AGP Executive Report

Air Defence Upgrade: KONGSBERG will deliver NASAMS to Kuwait via Raytheon under the U.S. Foreign Military Sales programme, a roughly $400m deal that strengthens Kuwait’s layered coverage against drones, cruise missiles and aircraft. Energy Tech for Industry: SLB won a seven-year Kuwait Oil Company contract under Ahmadi Innovation Valley to scale AI, IIoT, production optimisation, reservoir and water-management technologies, with a dedicated facility planned. Telecom Investment: Zain secured a 25-year licence to operate a mobile network in Syria (75% Zain, 25% state), with a Q1 2027 commercial launch after a six-month transition for 6.3m existing customers. Workforce Push: Kuwait’s PAM received 5,430 applications for 70 cooperative-sector supervisory roles; 2,880 met eligibility and the nomination process is underway. Airport Recovery: Kuwait International Airport is operating again today, with Kuwait Airways and Jazeera running from Terminals 4 and 5 while Terminal 1 remains closed for repairs after conflict-linked strikes. Regional Trade & Shipping Risk: Talks on reopening the Strait of Hormuz continue indirectly in Qatar as U.S. envoys arrive; shipping and oil flows remain sensitive to renewed flare-ups.

Kuwait Energy & Infrastructure: Kuwait Oil Company (KOC) received bids for three power infrastructure projects supporting oilfield operations in South and East Kuwait; MECC (Ali Alghanim & Sons) is the apparent lowest bidder at KD132.28m ($427m), with awards pending technical and commercial evaluation. Kuwait Industrial Growth: Kuwait’s Al-Na’ayem industrial city is reported to be on track for readiness by 2032, aiming to drive the next phase of local industrial expansion. Kuwait Governance in Oil: KPC law amendments have entered into force, with Oil Minister Tareq Al-Roumi calling them a “qualitative leap” to modernize governance and improve commercial efficiency. Kuwait Public Works: The Public Works Minister inspected roads leading to the new airport, urging quality, safety, and schedule adherence to improve traffic flow. Regional Shipping & Energy Risk: Iran-US talks remain tangled as Trump says a Doha meeting is set for Tuesday while Iran denies direct negotiations; meanwhile, Hormuz disruptions and the push to reopen shipping keep oil markets volatile. Global Finance: GCC assets under management hit $2.7tn in 2025 (+10%), led by strong retail growth, with Kuwait’s WAFRA highlighted among top pension funds. World Bank Climate Shift: The World Bank will retire its 45% climate co-benefit lending goal, shifting to outcome-focused “smart development.”

Kuwait Infrastructure & Transport: Public Works Minister Dr Noura Al-Mashaan inspected roads and interchanges tied to Kuwait’s new airport, urging strict quality and safety and faster delivery to keep the road network on schedule. Aviation Cooperation: Kuwait’s Civil Aviation chief Sheikh Hamoud Mubarak Al-Hamoud Al-Sabah led the country’s participation in the Arab Civil Aviation Organization meeting in Rabat, highlighting aviation safety, security and environmental sustainability, and noting ICAO’s condemnation of Iranian attacks on Kuwait and other GCC states. Water Security: Kuwait’s electricity and water minister Dr Sabeeh Al-Mukhaizeem joined a GCC committee meeting on a regional water interconnection plan to strengthen Gulf water security via alternative transmission routes and shared surplus desalinated supply. Oil & Corporate Governance: KPC Chairman Tareq Al-Roumi said an amended decree-law modernising KPC’s establishment law is now in force, describing it as a “qualitative leap” for governance and commercial efficiency. KOC Power Projects: Kuwait Oil Company received bids for three electrical infrastructure projects; MECC (Ali Alghanim & Sons Group) emerged as lowest bidder at KD132.28m for substations supporting oil-field lift pumps and manifolds. Regional Energy Shock Watch (Hormuz): Despite renewed US-Iran tensions, Middle East producers kept oil and LNG loadings moving; at the same time, shipping through the Strait of Hormuz stayed disrupted as US-Iran “stand down” signals and Doha talks were announced amid conflicting claims from Tehran. Doha Talks Uncertainty: Trump said Iran requested a Doha meeting Tuesday with envoys Steve Witkoff and Jared Kushner, while Iranian officials denied technical talks were scheduled, keeping the Strait’s reopening and regional shipping plans in limbo.

