AGP Executive Report

Kuwait Airways Restructuring: Kuwait issued Decree-Law No. 77 of 2026 to convert Kuwait Airways into a wholly state-owned joint-stock company, keeping all shares under direct state ownership and giving the Kuwait Investment Authority board key general-assembly powers, with added operational flexibility for staffing, procurement and internal rules. Kuwait Energy Deal: Kuwait Oil Company (KOC) signed a record $16bn pipeline lease-and-leaseback/infrastructure partnership with a consortium including Blackstone, Brookfield and KKR, aimed at expanding and upgrading crude export handling tied to Jurassic Light Oil facilities. Kuwait-Pakistan Talks: Kuwait’s foreign minister Sheikh Jarrah Jaber Al-Ahmad Al-Sabah arrived in Islamabad for bilateral talks, with both sides expected to review cooperation across sectors and regional issues. Regional Shipping Tensions: Oman reportedly proposed a Gulf-backed Strait of Hormuz navigation plan to Iran, including voluntary shipping fees, but Iran rejected the idea while insisting on its own control terms—keeping energy-route uncertainty in focus. Market Mood in Kuwait: Boursa Kuwait felt the pinch as regional security concerns dented liquidity and pushed investors into a cautious, cash-conversion stance. Local Business & Projects: Kuwait tendered a study for an economic zone and free zone, while AEPCo and United Real Estate signed a 15-year solar investment agreement for Sharq Waterfront.

Kuwait Airways Restructuring: Kuwait issued a decree-law converting Kuwait Airways into a wholly state-owned shareholding company, aiming to modernize its legal setup and give more operational flexibility under the companies law. Anti-Corruption & Compliance: Nazaha hosted the GCC’s first virtual workshop on beneficial ownership transparency, pushing common approaches to curb corruption. Business Licensing Crackdown: Kuwait temporarily stopped issuing new single-owner (freelance) business licenses while it reviews and updates the rules; existing licenses remain valid. Subsidy Controls: Kuwait tightened ration-card rules, suspending allocations for people caught reselling subsidized goods and limiting eligibility to Kuwaiti citizens and their households/domestic workers. Municipal Enforcement: Kuwait Municipality continued removing illegal encroachments on state land, including structures near electrical transformers and on sidewalks. Court Case: Kuwait’s Criminal Court upheld a 10-year sentence (with hard labor) and KD3m fine in an Iraqi-linked real estate swindling case. Aviation & Trade Links: Jazeera Airways will launch direct Addis Ababa flights from Sept 7. Regional Security Watch: Kuwait’s Cabinet discussed ongoing Iranian attacks and regional developments, while Kuwait’s foreign minister visited Pakistan amid defence cooperation momentum.

KPC Deal Watch: Kuwait Oil Company (KOC) has signed a $16bn lease-and-leaseback for its crude oil pipeline network with a consortium led by Blackstone, Brookfield and KKR, creating a new Kuwait-registered venture where KOC keeps 51% and full operational control while receiving an upfront $7.85bn to back capex and production plans. Energy & Trade: Kuwait’s Combined Group Contracting (CGC) emerged the lowest bidder for a KD160m ($516m) southern Kuwait water treatment project, with the Ministry of Public Works set to award after formal steps; the treated-water system is aimed at agriculture and food security. Finance & Investment: Blackstone plans to open a Kuwait office via KDIPA in Q3 2026, as global alternative asset managers expand across the Gulf. Diplomacy: Kuwait’s foreign minister begins a two-day official visit to Pakistan (July 28-29) to deepen ties in diplomacy, trade and investment, following recent defence cooperation steps. Regional Security: Reports say Gulf states including Kuwait have put U.S.-made fighter jets and air defence systems on heightened alert amid Iran- and Houthi-linked threats. Local Economy & Society: Zain Kuwait’s “Kuwait Codes” continues to train students in tech and AI skills, while Kuwait’s Court of Appeals upheld a ruling that KD2m debt acknowledgements were null and void for lack of debt evidence.

