AGP Executive Report

Central Bank Oversight: CBK issued new directives to tighten transparency in financial statements of electronic payment and exchange firms, including clearer partner-fund classification and extra rules for handling judicial requests tied to freezing customer money. Corporate Earnings: Petrochemical Industries Company (PIC) posted KD 23.8m net profit for FY2025/26 despite petrochemical and energy market headwinds linked to geopolitics. Public Works Contracts: Kuwait’s Ministry of Public Works plans to float 24 tenders and contracts in the current fiscal year under its sixth phase, including sewage network links for South Sabahiyah. Tobacco Crackdown: Kuwait will ban tobacco and nicotine sales to anyone under 21 from Jan 1, 2027, outlaw online sales/delivery and extend restrictions to e-cigarettes and heated tobacco. Digital Banking Skills: CBK launched the sixth cohort of its Cybersecurity Leaders Program to build specialized talent for the banking and finance sector. Airline Digital Upgrade: Kuwait Airways signed a KD 5.8m, three-year ERP contract to unify and modernize its administrative, financial and operational systems. Sports Tech Push: Kuwait’s Blue Shirt platform signed a cooperation agreement with the Public Authority for Youth and Sports to accelerate data-driven digital transformation in sports. Gold Update: Kuwait gold climbed with 24-karat around KD 43.6 per gram as global prices rose on softer US inflation and lower rate-hike expectations. Telecom Self-Check: CITRA urged residents to use the Sahel app’s “My Numbers” service to review all phone lines registered under their names. Humanitarian Move: Kuwait-backed voluntary return flights for Sudanese refugees began in Uganda, aiming to bring back over 1,000 people over about six weeks. Regional Security Context: US-Iran talks under the Islamabad MoU appear stalled as Hormuz tensions rise, with Kuwait and other Gulf states condemning attacks on ADNOC tankers.

Tobacco Crackdown: Kuwait’s Health Ministry issued Decision No. 237/2026 tightening rules on tobacco and nicotine products, banning sales and display in schools and youth venues, restricting vending and online sales, and covering e-cigarettes, heated tobacco and nicotine delivery systems. Personal Data Push: CITRA is urging residents to use the Sahel app’s “My Numbers” service to check all phone lines and telecom services registered under their names. Unlicensed Care Case: Kuwait arrested a woman accused of treating patients from her home, issuing sick leave certificates and selling herbal mixtures without proper licences. Hormuz Shockwaves: Kuwait condemned an Iranian attack on a UAE-linked ADNOC vessel in the Strait of Hormuz, warning it threatens maritime navigation and global energy supplies. Kuwait’s Investment Leap: KPC’s $16bn Shaheen Project—pipeline sale-and-leaseback with Blackstone, Brookfield and KKR—signals a major shift to attract global capital, with $7.85bn in expected upfront proceeds. Banking Awards: Weyay Bank won three regional/national awards for social and community banking and precision credit/lending, while NBK added 17 Global Finance digital banking awards and promoted its Al-Jawhara prize draw. Kuwait-India Ties: Kuwait’s ambassador to India highlighted deep historical trade and investment links during India’s 80th independence celebrations.

Hormuz Shock to Oil Exports: Kuwait condemned Iran’s attack on an ADNOC vessel in the Strait of Hormuz, calling it a breach of international law and UN Security Council Resolution 2817, as back-to-back tanker incidents keep shipping risk high and Kuwait’s oil export options constrained. FDI Push Gains Traction: Kuwait’s investment drive is landing major global capital, highlighted by KPC’s $16bn Shaheen Project sale-and-leaseback deal expected to bring $7.85bn upfront proceeds to fund capex and support higher output targets. KPC & Sector Resilience: With Hormuz disruptions still hurting crude exports, KPC said force majeure was lifted in June but the wider conflict continues to disrupt operations. Banking Awards: NBK won 17 Global Finance digital banking awards, while Weyay Bank picked up three regional and local honors for social/community banking and precision credit. Justice System Update: Kuwait’s Court of Appeals cleared 5,030 of 5,983 pending cases in June (84.1% completion), with the Capital Governorate handling the most new and resolved cases. Culture for Kids: “Jammoul, Guardian of the Wall” brought old Kuwait’s pre-oil trade and camel caravan heritage to children at the NCCAL summer festival. Security Watch: Kuwait said it foiled an ISIS-linked plot targeting a vital facility, arresting a Kuwaiti suspect and highlighting drone and explosives training.