Kuwait Water Infrastructure: Kuwait’s Ministry of Electricity, Water and Renewable Energy signed a KD 74.703m ($244m) contract to expand and upgrade the Shuwaikh Water Distribution Complex, boosting fresh and brackish pumping and storage capacity to strengthen potable water supply. Defense & Industry Cooperation: Kuwait’s Parliament approved Law No. 66/2026 ratifying a military cooperation and defense industry development agreement with Ukraine, covering joint R&D, licensed production, logistics, and training. Regional Finance: GCC asset management hit $2.7tn in 2025 (+10%), with retail growing faster than institutional assets, while Kuwait’s WAFRA remains a top pension player. Sovereign Wealth Outlook: A Bain & Company study expects global sovereign wealth fund assets to nearly double to $30tn by 2035, with Gulf funds leading. US-Iran Hormuz Truce Watch (Kuwait Impact): After weekend strikes, the US and Iran reportedly agreed to halt further attacks and let vessels move freely while technical talks continue, but renewed shelling and disputes over Strait of Hormuz control keep oil and shipping risk front and center for Kuwait and the region.

Strait of Hormuz Shockwave: Iran and the U.S. traded fresh strikes after the interim ceasefire frayed, with Iran launching missiles and drones at U.S. sites in Kuwait (Ali al-Salem Air Base) and Bahrain (U.S. Fifth Fleet HQ) while Kuwait said it intercepted two ballistic missiles; Iran also warned ships not to bypass its preferred Hormuz route and threatened a “complete halt” to talks. Diplomacy on Hold: Iran pulled out of scheduled technical talks with Washington, citing clashes and conditions over access to unfrozen funds, as U.S. officials said negotiations were still moving; Iran’s foreign minister also began coordination with Iraq amid wider regional strain. Shipping and Energy Risk: A top executive at Japan’s NYK Line said navigation options are “extremely limited” due to IRGC mines, keeping traffic below pre-war levels; the dispute over who manages Hormuz is again driving uncertainty for oil and logistics. Kuwait Business Notes: National Investments Company won three international awards, and NBK Wealth was named Kuwait’s Best for UHNW clients by Euromoney. Local Security: Kuwait’s Armed Forces reported intercepting hostile ballistic missiles, while regional condemnations followed renewed attacks.

Gulf Security Shock: Iran launched drone and missile attacks on Kuwait and Bahrain after fresh US strikes on Iranian targets, with Kuwait saying its air defences intercepted “hostile” missiles and drones and Bahrain reporting sirens and damage to a residential building near Muharraq, while Iran’s IRGC claimed it hit US-linked sites including Kuwait’s Ali Al Salem airbase and Bahrain’s Fifth Fleet facilities. Ceasefire Under Strain: Both Washington and Tehran traded accusations of breaching the interim MoU as President Donald Trump escalated rhetoric, warning the US could “militarily complete the job,” and Iran warned talks could face a “complete halt.” Shipping & Energy Pressure: The renewed violence centers on the Strait of Hormuz, where efforts to reopen routes and manage transit without Iran’s direct oversight are fueling new flashpoints, raising risks for regional oil flows and maritime operations. Kuwait Market Watch: Boursa Kuwait moved ahead on capital-market reform, announcing the Emerging Companies Market (ECM) is ready to accept SME listing applications after technical tests. Maritime Ops Update: Kuwait’s Directorate General of Shipping withdrew an earlier restriction affecting Indian ships and seafarer deployment in the Gulf, urging stakeholders to keep heightened caution.

Kuwait Public Works Tendering: CAPT opened bids for two sand-removal tenders on highways in Kuwait’s north and south, with 19 companies competing; recommendations are due within 30 days before State Audit Bureau pre-audit. Kuwait Falconry Milestone: Kuwait produced its first homebred peregrine falcon via artificial insemination at Al-Sahliya Center, with plans to scale output to 50–60 birds annually. Digital Health Warning: Kuwait medical experts warned that excessive screen time is linked to rising vision and sleep problems in children, urging the 20-20-20 rule and more outdoor activity. Banking Innovation: NBK launched 24/7 digital safety deposit boxes, letting customers retrieve valuables via an automated system in a private room. Retail Tech Push: Lulu Hypermarkets kicked off its “Let’s Connect” tech festival in Kuwait, running June 25–July 10 with major deals and hands-on demos. Markets & Investor Focus: Boursa Kuwait held an investor-relations event on market outlook and economic perspectives amid regional volatility. Diplomacy & Security: Kuwait condemned reported Iranian drone attacks on Bahrain and reiterated support for de-escalation, as Strait of Hormuz shipping remained fragile despite a US-Iran ceasefire.

