AGP Executive Report

Middle East Fallout: Even with a ceasefire, Iraq is still getting pulled deeper into the Iran war—reports point to secret Israeli activity in western Iraq, militia drone strikes from Iraqi territory, and Iranian Kurdish fighters holding positions in the north. Strait of Hormuz Pressure: Iran is also pushing long-term leverage via fees for ships transiting the Strait, with talks involving Oman—keeping global shipping and energy nerves on edge. US-Iran Military Cost: A new Congressional Research Service tally says 42 US aircraft were lost or damaged in Operation Epic Fury, including 24 MQ-9 Reaper drones. Kuwait Telecom Upgrade: Kuwait is moving ahead with major fixed-network investment: Beyon has signed a PPP commitment for a 50-year project worth over $2.6bn, and PAHW is set to award a 132kV cable EPC contract for South Sabah Al-Ahmad in Q3 2026. Cyber Risk Watch: A regional study warns telecom and hosting networks are being abused as command-and-control infrastructure, including activity detected in Kuwait.

Strait of Hormuz Pressure: Iran is reportedly trying to lock in long-term leverage over the Strait by discussing fee-based “service” charges with Oman, even as the U.S. insists the waterway must stay toll-free—raising fresh fears of another energy shock. War Cost Shock: A new U.S. report says 42 aircraft were lost or damaged in the Iran conflict, including 24 MQ-9 Reaper drones, with overall costs now put at about $29B. Kuwait Telecom Push: Beyon has signed a KD 825m (50-year) PPP commitment to upgrade Kuwait’s fixed telecom network, aiming for fiber coverage for 90% of plots in five years and support for AI, cloud and smart-city services. Gulf Security Signals: Qatar, Kuwait, the UAE and Bahrain are set to attend a NATO summit in Turkey focused on Iran-linked regional risks. AI in Healthcare: Kuwait’s health delegation calls for stronger AI governance, cybersecurity and accountability as digital medicine expands.

Kuwait Telecom Push: Beyon has officially locked in a PPP commitment to build Kuwait’s fixed telecommunications network, with investments topping KWD 825 million over a 50-year deal—aimed at upgrading transport/backhaul, rolling out next-gen systems, and phasing out legacy copper. Naval Modernisation: Leonardo won a €320m ($370m) contract to supply naval combat systems for Kuwait’s Al Dorra missile boat programme, strengthening maritime surveillance and missile-defence capabilities. Defense & Regional Tension: A fresh congressional report keeps attention on the wider Iran war fallout, saying the US lost or damaged 42 aircraft and that costs have climbed to about $29bn. Trade Winds: The UK-GCC free trade agreement is set to remove roughly $779m in duties annually, with day-one cuts already planned—good news for Gulf importers and UK exporters. Local Watch: Kuwait continues cracking down on citizenship fraud tied to fake identities, while the Education Ministry moves to lighten school bags by embedding activities into textbooks.

Telecom Upgrade: Kuwait just signed a KD 825 million fixed-line telecom partnership with Bahrain’s Beyon under a 50-year PPP, aiming to build the backbone for cloud, AI, smart cities and future government services. Digital Accessibility: Zain Kuwait marked Global Accessibility Awareness Day with Kuwait’s first digital and policy accessibility audit, covering its apps, website, social channels and HR documents. Defense Contracts: Leonardo and Abu Dhabi Ship Building (ADSB) inked a €320m deal for Kuwait Navy missile-boat combat systems for the Falaj 3 programme. Trade Boost: The UK and GCC wrapped up a landmark free trade agreement—first between a G7 and the GCC—promising tariff cuts, easier customs and “free flow of data,” with Kuwait positioned as a key beneficiary. Geopolitics & Markets: Gulf stocks rebounded on Iran-deal hopes and firmer oil, while analysts warn jet fuel supply stress may linger even if tensions cool. UN Climate Push: A UN General Assembly vote backed climate obligations tied to the ICJ ruling, strengthening calls for accountability from rich nations.

