Kuwait and the United Kingdom: 120 Years of Friendship by firstforum

OFFICIAL REPORT

KUWAIT and the

UNITED KINGDOM

120 YEARS OF FRIENDSHIP PUBLISHED TO MARK THE ONE HUNDRED AND TWENTIETH ANNIVERSARY OF THE FRIENDSHIP TREATY BETWEEN KUWAIT AND THE UNITED KINGDOM

FIRST

OFFICIAL REPORT

KUWAIT and the

UNITED KINGDOM 120 YEARS OF FRIENDSHIP

Published by FIRST Strategic Insight Ltd, 6 Vigo Street, Mayfair, London W1S 3HF Tel: +44 20 7440 3500 Fax: +44 20 7440 3544 Email: publisher@firstforum.org Web: www.firstforum.org Chairman and Founder Rupert Goodman dl Hon Chairman, Advisory Council Rt Hon Lord Hurd of Westwell ch cbe pc, Special International Advisor Rt Hon Lord Astor of Hever dl President, International Affairs Lord Cormack dl fsa, Executive Publisher Declan Hartnett VP, Strategic Partnerships Emmanuel Artusa-Barrell, Non-Executive Director Hon Alexander Hambro Research and Communications Officer Harry Dobbs, Design and Production Jon Mark Deane Editorial Consultant Jonathan Gregson, Executive Assistant Freya Young-Jamieson, Senior Staff Writer Nicholas Lyne Special Advisor, China, Lord Powell of Bayswater kcmg, Special Advisor, Russia Sir Andrew Wood gcmg Special Advisor, Latin America Jacques Arnold dl, Special Advisor, Global Issues Professor Victor Bulmer-Thomas cmg obe FIRST is composed of the opinions and ideas of leading business and political figures. All information in this publication is verified to the best of the authors’ and publishers’ ability, but no responsibility can be accepted for loss arising from decisions based on this material.

Where opinion is expressed, it is that of the authors.

FIRST

I was pleased to receive the thoughtful message of loyal greetings from FIRST Magazine, sent on the occasion of the One Hundred and Twentieth Anniversary of the Kuwaiti-British Friendship Treaty. In return, I send my warm good wishes to the people of Kuwait on this most notable occasion.

As Amir of the State of Kuwait, and on behalf of the Government and the people of Kuwait, we express our profound pride in the well-established and deep-rooted relations that bind us to the United Kingdom and its people. In recalling the 120th Anniversary of the signing of the Anglo-Kuwaiti Treaty of 1899, and in cherishing the deep and close historical ties between the two countries, we are confident that this close relationship will continue. We also seek to develop these close relations to wider horizons in all areas of common interest that serve the welfare of both nations. The history of our two friendly countries underlines the roots of these relations, which were established by the late Emir of the State of Kuwait, Sheikh Mubarak bin Sabah Al Sabah, and Queen Victoria, while the bonds have been reinforced and are still being enhanced by Her Majesty Queen Elizabeth II of the United Kingdom of Great Britain and Northern Ireland. We appreciate, with pride, the prominent and active role played by the United Kingdom in supporting the security of the State of Kuwait from the threats it has faced over time, in particular to its special historic role and its great efforts in liberating the State of Kuwait from the brutal invasion and occupation. The United Kingdom stood firmly in upholding Kuwaiti legitimacy in The United Nations Security Council and played a pivotal role in advancing the resolutions that supported Kuwaiti rights. I wish Her Majesty Queen Elizabeth II and the Royal Family good health and well-being, and for The United Kingdom and its friendly people to enjoy continued progress and prosperity, and for the distinct historical relations between the two friendly countries to further progress and develop. His Highness Sheikh Sabah Al-Ahmed Al-Jaber Al-Sabah, Amir of the State of Kuwait

BP is proud to celebrate 120 years of friendship between Kuwait and Great Britain On the anniversary of the Friendship Treaty of 1899 we would like to thank Kuwait for the opportunity to contribute towards the growth of this country. As the world needs more energy to fuel its relentless growth, we are working with our partners to build a brighter future for everyone. bp.com/Kuwait

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I Foreword by Rupert Goodman dl Chairman and Founder FIRST

t gives me great pleasure to introduce this Official Report to mark the 120th Anniversary of the Anglo-Kuwaiti Friendship Treaty of 1899. Lord Astor, Lord Hurd and I are very grateful to His Excellency Khaled Al-Duwaisan, the Ambassador of Kuwait and his Embassy staff for all their help and guidance in the preparation of this publication. We are also especially grateful to Her Majesty the Queen and His Highness the Amir for contributing such important messages. This Anniversary is particularly important and will help focus the attention of business leaders and policy makers on the many opportunities for further strengthening the links between our two countries. The AngloKuwaiti Treaty was signed on 23rd January 1899 by Mubarak Al-Sabah and the British representative Major M.J. Meade. It was a secret treaty agreed between the British Empire and the Sheikhdom of Kuwait and under its terms Britain agreed to protect the territorial integrity of Kuwait and in return the access of other foreign powers to the Sheikhdom would be much restricted. This was an enormously important and influential treaty for both Britain and Kuwait. The 1899 Treaty resulted in a period of significant expansion in trade and investment, as well as cultural and defence relations between both countries. These relationships have been further enhanced by the many official and State Visits since 1899. Lord Curzon, then Viceroy of India, visited in 1903, Sheikh Ahmad Al-Jaber Al-Sabah paid a visit to London in October 1919, HH Sheikh Sabah Al-Salim Al-Sabah visited in January 1963, HM The Queen and HRH The Duke of Edinburgh paid a State Visit to Kuwait in 1979, and the then Amir HH Jaber Al-Ahmad Al-Jaber Al-Sabah came on a State Visit to the United Kingdom in 1995. Her Majesty

The Queen welcomed the Amir, HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah on a very successful State Visit in November 2012. Kuwait is the fifth richest country in the world based on GDP per capita and has a predominately oil-based economy, accounting for over six per cent of the world’s proven reserves. Kuwaiti authorities plan to increase production to four million barrels per day by 2020. It is one of the UK’s major trading partners with hundreds of British companies operating successfully in the country. The trade and investment relationship is especially strong in financial services highlighted by the establishment of the Kuwait Investment Office in London in 1952. The KIO’s investments in the UK continue to grow exponentially. Kuwait represents a significant opportunity for trade and investment given its welldeveloped infrastructure and pro-investment government policies. Britain’s commitment came into sharp focus when Kuwait was invaded and occupied by Iraq in 1990. The then British Prime Minister Margaret Thatcher helped secure the UN mandate to form an international coalition whose purpose was the liberation of Kuwait. British armed forces played a pivotal role in restoring Kuwait’s sovereignty and independence. The 120th Anniversary of the Friendship Treaty gives us all an opportunity to study the important developments in both our countries and to weigh carefully the many opportunities to work together even more closely. We at FIRST are delighted to have been asked to produce this official publication to mark the 120th Anniversary of the Friendship Agreement and hope that it contributes, in a small way, to the further development of the bilateral relationship especially in the areas of F trade and investment.