Sovereign Finance: Kuwait’s $6bn bond issue drew more than $18bn in orders, highlighting strong investor confidence in the country’s fiscal strength and low repayment risk. Energy & Investment: Kuwait Oil Company (KOC) signed a $16bn lease-and-leaseback for its crude pipeline network with Blackstone, Brookfield and KKR, expected to generate $7.85bn upfront for KOC and support upgrades and future capacity. Banking & Retail Finance: Gulf Bank reopened its Jahra Cooperative Society branch after renovation, adding a 24/7 interactive teller machine and sustainability features. Capital Markets: InvestGB received preliminary approval to launch the Al Bader KD Islamic GCC Equity Fund, a Sharia-compliant vehicle targeting long-term GCC equity growth. Tech & Education: Zain Kuwait partnered with CODED Academy to expand “Kuwait Codes” for high school students, while Kuwait’s Universities Council advanced MD program curricula and new academic MoUs. Legal Watch: Kuwait’s Court of Appeals upheld rulings declaring two KD2m debt acknowledgements null and void for lack of debt evidence. Public Sector Procurement: CAPT ordered documents to be handed to a grievance committee and halted a KD13.971m tender for upgrading power-plant data equipment. Healthcare Innovation: Qatar University unveiled GlucoWatch, an AI wearable estimating blood glucose without finger pricks. Geopolitics: Kuwait’s foreign minister is set to visit Pakistan amid renewed regional tensions, as US-Iran talks remain fluid and shipping through Hormuz stays a key risk.

Energy Deal: Kuwait Petroleum Corporation’s KOC has signed a $16bn lease-and-leaseback for its full crude pipeline network under “Project Peregrine,” with Blackstone, Brookfield and KKR taking a 49% stake in a new JV while KOC keeps 51% and operational control; the 20.5-year setup covers 13 pipelines (~320km) and is expected to deliver $7.85bn upfront to fund KPC capex and its 2035 production-capacity target. FDI Push: Blackstone also announced plans to open a Kuwait office via KDIPA in Q3 2026, aiming to deepen its GCC footprint. Oil & Shipping Risk: Kuwait condemned repeated Houthi attacks on Red Sea shipping, calling them a breach of international law and a threat to navigation and trade, as the wider Iran–US standoff continues to rattle energy routes. Corporate & Finance: Kuwait’s cooperative sector is under tighter scrutiny as the Social Affairs minister stressed strict oversight to protect shareholders’ funds. Banking & People: KFH launched its “ONE VISION” leadership program, while NBK’s anti-financial crime chief was honored by the Ministry of Interior. Markets Watch: Kuwait’s gold prices held steady near KD 40.8/g for 24-karat, tracking global moves amid geopolitical uncertainty. Regional Context: GCC states ranked strongly in IMD competitiveness, with Kuwait highlighted for public finance performance.

KPC Deal Boost: Kuwait Oil Company (KOC), a KPC subsidiary, signed a record $16bn Shaheen Project lease-and-leaseback with Blackstone, Brookfield and KKR, creating a new Kuwait partnership company to lease 13 crude export pipelines for about 20.5 years; KOC keeps 51% and operational control, with expected upfront proceeds of $7.85bn to fund KPC’s investment plans. Regional Security & Trade: Kuwait condemned Houthi attacks on Red Sea shipping as violations of international law, while the main Abdali border crossing with Iraq reopened after a drone strike closure, aiming to keep passenger and commercial traffic flowing. Foreign Policy: Kuwait ratified a defence cooperation agreement with Pakistan via a decree-law, covering training, logistics, personnel exchanges and military intelligence. Social Oversight: The Ministry of Social Affairs said it is tightening oversight of cooperative societies to protect shareholders’ funds, and reported 462 licensed nurseries under ministry supervision with 64 new applications received this year. Finance & Markets: Kuwait Finance House launched “ONE VISION” leadership program; KIB reported H1 2026 net profit of KD 17.5m; Mnakh Sustainability Index ranked Zain, KFH and NBK top for sustainability performance. Economy Watch: Kuwait’s FY25/26 deficit widened to KD 7.1bn, the widest since the pandemic, driven mainly by weaker oil revenues amid regional disruptions.

