AGP Executive Report

Strait of Hormuz Disruptions: UKMTO reported four vessel strikes around Sept 28-29, including Kuwait Oil Tanker Company’s VLCC Al Funtas and ADNOC-managed tankers Mersin Prosperity and Sinbad, as oil flows and shipping remain under pressure. US-Iran Tensions: Trump said the US has “virtually total control” of Hormuz and warned it may “blow up” Iran or strike a deal soon, keeping markets jittery. Kuwait Digital Payments: Kuwait expanded digital payments, with non-cash transactions reaching 85% (CBK also cited a digital push lifting non-cash to 84% recently). Government Service Tech: Sahel launched a new “Report” section for citizens to submit and track feedback directly to relevant ministries and regulators. Municipal Enforcement: Kuwait Municipality reiterated that construction debris removal is the owner/contractor’s responsibility, with “Build, Don’t Destroy” inspections and violations. Banking & Capital Markets: AlRayan Bank named Usman Ahmed as Group CEO; ASB Capital was joint lead manager/bookrunner on ANB’s $750m perpetual AT1 sukuk. Real Estate Finance: Diyar Al Muharraq signed with KFH-Bahrain to offer financing for plots at Al Nuzha in Bahrain’s Northern Islands. Hospitality Watch: Kuwait’s hotel outlook shows rising supply but weaker occupancy (38.4% in Jan-Aug 2026 vs 47.1% in 2025). Social & Health: Kuwait’s National Cancer Awareness Campaign launched its breast cancer awareness drive, training 197,000 students since 2010.

Digital Finance Push: Kuwait’s Central Bank says non-cash payments hit 84% of transactions in Q1 2026, as it expands payment systems, digital banking rules and cybersecurity under Kuwait Vision 2035. AI Infrastructure Investment: Samsung and five affiliates will pour $1bn into Helix Digital Infrastructure to build AI data centers, power and connectivity—Helix is backed by KKR, Nvidia, the Kuwait Investment Authority and Vistra. Kuwait-Switzerland Trade: Kuwait and Switzerland marked 60 years of ties in Bern, signing an MoU to promote direct investment, with focus areas including healthcare, fintech, sustainable agriculture and food security. Housing & GCC Cooperation: Kuwait’s Public Authority for Housing Welfare says Gulf integration and shared expertise are key to future housing development, highlighting new partnership and financing models. Health Awareness: Kuwait’s National Cancer Awareness Campaign launched its breast cancer initiative, training 197,000 secondary students since 2010 and urging early detection. Regional Energy Pressure: With Hormuz disruptions continuing, Gulf states are exploring alternative oil export routes as Kuwait’s output and exports remain below pre-crisis levels. Diplomatic/Policy: The U.S. completed its withdrawal from Iraq, shifting to bilateral security ties as Iran-backed militias remain armed.

Kuwait–Switzerland ties: Crown Prince Sheikh Sabah Al-Khaled met Swiss President Guy Parmelin in Bern to mark 60 years of diplomatic relations, with talks focused on boosting trade and a MoU signed via KDIPA and Switzerland Global Enterprise to promote direct investment. Kuwait industry push: A Kuwaiti official renewed calls to build a stronger industrial base for diversification, noting only about 120 factories currently export despite the country’s resources and talent. Disability benefits ruling: Kuwait’s Court of Cassation said there is no cap on the number of disability-grant recipients per family, overturning a prior “two children” restriction. Oil & shipping risk: A Kuwaiti tanker, Al Funtas, was struck in the Strait of Hormuz, with a fire reported but extinguished and the vessel reportedly back underway. Energy cost pressure: Q8 said it will cap Italian fuel prices for one month from Oct 1 after Kuwait’s call to energy firms, as Italy seeks relief ahead of its 2027 budget. Banking & cards: Commercial Bank of Kuwait launched a World Elite Mastercard credit card with Mastercard, targeting affluent customers. Talent & media: NBK launched the first “ON Academy” cohort with Ooredoo Kuwait to train Kuwaiti talent for media and content careers. Regional business links: Vietnam’s ambassador said trade with Kuwait could reach $12bn by 2030, spanning energy, food security, digital, finance, logistics, education and tourism.