FIRST

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Introduction by The Rt Hon Lord Astor of Hever dl

e at FIRST are delighted to produce this report to mark the 120th anniversary of the Anglo-Kuwaiti Friendship Treaty, signed in 1899. The United Kingdom and Kuwait have enjoyed a trading relationship that dates back to the middle of the eighteenth century, with the East India Company establishing an office in Kuwait in 1793. Since then, our two nations have built a strong and enduring relationship in trade and investment, as well as defence and security.

I visited Kuwait on three occasions in my capacity as Defence Minister between 2010 and 2015. We enjoy important and close relations with Kuwait on defence matters and I was involved with many discussions about these important arrangements. I am confident that the United Kingdom and Kuwait will continue to work closely together to address global challenges. Our relationship is based on friendship and F deep mutual respect.

Rt Hon Lord Astor of Hever dl

FIRST

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I Message from HE Sheikh Sabah Al-Khaled Al-Hamed Al-Sabah, Deputy Prime Minister and Minister of Foreign Affairs, State of Kuwait

wish to express my immense pride in the firm and deep rooted bonds that connect us with the United Kingdom and the British nation, recalling a momentous day in the history of Kuwait, when the Amir, Sheikh Mubarak Al-Sabah, ruler of Kuwait 120 years ago, signed along with a representative of HM Government the Kuwaiti-British (Anglo-Kuwaiti) Treaty. The 1899 Treaty transported Kuwait to an era of peace and stability by providing a security deterrent that shielded Kuwait from dangerous regional tensions and ushered it into a period of tranquillity. It provided the springboard that saw the emergence of a national determination to build a society that utilised its local talents and skills which ultimately ensured Kuwait’s survival and sustainability. With this historic development in relations between Kuwait and Great Britain, the sense of national cohesiveness became firmly rooted within all segments of the populations along with a strong faith in the internal solidarity of the society. Armed with this confidence, Kuwait society pursued dialogue with neighbours and sorted to solve disputes amicably. This instinctive peaceful desire to seek the common good is the doctrine by which the people of Kuwait have tried to conduct their affairs. This doctrine to be committed to good conduct and the rewards that friendships bring along with dialogue with our neighbours never waned no matter how grave the dangers were.

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The Treaty that we commemorate gave the people of Kuwait the peace that enabled them to build a country renowned for its humanitarian contributions. Notably in the development sectors, guided as they are by the principle common to all faiths and historic protocols that call for respecting all human beings, the protection of human dignity and the empowerment of our fellow brothers and sisters. Out of this strong conviction in human intertwinement, the United Nations honoured HH The Amir Sheikh Sabah AlAhmed Al-Jaber Al-Sabah, by bestowing on him the title of “Leader of Humanitarian Work” in appreciation and recognition for that spectacular record. Wishing to renew our appreciation and profound gratitude for Great Britain’s loyalty by keeping faith and adhering to all clauses specified by the pre and post- independence Treaty. Recalling the exceptional British contribution within the framework of the International Coalition that liberated Kuwait from the heinous Iraqi Invasion of 1990-1991. Noting, with great pleasure, the expansion and growth of our bilateral relations in all sectors, be it security and politics or education and cultural exchanges, while valuing greatly Britain’s positive responsiveness to Kuwaiti needs in various sectors. We assure the British nation that we will remain loyal and steadfast through all that is required in order to strengthen and preserve these profound relations and to further intensify F the strategy partnership that binds us.

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O Message from Rt Hon Jeremy Hunt mp Secretary of State for Foreign and Commonwealth Affairs

n 23rd January 1899, Sheikh Mubarak the Great signed a Treaty of Friendship with Captain Stuart George Knox, the British Political Agent in the Gulf. They could not have foreseen that the friendship between Kuwait and Britain would last so long or be so fruitful. This year, I am delighted to mark the 120th anniversary of this friendship, steeped in the shared history of our two countries and focused on the future. On four occasions, Britain has come to the defence of Kuwait: in 1899, 1921 and 1961. Most recently, Margaret Thatcher secured a United Nations mandate to free Kuwait in 1990. Her successor, John Major, sent British forces to be the second largest component of the coalition that liberated Kuwait in 1991. Today, British Forces often train and exercise alongside their Kuwaiti counterparts. Our ministers meet twice a year for our Joint Steering Group, charged with taking forward our bilateral relationship in many key areas, including trade, health, education and security. Oil remains central to Kuwait’s economy – and UK companies have been working in Kuwait since its discovery. British expertise has helped Kuwait to make the most of its natural wealth, exploring, extracting and producing oil. The UK will continue to offer our skills in future discovery, efficiency

and diversification programmes. In future, I hope we can do even more together. In particular, I hope to broaden our cooperation in financial services, infrastructure and Cyber Security. The UK looks forward to supporting Kuwait’s ambitious 2035 Vision; providing yet more opportunities to work together. The natural friendship between our countries means that many Kuwaitis consider the UK to be their second home. I am proud to say that Britain is the first choice for overseas study and our world class universities welcome more Kuwaiti students every year. The 120th anniversary has provided many opportunities for cultural co-operation. The partnership between the British Council and the National Council for Arts and Literature in Kuwait has produced an ambitious programme of events throughout the year, including the first visit to Kuwait by the Royal Philharmonic Orchestra. On the world stage, Kuwait has used its place on the United Nations Security Council and other international fora to be a voice of reason and moderation. Our shared values and interests have allowed our countries to pursue joint goals, including the lasting stability of the Gulf. I have no doubt that our friendship will last for many generations to come and I am privileged to mark this F important anniversary.

