AGP Executive Report

Food Safety Crackdown: Kuwait’s General Authority for Food and Nutrition shut a Capital Governorate facility after inspectors found spoiled/non-compliant products, including frozen meat being thawed and sold as fresh; 10 violation reports were issued, the site was closed, and 134.116kg of bad food was destroyed. Kuwait Work Schedule: The Civil Service Commission confirmed government offices will return to regular morning and evening shifts from Sept 1, ending the summer working-hours system. Hormuz Trade Pressure: With the Strait of Hormuz still under threat, Gulf states are accelerating investment in ports, pipelines and rail links to reroute oil and cargo via alternatives like Saudi Red Sea routes and UAE Fujairah terminals. Shipping Rules at IMO: Greek shipowners back a Liberia-Panama proposal at MEPC 85 that aims to set emissions targets based on what low-emission fuels can realistically be supplied at viable cost. Kuwait-India Defence Talks: Kuwait and India held their first joint defence committee meeting in New Delhi, moving cooperation into a more institutional phase. Iran War Escalation: The US struck Iranian rocket launchers on Larak Island and Iran retaliated with missile attacks on US targets in Jordan, keeping regional shipping and energy markets on edge. Digital Services Expansion: TechDigital Labs announced an expanded integrated digital marketing and software development offering for businesses seeking one connected partner.

Kuwait–India Defence: Kuwait and India held their first Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, exercises, military medicine, defence industry links and R&D. Tender & Infrastructure: CAPT pushed back the deadline for bids to study, design and supervise the Public Authority for Food and Nutrition (PAFN) HQ to Sept 27, with the wider project covering inspection facilities, cold storage and parking. Real Estate Policy: Kuwait’s progressive fees on undeveloped plots and enforcement of Law 126/2023 are credited with breaking market stagnation by reducing land monopolies, boosting plot supply and stabilising prices. Food Industry Focus: Kuwait’s food waste challenge is spotlighted, with restaurants and catering flagged as major surplus sources and calls for better handling after events. Urban Planning & Housing: Kuwait Municipality is urged to clarify how homeowners can use “setbacks” in front of houses for greenery instead of blanket restrictions. Security & Industry Compliance: A major Abu Futaira/Al-Qurain Markets crackdown logged hundreds of traffic and commerce violations and led to arrests of residency violators and wanted individuals. Regional Energy Risk: US strikes on IRGC positions near the Strait of Hormuz followed reports of preparations to launch sea mines, keeping the oil chokepoint’s disruption risk front and centre.

Strait of Hormuz Tension: Iran’s IRGC Navy says the waterway is closed to ships without Tehran coordination, pushing back against US claims of cleared lanes—another blow to Gulf energy logistics. US-Iraq Oil Flows: US crude imports from Iraq dropped to zero last week, while Canada and Venezuela kept supplying most barrels. Kuwait–India Defense: Kuwait and India held their first joint defense committee meeting in New Delhi, agreeing to expand training, exercises, military medicine, and defence industry/R&D cooperation. Kuwait–Pakistan Pact: Pakistan and Kuwait signed Protocol Agreement-2026 covering training, border management, intelligence sharing, and defence technology/military manufacturing. Delivery Rules: Kuwait is moving to regulate third-party delivery platforms from Sept 1, capping delivery fees at KD 1 and limiting commissions, sparking concern among operators. Maritime Security: Kuwait Coast Guard campaign in the east region investigated 152 people and flagged 32 abandoned vessels. Business Licensing Reform: Kuwait studies major changes to freelance/micro-business licensing to improve transparency and reduce misuse of licences. Travel Advisory: US updated warnings for Kuwait, citing armed conflict, crime and landmine risks, plus disrupted commercial aviation.