Kuwait–Qatar Finance Ties: Kuwait and Qatar signed an MoU on financial cooperation on the sidelines of the AIIB annual meeting in Doha, aiming to exchange expertise and expand cooperation in finance, trade and investment. AI Infrastructure Push (KIA-linked): Samsung Electronics and five affiliates will invest $1bn in KKR-backed Helix Digital Infrastructure, joining founding investors that include the Kuwait Investment Authority, to build AI data centers plus power, cooling and connectivity. Debt Restructuring Watch: ACICO Group said it completed settlements with two local creditor banks, restructuring KD56.15m and bringing settlements to 80% of total, with remaining repayments scheduled from 2026–2031. Energy Route Risk for Kuwait: A report highlights how Strait of Hormuz disruptions leave Kuwait exposed, with no immediate bypass options and exports still far below pre-crisis levels. GCC Outlook: ICAEW and Oxford Economics forecast a sharp GCC contraction in 2026 (-6.4%) before a rebound in 2027, driven by oil export and shipping disruptions. Business Expansion in the Region: Amaani raised $5m Series A to expand AÏZA across Saudi Arabia, Kuwait and Qatar, while Arabian Drilling secured a $533m offshore contract via KJO. Local Policy/Compliance: Kuwait launched a wage protection system to safeguard private-sector salaries and strengthen compliance.

AI Infrastructure & Investment: Samsung affiliates will invest a combined $1bn in KKR-backed Helix Digital Infrastructure, joining KIA and Nvidia as founding investors to expand AI data centers, power and connectivity. Diplomacy & Finance: Kuwait’s Finance Minister met counterparts from Algeria and Tunisia in Doha on the sidelines of the AIIB annual meeting, discussing financial and trade cooperation. Wage Protection: Kuwait’s Central Bank launched the Kuwait Wage Payment System (KWPS) to process private-sector salary transfers via local banks, with manpower authorities monitoring employer compliance. Digital Government/IT: CAIT is awaiting CAPT approval to start procurement for consultancy services tied to Kuwait’s National Data Center project, aimed at faster recovery of government services during outages. Capital Markets: ASB Capital was appointed joint lead manager and bookrunner for Kuwait International Bank’s $500m five-year sukuk, after investor orders topped $1bn. Energy & Shipping: Qatar-linked LNG transits through Hormuz picked up despite tensions, while Middle East crude exports rebounded in September. Regional Ties: Qatar and Kuwait signed an MoU on financial cooperation. Business & Banking Tech: InvestGB went live with Avaloq in Kuwait to unify wealth management and portfolio operations. Legal/Compliance: Kuwait’s Court of Appeal sentenced a Syrian national to 7 years for fraudulently obtaining Kuwaiti citizenship and ordered KD600,000 repayment plus fines.

Wage Protection: Kuwait’s Central Bank launched the Kuwait Wage Protection and Payment System (KWPS), a centralized platform to route private-sector salaries through local banks, boosting speed, transparency and compliance while enabling regulators to spot non-payment early. Capital Markets: Boursa Kuwait won “Best Exchange” honours for the Middle East, plus awards for ESG and financial literacy, as the exchange pushes new products and reforms that helped it upgrade from frontier to emerging-market status. Oil & Shipping: Strait of Hormuz flows are recovering, with tanker traffic and exports rising in September, though volumes remain below pre-war levels—keeping pressure on regional energy costs and logistics. Geopolitics & Risk: Kuwait condemned escalation in the West Bank and renewed calls for UN action to protect Palestinians, while the wider region remains focused on retaliatory threats tied to the Iran conflict. Gold & Inflation Watch: Kuwait gold prices slid as higher oil prices and Hormuz uncertainty lifted expectations of further US rate pressure. Business & Tech: Kuwait’s “Sanad AI” at Kuwait Oil Company is using generative AI to help engineers quickly access decades of drilling know-how. Tourism & Growth: Kuwait highlighted ecotourism potential tied to its natural and geological assets, aligning with World Tourism Day themes. Finance Deal: ASB Capital was appointed joint lead manager and bookrunner for Kuwait International Bank’s $500m five-year sukuk, drawing orders above $1bn. Startups: Amaani (AÏZA beauty) raised $5m Series A to expand across Saudi Arabia first, then Kuwait and Qatar. Travel Ops: Kuwait International Airport is operating via Terminals 4 and 5 with Terminal 1 still closed, with minimal disruption reported. Regulation Watch: A Kuwait court struck down delivery-app penalty provisions (Article 15) in talabat-related litigation, raising concerns over enforcement.