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Message from Rt Hon Dr Liam Fox mp Secretary of State for International Trade

his year we celebrate the 120th anniversary of the UK-Kuwait Friendship Treaty. Our two countries have a close bond built on a long, shared history. This anniversary is not just a chance to reflect on years of successful partnership. It is an opportunity to think about where we go in the future. We will of course continue to build on our defence and security collaboration – particularly in areas like cyber – and Kuwait will remain a key development and humanitarian partner for the UK, using its unique influence in the Middle East and Africa to help us respond to some of the world’s most pressing crises. But, as the UK’s Secretary of State for International Trade, my focus is naturally on expanding our vital trade and investment relationship. Trade between our two nations is strong. In the year to September 2018 UK exports to Kuwait grew by a staggering 17.9 per cent, up to £2.5 billion. And our trade is not limited to sectors like oil and gas – although that is a vital aspect of the business we do together. British cars make up nearly a quarter of UK goods exports to Kuwait and the vast majority of total exports – close to three quarters – are in services. The world-leading expertise of UK firms has found a natural home in Kuwait. Worldclass firms like Foster and Partners, Arup, and Motts have brought their skills to help deliver major infrastructure projects like the new Kuwait International Airport. Businesses like Cultural Innovations and Beck Interiors have done extensive work in preparing the exhibits at Sheikh Abdullah Al Salem Cultural Centre. This is what the UK can offer Kuwait – and it cannot be matched by any of our competitors. It is also important to remember that Kuwait is a key investor in the British economy. The Kuwait Investment Authority (KIA) is the oldest Sovereign Wealth Fund in the world and has been operating through the Kuwait Investment Office (KIO) in London since 1953. The KIA has a UK portfolio estimated at

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an astounding £35bn. This level of investment helps to bring prosperity to both the UK and Kuwait – creating jobs for our people and increasing profits for our companies. We operate a modern trade and investment relationship based upon trust, mutual benefit and shared needs. It is also one where there is significant room for growth. I am working closely with my counterparts in Kuwait to develop our partnership in sectors like healthcare, renewable energy, infrastructure and education. These are the sectors where we expect to see significant growth in the coming years as the country moves towards their ‘New Kuwait’ Vision 2035. But this requires the proper mechanisms for effective government to government engagement which is why we have established a Joint Steering Group to provide a forum for us to share experiences and identify further cooperation. Our approach is already a success. This is having very real results for British businesses: using this forum and working together with our counterparts in various Kuwaiti agencies, after three years out of market, the first shipment of British lamb was delivered to Kuwait last year. This is a signal of what is to come – greater access and increased opportunity for both of our countries. British ambition for trade with Kuwait is significant and our commitment to the wider region is clear – but trade is not an end in itself. It is a means to an end. Trade leads to greater prosperity for our people which in turn enhances social cohesion. This creates political stability and, ultimately, provides for our collective security. Break one link in this continuum and the others falter too. This is what is at stake and why it is vital for us all to remain focused on a partnership that has paid the dividends of trade for over a century. It has been 120 years since the UK-Kuwait Friendship Treaty was signed. With renewed commitment to expanding our multi-faceted relationship even further, I am confident that our best F years are yet to come.

120 Years Of Friendship,

Trust and Commitment

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Important and valued friendship By THE BARONESS MORRIS OF BOLTON OBE DL Prime Minister’s Trade Envoy to Jordan, Kuwait and the Occupied Palestinian Territories

K THE BARONESS MORRIS is the Prime Minister’s Trade Envoy to Jordan, Kuwait and the Occupied Palestinian Territories. She entered the House of Lords in June 2004, joined the Conservative front bench as a Whip in September of that year and has served as Shadow Minister for Children, Young People, Families and Women, as well as Vice-Chairman of the Conservative Party. She is Chancellor Emeritus at the University of Bolton.

uwait and the UK have an important and valued friendship and it is a pleasure to be asked to contribute to this significant publication, produced by FIRST, celebrating the 120th Anniversary of the signing of the Friendship Treaty between Kuwait and Great Britain; although we have been natural trading allies for much longer, with trade links recorded as far back as the middle of the 18th Century. It has been my privilege to be the Prime Minister’s Trade Envoy to Kuwait for almost seven years. In that time, as part of a team of talented and dedicated people at the Department for International Trade and the Foreign and Commonwealth Office, and working side by side with our good friends in Kuwait, I have watched our relationship grow and prosper – with our total bilateral trade growing significantly from £1.5 billion in 2012 to £3.4 billion in 2018. The links of our friendship are strong and historic and although in that context the links of my friendship are relatively new, beginning as they did just over ten years ago, they are firm and steadfast. It all began in February of 2009 when a planned visit to Yemen, as a guest of the British Council to observe their Connecting Classrooms programme, had to be cancelled because of continued political unrest following the September 2008 attack on the American Embassy in Sana’a. I was asked which other country in the region I would like to visit. I chose Kuwait. And so began my enduring friendship with, and love of, Kuwait and her people. Following the 2010 General Election I was appointed Chairman of the Conservative Middle East Council, where one of the nicest aspects of the job was to work closely with the Council of Arab Ambassadors, led so wonderfully by the Ambassador of the State of Kuwait and Dean of the Diplomatic Corps, HE Khaled Al Duwaisan. Khaled is a wonderful national treasure in both of our countries and he perfectly embodies the ethos of our friendship. With Khaled’s encouragement and through the kind invitation of HE Jaseem Al-Kharafi, the then Speaker of the Kuwaiti National Assembly, I had the pleasure in late 2011 of leading a delegation of members of the House of Commons and the House of Lords to Kuwait. We had the honour of meeting His Highness The Emir, and we relished listening to his view of world politics and domestic issues both in Kuwait and

the UK, all delivered with insight, clarity, kindliness and good humour. We met an array of very talented men and women in business and politics and some outstanding young people who were enthusiastic and engaging and who impressed us with their knowledge and values; the young men and women we met certainly auger well for the future of Kuwait. As the people of two great trading nations, Kuwait and Great Britain instinctively understand and trust one another and over the past seven years I have witnessed the positive view that each country holds of the other as a trade and investment partner. Kuwait has liberalised her investment laws and set up the direct investment authority KDIPA, headed so brilliantly by my good friend HE Dr Sheikh Meshaal bin Jaber Al Sabah. I have the honour of Co-Chairing the Trade and Investment Group with Sheikh Meshaal, which seeks to get things done and has at its heart the determination to break down barriers to trade and investment. We meet every six months, alternating between Kuwait and London, as part of the Joint Steering Group between our two countries. This group is a reflection of our close and detailed working relationship. Both countries are determined to build on the strength of our foundations and to look for future growth. In 2017 Kuwait unveiled a new plan to transform the country into a regional financial and cultural hub by 2035 and the UK, with over 100 companies and brands operating in Kuwait in many sectors stretching from oil and gas, retail and financial services, is well placed to support Kuwait in this endeavour. This is because our relationship is as modern as it is historic and is constantly expanding and adapting with education, health and security at its core. Of course trading partnerships bring with them people and there are many British citizens who are proud to call Kuwait their home. The same is true in the UK and we warmly welcome many Kuwaitis, who come to live, work and study and who add to the richness of our life. And we are particularly fortunate that in the City of London, just next to St Paul’s, we have the world’s oldest Sovereign Wealth Fund, the Kuwait Investment Office, who chose to open their office in London some 66 years ago. So as we celebrate 120 years of friendship between our two countries, we can be assured that our roots are deep, F our friendship enduring and our future exciting.