Kuwait-India Defense Boost: Kuwait and India held their first joint defense committee meeting in New Delhi, agreeing to expand training, military exercises, military medicine, defense industry links, and R&D. Freelance Licensing Overhaul: Kuwait’s Ministry of Commerce and Industry is studying structural changes to freelance and micro-business licensing to improve transparency and curb “name-only” registrations. Delivery Rules Kick In: New regulations starting Sept 1 cap delivery fees at KD 1 and limit platform commissions, putting delivery platforms and merchants under a fresh compliance test. Coast Guard Crackdown: Kuwait’s Coast Guard ran a maritime field campaign in the east, investigating 152 people, flagging 32 abandoned vessels, and recording multiple violations. Kuwait-Japan Diplomacy: Kuwait’s FM Sheikh Jarrah visited Japan, underscoring cooperation for regional stability. Logistics & Cold Chain: Gulf Warehousing Company completed early frozen bulk vessel operations in Oman and extended cold storage and distribution links to Kuwait and Qatar. Shipping Pressure Watch: Strait of Hormuz tanker traffic rose week-on-week, but remains far below pre-war levels. Energy Market Mood: Oil prices hover near $90/bbl as traders weigh Gulf uncertainty and shifting demand signals.

Kuwait–Pakistan Defence Boost: Kuwait and Pakistan signed the “Protocol Agreement-2026”, formalising closer military training, education, intelligence sharing, logistics, defence technology, research and even military manufacturing—an expansion of Gulf security ties amid the US-Iran fallout. India–Kuwait Defence Committee: Kuwait and India held the inaugural Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, joint exercises, military medicine, defence industry and R&D. Hormuz Shipping Pressure: Strait of Hormuz tanker traffic rose over the past week (114 transits vs 87), but remains far below pre-war levels; a Kuwaiti tanker was also reported hit, underscoring ongoing risks for Kuwait-linked shipping. UN Calls for Talks: UN chief Antonio Guterres urged the US and Iran to resume negotiations, warning of severe humanitarian and economic damage, including energy and food impacts. Kuwait Airport Operations: Kuwait International Airport (KWI) is operating with Terminal 4 and 5 active while Terminal 1 stays closed for repairs after earlier attacks. Energy Deal Watch: US says it reached a Venezuela oil agreement giving majority control over 65bn barrels, while Venezuela weighs leaving OPEC—developments that could reshape global crude flows.

Kuwait-India Defence Boost: Kuwait and India held their inaugural Joint Defence Committee meeting in New Delhi, agreeing to deepen cooperation on training, joint exercises, military medicine, defence industry and R&D, with Kuwaiti and Indian delegations also meeting defence-industry counterparts. Hormuz Shipping Pressure: A Kuwaiti oil tanker, Al-Salam II, was hit in the Strait of Hormuz, causing a small fire but no injuries or reported leaks, as traffic remains far below pre-war levels and the US pushes for safer lanes. Gulf Energy Diversification: With Hormuz disruption driving risk, Gulf states are accelerating investment in ports, pipelines and rail to reroute exports via Saudi Red Sea and UAE eastern routes, aiming to keep trade moving if the chokepoint tightens again. Kuwait-Pakistan Security Pact: Pakistan and Kuwait signed Protocol Agreement-2026, expanding military training, border management, intelligence and defence-industry cooperation, building on the 2023 framework. Local Business/Jobs: Kuwait’s cooperative societies have started Kuwaitising supply manager roles, with a 30-day push to appoint eligible Kuwaiti nationals.

Kuwait–Pakistan Defence: Kuwait and Pakistan signed the “Protocol Agreement-2026” in Rawalpindi, upgrading military cooperation with training, capacity-building, border management support and defence-tech collaboration under a five-year framework. Hormuz & Gulf Energy Logistics: With the Strait of Hormuz still disrupted, Gulf states are accelerating investment in ports, pipelines and rail to reroute crude and trade—while shipping data shows flows creeping higher but far below pre-war levels. Oil Market Watch: Brent and WTI rose after reports said Washington is not interested in reviving the June US-Iran MoU, easing hopes of a quick oil-flow rebound. Kuwait Social & Co-ops: Kuwait is Kuwaitising cooperative society supply manager roles, with a 30-day deadline and requirements for Kuwaiti nationals; meanwhile, authorities opened the first central market at Mutlaa Cooperative Society in Jahra’s Mutlaa City. Kuwait Budget & Construction Inputs: The state budget allocates KD139.9m to subsidise construction materials, tied to housing welfare and managed through the Supply Department and Sahel applications. Food Safety Enforcement: Kuwait’s Food Authority reported multiple violations in Qurain markets and Hawally inspections, including seized unfit food and adulterated meat. Desertification & Climate Finance: Kuwait Fund for Arab Economic Development discussed expanding cooperation with Mongolia on energy, environment, anti-desertification and infrastructure ahead of COP17.

