AGP Executive Report

Kuwait Energy & Markets: Oil prices stayed near $94/bbl Brent as the US-Iran standoff and expired truce kept supply risk elevated, with Kuwait named among key producers facing curtailment concerns. Kuwait Business & Industry: Kuwait’s Municipality is set to align business classifications with international ISIC Rev.4 codes, backed by a “License Your Business” awareness push to help investors pick the right activity and improve compliance. Utilities & Smart Energy: Kuwait’s Electricity, Water and Renewable Energy ministry is backing AI for smart-meter efficiency, aiming to use consumption-pattern analytics to boost conservation and energy efficiency. Oil & Gas Operations: KNPC’s LPG bottling-plant merger under its umbrella is credited with higher output and sales, with cooking gas cylinder production and domestic sales rising across Shuaiba and Umm Al-Aish. Water Tech & Research: KISR researchers will showcase a wastewater-reuse wetland system for reverse-osmosis effluent at an international invention exhibition in Guangzhou. Public Health Regulation: Kuwait introduced tighter rules on psychotherapy, banning energy/spiritual healing and other non-scientific practices, while requiring in-person training and accredited qualifications. Infrastructure Progress: Yarmouk infrastructure works reached 92% completion, with sewage and stormwater drainage fully done and telecom and lighting networks near completion. Regional Trade & Security: US President Trump again claimed the US is “essentially controlling” strategic straits tied to Iran, while markets watch the knock-on effects for shipping and energy costs. Corporate Results: UK-listed Hunting trimmed FY EBITDA guidance after delays tied to Kuwait Oil Company’s OCTG tender, citing softer activity even as subsea and perforating systems held up.

Municipal Modernisation: Kuwait Municipality is moving to replace local business classifications with UN’s ISIC Rev.4 codes, backed by its “License Your Business” campaign to help investors pick the right activity and comply with regulations. Energy Efficiency Push: The Electricity, Water and Renewable Energy ministry is backing an AI project using smart-meter data to improve consumption analysis and boost conservation. Water Innovation: KISR researchers will showcase a wastewater treatment and reuse wetland system for reverse-osmosis effluent at an international invention exhibition in Guangzhou. LPG Output Boost: KNPC’s merger of liquefied gas bottling plants is lifting performance, with cooking gas sales topping 17 million cylinders and both Shuaiba and Umm Al-Aish plants recording growth. Infrastructure Update: Yarmouk area works are at 92% completion, with sewage and stormwater drainage fully done and telecom and lighting networks nearing finish. FATF Compliance: Kuwait’s PM chaired a meeting on FATF observations, focusing on anti-money laundering and counter-terrorist financing readiness across key ministries and regulators. Advanced Air Mobility: Knetco and Skyports signed an MoU to develop Kuwait’s advanced air mobility infrastructure, including helipad development and ecosystem planning. Power Disruption: A transformer fault at Salwa (A) substation caused limited outages in Salwa blocks 7 and 10. Safety Incidents: Two separate cases were registered after a construction worker died from a fall in Al-Qusour and a three-vehicle crash on the Seventh Ring Road injured an Indian expatriate and killed a Nepalese resident.

Kuwait’s FATF Readiness: The Prime Minister chaired a meeting on Kuwait’s observations and requirements under the Financial Action Task Force, focusing on anti-money laundering and counter-terrorist financing coordination across state bodies. Economic Courts Push: Kuwait’s Justice Minister backed a new law creating economic courts with special circuits across First Instance, Appeals and Cassation, aiming to speed case prep, expand e-litigation and improve enforcement of rulings. Energy Infrastructure Tendering: The Central Agency for Public Tenders approved five bids for underground cable works to extend and strengthen the grid in Amghara Industrial Area, supporting rising industrial electricity demand. Food Safety Crackdown: Kuwait’s food inspectors issued violations at Jleeb Al-Shuyoukh Market, destroyed 100kg of meat of unknown origin, and deported one individual. Building Materials Rules Updated: Kuwait amended distribution rules for subsidized building materials, tying eligibility to Kuwait Credit Bank loans and civil ID, and setting new procedures for demolition and rebuilds. National Guard Camp Expansion: National Guard undersecretary visited the extension of Sheikh Salem Camp to review readiness for relocation of units. Human Capital in Banking: NBK launched four new cohorts of its Middle Management Program, adding modules on digital leadership and AI applications. Regional Energy Shock—Hormuz: Multiple reports say the Strait of Hormuz remains volatile, with the US claiming an open corridor and Iran disputing control, while tanker shortages and insurance risks are driving record shipping costs—an issue directly tied to Kuwait’s export exposure. Diplomacy: South Korea’s foreign minister will meet Kuwait’s counterpart in Seoul next week to discuss cooperation including energy security. Business & Jobs: talabat renewed its sponsorship of CODED’s Academy X to support women’s empowerment in tech and entrepreneurship in Kuwait.