Strait of Hormuz Energy Shock: Oil prices slid sharply as tanker traffic through the Strait of Hormuz picked up, with Brent falling toward $72 and WTI near $69, while Saudi Arabia restarted crude loadings at Ras Tanura after a four-month pause—signaling a fast shift from war-driven shortage fears to oversupply worries. Maritime Security Tensions: Even as shipping resumed, a cargo ship was reportedly hit on a UN-backed “safe route,” and Iran warned it could deny safety guarantees for vessels using “unauthorized” routes—keeping the ceasefire fragile. Gulf Diplomacy Push: US Secretary of State Marco Rubio wrapped a Kuwait-UAE-Bahrain tour telling GCC partners the US will protect their security interests and that Hormuz navigation must stay “free, unconditional, and unrestricted,” with no tolls or fees. Hormuz Toll Debate: Oman signaled it may not return to pre-war status and could charge for services tied to navigation and de-pollution, while Iran floated an annual $40bn toll plan—prompting GCC rejection. Kuwait Anti-Drug Crackdown: Kuwait’s Drug Control and Customs units arrested a Bangladeshi suspect over a shipment of chemical-saturated narcotics arriving via courier, seizing 80 treated sheets plus more at his residence. Green Industry Move: Jereh NER signed an MoU with Saudi e-waste recycler EADA to build lithium battery recycling production lines across the Gulf, aiming to support circular-economy goals.

Hormuz Security & Shipping: A cargo ship was hit on the UN-backed “safe route” in the Strait of Hormuz as tanker traffic tried to resume, underlining how fragile enforcement is for the world’s key energy lane. Ceasefire Under Strain: Trump accused Iran of a “foolish” ceasefire violation after drones struck a Singapore-flagged vessel; Iran warned ships to avoid unauthorized routes. GCC Position: US and GCC ministers in Manama demanded immediate Hormuz reopening with “free, unconditional, and unrestricted navigation,” rejecting any tolls, fees, or attempts to control the strait. Kuwait Security (Drugs via Shipping): Kuwait’s Drug Control and Customs units arrested a Bangladeshi national in Jleeb Al-Shuyoukh after intercepting a courier shipment of 80 chemical-saturated narcotics sheets, with 7 more found at his home; investigations point to handlers abroad. Energy/Industry Signals: Saudi Aramco restarted Ras Tanura crude loadings after nearly four months, even as Hormuz attack risk kept shipping operations tense. Local Industry/Projects: Kuwait is set to retender a fuel depot project, while bids for major water and power schemes in Kuwait and Bahrain are in focus. Trade/Finance: Iraq warned it may reconsider its OPEC stance unless quotas rise sharply, as Gulf disruptions squeeze revenues.

Strait of Hormuz Diplomacy: GCC and US ministers in Manama urged immediate reopening of the Strait of Hormuz, stressing “free, unconditional, and unrestricted navigation” and rejecting any tolls, fees or attempts to control the waterway, while welcoming Oman and the IMO’s evacuation plan for 11,000+ stranded seafarers. Maritime Risk Flare-Up: Despite rising traffic, an Iranian-linked attack on a cargo ship near Oman renewed shipping safety worries and prompted the UN/IMO to pause evacuation operations pending safety guarantees. US Posture Review: The US is reviewing its Middle East military posture, weighing reduced presence in Kuwait and Saudi Arabia and potential relocation of some operations to Israel after recent Iranian attacks exposed vulnerabilities. Kuwait-US Consular Update: The US Embassy in Kuwait City resumed limited operations for emergency American Citizen Services and some passport processing, but routine visa interviews remain suspended. Energy Trade Shifts: Russia’s share of India’s crude imports hit a June record above 50% as discounted barrels displaced Gulf suppliers, while China’s state refiners are considering a return to Iranian crude purchases under new US waivers. Kuwait Policy/Industry: Kuwait amended KPC’s law to strengthen commercial management and flexibility, and Kuwait’s development ministry referred suspected PAAAFR attendance-record forgery to prosecutors, suspending three supervisors pending investigation. Food Security Focus: Kuwait and Kazakhstan discussed expanding food security cooperation across agricultural production and supply chains.