Counterfeit Crackdown in Salmiya: Kuwait police stopped a nervous Syrian expatriate in Salmiya and found an envelope under the seat containing $7,000 in fake US dollars, with the case reported to Hawalli security. Construction Support: Kuwait’s current budget allocates KD 139.925m to subsidize construction materials, tied to the Sahel application and Kuwait Credit Bank loans for eligible citizens. Insurance FDI Push: Kuwait’s insurance sector FDI fell to 2.76% (KD 54.35m), as authorities cite efforts to update laws, simplify procedures, and drive digital transformation to attract international insurers. Co-op Expansion in Mutlaa: Social Affairs and Jahra Governorate opened the first central market at Mutlaa Cooperative Society, with more services planned for Mutlaa residents. Hormuz Logistics Watch: Reports say crude flows through the Strait of Hormuz are creeping higher (about 6–8m bpd), but security remains fragile; Kuwait and Qatar are also restoring exports via shuttle and ship-to-ship transfers. Defense Ties: Pakistan and Kuwait signed the Protocol Agreement-2026 to expand military cooperation, including training, capacity building, and border management.

Desalination & Water Security: VA Tech Wabag won its first Kuwait order, a DBO contract for the Doha SWRO Desalination Plant with Recarbonation System – Stage II, delivering about 272 MLD (60 MIGD) via a 36-month build plus a 5-year O&M period, with Solar PV to partially power the facility. Oil Sector Updates: Kuwait Oil Company (KOC) announced operational leadership changes, appointing new directors for North Kuwait operations, operations support, and safety management, aimed at boosting efficiency and production stability. Customs Digitisation: Kuwait’s General Administration of Customs and the Public Authority for Industry discussed enabling e-payment for industrial exemption transactions and speeding customs clearance for eligible factories. Food Safety & Inspections: Kuwait’s Public Authority for Food and Nutrition carried out inspections in Ardiya Industrial Area, issuing violations over hygiene, expired licenses, and improper food trading; separate health efforts targeted insect and rodent prevention at the Avenues Mall. AI in HR: A GCC-wide survey found 93% of organisations (including Kuwait) are exploring or piloting AI in HR, but only 1% are ready to scale it enterprise-wide. Energy Reliability: Kuwait’s electricity grid reportedly passed the summer test, supported by conservation campaigns, Gulf interconnection, planned maintenance, and rapid emergency response.

KOC Reshuffle: Kuwait Oil Company announced new operational appointments aimed at boosting oil security, speeding decisions, and strengthening safety management across North Kuwait and support functions. Power Reliability: Kuwait’s electricity and water ministry says the summer grid “passed” despite Iranian attacks, citing conservation campaigns, Gulf interconnection, scheduled maintenance, and rapid emergency readiness. Food Safety Crackdown: The Public Authority for Food and Nutrition issued 16 violations in Qurain Markets and also reported Ardiya Industrial Area breaches, including expired licenses and hygiene failures—continuing inspections across food outlets. Drug Bust: Interior authorities said they foiled Kuwait’s biggest Lyrica operation, seizing about 5 tons of raw powder and 4 million capsules plus manufacturing equipment, with an estimated KD 150m market value. Customs Digitisation: Kuwait’s Customs and the Public Authority for Industry discussed enabling e-payment for industrial exemption transactions to speed customs clearance and exemptions. Tech Talent Push: The Hamad Abdulaziz Al-Saqr Center for Technology and Innovation is preparing an initiative to turn young people into market-ready tech creators, focusing on AI and cybersecurity. Energy Diplomacy: Kuwait met US Congress representatives to deepen energy-sector coordination, while Japan and Kuwait discussed reopening the Strait of Hormuz for safe navigation and stable supplies.

