AGP Executive Report

Strait of Hormuz Disruption: Oil flows through Hormuz jumped to 2.58m bpd in September as Saudi Arabia rerouted crude after Red Sea traffic was hit by Houthi attacks, while total regional volumes still lagged far below pre-war levels. Court Ruling on Disability Grants: Kuwait’s Court of Cassation said there’s no cap on the number of KD 10,000 disability housing-grant recipients per family, overturning an earlier “two children” restriction. Kuwait Industry Push: Kuwait’s industrial leaders reiterated that the country has land, capital and talent, but needs decisive leadership to scale exports and high-tech manufacturing. Silk City Governance Change: Cabinet approved repealing the 2012 decree governing the Silk City/Boubyan authority, while Shaheed Park Phase III opened. KOC AI for Drilling: Kuwait Oil Company’s “Sanad” uses generative AI to help engineers quickly access drilling knowledge scattered across thousands of documents. Trade & Investment Links: Kuwait and Finland discussed expanding trade and investment, while Kuwait and Switzerland moved to strengthen ties via an MoU. Water Interconnection: Kuwait and Saudi Arabia reviewed progress on the water interconnection project, including control-room operations and next steps. NBK Talent & Media: NBK launched the first “ON Academy” cohort with Ooredoo to train Kuwaiti talent for media and content careers. Road Safety Crackdown: Kuwait Traffic Department arrested reckless drivers in Wafra and crushed impounded vehicles. OPEC+ Credit: OPEC’s Al-Ghais praised Kuwait’s role in early consultations that helped shape the OPEC+ alliance. Business Awards Call: Entries opened for the 2027 MENA Stevie Awards, with no entry fees for nominations.

Strait of Hormuz Risk: Gulf states are scrambling for alternative oil and gas export routes as security shocks keep pressure on the chokepoint; Kuwait, Qatar and Bahrain still depend on maritime transit, while only Saudi Arabia and the UAE have bypass pipelines—leaving Kuwait’s exports far below pre-war levels and any pipeline fixes likely too slow for immediate relief. Kuwait Finance & Construction: ACICO Group says it has completed a KD56.15m debt restructuring with two local banks, reaching 80% of creditor settlements and setting up repayments through 2031. AI Infrastructure Investment: Samsung and five affiliates will invest $1bn in KKR-backed Helix Digital Infrastructure, with Kuwait Investment Authority among founding investors—aimed at scaling AI data centers by tackling power, cooling and connectivity constraints. Energy Market Spillover: Q8 (Kuwait’s Q8) joins Italy’s fuel-price cap push, following Eni and SOCAR, as Europe grapples with geopolitics-driven retail fuel costs. Oilfield Contract: Arabian Drilling signs a SAR2bn offshore rig deal with Khafji Joint Operations (KJO), a Saudi-Kuwait venture, supporting expanded drilling activity. Food & Waste: Kuwait’s Food Authority urges public awareness to cut food loss and waste, highlighting simple daily steps to reduce disposal. Defense Cooperation: Kuwait’s Army delegation visits Pakistan to discuss logistics and technical cooperation, including supply, armament and equipment support. Business Expansion: Amaani raises $5m Series A to expand AÏZA across the GCC, including planned launches in Kuwait and Qatar.

AI Infrastructure Investment: Samsung affiliates including Samsung Electronics committed $1 billion to KKR-backed Helix Digital Infrastructure, with Kuwait Investment Authority among founding investors, aiming to speed up AI data-center buildout by tackling power and construction bottlenecks. Defense Procurement: The US Air Force awarded Raytheon nearly $21bn for AMRAAM foreign orders through 2033, with Kuwait listed among participating allies. Energy & Shipping Watch: Middle East crude exports rebounded in September to the highest since the war began, while Qatar-linked LNG transits through the Strait of Hormuz picked up despite ongoing US-Iran tensions. Food Safety Regulation: Kuwait’s Ministry of Health set maximum permissible concentrations of radioactive isotopes in food, drinking water and animal feed to strengthen radiation oversight. Oilfield Digitalization: KOC’s “Sanad AI” is rolling out as a generative AI knowledge assistant to help drilling engineers retrieve scattered technical know-how faster. Finance & Banking Tech: InvestGB went live with Avaloq in Kuwait, unifying wealth and portfolio management on a single platform. Local Governance & Industry: Kuwait Municipality stepped up enforcement against state land encroachments in Farwaniya, while the Ministry of Public Works announced new road and bridge works in Kabad to connect areas to industrial hubs. Public Market Education: Boursa Kuwait launched the third edition of “The Bell” to boost financial literacy across October.