Hormuz Diplomacy: US Secretary of State Marco Rubio wrapped up a Gulf tour in Bahrain, telling allies any Iran deal must protect their security and insisting the Strait of Hormuz must stay free of tolls, fees or any attempt to control navigation; GCC ministers backed “free, unconditional, and unrestricted navigation” and welcomed Oman’s fee-free corridor plan. Maritime Risk: Despite the easing of immediate supply fears, an apparent Iranian attack near Oman was reported by UKMTO, with crude prices jumping as ships reportedly turned back or were warned off routes. Kuwait Air Operations: Kuwait International Airport is open again, with Kuwait Airways and Jazeera operating normally and Oman Air resuming via Terminal 4; Terminal 1 remains closed for repairs. Energy & Markets: Gulf stocks slipped as oil weakened and rate-hike expectations rose, while the Hormuz situation continued to steer trading sentiment. Kuwait Business & Retail: LuLu Hypermarket launched its 25th anniversary promotions in Kuwait, including “LuLu On Sale” discounts up to 50% and a major tech campaign. Local Regulation: Kuwait shut down a health institute over cash-payment violations and other breaches found during inspections. KPC Overhaul: Kuwait Petroleum Corporation law amendments aim to boost commercial management, contracting modernization, board authority and expand renewable energy scope. Capital Markets: Action Energy signed a market maker deal with Kuwait Investment Company to improve liquidity for its ALFTAQA shares. Food Security: Kuwait’s development minister discussed expanding food-security cooperation with Kazakhstan, focusing on agricultural production and resilient supply chains.

Gulf Diplomacy: US Secretary of State Marco Rubio landed in Bahrain after UAE and Kuwait stops, pressing Gulf leaders to back the Trump administration’s tentative Iran accord while stressing Washington will not undermine Gulf security and will oppose any Strait of Hormuz transit fees. Hormuz Shipping & Energy: Iran’s IRGC warned ships against using an “unapproved” Hormuz route, while oil markets reacted to improving tanker traffic; Brent slid to near pre-war levels as more vessels cleared the strait, though recovery remains fragile. Nuclear Inspections Row: The UN nuclear chief said IAEA inspectors will visit Iran enrichment sites under the interim MoU, but Tehran says access comes only after a final deal—fueling a public “war of words” that could derail the ceasefire. US Domestic Pressure: Trump faced GOP backlash over the Iran war and a supplemental funding request, with lawmakers disputing whether the framework deal meets stated war aims. Kuwait Industry Angle: Kuwait Oil Company (KOC) awarded a five-year oil-based drilling cuttings treatment contract in Kuwait to China’s Jereh NER, targeting lower residue oil content and improved environmental compliance. Logistics & Trade: Qatar Post launched a new CONNECTED service for cross-border shopping and shipping, including Kuwait as an origin country for deliveries into Qatar.

Gulf Security & Energy Transit: US Secretary of State Marco Rubio is on a Gulf tour to reassure Kuwait and allies over the US-Iran interim accord, as the Strait of Hormuz slowly reopens and oil prices slide; Rubio said technical talks with Iran are set to resume in Switzerland around June 29-30, while he also rejected any idea of tolls on Hormuz and pushed for security guarantees for Gulf states. Regional Diplomacy: Kuwait hosted Rubio’s meetings with the Emir as the US Embassy in Kuwait City resumed operations after a months-long suspension tied to Iranian attacks; meanwhile, UN nuclear chief Rafael Grossi said inspectors will visit Iran sites, but Iran insists timing depends on a final deal. Shipping Disruption Watch: Analysts warn volatility remains high as logistics scramble around Hormuz reopening, with reports of around 1,200 cargo ships previously stranded and markets still pricing in supply and insurance risks. Local Power Reliability: Kuwait’s Jahra area saw outages after a technical fault at the main substation linked to high temperatures and heavy loads. Kuwait Industry & Services: Zain Kuwait ran an executive innovation pitching program for senior KNPC/KIPIC talent, while Gulf Bank highlighted a 2025 carbon emissions cut in its ESG reporting. International Development: Kuwait’s finance minister led the country’s delegation to the OPEC Fund for International Development forum in Vienna, focusing on sustainable infrastructure, food and energy security, and human capital.