Airport Modernisation: Kuwait PM and ministers inspected the new Kuwait International Airport Terminal 2 (T2) project, urging faster work to meet the approved timetable and stressing cross-entity cooperation to clear implementation obstacles. Aviation Partnerships: Kuwait’s civil aviation body joined Airports Council International (ACI) to tap global benchmarks, training, and programs covering safety, security, sustainability, digital transformation and cybersecurity. Food Safety Clampdown: The Public Authority for Food and Nutrition ran joint inspections in Qurain Markets, issuing 16 violations across 35 food establishments for issues including unfit food, operating without proper licenses, and hygiene lapses. Drug Enforcement: Interior Minister Sheikh Fahad Yusuf Saud Al-Sabah announced Kuwait foiled the largest drug bust in its history—about 5 tons of raw Lyrica powder, 4 million capsules, and a production facility—estimated at KD 150 million. Co-op Oversight: Kuwait’s Social Affairs and Food Authority stepped up surprise inspections of cooperative societies, focusing on food handling, storage and compliance, with enforcement actions planned for serious violations. Energy & Trade Diplomacy: Kuwait and Japan signaled deeper high-level talks soon, with both sides highlighting stable energy supplies amid Strait of Hormuz risks and expanding cooperation into AI, cybersecurity and renewables. Industry & Services: HanmiGlobal hit its highest-ever ENR ranking, placing 6th globally among non-U.S. CM/PM firms, with Kuwait among recent overseas project wins. Regional Finance: Kuwait Fund for Arab Economic Development signed a KD 3m loan for El Salvador’s San Matías solar project, supporting clean power and grid integration.

Airport Expansion Push: Kuwait’s Cabinet met at the new Kuwait International Airport Terminal 2 (T2) site, with the PM urging “full throttle” acceleration and tighter coordination to keep the project on schedule. Aviation Sector Upgrade: The Directorate General of Civil Aviation joined Airports Council International (ACI) to tap global best practices, training and benchmarking for airport development, including digital and cybersecurity. Water & Desalination Deal: VA Tech Wabag signed Kuwait’s Doha SWRO Desalination Plant contract (Stage II) for a 60 MIGD facility, with a Wabag-led JV and solar PV support, plus a five-year O&M period. Food Safety Crackdown: Social Affairs and the Public Authority for Food and Nutrition stepped up surprise inspections of cooperative societies, while Hawalli inspectors seized and destroyed 96kg of adulterated, unknown-source meat. Local Agriculture Demand: Al-Abdali Dates and Figs Exhibition drew strong sales, with fresh local dates and figs selling out early in the day. Regional Energy/Trade Links: Kuwait and South Korea discussed energy and infrastructure cooperation, while Kuwait also pushed for broader global aviation partnerships and investor incentives.

Kuwait Business Transparency: Kuwait Chamber of Commerce and Industry hosted an awareness seminar on new rules for beneficial ownership and combating commercial concealment, aimed at tightening transparency and protecting Kuwait’s market integrity. KPC Profit Surge: Kuwait Petroleum Corporation reported consolidated profits of KD 2.155bn for FY2025/26 (ended March 31), citing efficiency gains, stronger global market positioning and smarter shipping decisions. Energy Projects & Trade: Kuwait Petroleum Corporation’s 50-year partnership with Pakistan State Oil (PSO) was marked, while Kuwait also faces major gas infrastructure developments including a planned $3.3bn gas processing facility and a major oil-and-gas contract award. Regional Shipping Stress: With the US-Iran standoff continuing, Strait of Hormuz traffic hit extremely low levels, raising supply-route concerns for Gulf-linked industry. Aviation Disruption: Kuwait International Airport remains open with Terminal 4 and 5 operating, while Terminal 1 stays closed after earlier strike damage. Global Chemicals M&A Watch: Shell’s US chemical assets drew interest from ExxonMobil, LyondellBasell and Kuwait Petroleum’s chemicals arm, with bids discussed up to $8bn.