Kuwait Security & Safety: Kuwait’s Army said a specialized team is carrying out controlled disposal of shrapnel and unexploded explosives in the north today from 10:00 a.m. to 12:00 p.m., warning residents to expect sounds from the operation. Kuwait Governance: The Cabinet approved a draft decree to end Municipal Council elections, shrinking the council to 12 members and making it fully appointed, with a shorter two-year term. Kuwait Health: The Ministry of Health opened the country’s first pediatric post-ICU recovery clinic at Al-Jahra Hospital to track children’s recovery after critical illness. UK-GCC Trade Shockwave: The UK and GCC sealed a landmark free trade deal—Britain’s first with a G7 bloc—projected to boost trade by nearly 20% and add about £3.7bn a year in export opportunities, with Kuwait included among the six GCC states. Digital Payments: Kuwait’s Central Bank ordered KNet to apply KD 1–KD 20 penalties to banks for technical failures in WAMD instant transfers. Cyber Fraud Watch: CITRA reported 172 cyber scam reports in April, led by websites (87) and WhatsApp scams (34).

Municipal Council Overhaul: Kuwait’s Cabinet approved a draft decree to end elections at the Municipal Council, making the body fully appointed by Amiri decree, shrinking seats to 12 (from 16) and cutting the term to two years; the chair and deputy will also be appointed, with eligibility rules including Kuwaiti-by-birth status and a relevant university degree. Cyber Scams Watch: CITRA says it handled 172 cyber scam reports in April, with websites leading (87), followed by WhatsApp scams (34) and social media fraud (31), urging people to report via the Sahel app’s “Aman” service. Health Upgrade: The Ministry of Health opened Kuwait’s first specialized pediatric post-ICU recovery clinic at Al-Jahra Hospital to track complications after discharge and support physical, neurological, psychological and behavioral recovery. Digital Heritage: The Ministry of Information began a project to digitize and preserve Kuwait’s radio archive using modern archiving standards. Regional Pressure: Gulf governments continue tightening information controls amid the Iran war, while Kuwait’s own local governance and services push ahead at home.

Kuwait Governance Update: The Kuwaiti Cabinet approved a four-article draft decree-law amending Kuwait Municipality Law No. 33/2016, including changes to Municipal Council composition, appointment conditions, and council term rules. Justice & Compliance: The Ministry of Justice ordered fingerprint attendance for experts at the General Department of Experts starting June 1, aiming to tighten discipline and speed up technical reports. Regional Security Watch: Iran’s Hormuz strategy remains a major pressure point as the US signals it may strike again if talks fail, while Gulf states push for a diplomatic off-ramp. Business & Finance: NBK highlighted its talent push with CFA Charter Awards in partnership with CFA Society Kuwait, while Greenberg Traurig’s Capital Markets team won multiple Islamic finance “Deals of the Year” honors. Tech & Public Services: Kuwait’s “Paperless Government” project got the green light for direct contracting under a Google Cloud framework, targeting faster, more transparent digital services. Global Spotlight: Cvent’s 2026 MEA MICE rankings keep Dubai at No. 1, with Istanbul and Abu Dhabi close behind.

GCC Travel Push to Moscow: Moscow is gearing up for summer with expanded halal-friendly dining, privacy-focused premium hotels, Arabic-speaking support, and a “Discover Moscow” guide built for GCC visitors—plus more demand for tailored itineraries like wellness, beauty, and countryside retreats. Kuwait Capital Markets Talent: NBK doubled down on professional standards, partnering with CFA Society Kuwait and recognizing 19 new CFA charterholders at the 2026 awards ceremony. Healthy Aging in the Region: WHO says Egypt is among eight Eastern Mediterranean countries—including Kuwait—rolling out integrated care guidelines for older people, warning healthy aging could protect economies from a $47tn hit. Iran Tensions and Markets: Trump said he was about an hour from striking Iran, while Gulf bourses rose after his comments eased nerves. Kuwait Health Capacity: Kuwait’s Ministry of Health completed training needs for a Field Epidemiology Training Program with WHO support to strengthen outbreak response and surveillance. AI Adoption Watch: A new map shows the UAE leads AI usage globally, with 70% of working-age adults using AI tools regularly.