The Rt Hon Sir John Major kg ch

120TH ANNIVERSARY OF THE FRIENDSHIP TREATY BETWEEN KUWAIT AND GREAT BRITAIN Kuwait is one of the UKâ&#x20AC;&#x2122;s oldest allies, with a relationship strengthened through trade, through common interests, and through personal relationships. I warmly welcome the 120th Anniversary of the Friendship Treaty between our two nations, and look forward to our close ties being further strengthened in the years to come.

The Rt Hon Tony Blair Our nations’ friendship has long been important. From the reign of Mubarak the Great through to the leadership of His Highness Sheikh Sabah Al-Ahmed Al-Jaber AlSabah today, Kuwait and the United Kingdom have been strong partners and allies. And as we mark 120 years since that landmark treaty between the two countries, it is important that we reflect on the foundations on which it was built.

At its heart was a security relationship. At the turn of the nineteenth century, Britain was concerned about the rising influence of Turkey, Germany and Russia in the Gulf. Towards the end of the twentieth century, British troops were among those who supported Kuwait following Iraq’s invasion and occupation, while Kuwait was invaluable to the international coalition’s efforts in 2003.

The alliance has held because of the consistency of the leadership, who have long promoted a vision of unity and tolerance. This was demonstrated in 1979, in what was a seminal year for the region and which had knock-on effects that are still felt today. As others around them took wrong turns in response to the Iranian Revolution, the leadership reacted with characteristic caution. This was not an easy decision: Ayatollah Khomeini ramped up the pressure by calling it a “mini-shah.” Yet as much of the region and its people reacted positively to the uprising, they held firm. Kuwait has always been a key ally, a reliable partner and a country with talented, open-minded and creative people.

It is because of these traits that the country remains a supporter in countering common threats, not least in the struggle against Islamic extremism. Right across the Middle East this is fundamentally a question of whether you have religious faith as a part of a healthy society or whether you turn one view of one religion into a political ideology that necessarily becomes totalitarian. Tragically, the country was reminded of the brutality of this ideology in 2015 when 27 people lost their lives in the bombing at the al-Imam as-Sadiq Mosque in Kuwait City. But their response spoke volumes about their commitment to fight this scourge. And it is why the country must continue to be engaged, with support from the global community, not just as a base for Western troops but as a crucial partner in the Middle East.

The relationship is deeper than just security though. Billions is traded each year and cultural ties continue to be strong. In April, the Royal Philharmonic Orchestra played three concerts in the country, as part of their first ever visit. But as Britain is gripped with a question about its future, so too is Kuwait needing to think where it goes next.

The country did not escape the turbulence of the Arab Spring, even if it didnâ&#x20AC;&#x2122;t cause the short-term ruptures felt by many of its neighbours. And the question of how to continue to modernise has become no less pressing as others in the region make strides. As it stands, the economy is still too dependent on oil. Growth was lifted by higher oil prices last year and is expected to strengthen as prices remain stable. But revenues are still at risk from the whims of the market and the price of the barrel.

Part of the solution will be developing the private sector, as set out in its Vision 2035 strategy. Government is still responsible for around 90 per cent of development projects.

The recent announcement of the development of Silk City will see huge investment in infrastructure and create an important hub, linking the country with neighbours will be a landmark project. But more is needed to encourage foreign investment into the country.

Creating more opportunities for women and young people will also be crucial. On the former, the country has been way ahead of most around it. It is a decade since its first female MPs were elected and women make up around half of the work force, including in military institutions. But further steps can be taken alongside attracting investments to encourage job creation, including a restructuring of the labour market. This will also be key to bringing more young people into work. As with many countries in the Middle East, growing youthful populations has led to an increase in unemployment for these generations. In Kuwait, around 15 per cent are lacking in opportunity. This risks unrest, resentment and the potential for lives to remain unfulfilled.

With such a long history of friendship, Britain will remain a strong partner for the country as it continues to modernise and reform. And as we celebrate our shared past, we also reaffirm our commitment to our common future.

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A strong bond of friendship By H.E. MICHAEL DAVENPORT MBE Ambassador of the United Kingdom to the State of Kuwait

MICHAEL DAVENPORT was appointed British Ambassador to the State of Kuwait in 2017. Before this appointment he was EU Ambassador and Head of the EU Delegation to Serbia, having served as British Ambassador to Serbia. He has also completed postings in Egypt, Poland and Russia. At the FCO he was Director for Russia, the South Caucasus and Central Asia from 2007-2010, while in the mid-1990s he headed the FCO’s UN Peacekeeping Section. He holds a degree in Modern Languages from Cambridge University and is a Solicitor of the Supreme Court of England and Wales.

HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait with Her Majesty Queen Elizabeth II during the Amir’s State Visit in 2012

he Kuwait Towers are an iconic landmark of modern Kuwait. We have a good view of these striking and dramatic buildings from the British Residence on Kuwait’s Gulf Road. So we felt a surge of excitement and joy when we watched from our terrace as the Towers were lit up on January the 23rd this year with the Kuwaiti flag and the Union Jack - to mark the 120th Anniversary of the 1899 Treaty of Friendship between Kuwait and the United Kingdom. We were enormously grateful to His Highness the Amir, Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, for this generous gesture of enduring friendship. It also meant a great deal to us all when His Excellency Deputy Prime Minister and Foreign Minister Sheikh Sabah Al-Khalid Al-Hamad Al-Sabah and His Excellency the Minister of Information and Youth Affairs Mohammed Nasser Abdullah Al-Jabri hosted a memorable event on that same day to mark this auspicious Anniversary. This Treaty, kept secret at the time, was hugely significant for both our countries. It was in fact the

first formal engagement ever executed between a ruler of Kuwait and the government of any country. Only days after the treaty was signed the British government issued instructions to deploy naval force to prevent an attack on Kuwait. In the 120 years since then Britain has maintained a lasting commitment to Kuwait’s security. Britain’s commitment continued beyond Kuwait’s independence in 1961, when we deployed armed force to help deter foreign aggression. When Kuwait was invaded and occupied by Iraq in August 1990 Britain under Prime Minister Margaret Thatcher played a leading role in securing a UN mandate for an international coalition to be formed for the liberation of Kuwait. Britain was proud to be a member of that international coalition. We are proud to this day of our armed forces who served bravely alongside coalition and Kuwaiti friends and succeeded in restoring Kuwait’s sovereignty and independence. Kuwaiti-British relations stretch back way beyond 1899, well into the 18th century. When the British East