Industrial Policy & Awards: Kuwait’s Amir’s Industrial Excellence Award (7th edition) highlighted how the industrial sector can anchor a diversified, sustainable economy, with Abdulaziz Al-Marzouq urging more innovation, tech, AI and sustainability to attract industrial investment. Oilfield AI: Kuwait Oil Company rolled out “Sanad AI,” a generative AI knowledge assistant aimed at helping drilling engineers quickly retrieve scattered procedures and lessons learned as drilling activity grows. Energy Markets: Middle East crude exports rebounded in September to 12.8m bpd, helped by improved Strait of Hormuz flows; Kpler expects flows near 7.4m bpd, while Kuwait’s gold market slid as higher oil prices and rate expectations weighed on bullion. Maritime Trade: Qatar-linked LNG vessels resumed visible transits through Hormuz despite conflict, with Kpler tracking multiple tankers moving from Ras Laffan to regional destinations including Kuwait. Consumer & Retail Regulation: Kuwait’s Administrative Court struck down Article 15 of delivery regulations that set penalties for platforms like talabat, raising concerns about enforcement. Food & Water Innovation: KFAS’s Sabah Al-Ahmad Center saw five Kuwaiti projects qualify for an international Spain program focused on food and water security. Real Estate Rules: Tighter land rules are reshaping Kuwait’s private residential market, with heirs among the most active sellers as owners face new development requirements. Road Safety: Traffic authorities arrested reckless drivers in Wafra after obstruction of patrols and dangerous driving, with vehicles impounded. Education & Skills: KGOC signed a Kuwait University training deal to build national oil-sector talent, while ISEK resumed its “Meet the Professional” offline series for students. Gold & Jewellery: Kuwait will host its 25th International Gold and Jewellery Exhibition in December, with hallmarking required before sale.

Real Estate Regulation Impact: Kuwait’s tighter rules on vacant land are reshaping the private residential market, with traders pulling back and heirs among the most active sellers as activity shifts after prior price surges. Local Governance & Infrastructure: Jahra Governorate is prioritizing road works, new residential areas, public services, and faster issue resolution through council committees and field monitoring. KPC Overseas Refining Push: KPC says it has strengthened its overseas refining and refueling network, citing Vietnam’s Nghi Son refinery progress and Oman’s Duqm refinery profits. Oil Sector Skills: KGOC signed a Kuwait University training deal to build national talent for the petroleum sector. Digital Commerce Court Ruling: Kuwait’s Administrative Court annulled Article 15 of delivery platform regulations, striking down penalty powers and raising enforcement concerns. Food & Water Innovation: KFAS’ food and water security program saw five Kuwaiti projects qualify for Spain’s IE University track. Public Safety: Kuwait reported dog attacks and urged reporting stray dogs; traffic police also arrested reckless drivers and sent impounded vehicles to the crusher. Procurement Reform: Kuwait issued a decree-law amending public tenders, raising contract thresholds, setting SME preferences, and adding a grievance committee. Food Safety Crackdown: Authorities inspected 17 food establishments and seized adulterated meat for destruction. Gold & Jewellery Rules: Kuwait will host a gold and jewellery exhibition in December, with hallmarking required before sale.

Kuwait Food Safety: The Public Authority for Food and Nutrition, with the Ministry of Interior, inspected 17 establishments in Mubarak Al-Kabeer and issued violation reports as part of ongoing food-safety oversight. Illegal Tobacco Crackdown: Jleeb Al-Shuyoukh authorities arrested an Egyptian expatriate nicknamed “Al-Sa’idi” for allegedly manufacturing and selling prohibited tobacco products, seizing related items. Public Tenders Overhaul: Kuwait issued Decree-Law No. 94/2026 amending the public tenders framework—raising contract thresholds (including KD1m without Central Agency approval), setting new KPC procurement rules, boosting SME preference, and creating a Cabinet-linked grievance committee with 30-day decisions. Digital Commerce Court Ruling: Kuwait’s Administrative Court canceled Article 15 of regulations for intermediate digital platforms, saying the minister exceeded legal authority by introducing punitive administrative penalties without a clear legislative basis. Oil & Industry: KNPC issued Administrative and Organizational Circular No. 30/2026, reshuffling Security, Firefighting and HSE leadership following the KIPIC merger. Regional Trade & Logistics: Kuwait and El Salvador signed a visa-exemption deal for diplomatic, special and official passport holders, with both sides also exploring cooperation in food security, tourism, agriculture and renewable energy.