Energy & Shipping Security: The US has set up a shipping corridor through the Strait of Hormuz, with 15–20 tankers reportedly passing nightly via a southern Oman channel and about 10 million barrels/day moving—helping keep Gulf oil exports flowing despite Iran-linked tensions. Regional Trade Pressure: The UAE suspended all trade, commercial exchanges and financial transactions with Iran after renewed missile fire, a move that could further squeeze Iran’s access to re-export routes. Kuwait’s Economic Courts: Kuwait’s Justice Minister backed a new law creating economic courts to handle commercial and investment disputes across all litigation levels, with faster case preparation and more electronic procedures. Food Safety Crackdown: Kuwait’s food inspectors destroyed 100kg of meat of unknown origin at Jleeb Al-Shuyoukh and issued reports and a deportation after adulterated-food violations. Power & Industry Infrastructure: Five bids were approved for an underground cable project in Amghara Industrial Area to strengthen the grid and support rising industrial electricity demand. Construction Materials Rules: Kuwait amended subsidized building-material distribution rules, tying eligibility to Kuwait Credit Bank loans and requiring electronic permits for demolition/rebuild. Local Environment Initiatives: Ahmadi’s green urban committee reviewed 12 landscaping and beautification initiatives, with some deferred for additional approvals. Talent & Digital Skills: talabat renewed sponsorship of CODED’s Academy X for women in tech/entrepreneurship, while NBK launched four new cohorts of its Middle Management Program with added digital leadership and AI modules. Kuwait–Iraq Maritime Tensions: Renewed attention is on the Khor Abdullah waterway dispute, a key shipping route affecting access to Umm Qasr and Kuwait’s Mubarak Al-Kabeer port development.

Strait of Hormuz & Shipping: Iran’s grip on the Strait of Hormuz looks weaker as more than 80% of vessels reportedly shift to the UN-authorised Omani route, underlining how shipping firms are hedging against attacks and toll claims. US-Iran Standoff: Washington says there are no talks with Iran and frames its approach as longer-term pressure, while markets react to the expired ceasefire and renewed escalation risk. UAE Economic Hit: The UAE suspended all trade, commercial exchanges and financial transactions with Iran after detecting ballistic missile launches aimed at maritime traffic, a move that could further disrupt Gulf commerce. Kuwait Consumer Enforcement: Kuwait authorities carried out inspections in Jleeb Al-Shuyoukh, issuing violations for missing prices, no receipts and unclear product origin. Food Safety Crackdown: In Bneid Al-Qar, a restaurant was closed after inspectors found Salmonella-contaminated food, live cockroaches and expired licensing, with legal action initiated. Kuwait Governance: Cabinet approved draft nationality-law amendments and a judiciary reorganization, plus steps to set up specialized economic chambers. Local Agriculture: The Al-Abdaly Farmers Festival for fresh dates and figs opened, with dozens of farmers and multiple varieties drawing early demand. Workforce & Kuwaitization: Kuwait’s consumer cooperatives urged faster Kuwaitization for supply branch manager roles, with a 30-day deadline to act. Business & Finance: PwC promoted Ola Abdallah and Rand Qutub to partner roles in its Middle East Deals practice.

Kuwait–Indonesia People & Skills: Indonesia’s ambassador to Kuwait said the embassy wants to expand opportunities for skilled Indonesians in Kuwait, including healthcare, oil and gas, manufacturing and automotive, as only about 6,000 Indonesians currently work in the country. Food Security at Ports: Kuwait’s customs seized subsidized food supplies hidden in six 40-foot containers bound for Sri Lanka, including pasta, cooking oil, flour, tomato paste and milk, as authorities tighten controls to stop diversion of subsidized goods. Power Reliability: Electricity was restored to parts of Abdullah Al-Salem after a technical fault at a main transformer, with teams working to bring remaining affected areas back online. Digital Banking Push: NBK rolled out new features on its mobile app, including Kuwait’s first fully integrated digital loan journey for housing, consumer and auto loans. Cyber Safety: CITRA warned iPhone users about a phishing scam using fake delivery/shipping messages via iMessage, urging people not to click links and to verify through official apps. Regional Energy Shock Watch: With US-Iran talks off and Hormuz tensions high, shipping disruptions and renewed attacks keep pressure on oil and fuel prices across the Gulf, while Kuwait remains directly exposed through trade and energy routes. Citizenship & Judiciary Overhaul: Cabinet approved draft decree-laws amending nationality rules and reorganizing the judiciary, including electronic issuance of citizenship certificates and limits on voting for naturalized citizens. Local Agri-Trade: The 4th Al-Abdaly Farmers Festival opened with fresh dates and figs and date/fig products, running through August 26.