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India Company ran into difficulty with the Ottomans in Basra it should come as no surprise that Kuwait, with its excellent natural harbour and openness to trade, should have offered an attractive refuge. But the 1899 Treaty ushered in a period of extraordinary expansion in relations between our two countries which continued throughout the 20th century and right up to the present day. Britain has become a home from home for many Kuwaitis. More Kuwaitis are now studying at British universities than ever before. Indeed more Kuwaitis are travelling to Britain than ever before. In 1952 Britain was poised for an extended period of economic growth, even though rationing and shortages after the Second World War made this far from obvious at the time. Kuwait’s decision to establish the Kuwait Investment Office in post-war London was therefore a resounding vote of confidence in London and the British economy. Trade and investment have seen continuous growth ever since. A key outcome of the State Visit to Britain by His Highness the Amir in 2012 was the establishment of a new framework for our relations in the form of the Joint Steering Group, or JSG. The JSG will meet for the 14th time in London this summer, helping us to deepen and broaden our co-operation across a wide front. The JSG has helped us to deepen our defence and

security co-operation. In the year ahead our armed forces will be exercising and training together more than ever before. We are close allies in the international Counter-Daesh Coalition. The United Kingdom is committed to supporting His Highness the Amir’s exciting new plans for modernisation and diversification of the economy under his Vision 2035, drawing on British expertise in areas from infrastructure development to education and training, cyber and aviation security to healthcare and the creative economy. To mark the 120th Anniversary the Royal Philharmonic Orchestra made its first ever visit to Kuwait this year. London plays host to further celebrations in June. Britain and Kuwait enjoy distinguished and exceptionally special relations. Our duty and challenge will be to ensure that our relations endure to keep pace with global developments and that they are fit for purpose in the twenty-first century. We are well placed to fulfil this duty and to meet this challenge side by side. Our strong bond of friendship is matched by a close identity of interests and values, as we can see in the excellent co-operation we enjoy in the United Nations Security Council. So I feel confident in wishing our two countries a happy Anniversary as well as a further 120 years of friendship and partnership, F well into the next century.

Britain and Kuwait enjoy distinguished and exceptionally special relations Left: The Kuwait Towers with the Kuwait flag and Union Jack Right: HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of the State of Kuwait with Her Majesty Queen Elizabeth II and HRH The Duke of Edinburgh during the Amir’s State Visit in 2012

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Message from HE Khalid Al-Duwaisan gcvo

wenty-six years have elapsed since presenting my credentials to Her Majesty Queen Elizabeth II, a great time and privilege to serve as an Ambassador of the State of Kuwait to the United Kingdom of Great Britain and Northern Ireland. One can only be grateful to be blessed with the opportunity to work in London, the magnificent capital of the UK, and to have so many friends and interlocutors. It is a great pleasure to be able to take part in helping to build such an important bilateral relationship between Kuwait and the UK. This relationship between our two friendly countries and people, has its own deep-rooted peculiarity, that was weaved and shaped by a long history and shared perspectives. As this year marks the 120th anniversary of signing the AngloKuwaiti treaty in 1899, both countries are commemorating this event as initiating a true partnership based on common interests and mutual respect. Our relationship proved to be solid and effective,

either in crisis or peaceful times. A partnership that is fundamental rather than incidental, where our foreign policies are deeply anchored in the values of peaceful and friendly cooperation amongst each other. Significant achievements and progress have been noted during the past few years, reflecting the willingness and interest to further develop and sustain our collaboration in all fields. We look to the future with great optimism F for the continuity of this friendly partnership.

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HE Khalid Al-Duwaisan gcvo Ambassador of the State of Kuwait to the Court of St Jamesâ&#x20AC;&#x2122;s

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A firm friend and partner By ALDERMAN PETER ESTLIN Lord Mayor of the City of London

I PETER ESTLIN is the 691st Lord Mayor of the City of London, acting as an international ambassador for the UK’s financial and professional services industry, meeting government representatives from around the world, alongside business leaders and policy makers in the UK and abroad. He is an advisor to Barclays plc and was previously chief financial officer at Salomon Brothers Asia. He then joined Citigroup. He holds a degree in Economics and Accounting from the University of Bristol.

n a changing world, the City of London’s commitment to Kuwait remains constant 120 years on – long may that continue. Much has changed in the world since the UK-Kuwait Friendship Agreement of 1899, guaranteeing Kuwait’s territorial integrity for generations to come. And in those 120 years, we have repeatedly shown our commitment to one another, tackling many challenges together. The City of London has been on hand for many of the most important milestones, whether that be establishing the Kuwait Investment Office here in the Square Mile, or building important partnerships to develop Kuwait’s financial services industry. Now, as we embark upon the fourth industrial revolution, there are new challenges for us to face together. As Kuwait looks to transform its infrastructure and diversify its economy, London stands as ready as ever to offer a wider array of expertise in fintech, project finance, consulting and green finance. So how can we take advantage of new technologies such as blockchain and AI to foster a global culture of innovation, and continue to promote free trade at a time when certain others are looking inwards? My recent visit to Kuwait in January gave me great encouragement that not only can we solve these problems by working together, but that these challenges could also be huge opportunities, forming the next steps in our friendship. This was a view shared by His Highness the Amir of Kuwait, His Excellency Sheikh Mubarak Abdulla Al Sabah, the Kuwait Investment Authority and the Kuwait Banking Association among several others. The UK is well-placed to help make that happen, and this country remains an excellent partner for Kuwaiti sovereign investment – just as it was when the Kuwait Investment Authority began investing here in 1952. Indeed, just last year Kuwait invested US$1.7bn in the UK’s North Sea energy infrastructure, adding to stakes that the Kuwait Investment Authority already own in London City Airport and Thames Water. Brexit may throw up some challenges in the immediate future, but London’s significance as a global financial hub will remain, and the UK’s offer to Kuwait remains. We have the second largest banking reserves in the world and are the second largest centre for asset management. We are the world’s largest currency trading hub, and the leading hub for sharia-compliant