Kuwait Investment Push: Kuwait Petroleum Corporation (KPC) signed a USD 16bn Shaheen Project deal using a sale-and-leaseback model for crude oil pipelines, targeting about USD 7.85bn in proceeds and supporting plans to lift crude capacity to 4m bpd, with global investors led by Blackstone, Brookfield and KKR. Hormuz Security Shock: Trump said the Strait of Hormuz will soon be declared US territory, while Iran’s deputy foreign minister rejected the claim and said the strait can only be opened or closed under Iran’s authority. Maritime Attacks Escalate: ADNOC confirmed another attack on its vessels in the Strait of Hormuz after earlier incidents involving two ADNOC tankers; Kuwait and other Gulf states condemned the strikes as violations of international law and threats to energy security. Regional Defense Deal: Kuwait joined wider regional reactions to the Mecca Joint Defense Agreement among Saudi Arabia, Türkiye and Pakistan, framed as a defensive security step to strengthen stability. Local Security Focus: Kuwait also reported foiling an ISIS-linked plot targeting a vital facility, arresting a Kuwaiti suspect tied to explosives and drone-making. Women Workers Support: India’s government set up seven one-stop centres across Gulf cities, including Kuwait, offering 24/7 helplines plus medical, legal and psychological support for distressed Indian women workers. Banking Results: GFH reported a 13.33% rise in H1 2026 net profit attributable to shareholders to USD 76.2m, driven by wealth, investment management and credit income.

Gulf Security & Shipping: Kuwait condemned Iran’s attack on two ADNOC tankers transiting the Strait of Hormuz, calling it a violation of UN Security Council Resolution 2817 and urging an immediate, unconditional reopening of the strait. Regional Defense Architecture: Saudi Arabia, Türkiye and Pakistan’s tripartite “Mecca” deterrence pact is moving from signing to implementation details, with Turkey outlining institutional coordination and joint exercises. Maritime Coalition Watch: Saudi announced a 14-state maritime defense coalition to protect navigation across the Red Sea and Bab al-Mandeb, with Kuwait among the signatories. Energy Market Pressure: With Hormuz traffic still disrupted, tankers are reportedly “going dark” longer and using shuttle transfers, while the U.S. signals it could maintain an “indefinite” naval blockade—raising uncertainty for oil flows and prices. Kuwait Business & Trade: Kuwait–Türkiye ties got a boost via a new greening initiative at Friendship Park, adding a sustainability angle to bilateral cooperation. Consumer Expansion: Chipotle, via Alshaya, is set to open its first Saudi outlet in Riyadh, extending the brand’s regional footprint that already includes Kuwait.

Red Sea Security: Saudi Arabia is moving toward operational activation of a new 15-country maritime defense coalition to protect navigation and energy routes around Bab al-Mandeb and the Gulf of Aden, with Kuwait among the signatories. Hormuz Pressure on Kuwait’s Oil: With the Strait of Hormuz still a key bottleneck, US officials say the naval blockade can be maintained “indefinitely,” while shipping disruptions and longer “going dark” tanker tactics keep uncertainty high for regional energy flows. Kuwait Health Upgrade: Kuwait’s Ministry of Health has set up two independent units for pediatric stem cell transplantation and gene/cell therapy at Kuwait National Bank Specialized Children’s Hospital, aiming for equitable access and expanded advanced treatments. Banking & Youth Finance: NBK ran youth-focused fraud-awareness activities and mentorship for social entrepreneurship participants, while Gulf Bank promoted its government-sector Salary Account benefits. Aviation & Commerce Oversight: PACA cleared seven airport tenders worth KD 7.006m for terminal commercial leases, and Kuwait’s Commerce Ministry reported 17,135 complaints in Q2 with shop closures and inspection violations. Oil Sector Moves: KUFPEC is assessing new Alberta (Canada) opportunities, and KOC signed another Baker Hughes technology collaboration for its Ahmadi Innovation Valley. Corporate Results: KIPCO reported KD 5.3m net profit for H1 2026, down year-on-year, citing geopolitical impacts.