Strait of Hormuz Shock: Oil prices jumped as US-Iran talks stalled and Hormuz supply risks returned, with Reuters citing sharply reduced tanker crossings and renewed concerns for global crude flows. Kuwait Energy Angle: A Kuwaiti oil expert urged the country to redraw Gulf export routes and accelerate GCC pipeline links to cut reliance on Hormuz. Security Disruption: A vessel transiting Hormuz was hit by an unknown projectile, damaging its engine room and injuring a crew member, while Trump reiterated “total control” rhetoric over the strait. Regional Diplomacy: Kuwait and UAE officials intensified de-escalation calls as tensions threaten navigation and energy trade. Iraq Gas Push: Iraq inaugurated a new central gas processing plant at the Faihaa field to curb flaring and boost LPG output, supporting power generation. GCC Investment Outlook: GCC spending in water, circular economy, logistics and smart transport is projected to reach $20.7bn by 2030. Local Enforcement: Kuwait’s interior ministry and manpower authority arrested 68 residency and labor law violators in Fahaheel, while food inspectors closed five facilities in Jahra. Digital & Consumer Tech: LG and stc tv expanded smart-TV streaming access across Saudi, Kuwait and Bahrain via webOS integration. Scam Alert: CITRA warned Kuwait iPhone users about fake delivery messages on iMessage.

Hormuz Flashpoint: Iran says it will shift to a “fully offensive” posture as the 60-day US-Iran MoU expires, warning it could strike to break the US naval blockade if diplomacy fails; shipping is down sharply with only a handful of vessels transiting and a backlog expected to take weeks to clear. US-Iran Diplomacy Deadlock: Washington ruled out extending the ceasefire framework while Iran and Oman discuss a shipping-route understanding, even as Trump escalates threats, including to bomb Oman if it “gets in the way.” Kuwait Energy Risk: Kuwait’s oil export outlook remains tightly linked to Hormuz disruption, with analysts and local experts calling for new export routes and GCC pipeline options to reduce reliance on the strait. Kuwait Security & Compliance: Interior and manpower authorities arrested 74 residency and labor law violators in Fahaheel and shut down 5 food facilities in Jahra for selling unfit food. Digital & Consumer Safety: CITRA warned iPhone users about fake delivery/shipping scam messages on iMessage; Kuwait Fire Force also cautioned against unsafe charging of smart devices. Industry Moves: KOC says it drilled 2,428 oil wells over five years; Kuwait Airways signed a KD 5.8m ASC pact to upgrade planning systems. GCC Investment Push: GCC spending in water, circular economy, logistics and smart transport is projected to reach $20.7bn by 2030.

Kuwait Health Regulation: Kuwait’s Health Ministry has banned Reiki, NLP and other “energy/spiritual” or non-evidence-based therapies, setting a new licensing and compliance timeline for private and government practitioners. Tobacco Rules: Kuwait also tightened tobacco and nicotine controls, banning online sales and deliveries, raising the minimum purchase age to 21, and extending restrictions to e-cigarettes and heated tobacco from Jan 1, 2027. Food Safety Crackdown: Inspectors in Jahra recorded 40 violations and shut five facilities, while authorities seized about 180kg of rotten beef and mutton after seal tampering and foul odors were found. Oil & Shipping Pressure on Kuwait: With the US-Iran 60-day MOU expiring and Hormuz traffic sharply down, reports say covert “dark” tanker shipments via Hormuz and Gulf of Oman are helping keep prices steadier—while Kuwait-linked flows are part of the workaround. Kuwait Energy Earnings: PIC posted KD 23.8m net profit for FY2025/26 despite market headwinds, and Kuwait’s KPC reported a three-year high net profit of $6.9bn. Public Works Tenders: Kuwait’s Public Works Ministry plans to float 24 contracts and tenders in the current fiscal year, including sewage network connections and equipment supply.