US-Iran De-escalation: Trump has paused plans for a major escalation against Iran after advisers warned that renewed large-scale strikes could dangerously drain Patriot interceptor stocks and worsen regional instability. Kuwait Clarifies Stance: Kuwait denied a Wall Street Journal claim that it joined Bahrain in bombing Iran, saying it has not allowed its territory, airspace or waters for offensive operations. Red Sea Shipping Pressure: Kuwait condemned repeated Houthi attacks on ships in the Red Sea, including an attack on Saudi vessel NCC MASA, calling it a breach of international law and a threat to global trade. Gulf Trade Disruption Watch: Qatar fully resumed maritime navigation for all vessel types after a two-week suspension tied to security tensions around the Strait of Hormuz. Kuwait-Iraq Connectivity: Abdaly border crossing reopened after a drone attack caused damage, restoring a key passenger and trade route. Energy Investment: KPC signed a record $16bn lease-and-leaseback deal for Kuwait’s Shaheen oil pipeline network with Blackstone, Brookfield and KKR, expected to bring about $7.85bn upfront to KOC.

Energy Deal: Kuwait Petroleum Corporation’s Kuwait Oil Company (KOC) has signed a $16bn lease-and-leaseback for its crude export pipeline network with a consortium led by Blackstone, Brookfield and KKR, creating a Kuwait JV that will lease usage rights to 13 pipelines (about 320 km) for 20.5 years; KOC keeps 51% and full ownership/operational control, with volume-linked tariffs and expected upfront proceeds of $7.85bn to fund capex. Regional Security & Trade: Kuwait says it will reopen the Abdaly border crossing within 48 hours after a drone attack, aiming to keep Iraq ties and commerce moving; meanwhile, Pakistan’s ambassador says alternative routes are sustaining shipments as Hormuz risks persist. Fiscal Watch: Kuwait’s FY25/26 closing accounts show the deficit widening to KD 7.1bn (about 15% of GDP), the widest since the pandemic, driven mainly by weaker oil revenues. Digital Government: Kuwait’s communications ministry signed an MoU with stc’s E-Portal to expand Sahel, the unified government app. ESG & Business: Burgan Bank retained FTSE4Good inclusion; KPMG launched its Global Family Business Report 2026. Local Innovation: KFAS-backed Soof Wool Mill won a 2026 MENA innovative energy award for turning local wool into a sustainable industry.

KPC Pipeline Deal: Kuwait Petroleum Corporation’s Kuwait Oil Company signed a $16bn lease-and-leaseback for its 13-pipeline crude network with a consortium led by Blackstone, Brookfield and KKR, creating a JV where KOC holds 51% and the investors 49%; the JV will lease usage rights for 20.5 years with a volume-based tariff, and KOC expects $7.85bn upfront to fund capex while keeping ownership and operational control. Energy Security Backdrop: The announcement lands as the region stays tense after US-Iran strikes and shipping disruptions, with the Strait of Hormuz and Red Sea routes still in focus. Renewables M&A Watch: Separately, BP is reported to be in advanced talks to sell its Lightsource solar unit to a Kuwait-backed consortium led by Wren House. GCC Education Cooperation: Kuwait also took part in a GCC education meeting involving the Gulf Centre for Arabic Language, with a push to prepare education systems for AI and future transformations.