Iran Tensions: Trump’s Iran strategy is in flux as advisers weigh whether to restart strikes after an IRGC “peace proposal” was rejected as “garbage,” while Iran pushes a new “maritime insurance” toll plan for Strait of Hormuz shipping. China & Gulf Role: China signals support for reopening the Strait, and Gulf states—including Saudi, UAE, Qatar and Kuwait—are increasingly acting directly, widening the pressure on Iran and shaping how any deal could look. Human Rights Watch: Amnesty says documented executions hit a 44-year high in 2025, with Iran responsible for more than 2,100 and Kuwait listed among the countries with recorded executions. Kuwait Digital Push: Kuwait’s “Paperless Government” project got CAPT approval for a three-year cloud-linked rollout, aiming to digitize transactions and cut paper processes. Health & Society: Kuwait is advancing a Field Epidemiology Training Program with WHO support, and ministries back a unified Family Protection Program with 83 initiatives. Business & Tech: Zain Kuwait partners with WHOOP for wearable performance insights, while HEISCO renews KD 14m credit facilities for operations.

Public Health Upgrade: Kuwait’s Ministry of Health has wrapped up a training needs assessment for a Field Epidemiology Training Program (FETP), aiming to build a sustainable national system for outbreak response, surveillance and data-driven decisions with WHO and MECIDS support. Regional Health Diplomacy: Kuwait also pushed unified Arab health positions at the World Health Assembly in Geneva, including work on blood transfusion services and coordination on key humanitarian priorities. Family Protection Push: Kuwait launched an integrated Family Protection Program uniting 83 initiatives across legislation, counseling, digital services and rehabilitation to strengthen family stability. Digital Lifestyle in Kuwait: Zain Kuwait teamed up with WHOOP to bring performance and recovery insights via wearable tech through its Zain Plus and Shabab plans. Women’s Day Momentum: KFAS’ Sabah Al-Ahmad Center held a Women’s Day dialogue spotlighting innovation and entrepreneurship, while France’s ambassador visited Kuwaiti women leaders across energy, space, finance and rights advocacy.

Kuwait Business & Finance: HEISCO renewed a KD 14m ($45.4m) credit facility with a local bank to fund operations, its second loan renewal this month after an earlier KD 96.06m facility—amid big contract momentum including a $565m Kuwait Oil Company award. Defence & Deals: ST Engineering reported 11% Q1 revenue growth to $3.26b and landed $4.8b in new contracts, lifting its order book to $34.5b; Kuwait Naval Force work is among the wins. Media & Skills: KUNA launched a “Writing Reports and Investigative Journalism” training program running until May 21. Talent Pipeline: Zain Kuwait signed MoUs with ktech and CCK to link academia with industry and boost youth opportunities. Public Service Training: Kuwait’s Justice Ministry kicked off a six-month orientation for Public Prosecution candidates, stressing integrity and rule of law. Aviation Update: Kuwait International Airport fully resumed commercial operations after months of phased reopening.

Kuwait Airport Reopens: Kuwait International Airport has fully resumed commercial operations as of May 17 after a two-month suspension, with all terminals back online and flights returning to near-normal schedules. Judicial Training Push: Kuwait’s Justice Ministry kicked off a six-month orientation for new Public Prosecution legal researchers, adding a specialized international humanitarian law track for the first time. Media Skills Boost: KUNA launched a “Writing Reports and Investigative Journalism” training program running until May 21, covering report writing, accuracy, and investigative methods. Youth & Tech Partnerships: Zain Kuwait signed MoUs with Kuwait Technical College and Canadian College of Kuwait to link academia with industry through digital transformation and entrepreneurship opportunities. Regional Business Move: Noon plans to launch operations in Syria, building on recent investment pledges tied to rebuilding efforts. Gulf Security Pressure: The wider backdrop remains the Iran war and drone/missile threat cycle, with shipping and energy markets still jittery.