Kuwait Energy & Industry: Petrochemical Industries Company (PIC) posted KD 23.8m net profit for FY2025/26 despite geopolitical pressure on petrochemical and energy prices, while Kuwait’s oil and industrial outlook remains tightly linked to Strait of Hormuz disruptions. Public Works & Infrastructure: The Ministry of Public Works plans to float 24 tenders/contracts in the current fiscal year, including sewage network links (South Sabahiyah) and multiple sanitary engineering design and supervision works. Health Regulation: Kuwait issued new rules for cosmetic surgeries and procedures, defining eligible specialties, physician qualifications, consent requirements and complication management. Food Safety Crackdown: Al Jahra inspections logged 40 violations and shut five facilities, and authorities seized about 180kg of rotten beef and mutton after seal tampering. Consumer & Market Watch: Gold in Kuwait climbed to around KD 43.6/g for 24-karat, tracking global gains tied to easing US inflation expectations. Tobacco Controls: Kuwait tightened tobacco and nicotine rules ahead of a Jan 2027 start, banning online sales/deliveries and setting the purchase age at 21. Regional Shipping & Security: With US-Iran talks stalled and Hormuz tensions rising, Gulf shipping faces continued uncertainty, keeping costs and planning pressures on Kuwait’s logistics and energy sectors.

Tobacco & Nicotine Crackdown: Kuwait issued a new health-focused regulatory framework covering import, manufacture, distribution, sale, advertising and use of tobacco and nicotine products, including bans on unregistered items and child-targeted nicotine pouches and other delivery systems, with tighter controls for e-cigarettes and heated tobacco. Hormuz Pressure on Industry: Kuwait condemned Iran’s attack on an ADNOC-linked vessel in the Strait of Hormuz, warning repeated strikes threaten maritime navigation, global energy supplies and trade—an issue that keeps Kuwait’s oil exports exposed. Oil Finance Deal: Kuwait Petroleum Corporation signed the $16bn Shaheen Project, a sale-and-leaseback for crude oil pipelines expected to bring about $7.85bn upfront to fund capex and support plans to lift production capacity toward 4 mbpd by 2035. Kuwaitization Push: The Ministry of Social Affairs said Kuwaitization is on track for branch supply manager roles in 12 cooperative societies, with further vacancies planned after inventory and procedures. Power Restored: Electricity supply was fully restored to Fahaheel after a technical fault at the Fahaheel (A) Main Substation. Regional Diplomacy Tension: Iran accused Kuwait of withholding information about four Iranians held in Kuwait, while Iran-Qatar pilot disputes continued with Qatar denying detention. Education & Skills: KFAS’s PRE 2026 program wrapped up for secondary students, guiding them toward university majors in fields including medicine, engineering and petroleum.

Strait of Hormuz Shock to Kuwait’s Oil Exports: Kuwait says it strongly condemns Iran’s attacks on ADNOC-linked vessels in the Strait of Hormuz, warning they violate international law and threaten maritime navigation and global energy supplies. US-Iran Escalation: Trump renewed claims he will soon declare Hormuz a US territory, while Iran dismissed the move and insisted the strait can’t be controlled by force. Kuwait Investment Push: Kuwait’s FDI momentum got a major boost as KPC signed the $16bn Shaheen Project, a sale-and-leaseback for crude oil pipelines expected to generate $7.85bn upfront to fund capex and support production targets. Kuwaitization in Co-ops: The Social Affairs ministry announced Kuwaitization of a branch supply manager role in 12 cooperative societies, with further vacancies planned. Local Infrastructure Progress: The Qurtuba project reached 82% completion, with sewage and stormwater networks at 97% and telecom and street lighting also progressing. Energy Reliability: Power was restored to Fahaheel after a technical fault at the Fahaheel (A) Main Substation. Industry & Skills: KFAS’s PRE 2026 program wrapped up for gifted students, and Kuwait’s farmers’ union updates highlighted renewed support including subsidized diesel allocation based on farm needs.

Kuwait Investment Push: Kuwait Petroleum Corporation signed a USD 16bn Shaheen Project deal using a sale-and-leaseback model for crude oil pipelines, aiming for about USD 7.85bn in proceeds to help fund capex and lift crude output capacity toward 4 mbpd, with global investors including Blackstone, Brookfield and KKR. Power Reliability: Kuwait’s Ministry of Electricity and Water restored power to Fahaheel after a technical fault took the Fahaheel (A) Main Substation out of service, affecting only a limited area. Strait of Hormuz Shockwaves: Kuwait condemned Iranian attacks on ADNOC tankers in the Strait of Hormuz, calling them violations of UN Security Council Resolution 2817 and urging an immediate, full reopening of the strait. Regional Security Signals: Kuwait also weighed in on the Mecca Joint Defense Agreement narrative, with commentary highlighting how the Saudi-Turkiye-Pakistan pact could strengthen security and stability—relevant for shipping and energy planning. Energy Tech Contract: Silverwell won a multi-million-dollar Middle East contract to deploy Digital Intelligent Artificial Lift (DIAL), enabling remote gas-lift optimization to cut costly interventions and protect production.