Digital Commerce Regulation: Kuwait’s Administrative Court struck down Article 15 of the 2026 delivery regulations, a move that could weaken enforcement of caps on delivery fees and platform commissions after talabat challenged the penalties. Public Procurement Overhaul: Kuwait issued Decree-Law No. 94/2026 amending the public tenders law, raising contract thresholds (including KD1m without central tender approval), setting new KPC procurement limits, boosting SME preference, and creating a Cabinet-linked grievance committee with 30-day decisions. Oil Sector Expansion: KPC highlighted progress in its overseas refining and marketing network, including Vietnam’s Nghi Son refinery stake and Oman’s Duqm project, as it strengthens long-term crude marketing and operational sustainability. Human Capital for Energy: KGOC signed a Kuwait University training contract to develop national talent for the oil sector, reinforcing partnerships with academia. Local Real Estate Rules: Tighter land rules are reshaping Kuwait’s private residential market, with heirs among the most active sellers and speculators pulling back ahead of development requirements. Tourism & Events: Zain will host the Saudi Super Cup in Kuwait this December, underlining Kuwait’s push to attract major regional events. Food & Water Innovation: KFAS’s food and water security incubator saw five Kuwaiti projects qualify for an international Spain program. Greening Push: UN-Habitat’s “Kuwait Plants” campaign season kicked off with participation from 60+ embassies and international organizations. Finance & Risk: Kuwait’s Court of Appeal canceled a travel ban tied to a KD 2.4m bank debt, citing failure to meet legal conditions for keeping the restriction in place. Gold Watch: Gold ended the week lower at $4,285/oz amid Fed rate uncertainty and rising US yields.

Public Procurement Overhaul: Kuwait issued Decree-Law No. 94/2026 amending the public tenders law, lifting the “no-tender-approval” contract cap to KD1m, setting new KPC procurement thresholds (KD20m), tightening agent/commission rules, boosting SME preference (bids within 10% of the lowest acceptable), and creating a Cabinet-linked grievance committee with 30-day decisions. Digital Commerce Regulation: 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. Court Ruling on Travel Bans: The Court of Appeal overturned a travel ban tied to a KD2.4m bank debt, ruling the order didn’t meet legal requirements to keep such restrictions in place. Energy & Industry: Duqm Refinery (Kuwait-Oman partnership) hit about 255,000 bpd (~110% capacity) and reported 2025 revenues near $7bn. Regional Diplomacy: Kuwait’s Crown Prince used UNGA to call for sovereignty-respecting cooperation amid Iranian attacks affecting Kuwait’s infrastructure and trade routes. Finance & Governance: Al Safat Investment won an International Finance award for its corporate governance framework.

Kuwait Diplomacy at UNGA: Kuwait’s Crown Prince called for respect for sovereignty and peaceful dispute settlement, condemning “sinful Iranian aggression” since Feb 28 as violations of international law and a blow to civilian and vital infrastructure, including Kuwait International Airport and energy facilities. Regional Finance Reform: Kuwait’s foreign minister urged the G77 to push for a fairer global financial system under the Seville Commitment, stressing better access to development and climate finance and support for technology transfer. Oil & Corporate Moves: KNPC issued a circular reshuffling Security, Firefighting and HSE leadership after its merger with KIPIC, while Al Safat Investment won “Best Corporate Governance Framework in the Investment Sector.” Banking Resilience: NBK CEO Isam Al-Sager told a Kuwait banking roundtable that resilience must be built before crises, alongside faster digital transformation and stronger sustainability. Tech & Skills: talabat launched a Next Tech Gen workshop with CODED Academy for AI, data analytics and digital product skills. Trade & Mobility: Kuwait signed a visa exemption deal with El Salvador for diplomatic, special and official passport holders. Energy Partnership: Oman’s Duqm Refinery reported ~255,000 bpd (about 110% capacity) and $7bn 2025 revenues, highlighting Kuwait-Oman refining cooperation. Local Economy: Farmers in Wafra report waterlogging harming output, despite continued cultivation efforts. Online Conduct: Kuwait’s Supreme Court fined a female Snapchat influencer KD 2,000 and ordered confiscation of her phone.