Food Safety Crackdown: Kuwait authorities seized a vehicle carrying 249kg of adulterated, unfit meat and other products, destroying the haul and launching legal action. Oil & Refining Update: KNPC issued Administrative and Organizational Circular No. 30/2026, reshuffling Security, Firefighting and HSE leadership as the post-merger push continues. Energy Chokepoints Under Pressure: Commentaries highlight mounting threats around Hormuz and Bab el-Mandeb, with delivery risks keeping oil near $100/bbl. Agriculture Watch: Farmers in Wafra report waterlogging as groundwater seeps onto farms along Road 800, threatening output despite ongoing cultivation plans. Banking & Resilience: NBK CEO Isam Al-Sager urged Kuwait’s banks to build resilience early—capital, liquidity, risk discipline, digital and sustainability—amid interconnected geopolitical and cyber risks. Tech for Skills: talabat ran its Next Tech Gen workshop with CODED Academy at Abdullah Al-Salem University, training students in AI, analytics and scalable web projects. Regional Business Links: India and the GCC reviewed their Joint Action Plan in New York and welcomed the launch of India-GCC FTA talks, with Kuwait among participating ministers. Digital Infrastructure Push: Microsoft announced $10bn+ Middle East cloud and AI investment through 2030, including support for Kuwait’s digital resilience and cyber readiness. Bilateral Mobility: Kuwait and El Salvador signed a visa exemption deal for diplomatic, special and official passport holders. Public Safety: Police arrested four for rash driving in Wafra and crushed five vehicles after a stunt-driving tip-off.

Pharmacy & Skills: Applied Science University marked World Pharmacists Day by stressing pharmacy’s shift toward biotech, AI, precision medicine and advanced drug delivery, highlighting its Faculty of Pharmacy’s Gold-level quality assurance and US ACPE accreditation. Oman-Kuwait Energy Link: Duqm Refinery in Oman hit about 255,000 bpd (around 110% of design capacity) and posted roughly $7bn revenues in 2025, underscoring the Kuwait-Oman refining partnership. Kuwait Media Wins: Kuwait’s Radio and Television won second prizes at the 26th Arab Radio and TV Festival in Tunis for documentary and children/family programming. India-GCC Trade Push: India and the GCC reviewed their Joint Action Plan in New York and welcomed the launch of India-GCC FTA talks, with Kuwait among participating ministers. Diplomatic Step: Kuwait and El Salvador signed a visa exemption deal for diplomatic, special and official passport holders, with broader cooperation discussed including food security and renewable energy. Road Safety Crackdown: Kuwait’s traffic authorities arrested reckless drivers in Wafra and crushed five impounded vehicles. Food Safety Enforcement: Mubarak Al-Kabeer inspections found eight violations and destroyed 2.457kg of unfit food. Digital Infrastructure: Microsoft unveiled a $10bn-plus Middle East cloud and AI investment framework through 2030, including projects in Kuwait. Regional Shipping Pressure: Reports say Trump rejected Iran’s 7-day ceasefire proposal, keeping Hormuz reopening uncertain and raising disruption risks for Gulf trade.

Microsoft Investment Push: Microsoft says it will spend over $10bn on cloud, AI and digital resilience across Kuwait, Qatar, Saudi Arabia and the UAE by 2030, including $400m+ for subsea and terrestrial connectivity and closer work with local AI and cyber partners. Food Safety Clampdown: Kuwait’s Mubarak Al-Kabeer inspectors carried out a joint campaign, finding 8 violations at food outlets and seizing/destroying 2.457kg of unfit products. Road Safety Crackdown: Kuwait’s General Traffic Department arrested four for reckless driving in Wafra and had five vehicles crushed after legal procedures. AI Infrastructure Deal: Akamai signed a major $11.6bn cloud computing agreement with Anthropic, signaling continued momentum for AI infrastructure spending. Regional Energy Pressure: Reports highlight renewed strain around Hormuz and shipping routes as Iran-U.S. talks continue and oil/gas price assumptions shift. Kuwait UN Media & Climate: Kuwait won two ASBU awards for radio/TV content, while Kuwait also urged global solidarity on sea-level rise and adaptation support.