finance outside the Islamic world. Today, the UK boasts five licensed Islamic banks, over 20 conventional banks offering Islamic financial products and the London Stock Exchange has over 65 sukuks listed for a total amount of nearly US$50 billion. London provides access to the deepest pool of internationally oriented capital in the world, and accounts for 70 per cent of the secondary market turnover in international bonds. It remains a welcoming place with a diverse, highlyeducated international workforce, governed by strong respect for the rule of law. And as always, we’re ahead of the curve in growth areas for the sector - we have more fintech unicorns here than anywhere else in Europe, and fintech startups from Africa to the Baltics see London and the UK as the crossroads for the best in finance, creative and tech, and therefore as the ideal place to scale up their businesses. Investors in Kuwait will also be interested in the work that the UK is doing as a global leader in regulating green finance, providing transparency and clear principles to the sector. London has already underwritten and issued US$80 billion of green bonds, and a new Green Finance Institute – to be launched by the City of London Corporation and UK Government later this year - will allow us to do even more, acting as a unique one-stop shop designed to help find innovative global solutions to this global problem. Yes, much has changed since 1899 – and who knows what the world will be like in another 120 years’ time – but you can be sure that the UK and City of London’s commitment to Kuwait will remain as steadfast as ever. Together though the UK and Kuwait share strong, skilled workforces, world-class infrastructure, an openness to ideas, creative energy, excellent educational institutions and a geographical time zone that lets us work 24 hours a day with East and West. We share an interest in strengthening free trade and global financial regulation as integral parts of the global financial system. While some others may be using this moment to look inwards, we must remain committed to these principles and continue to build towards this future. As the UK tackles the economic and social challenges of the fourth industrial revolution, we do so knowing that we can realise the opportunities in those challenges, too, and that we have a firm friend F and partner in Kuwait – long may that continue.

The chairman Dr. Bader Al Khulifa is a retired Brigadier and an expert in Criminal Evidences and previously the director of the Kuwait Forensic Lab. He is also a Professor of Criminology at the Faculty of Law, Kuwiat University & Kuwait International Law School (KILAW). Apart from being a member of various international bodies in the field of Forensic Science, Dr. Bader was the Vice-President of Interpol, Sub- Committee for Identification of Disaster Victims (DVI)(1997-1990). Dr. Baderâ&#x20AC;&#x2122;s academic research at the University of Stratchclyde Glasgow, UK, for which he was awarded a Ph.D., has led to an extremely successful career in academic and operational law, and in the forensic, security and investigative arenas.

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Strong and secure partnership By LT. GEN. SIR JOHN LORIMER KCB DSO MBE Defence Senior Advisor to the Middle East and North Africa

SIR JOHN LORIMER is a senior British Army officer and the Defence Senior Advisor to the Middle East. Prior to this he served as Chief of Joint operations. He joined the British Army in 1981 and was commissioned into the Parachute Regiment. He has served as Commanding Officer, 3 Para. Under his command, the battalion deployed twice to Northern Ireland and took part in operations in Kuwait and Iraq. He studied Arabic and Islamic Studies at the University of Cambridge. He is the great-grandson of John Gordon Lorimer CIE, diplomat and author of the Gazeteer of the Persian Gulf, Oman and Central Arabia, a former handbook for British diplomats in the Arabian Peninsula and Persia.

Lt Gen Sir John Lorimer KCB DSO MBE with His Excellency Sheikh Nasser Sabah Al-Hamad Al-Jaber Al-Sabah

he 120th Anniversary of the Friendship Treaty between the State of Kuwait and the United Kingdom gives the British Armed Forces a chance to reflect on the origins of this historic relationship and how far it has come since then. The treaty was signed in 1899 to help preserve Kuwaiti independence from its more powerful neighbours through British protection. The United Kingdom has been at Kuwait’s side numerous times since then, most notably when Iraq invaded and occupied Kuwait in 1990. In response to this, we committed 1st (UK) Armoured Division to support the Kuwaiti Government, representing one quarter of total British Army manpower. This was the largest overseas deployment of the British Army since WWII. In the Air domain, Kuwait has played a key part in British military history. The first overseas deployment of the Royal Air Force was, in fact, to Kuwait in 1920. The RAF Museum in Hendon, north London, has a hangar dedicated to the unique relationship shared by the UK and Kuwait and we were most grateful for the extraordinarily generous gift of £5 million, donated by the State of Kuwait, to help renovate the museum as part of the RAF Centenary year in 2018. This was opened by His Excellency Khaled Al-Jarallah, Deputy Minister of Foreign Affairs, during the 12th meeting of the UK–Kuwait Joint Steering Group. The UK-Kuwait defence relationship is mutually beneficial, with Kuwait supporting UK and Coalition

operations in the region. In 2003, operations to overthrow Saddam Hussein in Iraq were launched from Kuwait, with 1st (UK) Armoured Division again leading the British Army deployment. A short war was followed by an extended counterinsurgency campaign, which necessitated a lengthy British Army presence in Kuwait. This remained until the British Army withdrew from Iraq in 2009. Today, Kuwait is a key partner to the Counter-Daesh Coalition, providing unfettered access, basing and overflight support to the UK and our allies, which has proved invaluable to the military campaign. During my time as the Defence Senior Adviser for the Middle East and North Africa, I have been impressed by the strong, personal connections between the UK and Kuwait Armed Forces. The recent Ex Desert Warrior in January (a partnered Overseas Training Exercise between soldiers from 5th Battalion, The Royal Regiment of Scotland, and their Kuwaiti counterparts in 6th Brigade) was a roaring success for both training and engagement. HMS Dragon also had the privilege of visiting Kuwait on 6-7 March in this historic year, following her successful six month deployment in the Gulf in support of regional maritime security. HMS Dragon’s Commanding Officer, Commander Mike Carter Quinn, took the opportunity to host the Chief of Staff for the Kuwait Armed Forces, Lieutenant General Mohammed Al-Khudr on-board for lunch. In summary, the UK-Kuwait Defence relationship remains as strong and productive a partnership as it did 120 years ago. This is evident in the many new and exciting initiatives we are exploring over 2019, ensuring that our Armed Forces are well placed to tackle, together, the evolving threats of today. Kuwait’s Vision 2035 paints an exciting and prosperous future for the nation and the UK Armed Forces will continue to play their part under HMG’s support of the Vision’s goals. I look forward to continued personal engagement with our Kuwaiti friends during 2019 and throughout my tenure as the Defence Senior Adviser for the F Middle East and North Africa.