US-Iran Escalation: The US carried out a 13th straight night of strikes on Iran, aiming to reduce Tehran’s ability to target commercial shipping around the Strait of Hormuz, while Iran retaliated with attacks and warnings across the Gulf, including Kuwait and Bahrain. Regional Security Signals: Iran’s Revolutionary Guard urged civilians in Kuwait and other Gulf states to stay away from US-linked sites, and US embassies reportedly warned Americans that options to leave could tighten. Oil & Shipping Pressure: Houthis’ Red Sea actions and the broader Gulf conflict kept crude volatile, with Brent slipping after topping $100 earlier on tanker attack fears. Forced-Labor Tariffs: The US launched sweeping tariffs on 60 economies under forced-labor claims, replacing expiring levies; rates range from 10% for “committed” countries to 12.5% for others, with the EU also targeted. Kuwait Finance Watch: Kuwait raised $6bn via a US-dollar sovereign bond sale, while BP is reported to be nearing a deal to sell its Lightsource solar unit to a Kuwait-backed consortium. Business & Markets: Eurozone private-sector activity rebounded in July after four months of contraction, though sentiment remains cautious amid Middle East risks.

Middle East Energy Shock: US strikes on Iran for a 13th straight night intensified after Houthis attacked two Saudi oil tankers in the Red Sea, pushing Brent above $100/bbl and raising fresh fears for global shipping and Gulf supply routes. Kuwait Security Signals: Iran’s army claimed drone attacks on US sites in Kuwait, including Camp Udairi and Doha/Arifjan camps, while Kuwait’s defence ministry said drones hit the Al-Abdali border crossing with Iraq, causing damage but no casualties. US Trade Policy: Trump imposed new 10%–12.5% tariffs on imports from 60 economies over forced-labour enforcement claims, with Kuwait listed at 12.5%—a move set to hit supply chains and consumer prices as temporary levies expire. Energy Route Diversification: Gulf states are accelerating pipeline and alternative export planning to reduce reliance on the Strait of Hormuz as chokepoint risk grows.

Sovereign Financing: Kuwait issued $6bn in US dollar sovereign bonds across 3, 5 and 10-year tranches, with total orders above $18bn—its first return to global debt markets since 2017—signaling strong investor demand. Economic Restructuring: A new “Commercial Concealment Law” is being discussed as part of Kuwait’s push to fix market distortions and attract foreign investment, with calls to protect small operators and involve private-sector experts. Labor Market Reality Check: New data shows Kuwait’s public-private employment divide is still wide: 80.1% of Kuwaiti workers are in the public sector, while the private sector relies on expatriates (96.4%). Family Policy Push: Justice Minister Nasser Al-Sumait unveiled Kuwait’s first Family Protection Program, built around 86 projects across 13 agencies. Youth & Education: NBK backs the ALT summer program for ages 11–15 with hands-on store experience; Education Ministry summer clubs also exceeded expectations, with enrollments up to 250. Banking Results: KFH reported KD 363.1m net profit for H1 2026 (+6.1%). Regional Trade Shock: Red Sea and Hormuz tensions escalated after Houthi claims of attacks on Saudi tankers, pushing Brent above $100 and raising fears of wider shipping disruption. Kuwait Security: Kuwait reported drone attacks on the Al-Abdali border crossing with Iraq, causing material damage but no casualties.

Kuwait Business & Economy: Kuwait’s Public Authority for Manpower (PAM) rolled out an electronic service on its As’hal Companies Portal to let firms add or cancel authorized representatives on labour files online, cutting the need for in-person visits and speeding up approvals. Energy & Markets: Oil prices jumped as the US-Iran standoff widened into new maritime risks, with the US carrying out a 12th straight night of strikes on Iran while Iran and regional actors warned of attacks on civilian infrastructure. Shipping Shock: Yemen’s Iran-aligned Houthis claimed they attacked two Saudi oil tankers in the Red Sea and threatened a broader chokepoint risk, while reports said several ships altered routes after the blockade threat. Kuwait Security & Travel: Kuwait reported intercepting “hostile drone threats,” and the UK advised Britons to avoid all but essential travel to Kuwait and Bahrain amid fears of escalation and possible flight disruptions. Diplomacy: Kuwait also continued regional engagement, including meetings with Oman and the Czech Republic focused on expanding trade and energy cooperation.