Kuwait-Iraq Roadmap: Iraq and Kuwait agreed to set up a joint working group to review outstanding issues and deliver a 30-day roadmap to leaders, with talks alternating between Baghdad and Kuwait, focusing on navigation in Khor Abdullah and maritime border demarcation beyond marker 162. UNGA Diplomacy: Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah condemned Iranian attacks on GCC states at the UN, warning they target civilian infrastructure and vital facilities including Kuwait International Airport, and urged respect for international law. India-GCC Trade Push: India and the GCC reviewed progress under their Joint Action Plan in New York and welcomed the launch of India-GCC Free Trade Agreement negotiations, with Kuwait among participating ministers. Microsoft Gulf Tech Boost: Microsoft announced a $10bn-plus investment framework for Middle East cloud and AI through 2030, including digital resilience and cyber security, with Kuwait named among the target markets. Oman-Kuwait Energy Tie-Up: Oman’s Duqm Refinery hit about 255,000 bpd (110% of design capacity) in 2026 and generated roughly $7bn revenue in 2025, underscoring the project’s strategic value for Kuwait-Oman cooperation. Visa Deal: Kuwait and El Salvador signed a bilateral visa exemption agreement for diplomatic, special and official passport holders. Local Court Update: A Kuwait court acquitted a citizen in a COVID-19 quarantine case, cancelling a KD500 fine.

UNGA Protest: Nearly 70 countries walked out or left seats vacant as Benjamin Netanyahu began his UN address, with Kuwait among those reported absent, amid ongoing criticism over Gaza and wider regional attacks. Kuwait-Iran Security: Kuwait’s Crown Prince said Iranian strikes on GCC states—including Kuwait International Airport, power and water facilities and oil installations—violate international law and UN principles, while Iran is also accused of obstructing maritime navigation and pressuring Hormuz. US-Iran Talks: New York diplomacy points to a phased approach to reopen Hormuz in exchange for US concessions, including possible steps on sanctions and frozen assets, though escalation risk remains. Kuwait Courts: Kuwait’s Court of Cassation acquitted a citizen in a COVID-19 quarantine breach case, cancelling a KD500 fine. Microsoft Gulf Push: Microsoft plans to invest over $10bn in the Gulf through 2030, including Kuwait, targeting cloud/AI infrastructure, digital resilience, cybersecurity and education. Kuwait Business & Trade: Kuwait’s Crown Prince met Bangladesh PM Tarique Rahman to expand labour recruitment, trade and investment ties. Halal Expansion: Adabi Frozen Food says it is preparing to expand into Kuwait after participating in MIHAS 2026. Aviation/Logistics Watch: Reports say Iranian airlines are losing access to some regional airports after new US sanctions, raising concerns for Gulf connectivity.

UN Walkout: Nearly 70 countries’ delegations walked out or left seats vacant as Israeli PM Benjamin Netanyahu began his UNGA address, with Kuwait among the reported absentees, underscoring intensifying diplomatic pressure over Gaza and wider regional attacks. Kuwait Legal/Tech: Kuwait’s Court of Cassation fined a Snapchat influencer KD 2,000 and ordered confiscation of her phone over indecent clips and related cyber complaints. Microsoft Gulf Push: Microsoft pledged more than $10bn for cloud, AI, cybersecurity and digital resilience across Kuwait, Qatar, Saudi Arabia and the UAE by 2030, including $400m+ for connectivity and training for millions. Kuwait-Iran Tensions at UN: Kuwait’s Crown Prince said Iranian missile and drone attacks since February have targeted civilian infrastructure and vital facilities, including Kuwait International Airport and oil installations, calling them violations of international law. Infrastructure Talks: Kuwait’s Amir representative met Limak Holding executives in New York to review Kuwait International Airport T2 expansion and other projects, alongside training and knowledge transfer. Regional Energy Risk: Saudi Arabia reported an attack on its East-West oil pipeline via drones from Iraq, prompting shutdown and raising supply and cost concerns. Halal Trade Expansion: Malaysia’s Adabi Frozen Food said it is preparing to expand into Kuwait after entering Brunei, using MIHAS 2026 and other trade fairs to build partnerships.

UN Diplomacy: Kuwait’s Crown Prince delivered Kuwait’s UNGA speech, condemning Iranian missile and drone attacks as violations of international law and warning they target civilian infrastructure including Kuwait International Airport and oil facilities. Oil & Climate: KNPC said it will move toward a biorefinery to produce sustainable aviation fuel and low-carbon aviation fuel, with feasibility studies and a roadmap aimed at completion by 2050. Digital Economy: Microsoft plans to invest $10bn+ in the Gulf through 2030, including Kuwait, focusing on cloud, AI and “digital resilience” as regional conflict raises risks to data centres. Tech Cooperation: Kuwait and France discussed boosting IT and telecom ties, including public-private collaboration in technical and digital fields. Public Health & Trade Controls: Kuwait’s Interior Ministry warned against counterfeit Botox products and coordinated with customs to stop illegal imports. Courts & Finance: Kuwait’s Court of Appeal upheld 10-year prison terms in KD602m money-laundering cases tied to unlicensed banking activities and forgery. Security & Society: Kuwait strengthened oversight of cooperative societies via tighter supervision and selection of supervisory staff. Energy Security: A Bahrain-led coalition called for full reopening of the Strait of Hormuz for safe, toll-free shipping amid renewed regional disruptions. Business Compliance: Kuwait customs seized 568 fake branded apparel items after a shipment from China was flagged.