Health Policy: Kuwait’s Ministry of Health has issued a decree creating two independent pediatric units for stem cell transplantation, gene therapy, cell therapy and advanced treatments at Kuwait National Bank Specialized Children’s Hospital, with services shared to prevent any case monopolies. Regional Security: Saudi Arabia’s new multinational maritime defense coalition is moving toward activation after 15 countries signed a joint statement, aiming to protect navigation and energy routes around the Bab al-Mandab Strait, Red Sea and Gulf of Aden. Environment & Energy Data: Ahmadi Governorate, with the Environment Public Authority and Kuwait Oil Company, pushed “Sustainable Conservation,” including governorate-level sustainability reporting to track carbon footprints. Oil & Gas Expansion: KUFPEC is evaluating new development and exploration opportunities in Canada’s Alberta, including work tied to its Quebec-Doverney project. Banking & Youth Finance: NBK ran youth-focused anti-fraud and financial awareness activities and hosted mentorship for Kon social entrepreneurship participants. Aviation & Tenders: PACA cleared seven Kuwait International Airport tenders worth KD 7.006m for terminal commercial leases, while also moving bids for lab equipment at Shuwaikh desalination facilities. Commerce Oversight: MoCI reported 17,135 complaints received in Q2 2026 via Sahel and its portal, 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. Corporate Finance: KIPCO reported KD 5.3m net profit for H1 2026, down from KD 10.2m a year earlier, citing weaker performance across several sectors.

KPC Earnings: Kuwait Petroleum Corporation reported record consolidated net profit of KD 2.155bn (about $6.9bn) for FY2025/26, its highest in three years, despite major shocks including Iranian attacks that hit refineries, tankers and crude production. Strait of Hormuz Watch: With the Strait of Hormuz still largely disrupted, the US Energy Information Administration said about 600,000 bpd of Middle East output could stay offline through end-2026, while shipping constraints keep oil flows tight into August. Shipping Costs in Kuwait: Kuwait’s Ministry of Commerce and Industry met shippers on rising logistics costs tied to Hormuz disruptions, with companies shifting routes, using GCC pickup/delivery options and alternative ports to protect supply and local price stability. Security & Drones: Kuwait foiled an alleged ISIS-linked drone and explosives plot targeting a vital facility, arresting a Kuwaiti suspect before any attack could be carried out. Local Regulation: Kuwait issued new rules for private pharmacies, including a 1,000-metre distance requirement and a four-year licensing validity period. Anti-Corruption in Sports: Nazaha highlighted Kuwait’s sports integrity and transparency efforts at a GCC event focused on combating corruption in the sports sector. Education Upgrade: Kuwait’s Ministry of Education reviewed with the OECD progress on a technical assistance project covering curriculum planning, teacher licensing exams and education system development. Business Deals: Knowledge Economic City signed a partnership with Apparel Group to bring 24 retail and dining brands to Multaqa Al Madinah Mall.

Shipping & Prices: Kuwait’s MoCI met shipping firms to discuss how higher transport and logistics costs tied to Strait of Hormuz disruptions are affecting goods supply and local price stability, with companies shifting to alternative GCC routes and ports to keep deliveries moving. Anti-Corruption in Sports: Nazaha joined a GCC event on transparency and anti-corruption in the sports sector, presenting Kuwait’s integrity framework and preventive efforts. Regulation Watch: The Health Ministry issued new rules for private pharmacies, including a 1,000-metre distance requirement from the nearest existing pharmacy, plus licensing and medicine-handling procedures. Education Development: The MoE reviewed with the OECD progress on a technical assistance project covering curriculum strategy, subject framework comparisons, and a new teacher licensing exam system. Compliance & Fines: MoCI imposed KD 141,500 in Q2 fines across 83 cases involving jewelry/precious metals/gemstones and real estate brokerage compliance. Energy Numbers: KPC recorded consolidated net profit of KD 2.155bn for 2025/26 after Supreme Petroleum Council approval, despite severe oil-sector shocks. Regional Security: Iraq’s PM said foreign military forces will end by Oct 1, marking a new phase for sovereignty. Youth & Retail: Zain Kuwait wrapped its 5-week Summer Program for 30 trainees, while Lulu opened a new hypermarket in Jaber Mall, bringing its Kuwait stores to 19.

Hormuz Oil Flows: US Energy Secretary Chris Wright said oil flows from the Gulf have rebounded to about 15 million barrels per day, with the Strait of Hormuz seven-day average nearing 9 million bpd, as upgraded pipelines and export facilities add another 5–7 million bpd. Shipping Risk: Fresh attacks in the Gulf of Oman and near the Red Sea (including a suspected Houthi strike that killed four crew members) are keeping pressure on global trade routes and oil prices. US-Iran Truce Update: Pakistan-mediated talks continue as the US and Iran reportedly agree to extend a 60-day ceasefire under the Islamabad MoU beyond Aug. 17, though the exact length is still being negotiated. Iran’s Conditions: Tehran reiterated the Strait will stay closed unless Washington accepts its demands, including ending the blockade, releasing frozen assets, and broader regional ceasefires. Kuwait Tech & Education: Kuwait’s ambassador to South Korea highlighted AI-focused university cooperation via KFAS STEAM, aiming to build national cadres. Local Policy: Kuwait’s Cabinet approved a draft law regulating drones and light aircraft, setting licensing and penalties under the Civil Aviation authority. Fintech in the Gulf: stc pay launched “Secure Approve” in Bahrain, shifting online card authentication from OTPs to in-app approval. Kuwait-Indonesia Trade: Indonesia’s ambassador said bilateral trade rose to $606m in 2025 and discussed energy forum plans and GCC trade talks.