Kuwait Enforcement: Kuwait’s Ministry of Commerce and Industry wrapped up a Jleeb Al-Shuyoukh joint inspection drive (July 15-19), issuing 227 violation reports and shutting 8 non-compliant commercial establishments, with inspectors citing issues like unlicensed businesses and poor address infrastructure. Food Safety: The General Authority for Food and Nutrition inspected Khaitan food outlets, issuing 11 violation reports and ordering destruction of 55kg of unfit food. Legal Training Deal: Dar AlMuhama Law Firm signed a professional cooperation agreement with the UAE’s HILT to run joint legal training programs, courses and workshops. Youth & Drugs: Kuwait’s Ministry of Justice held an “I’m Stronger” seminar under the “A Nation That Protects You” campaign, focusing on the updated narcotics law and tougher treatment for psychotropic substances. Regional Diplomacy: Kuwait’s FM spoke by phone with Ireland’s top diplomat on bilateral ties and regional developments, while Bahrain discussed Hormuz-related impacts with GCC counterparts. Banking: NBK CEO Isam Al-Sager said the bank’s H1 2026 results show resilience, with net profit at KD 324.8m (+3% y/y) and deposits up 13.1%. Middle East Shockwaves: US-Iran tensions kept markets jittery as oil prices climbed on renewed strikes and Hormuz shipping risks.

US-Iran Escalation: Trump said the US is “not finished” after 11 straight nights of strikes, with Pentagon cost estimates for the war hitting $37.5bn and Rubio reiterating Washington remains open to talks as Iran widens attacks across the Gulf. Kuwait Under Fire: Kuwait reported Iranian strikes hitting power and water desalination plants and said its air defences intercepted drones/missiles, underscoring how quickly critical infrastructure risk is turning into an economic and energy issue. Energy Markets: Oil pushed to six-week highs near $92 as Strait of Hormuz tensions persisted and Red Sea risks rose after Houthis threatened shipping and Saudi tankers reportedly turned back. Red Sea Shipping Shock: The Bab al-Mandeb threat adds pressure to global trade routes, with insurers and markets watching for any further disruption beyond Hormuz. Kuwait Diplomacy: Kuwait urged UN action on transitional justice and missing persons in Syria, calling for clearer fates and stronger mechanisms. Local Business/Finance: Zain Group pledged $10m to Kuwait’s Emergency Response Fund, while KUFPEC said it is exploring expansion in Pakistan’s upstream energy sector. Fact Check: A viral video falsely linked to Kuwait’s power-plant attack was traced to an older incident in Jordan. Legal Update: Two Nigerians received upheld prison terms in Kuwait for an armed robbery and theft at a currency exchange shop.

Kuwait Security & Sovereignty: Kuwait’s Cabinet condemned Iranian missile and drone attacks as a flagrant violation of sovereignty, with the PM visiting Al-Adan Hospital to check on injured people and stressing full medical support. National Resilience Funding: Zain pledged $10m to the Kuwait Emergency Response Fund, while BNK Holding, Gulf Cable, Boursa Kuwait, Kuwait Clearing and NIC added $6m in total to back repairs and preparedness. Water & Energy Risk: Reports say Iranian strikes hit Kuwait’s power and desalination infrastructure, with Shuaiba complex damage raising fresh alarms for Gulf water security. Markets & Oil: Oil jumped to a five-week high as US-Iran strikes and Houthi threats disrupted shipping; Brent pushed above $91 and the dollar firmed on higher crude and yields. Regional Diplomacy: UN chief Guterres warned there’s no military solution and urged intensified diplomacy as attacks spread across Kuwait, Bahrain and the region. Kuwait Business/Finance: NIC led a fully subscribed KWD 4.5m capital increase for Rawahel Holding; separately, Kuwait Fund and UNDP signed a $3m solar grant for Lebanon’s public services. Aviation: Emirates said it’s operating at 90% capacity with premium cabins full despite regional conflict.