Airport Restart: Kuwait International Airport has fully resumed commercial operations after a phased reopening, with all terminals back online and Kuwait Airways and Jazeera returning to near-normal schedules serving 60+ destinations—an immediate boost for travelers and trade. Gulf Energy Pressure: Shipping firms are warning that the Iran war is squeezing bunker fuel supplies, raising costs and threatening wider supply chains as reserves dwindle in key hubs like Singapore. Regional Security Tech: The UK has rushed a low-cost drone interceptor missile system into RAF service for Middle East defense, while Intersec says Kuwait’s national public warning system went live in under 10 days via geo-targeted alerts to mobile phones. Women’s Day Spotlight: Kuwait marked Kuwaiti Women’s Day with ministers and officials highlighting women’s leadership across public life, sports, and national development. Oil Prices: Brent jumped past $109 this week as Hormuz disruption fears returned.

Women’s Day Spotlight: Kuwait marked May 16 with fresh remarks from senior officials praising Kuwaiti women as a core engine of national development, highlighting the 2005 milestone that granted full political rights and today’s leadership across government and institutions. Energy & Industry: Action Energy secured KD 40.9m in new and renewed credit facilities to expand its rig fleet tied to Kuwait Oil Company contracts, while Emmaus Life Sciences reported weaker Q1 revenues hit by generic competition in the US but gains in MENA. Finance & Youth: InvestGB launched the fourth edition of its IGB Internship Program, aiming to turn paid training into real hiring for Kuwaiti talent. Public Safety Tech: Intersec says Kuwait’s national public warning system went live in under 10 days, sending geo-targeted emergency alerts to mobile phones via cell broadcast. Security: Kuwait Customs seized 2.3kg of narcotic liquid hidden in UK postal shipments. Regional Pressure: A German business survey warns Gulf trade corridors are taking a hit from the Middle East conflict, with logistics firms among the hardest affected.

Drones & Air Power: IAF chief AP Singh says drones are now “claws in the sky,” stressing total coordination and domain awareness after past friendly-fire risks. Regional Security Tech: Intersec says Kuwait’s national public warning system went live in under 10 days, sending geo-targeted alerts to phones via cell broadcast. Kuwait Customs Crackdown: Kuwait seized 2.3kg of narcotic liquid hidden in UK postal “body wash” shipments. Energy & Trade Pressure: A German chamber survey finds 83% of firms hit by the Middle East crisis, with logistics and construction hardest; Hormuz disruption is driving higher freight and energy costs. Air Defense Supply Shock: Switzerland is weighing non-U.S. Patriot alternatives after delivery delays tied to the Iran war. Gulf Infrastructure: UAE is fast-tracking a West-East oil pipeline to boost exports via Fujairah and bypass Hormuz. Business: GFH Bank reports Q1 net profit of US$35.11m, up 16.5% YoY.

Iran War Fallout: Satellite reporting says Iranian strikes have damaged at least 228 U.S. military-site structures across the Middle East since late February, while U.S.-Iran talks remain stuck and the Strait of Hormuz stays a flashpoint for oil and shipping. Air Defense Squeeze: Switzerland is reassessing its air-defense plans after Patriot delivery delays tied to the Iran war, signaling a push toward non-U.S. options. Kuwait Security Tech: Intersec says it deployed Kuwait’s national public warning system in under 10 days using geo-targeted alerts to mobile phones. Kuwait Crackdown: Kuwait Customs seized 2.3kg of narcotic liquid hidden in UK postal shipments declared as “body wash.” Regional Energy Moves: The UAE is fast-tracking a new oil pipeline to boost exports via Fujairah and bypass Hormuz, while Jordan signed a $1.1bn green ammonia deal aimed at selling to Europe. Finance Watch: GFH Bank reported Q1 2026 net profit of $35.11m, up 16.5% year-on-year.