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A special Kuwaiti perspective By H.E. ABDULLAH BISHARA Former Gcc Secretary General and Coordinator of the British-Kuwait Friendship Society

ABDULLA BISHARA attended Cairo, Oxford, and St John’s Universities before entering his country’s diplomatic service. He was director of the Office of the Minister of Foreign Affairs, before being named Kuwait’s permanent representative to the United Nations between 1971 and 1981. While serving as Kuwait’s representative at the UN, he became President of the Security Council in the month of February, 1979. He was unanimously selected by the GCC leaders to be the first SecretaryGeneral of the Gulf Cooperation Council. A former Ambassador to both Brazil and Argentina, Dr Bishara is President of the Diplomatic Centre for Strategic Studies in Kuwait and Chairman of the North Africa Investment Company.

he tranquil flow of British-Kuwait relations which the treaty of January 1899 embodied continues to amaze me. I never thought that the signing of the treaty could make the United Kingdom and Kuwait such close partners. It was surely destiny. The signing was timely; Sheikh Mubarak demonstrated great wisdom when he pursued his instinct for security at a time when Kuwait was threatened by the Ottoman Empire and by tribal incursions that had destabilised his reign. The treaty was a happy marriage of friendship that was beneficial to both sides. The British gained an important foothold that enabled them to emerge as the grand master of Gulf Politics and the Sheikh enjoyed freedom from his worries about the expansionist designs and intentions of the big neighbour. The years 1900 to 1961 were the best in Kuwait’s history in terms of stability and during this time the Kuwaiti people expanded their maritime adventure into India and East Africa unperturbed by the Ottoman bullies. As a result, Kuwait thrived in trade and excelled in navigational expertise, becoming more prosperous and more reliable as skilful merchants and able sailors. They experienced the rewards from this important Treaty. The Treaty also relieved the Sheikh of Kuwait from his fears over his neighbour’s claim over his territory. It also sharpened his appetite for enlarging the size of his principality. He moved south with a view to increasing his territorial influence. Kuwait therefore gained fame as a safe and secure centre for regional trade and for transit facilities with both Iraq and Iran. We have to remember that, because of the treaty, Kuwait was not adversely affected by the two great World Wars Its identity and integrity remained intact; its political system was not touched and its domestic harmony was not breached. No doubt, the Treaty was the secret that scared off the hounding neighbours! On the other side, the British government was very loyal to the spirit of the Treaty, which involved the defence of Kuwait against expansionist powers and marauding tribes. The treaty did not allow for interference in domestic affairs, and the British observed this fact faithfully. It was an immaculate loyalty for which Kuwait was very grateful. The Treaty was not a clumsy set of rules, it was a defensive wall from outside threats, and the Sheikh of Kuwait’s authority was never challenged by the

provisions of the treaty. To him and to his people, it was a benign arrangement and his enemies were conscious of the benefits which the Ruler reaped. The British succeeded in obtaining the confidence of the Ruler and this helped mitigate any shortcomings. They were protectors, not colonialists or governors, for their mandate was to shield Kuwait from the volatility of regional politics. The British presence in the gulf was based on pragmatic considerations and the British revealed their best interests in pursuing it to the end game. The British army made its presence felt on a number of occasions and its air force was active in quelling tribal encroachment in the 1920s. The major intervention of the British army was in July 1961, when the Iraqi Prime Minister claimed Kuwait as part of Iraq and threatened to invade the country. The Amir of Kuwait, Sheikh Abdulla Al-Salem Al Sabah, could not ignore the seriousness of the situation and requested that the British government activate the Treaty as he envisaged a serious threat to the existence of the country. There was no time for vacillation, Sheikh Abdulla was a man of moral courage and a high set of values. He was the Amir, trusted by his people to ensure their safety and he acted as the moment warranted; he showed clear loyalty to the advice of his forbearers. The British response was swift and effective in honouring the stipulations of the treaty. Two thousand British troops had already landed by the end of July 1961. The fear from Iraq receded and the confidence in Great Britain rekindled. It was a spectacular performance of a historic commitment. We value the power of affinity that binds the Kuwaitis and the British people. The rapport is pure and the connection is perfect. The British troops had to leave as Kuwait became a member of the Arab League, the job was well done. We are proud of their performance. Sheikh Abdulla Al Salem, the ruler, acknowledged the historic contribution of Great Britain in ensuring the safety of Kuwait and being a man of realism, considered that Kuwait was entering a different phase after its independence and especially after becoming a member of the Arab League. He therefore wanted to demonstrate sensibility to the powerful influence of Arab Radicals in Arab politics. The seven year agreement signed by Sheikh Abdulla in 1961 with the British government for the defence of Kuwait expired in 1968. After that date,

Kuwait entered, for the first time in its modern history, the complexity of regional politics without the defence obligation from Great Britain. Self-reliance was a new watch-word for Kuwait but the legacy of the 1899 treaty had not disappeared from Kuwaiti life. Britain occupied a unique seat given the powerful relationship which combined both sides. Kuwaitis are familiar with the British mood and traits; we admire the British adherence to commitments and obligations, the way they honour these obligations regardless of the passage of time or the size of commitment. The British are all-weather friends, regardless of dangers and complexity; they are ready to defend us in prosperity and in adversity. On 2nd August 1990 Sadam Hussain invaded Kuwait, in complete violation of the Arab League Charter and UN Authority. We followed Mrs. Thatcher’s rallying cry to President Bush and her advice not to wobble and her steadfast position to liberate Kuwait regardless of complexity. With stunning appreciation of the situation her dynamic approach was pivotal in the Kuwait liberation narrative. Britain played a key role in building the international coalition that liberated Kuwait. We are indebted to Great Britain; to its vision in world politics; to its proverbial realpolitik and to its military insight and courage. We salute Great Britain and admire its people and we will remain faithful to the demands of friendship all our life. We cannot forget the British role in the downfall of the Iraqi regime in 2003 that relieved the Iraqis from the brutal

grip of their government. We are certain that British gallantry and diplomacy is an asset in which we trustespecially its effectiveness when the need arises. After the invasion and in light of the powerful reemergence of the unity of purpose in policies, Great Britain and Kuwait renewed their security partnership and signed a new model for military cooperation. As a result of this new step Britain’s presence in Kuwait has progressed and touched different fields, notably the increasing number of British exports in various branches of Kuwait Society. In 2012, His Highness the Amir, Sheikh Sabah Al-Ahmed Al-Jaber paid a State Visit to the UK that enabled him to gauge the special warmth that characterised the relations between the two nations. He had extensive talks on trade, economic ties and diplomacy. Both sides agreed to establish a commission of high officials to meet regularly to take stock of the achievements in the agenda of mutual interests. The British role in Kuwait’s development plan rose to unprecedented levels and involves a large number of activities. Consequently the British community in Kuwait has become very important and its presence is felt in crucial areas. So we are justified in our commitment to looking forward to celebrate the occasion of the signing of the protection Treaty of 1899; we are aware of the role it played in the protection of Kuwait and the preservation of its identity. We rejoice with certainty that the future will retain F the rock-solid basis that ties our two countries.