Power & Utilities: A technical malfunction at the Fahaheel (A) Main Conversion Station knocked out power to a limited area in Al-Fahaheel, with emergency teams from the Ministry of Electricity, Water and Renewable Energy working to restore service. Maritime Security & Energy Trade: Kuwait joined Qatar, Egypt and Bahrain in strongly condemning Iran’s attack on two UAE ADNOC tankers transiting the Strait of Hormuz, calling it a violation of UN Security Council Resolution 2817 and urging de-escalation plus the full, unconditional reopening of the strait. Oilfield Tech & Production Efficiency: Silverwell won a multi-million-dollar, multi-well Middle East contract to deploy its Digital Intelligent Artificial Lift (DIAL) technology, enabling remote gas-lift valve optimization and reducing costly interventions. Regional Defense Cooperation: Coverage also highlighted the Pakistan–Saudi Arabia–Türkiye tripartite defense pact and related alliance details, underscoring how Gulf security planning is shifting amid Hormuz-linked tensions. Industry & Innovation: KIT reported a hybrid solar system that pairs photovoltaics with passive daytime radiative cooling, aiming to deliver power and cooling from one surface. Health Snapshot: A global diabetes ranking placed Kuwait among the highest-prevalence countries, with 2024 age-standardised diabetes prevalence cited at 25.6%.

Gulf Shipping Security: A Saudi-led 14-nation maritime defense coalition is moving toward operational activation to protect Red Sea and Bab al-Mandeb trade and energy routes, with Kuwait among the signatories. Hormuz Pressure on Industry: US Defense Secretary Pete Hegseth says the blockade of Iranian ports can be maintained “indefinitely,” while Iran rejects US claims of normal Strait of Hormuz passage—keeping shipping disruption and higher costs front and center for the region’s energy-linked businesses. Kuwait Oil & Tech: Kuwait Oil Company signed a multi-year technology collaboration with Baker Hughes for the Ahmadi Innovation Valley upstream push, and KUFPEC is evaluating new Alberta (Canada) exploration opportunities after completing engineering risk work on its Quebec-Doverney stake. Kuwait Governance & Market Oversight: Kuwait’s Commerce Ministry reported 17,135 complaints in Q2 2026 via Sahel and its portal, with inspection teams issuing 5,155 violation reports and closing 52 shops. Airport Commercial Moves: PACA obtained conditional SAB approval to award seven Kuwait International Airport tenders worth KD 7.006m, covering terminal leasing for ads, food outlets and baggage services. Youth & Skills: talabat and AIESEC in Kuwait ran the Next Tech Gen session to expose young talent to AI, product, data and digital platforms.

Maritime Security: Saudi Arabia is pushing a new 15-country maritime defense coalition toward activation, with 15 states signing to protect navigation and energy routes around Bab al-Mandeb, the Red Sea and the Gulf of Aden—Kuwait is among the signatories. Sustainability & Environment: Ahmadi Governorate, with EPA and Kuwait Oil Company, launched an introductory “Sustainable Conservation” seminar aimed at building governorate-level environmental data and carbon footprint tracking. Energy & Upstream: KUFPEC is evaluating new exploration and production opportunities in Canada’s Alberta, including engineering risk work tied to its Quebec-Doverney stake. Aviation & Infrastructure: Kuwait International Airport cleared seven tenders worth KD 7.006m for passenger-terminal leasing (ads, baggage services, food outlets) after conditional SAB approval. Public Oversight: Kuwait’s Commerce Ministry reported 17,135 complaints via Sahel in Q2 2026, 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. Oil Tech Collaboration: KOC signed a multi-year technology collaboration with Baker Hughes for the Ahmadi Innovation Valley to boost upstream performance and deploy digital/AI solutions. Finance: KIPCO posted KD 5.3m net profit for H1 2026, while GFH reported higher Q2 and first-half net profit. Youth & Tech: talabat and AIESEC Kuwait ran the “Next Tech Gen” session to expose young talent to AI, product, data and digital platforms.