Aviation & Security: Kuwait’s Cabinet approved a draft decree-law regulating drones, unmanned aircraft, light sport aircraft and air sports, setting rules for registration, licensing, permits, obligations, bans and penalties, with the Public Authority of Civil Aviation overseeing implementation. Digital Government: CAIT held a workshop reviewing Google Cloud and Microsoft digital transformation projects, training and capacity-building for government staff under the National Digital Skills Development Program. AI in Telecom: stc completed Kuwait’s first trial of AI Calling, offering real-time Arabic-English voice translation for smoother personal and business communication. Energy & Markets: US Energy Secretary Chris Wright said oil flows from the Gulf are averaging about 15 million barrels per day, combining Strait of Hormuz exports and additional pipeline routes. Regional Shipping Risk: Iran’s Supreme National Security Council secretary said the Strait of Hormuz will stay closed unless the US changes behavior and accepts Iran’s conditions, while Pakistan and Qatar said a “some sort” arrangement is nearing. Kuwait Business & Finance: Jazeera Airways reported a 10.3% H1 profit dip to KD8.6m due to Kuwait airport closure disruptions, while Action Energy pledged USD 1m to the Kuwait Emergency Response Fund. Banking Lifestyle: Burgan Bank hosted Elite customers and families at a Spider-Man premiere, and NBK announced winners of its Al-Jawhara and Al-Jawhara Junior draws. Education & Youth: Zain and SACGC’s Innovation Nation summer camp empowered 2,560 children through STEM activities, and Kuwait Earth Sciences Society highlighted youth leadership in geology.

Banking & HR: NBK was named LinkedIn’s top employer in Kuwait and the banking sector for 2025, highlighting its focus on employee well-being, development, flexible work and diversity. Consumer protection: Kuwait’s Ministry of Commerce and Industry says it logged 17,135 complaints via its electronic portal and Sahel in Q2 2026, issued 5,155 violation reports, and carried out shop openings/closures as part of market oversight. Emergency preparedness: The Kuwait Emergency Response Fund reached KD 75.37m from 68 public and private entities, with KFAED saying it’s receiving preliminary requests from multiple ministries for urgent projects. Food prices: Kuwait’s fish and shrimp prices stayed high but stable, with officials citing limited local catches, deep-sea fishing restrictions, and monitoring of shrimp auctions. Corporate moves: Gulf Bank appointed Hamed Al-Tamimi as Chief Human Resources Officer, while Spinneys reported H1 profit up 2.5% and approved an interim dividend. Regional security & trade risk: Coverage continues on the Makkah Joint Defence Agreement and the wider Red Sea/Hormuz disruption backdrop that’s reshaping Gulf security thinking and shipping economics.

Kuwait Energy Deal: Brookfield, KKR and Blackstone agreed to buy a 49% stake in a Kuwait Petroleum Corporation pipeline joint venture in a roughly $16bn deal—the biggest foreign investment in Kuwait’s history and set to deliver about $8bn upfront to the state. Municipal Crackdown: Kuwait Municipality carried out inspections in Farwaniya, issuing 28 violations and seven warnings over licensing and advertising compliance, with more campaigns planned across governorates. Labor Oversight: The Public Authority for Manpower launched a new “Report” service on the Sahel app, letting residents flag violations in PAM’s jurisdiction with confidential whistleblower handling. Housing Digital Push: PAHW said it delivered more than 223,000 e-services in H1 2026 via Sahel, its website, video conferencing and chatbots, with 325,412 users. Finance & Banking: Zain Group reported a 73% jump in H1 2026 net profit to $717m, while NBK was named LinkedIn’s top employer in Kuwait and the banking sector for 2025. Food Prices Watch: Despite 826 tons of fish and shrimp entering Kuwait markets, prices stayed high, with officials pointing to limited local catches and fishing restrictions. Remittances: Overseas Pakistanis sent $3.63bn in July, up 4.5%, with Gulf countries still the main source.