Halal Food Expansion: Adabi Frozen Food is pushing deeper into the international halal market, entering Brunei and preparing to expand into Kuwait after showcasing at MIHAS 2026, with further plans for SIAL Paris. Digital Infrastructure Push: Microsoft says it will invest $10bn+ in cloud and AI across the Gulf by 2030, including Kuwait, alongside $400m+ for subsea and terrestrial connectivity and a focus on cybersecurity and digital resilience. Aviation Fuel Decarbonisation: KNPC is moving toward a state-of-the-art biorefinery for SAF and low-carbon aviation fuel, starting with feasibility studies and aiming for a long-term roadmap aligned with UN climate goals. UN Climate Solidarity: Kuwait called for global solidarity on sea-level rise, stressing adaptation funding and technology access for vulnerable states through KFAED. Local Enforcement: Kuwait’s traffic authorities arrested four in Wafra for reckless driving stunts, seized five vehicles and ordered them crushed. Infrastructure Talks: Kuwait’s Amir’s representative met Limak Holding executives in New York to review Kuwait International Airport T2 expansion and other Vision 2035-aligned projects. Consumer Protection: Kuwait warned against counterfeit Botox products, coordinating with customs and health authorities after an INTERPOL alert.

KNPC & Aviation Fuel Transition: Kuwait National Petroleum Company is moving toward a biorefinery to produce SAF and low-carbon aviation fuel, with feasibility studies on importing/blending and local production, and a roadmap aimed for 2050. Digital Resilience Push: Microsoft plans to invest $10bn-plus in Kuwait and other Gulf states by 2030, focusing on cloud/AI infrastructure and resilience as regional conflict raises risks to data centres. Public Safety & Compliance: Kuwait warns against counterfeit Botox after an INTERPOL Operation Pangea alert, while traffic police in Wafra arrested four for reckless driving and impounded vehicles for crusher. Trade Protection: Customs seized 568 fake branded shoes and jackets shipped from China, after smugglers tried to misdeclare them. Security & Justice: Narcotics control foiled a crystal meth smuggling attempt at Abdali, seizing 47kg of meth and 45 liters of raw precursor. UN Diplomacy: Kuwait’s UNGA side meetings highlighted Palestinian child protection and education financing, alongside broader regional engagement.

Aviation & Trade Risk: Iran warned neighboring states that enforcing US sanctions on Iranian airlines could “paralyze” their airports, as multiple countries suspended or cancelled Iranian routes—raising fresh uncertainty for Gulf travel and logistics. Energy Security & Costs: With oil still flowing but workarounds getting pricier, analysts say the Strait of Hormuz and regional shipping disruptions are keeping fuel and operating costs elevated even as prices haven’t spiked as feared. Food Safety Enforcement: Kuwait’s Hawally inspection campaign issued seven violation reports and destroyed 166kg of unfit meat, targeting health certificate and licensing breaches. Digital & Cloud Investment: Microsoft announced a $10bn-plus Gulf push through 2030, including cloud/AI expansion and “digital resilience” investments across UAE, Kuwait, Qatar and Saudi Arabia. Industrial Cooperation: Kuwait’s development talks with South Korea focused on sustainability, food security, land reclamation and eco-friendly aquaculture. Regional Frameworks: GCC and Portugal signed an MoU covering cooperation, with attention on maritime navigation through Hormuz and Bab al-Mandab. Aviation Skills for Youth: Kuwait Airways hosted children for an aviation engineering workshop, touring its engineering department as part of STEM outreach. Fertiliser Pressure: Rising sulphur prices are squeezing fertiliser margins and could lift subsidy burdens, with cost pass-through now the key concern.

Kuwait Fire Safety Crackdown: Kuwait’s General Fire Force closed non-compliant facilities and issued warnings to 77 sites in Shuwaikh Industrial Area after inspections found breaches of fire safety and prevention rules. Digital Infrastructure Push: Microsoft plans to invest $10bn+ across the Gulf, including Kuwait, through 2030, focusing on cloud, AI and “digital resilience” as regional tensions continue. Banking & Real Estate Tech: Kuwait International Bank (KIB) won “Best Bank for Real Estate Banking Services and Innovation in PropTech in Kuwait for 2026,” highlighting its integrated real estate financing, advisory and digital solutions. Automotive Platforms: Motorgy was named “Top Digital Automotive Platform in Kuwait,” while Commercial Bank of Kuwait (Al-Tijari) launched a new TVC for its Mastercard “One Card… Two Ways” rewards campaign. Aviation & Trade Disruptions: Jazeera will resume transfer and transit services via Kuwait International Airport’s Terminal 5 from Oct. 1 after conflict-related impacts. Customs Enforcement: Kuwait Customs seized 568 counterfeit shoes and jackets in an air shipment from China, after documents declared furniture and chairs. Defense Support: Boeing received an $11.81m six-month extension for Kuwaiti Super Hornet support ahead of ferrying aircraft to Kuwait. Energy & Shipping Pressure: Reports say Hormuz traffic remains far below normal, keeping fuel and logistics costs under strain.