UNGA Diplomacy: Kuwait’s Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah met Syria’s Ahmed al-Sharaa in New York as regional talks focus on de-escalation and a post-UNIFIL phase, while Prime Minister Nawaf Salam also held high-level meetings aimed at reducing tensions and securing Lebanon’s stability. GCC External Ties: The GCC signed an MoU with Portugal to expand cooperation, with maritime navigation in the Strait of Hormuz and Bab el-Mandeb highlighted as a key security and trade priority. Tech & Investment: Microsoft said it will invest over $10bn in cloud and AI infrastructure across the UAE, Saudi Arabia, Qatar and Kuwait by 2030, plus $400m+ for connectivity, positioning “digital resilience” as central to Gulf growth. Aviation & Sanctions Risk: Iran warned it could “paralyze” regional airports if countries join US secondary sanctions targeting Iranian airlines, raising the odds of further flight disruptions across the region. Kuwait Business & Finance: Emrail lost a RM59m claim and must pay Kuwait Finance House RM39m in a Malaysian High Court ruling tied to LRT3 performance bond terms. Local Community: Kuwait Airways hosted children for an aviation engineering workshop, part of its education and STEM outreach.

Kuwait Banking & Finance: Burgan Bank completed a KD 50m rights issue, fully subscribed at 133.57% (KD 66.79m total subscriptions). Kuwait International Bank (KIB) also won “Best Bank for Real Estate Banking Services and Innovation in PropTech” at the World Union of Arab Bankers awards. Retail Banking Promotions: Gulf Bank extended its AlDanah Millionaire Account deposit/qualification period to Nov 30, 2026 and moved the grand-prize draw to Feb 4, 2027. Commercial Bank of Kuwait launched a new TVC for its “One Card… Two Ways to Be Rewarded” Mastercard campaign. Business & Tech Investment: Microsoft plans to invest more than $10bn across Kuwait, Qatar, Saudi Arabia and the UAE by 2030, with a focus on cloud/AI and “digital resilience,” plus $400m for connectivity. Local Governance & Integrity: Nazaha trained primary-school teachers for its “My Bank” project with NBK to promote integrity and anti-corruption values. Sports & Community: Burgan represents Kuwait at the Handball Club World Championship in Cairo; Gulf Cup opener injury update eased fears for Saudi goalkeeper Nawaf Al-Aqidi.

Customs & Chemicals: Kuwait’s General Environment Authority set a three-step customs release process for imported chemical shipments, starting with document checks (including MSDS and import licenses), moving to lab testing at accredited facilities, then ending with technical approval by the Chemical Safety Department—aimed at speeding compliant imports while tightening environmental and health safeguards. Oil Sector & Sustainability: KPC CEO Sheikh Nawaf Saud Al-Sabah said environmental sustainability is core to Kuwait’s oil responsibility, highlighting faster incident reporting, updated emergency plans and modern monitoring to prevent spills. UNGA Diplomacy (Kuwait): Kuwait’s assistant foreign minister represented the country at a UN event on protecting children’s rights in the age of AI, while FM Sheikh Jarrah Jaber Al-Ahmad Al-Sabah met UN humanitarian and ESCWA officials in New York to boost coordination on regional crises and development. Regional Security Talks: Kuwait’s Crown Prince met US business leaders on UNGA sidelines, and Kuwait also joined a US-led multilateral summit focused on stabilizing Middle East security and protecting trade corridors. Financial Governance: Kuwait’s Ministry of Finance launched a four-year program to enhance integrity, transparency and governance in government entities’ financial performance (2026–2030). Bahrain Bourse Outreach: Bahrain Bourse engaged Kuwait-based brokers and investors to deepen regional participation and improve liquidity under its 2026–2028 “Elevate” plan. Travel Disruption: Flight disruptions hit Dubai and Abu Dhabi, with delays and cancellations affecting routes including Tehran, Muscat, Riyadh and several European cities.