudi Arabia, Turkey and Pakistan signed the “Mecca Joint Defence Agreement,” treating attacks on one as attacks on all, as Gulf states seek stronger deterrence amid Iran-linked threats. Maritime Defence for Red Sea: Saudi appointed a commander for a multinational maritime coalition to protect navigation through Bab al-Mandeb, with Kuwait among founding members. Kuwait Resilience Theme: Coverage highlights how Kuwait’s strong sovereign buffers helped it absorb the shock from Hormuz disruption, despite export and logistics strain.