Commercial Crackdown: Kuwait has introduced strict penalties for “commercial concealment,” including jail of 1–3 years and fines up to KD100,000 (or the value of illegal profits), with enforcement aimed at foreigners using fronts or operating outside license terms. Energy & Trade Disruption: The Strait of Hormuz remains effectively closed for commercial shipping, forcing Gulf states to airlift essentials and pushing up living costs, while talks with Oman on a new lane are nearing completion but not guaranteed to fully reopen the route. Renewables in Focus: AEPCo will develop and operate an 8.77MW solar project at Souk Sharq under a deal with Marasi United, supporting Kuwait’s push for more renewables in the national energy mix. Local Business Compliance: Kuwait Municipality launched a campaign urging businesses to get licensed correctly, warning of fines up to KD5,000 and possible closure for unlicensed activities or adding unapproved space. Regional Diplomacy: Kuwait congratulated Pakistan, Saudi Arabia and Türkiye on the Makkah Joint Defence Agreement, while also discussing bilateral cooperation and regional developments. Finance & Consumer Moves: NBK rolled out its “Plus” package for young customers moving from its Youth Package after first salary, adding cash rewards and card benefits. Aviation Connectivity: Jazeera Airways increased Egypt frequencies, adding 16 weekly flights across Sharm El Sheikh, Alexandria, Sohag and Hurghada. Gold Watch: Kuwait gold prices closed at $4,342 per ounce, up strongly on weaker US labor data and ongoing Middle East uncertainty.

Agriculture Investment Push: Kuwait is looking to lift investment in the agriculture sector, with a reform-era plan aimed at closing the gap and boosting food security, including incentives for Kuwaiti farmers and tech upgrades like hydroponics and vertical farming. Licensing Crackdown: Kuwait Municipality is warning businesses to follow licensing rules after launching a campaign that targets unlicensed activity and unapproved space, with penalties that can reach KD5,000 and closure. Power & Water Projects: The Ministry of Electricity, Water and Renewable Energy is awaiting State Audit Bureau approval for nine contracts covering network upgrades and maintenance, including high-voltage line upkeep and new water pumping facilities. Commercial Concealment Law: Kuwait has published Decree-Law No. 78/2026 on commercial concealment, setting jail terms and fines up to KD100,000 for illegal economic activity and front arrangements. Banking for Young Kuwaitis: NBK will let customers move from its Youth Package to the “Plus” Package after their first salary, adding cash rewards and lifestyle benefits. Energy & Markets: Action Energy reported H1 2026 results, with net profit up 96.6% and a board-recommended interim cash dividend of 3 fils per share. Gold Moves: Gold closed at $4,342 per ounce, up more than 7% for the week, supported by softer US labor data and Middle East uncertainty. Youth Health Rules: Kuwait’s energy drink restrictions are reshaping habits among young consumers, pushing some toward coffee and other alternatives. Regional Security: Kuwait welcomed a UN Security Council statement condemning Houthi missile attacks on Saudi Arabia and threats to commercial vessels, reaffirming solidarity with Saudi Arabia.

Sovereign Credit Watch: Fitch has affirmed Kuwait’s long-term issuer rating at AA- with a Stable outlook, citing strong fiscal and external buffers, while flagging oil dependence, governance gaps, and ongoing Strait of Hormuz disruption risks. Aviation & Connectivity: Jazeera Airways launched direct Kuwait–Deir Ezzor service, adding to its nonstop links with Damascus and Aleppo and positioning itself as the only carrier offering direct flights from Kuwait to all three Syrian cities. Airline Restructuring: Kuwait Airways is being transformed into a fully state-owned shareholding company under Decree Law No. 77 of 2026, with the move aimed at faster decisions, operational flexibility, and future route/aircraft expansion. Energy Sector Deals: Halliburton won a long-term contract with Kuwait Oil Company to build an upstream R&D centre at Ahmadi Innovation Valley to support brownfield and greenfield development. Oilfield Performance: Action Energy reported 96.6% profit growth in H1 2026, with record backlog and full rig utilisation. Banking Rewards: QNB Group wrapped up a Mastercard debit card campaign awarding a McLaren Artura Spider to the grand-prize winner. Competition Policy: Kuwait’s National Competition Policy project is reported 96% complete, targeting stronger rules against monopolies and anti-competitive practices to boost foreign investment. Regional Security Shockwaves: The Iran war continues to roil the region, with Kuwait again facing spillover effects tied to shipping and oil-export transit conditions.