Power Disruption in Shuwaikh: Kuwait’s Ministry of Electricity, Water and Renewable Energy said a technical malfunction knocked out three 33 kV transformers at Shuwaikh (A) main substation, causing a limited outage in Shuwaikh, Block 6, with emergency teams working to restore supply. GCC Consumer Protection Push: Kuwait’s Ministry of Commerce and Industry joined GCC talks on consumer protection, reviewing progress and updating the action plan for 2027–2030, including a planned 2026 workshop. Summer Fire Safety Warning: Kuwait Fire Force urged residents and businesses to step up fire prevention as heat and electrical load risks rise, highlighting common causes like overloads, unsafe wiring, and poor flammable storage. Diplomatic Energy Focus: US Secretary of State Marco Rubio began a Gulf tour in Abu Dhabi to reassure allies over the US-Iran framework, with Hormuz transit fees and regional security high on the agenda. Energy Infrastructure Theme: TotalEnergies CEO Patrick Pouyanne said Gulf producers must prioritize pipelines to bypass Hormuz, pointing to routes via Kuwait, Saudi Arabia and onward connections. Local Industry Note: Zain Kuwait recognized top performers in the Dawri Zain Premier League, reinforcing private-sector support for Kuwaiti sports.

Kuwait Aviation Investment Push: PACA chief Sheikh Hamoud Mubarak Al-Hamoud Al-Sabah met KDIPA to align on investment and development projects for civil aviation, aiming to strengthen Kuwait’s air transport and logistics hub role. Market Liquidity Boost: Action Energy Co signed a market maker agreement with Kuwait Investment Company (KIC) to improve share liquidity for ALFTAQA on Boursa Kuwait. Fire Safety Crackdown in Wafra: Kuwait’s Fire Department shut 8 facilities and issued 17 violation notices in Al-Wafra after inspections found non-compliance with fire safety rules. Power & Renewables Procurement: Kuwait is set to open financial bids for the 1.1GW Al Dibdibah Power and Al Shagaya Renewables Phase III Zone 1 solar PV project, while also progressing other IWPP and solar bid evaluations. Regional Energy Shockwatch: As US-Iran talks continue, Iran says UN nuclear inspectors won’t access bombed sites, while the Strait of Hormuz remains a key pressure point for shipping and energy flows. Gulf Shipping & Trade Ripple: India’s LPG imports are shifting sharply, with US supply expected to top 1 million tonnes in June as Middle East disruptions reshape sourcing. Finance Sector Reshuffle: Standard Chartered is exploring the sale of its Bahrain wealth and retail banking business, keeping corporate/investment banking operations in place.

US-Iran Energy Reset: The US Treasury temporarily eased sanctions on Iranian oil up to Aug 21, authorizing production, delivery and sales after talks in Switzerland, while markets watched for Strait of Hormuz recovery and still debated nuclear commitments. Gulf Diplomacy: US Secretary of State Marco Rubio is set to pitch the Iran peace framework to GCC leaders in the UAE, then visit Kuwait and Bahrain, with Gulf states worried about missile limits, a proposed $300bn reconstruction fund, and control over oil shipping lanes. Hormuz Shipping Watch: Maritime traffic through Hormuz is improving but remains below pre-war levels; Iran says it will administer the strait, while the US pushes for “safe passage” mechanisms. Kuwait Business & Standards: NBK became the first GCC bank to secure four ISO HR certifications, signaling a push toward tighter human-capital reporting and competence development. Kuwait Macro: Kuwait’s inflation rose 2.49% year-on-year at end-May, driven mainly by food, health, clothing/footwear, education and services. Food Industry Linkages: Kuwait and Egypt are moving toward stronger long-term food industry partnerships to tackle supply-chain and food-security pressures. Regional Disruption Costs: Airlines across the Middle East are recovering toward pre-war flight levels, with Kuwait Airways cited among carriers nearing or exceeding earlier activity.