Kuwait Business Compliance: Kuwait Chamber of Commerce and Industry seminar highlighted new beneficial ownership and anti-commercial concealment rules, aimed at boosting transparency and protecting Kuwait’s market integrity. KPC Performance Push: Kuwait Petroleum Corporation reported record consolidated profits of KD 2.155bn for FY2025/26, citing efficiency gains and stronger global sales, including jet fuel and diesel exports. Kuwait-India Trade & Food Security: Kuwait and India discussed deeper cooperation in trade, industry and food security, with renewed talks ahead of GCC-linked free trade discussions. Dorra Offshore Progress: Larsen & Toubro won an “ultra-mega” offshore EPCIC contract tied to Dorra gas development in the Neutral Zone between Saudi Arabia and Kuwait. PSO-KPC 50 Years: Pakistan State Oil Company marked 50 years of partnership with KPC, pointing to expanded product cooperation and logistics alliances. Regional Energy Pressure: China’s FM Wang Yi met Kuwait’s foreign minister in Beijing, urging de-escalation as the US ramps up economic measures targeting Iran and Hormuz tensions threaten shipping and oil flows. Banking Rewards: Commercial Bank of Kuwait launched its “One Card… Two Ways to Be Rewarded” Mastercard campaign with cashback on travel and entertainment plus UEFA Champions League prize draws.

US-Iran Pressure: Iran’s foreign ministry says repeated US sanctions will “yield no results,” warning they hit ordinary people and violate free-trade and sovereignty. Gulf Shipping Risk: Iran’s PGSA issued a “Non-Compliant Vessels” list, threatening fines, detention and seizure for ships it says breach its Strait of Hormuz rules. Kuwait Energy Trade: KPC propane and butane exports fell 4.5% in FY ending March 31, with disruptions and a shift toward domestic supply cited. Kuwait-India Industry & Food Security: Kuwait and India discussed deeper cooperation in trade, industry, and food security, including resilient supply chains and strategic stockpiles. Municipal Enforcement: Kuwait Municipality stepped up inspections across governorates, issuing citations and warnings over shop and advertising regulation breaches. Healthcare Training (GCC): DataFlow’s TrueProfile.io partnered with MediLearning to add DHA-accredited CPD/CME courses for healthcare professionals across Kuwait and the GCC. Defense Cooperation: Kuwait and Ukraine advanced defense ties, with Ukraine offering expertise and drones under the 2018 agreement. Regional Diplomacy: China’s FM met Kuwait’s leader in Beijing, urging de-escalation as Gulf tensions over Iran intensify. Chemicals M&A Watch: Reports say Exxon and LyondellBasell (plus Apollo and KPC’s chemicals arm) are among suitors for Shell’s US chemicals assets valued up to $8bn.

Municipal Enforcement: Kuwait Municipality stepped up field inspections across six governorates, with Jahra teams checking commercial and industrial areas, issuing 15 citations for shop and advertising violations and 28 warnings, and promising more visits over coming weeks. Food Safety Crackdown: Kuwait’s food authorities shut two Salmiya health institutes for cash-transaction and licensing breaches, while Hawally inspectors found 23 food-safety violations including expired licenses and improper hygiene, and Farwaniya ordered closures over adulterated/unknown-origin food. Energy Exports Watch: Kuwait Petroleum Corporation reported propane and butane exports fell 4.5% in FY ending March 31, citing regional logistics disruptions and a shift toward meeting domestic supply needs. Kuwait-India Food Security: Kuwait’s Commerce and Industry Minister met India’s ambassador to boost food security, strategic stockpiles, and wider trade and industrial cooperation. Defense Cooperation: Kuwait and the U.S. wrapped the 16th Joint Military Commission, focusing on interoperability and maritime security, while Ukraine’s ambassador said drones and integrated defense expertise are on the table under the 2018 cooperation framework. Industry & Trade Events: LuLu launched Kerala’s Onam promotion in Kuwait, and Kuwait joined UN efforts on desertification and land degradation via UNCCD COP17 participation.