Counterfeit Crackdown: Kuwait Customs seized 568 fake shoes and jackets in an air shipment from China after documents declared furniture and chairs; the goods were found to breach IP and anti-counterfeit rules, with legal procedures taken and more inspections promised. Food Safety Enforcement: The General Authority for Food and Nutrition destroyed 40.660kg of expired and adulterated food in Al-Ardiya, citing violations including unknown-origin items and worker health certificate breaches. Kuwait Housing Finance: Kuwait’s Cabinet approved a draft decree-law for mortgage financing for housing-welfare beneficiaries, aiming to sustain adequate housing provision and support the housing framework. Aviation Fuel Expansion: KAFCO expanded regionally after winning an AACO tender, starting fueling services for Kuwait Airways at Colombo, Salalah and Najaf, while also securing a three-year Amiri Diwan fuel contract. KPC/KIPIC Performance: KIPIC reported net profit of KD 239.152m for 2025/26, highlighting higher refining rates at Zour and improved export of low-sulfur jet fuel and ULSD. UNGA Diplomacy & Energy Risk: Amid US-Iran tensions, Trump said US and Iranian officials met for about three hours; Iran reiterated conditions tied to lifting pressure and reopening the Strait of Hormuz, while Gulf leaders pushed de-escalation as shipping and energy routes remain under strain. Regional Security Focus: Kuwait’s Crown Prince met Pakistan’s PM in New York and agreed to deepen cooperation, including a formal strategic dialogue on foreign-minister level. Children & AI Safeguards: Kuwait’s representative attended a UN event on protecting children’s rights in the AI age, backing a roadmap for safer digital environments.

UNGA Middle East Security Talks: Kuwait’s Crown Prince Sheikh Sabah Al-Khaled Al-Hamad Al-Sabah joined a US-convened multilateral meeting at UN headquarters focused on regional security and how it’s hitting energy supplies and the economy. US-Iran Pressure and Trade Routes: Trump renewed calls for Iran’s complete economic isolation, but also said US and Iranian officials met and that Tehran could reopen the Strait of Hormuz within days if pressure eases—keeping Gulf shipping and oil logistics in the spotlight. Kuwait Housing Finance: Kuwait Cabinet approved a draft decree-law for mortgage financing for housing-welfare beneficiaries, aiming to sustain access to adequate housing. Real Estate Financing Law: Cabinet also cleared a new real estate financing draft law, reinforcing the government’s push to expand funding channels. KIPIC Profit Surge: KIPIC reported net profit of KD 239.2m for 2025/26, citing higher refining rates and improved fuel exports. KAFCO Regional Aviation Expansion: KAFCO expanded overseas fueling services after winning an Arab Air Carriers Organization tender, adding airports in Sri Lanka, Oman and Iraq. Transport Infrastructure in Focus: Kuwait’s transport minister highlighted Vision 2035 priorities at a China forum, stressing integrated, greener mobility and logistics. Auto World 2026 Retail Tech: Zain Insure showcased fully digital motor insurance at Auto World Show 2026, while Al-Yousifi launched Midea’s Kuwait-tuned inverter AC range.

Kuwait Energy & Industry: Kuwait Oil Company (KOC) cut its approved onshore drilling and shallow-well maintenance contractor pool from 51 to 24, reshaping tender participation after an update published Sept 21. Gulf Energy Security: The US proposed a $10bn fund (PACT) to rebuild Iran-war-damaged energy infrastructure and back alternative routes beyond the Strait of Hormuz, with Kuwait among eight matching-partner countries. Regional Diplomacy: Trump is set to meet GCC leaders in New York (including Kuwait) as Iran and the US trade signals on UNGA talks, with Iran saying Hormuz could reopen within days if US pressure eases. Finance & Sustainability: Jordan Kuwait Bank issued a second Green Bond, with IFC backing up to USD 100m, targeting renewables, efficiency, green buildings and sustainable transport. Kuwait-China Links: China’s ambassador in Kuwait said Beijing wants to expand cooperation under Kuwait Vision 2035, including ports, AI, smart cities and cybersecurity. Mobility & Services: Swvl launched a 24/7 Madinah shuttle connecting seven hotels to Al-Masjid an-Nabawi, pushing always-on pilgrimage transport. Travel & Business: Arabian Travel Market 2026 in Dubai highlighted AI and smart mobility, with Kuwait among participating markets.