We admire the British adherence to commitments and obligations, the way they honour these obligations regardless of the passage of time or the size of commitment

HE Khaled Al-Duwaisan, Kuwait’s Ambassador to the Court of St James’s and Dr Abdullah Bishara

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Celebrating 120 years of relations Interview with H.E. SHEIKH MUBARAK ABDULLA AL-MUBARAK AL-SABAH Vice Chairman of Action Group Holdings

As the youngest grandson of Sheikh Mubarak the Great, who signed the bilateral Anglo-Kuwaiti Treaty, how is the late Sheikh remembered both by the Al-Sabah family and also the Kuwaiti people?

SHEIKH MUBARAK ABDULLA AL-MUBARAK AL-SABAH is NonExecutive Chairman of Action Hotels and the Vice Chairman of Action Group Holdings. He is also Founder and Chairman of Action Real Estate and is the founding Chairman of Qurain Petrochemical Industries Company. He is actively involved in Kuwait-British relations. He holds an MPhil in International Relations from the University of Cambridge, is a graduate of The Royal Military Academy of Sandhurst and served in the Kuwaiti Armed Forces.

Mubarak the Great is regarded as the founder of modern Kuwait, a strong statesman who had the finest qualities of political leadership. He was a brave warrior and fought for the independence of Kuwait. He was known by his contemporaries as the “Lion of the Arabian Peninsula”. He laid the foundation of Kuwait’s political, diplomatic, and commercial ties with the world. By signing the bilateral Anglo-Kuwaiti treaty on November 23, 1899, he protected Kuwait’s sovereignty from foreign interventions thus securing his country a prominent place on the world map. The memory of my grandfather, “Mubarak the Great’, will remain forever in the hearts and minds of Al-Sabah family and the Kuwaiti people, for initiating the march of Kuwait toward progress and modernisation. His image will remain as a leader with unyielding determination who worked all his life for enhancing the prosperity of Kuwait and its relations with the world. As a graduate of Sandhurst, and a previous ranking Captain of the Kuwait National Guard, what is your vision for the relationship in the coming years, particularly in terms of defence? The UK and Kuwait have had a long and close relationship at all levels – a partnership which has contributed to the prosperity of both nations. Areas of cooperation range from bilateral trade and investment to supporting peace and stability in the region. The UK remains a strong ally of Kuwait, providing various kinds of diplomatic and military support. The strength of these relations was demonstrated in 1963 when the UK insisted that Iraq abandon its territorial claims on Kuwait and recognise its independence. The UK also played a key role in the international coalition which liberated Kuwait following the Iraqi invasion of 1990, and in the 1998 British-Kuwaiti collaboration during Operation Desert Fox for Iraq’s failure to comply with the United Nations Security Council resolutions. The two countries’ governments are committed to maintaining this close alliance. In 2012, His Highness the Amir Sheikh Sabah Ahmed Al Sabah’s state visit to the UK led to the establishment of the Kuwait-UK bilateral Joint Steering Group (JSG), whose purpose

it is to promote cooperation. In 2017, Britain signed a new bilateral military cooperation agreement with Kuwait; this has seen the two countries work more closely together to address regional security challenges. As somebody who transcends the Kuwaiti-British relationship, are there some common qualities in both the Kuwaiti and British people which have fostered and sustained the important relationship over the last 120 years? Among the things we have in common are the desire to foster prosperity and development through strengthening democracy, and the goal of tackling the security challenges we face. Our 120-year alliance is defined by the values we share – not just those of our governments but of our citizens; these include the willingness to work hard, and a commitment to improving quality of life and social welfare through better education and health care, and greater cultural exchange. Above all, our relations are based on mutual respect. Apart from the commercial success of your business ventures, please comment on the philosophy that drives you in your business dealings. My philosophy can be summed up in the phrase “the right timing is key to success”. Importantly, when I talk about “success” it’s not just about celebrating business success but rather celebrating the hard work, the commitment, the entrepreneurship and the creativity that have seen Kuwait become one of the world’s most successful and prosperous nations. In my own business, Action Group Holdings, being focused and ambitious are both important; we have a team of employees who feel strongly affiliated to the company and are committed to building the business. As an entrepreneur, it is my job to chart the way ahead for the business, taking the right decisions at the right time. How have your business activities helped position Kuwait as a global hub for the petrochemical industry and the development of the tourism sector? Kuwait is committed to realising the vision of His Highness the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah to transform Kuwait into an international trade and financial hub. The government has unveiled a new plan to transform the country into a regional financial, trading, logistics and cultural centre by 2035

through various strategic development programs. The Kuwait National Development Plan – also known as “New Kuwait” – sets out the nation’s long-term development priorities including positioning Kuwait as a global hub for the petrochemical industry and boosting direct foreign investment. The petrochemical industry has played an important role in diversifying Kuwait’s economy and maximising the value of hydrocarbon resources through its diversified portfolio of fertilisers, olefins and aromatics. And to meet such a vision, the petrochemical sector has also partnered with several national and international companies such as Dow Chemicals to form joint ventures in order to diversify its product offerings, expand into global markets and increase local sector participation. As part of the New Kuwait Plan 2035 we are also developing the tourism sector, with particular focus on the northern region and the ancient islands. As somebody who has been credited with introducing mid-market hotels to Kuwait, and the Gulf in general, what is your vision for Kuwait as an “entrepreneurial society”? Kuwait has always been a nation of entrepreneurs and traders, even before the discovery of oil and the prosperity which followed. We are now preparing for a “post-oil” era as part of which we will develop a knowledge and innovation-based economy. A key objective is increasing the role of the private sector, including encouraging young people to launch their own businesses and ventures. Kuwait has a relatively young population, more than fifty per cent of whom are under the age of thirty, so it is no surprise they are a key focus. Our vision is a new generation of well-educated, ambitious and hardworking people with their minds set on achieving big things on a global scale. In 2013, the Kuwaiti government established a National Fund for SME Development worth US$6 billion, making it one of the largest funds of its kind in the world. This fund is designed to support the endeavours of our young entrepreneurs, to combat unemployment, and to boost the role of the private sector. The overarching vision is to build an inclusive, collaborative and innovative ecosystem for entrepreneurs, and so lay the foundations for a new era of economic opportunity in Kuwait. I have myself tried to inject this spirit of entrepreneurship into the hospitality sector. In 2004, for instance, I noticed that the proliferation of budget airlines and influx of cost-conscious foreign business travellers had created a new market for mid-market lodging. This meant an opportunity to open threeand four-star hotels at a time when most of the activity in the region was in the five-star and luxury markets. Action Hotels, the company we established, is today

part of Action Group Holdings, and has around three thousand rooms across Australia and the Middle East. On being awarded the Legion d’Honneur by the French government you were reported as saying that “Making happiness everywhere is the utmost goal”. What did you mean? Kuwait is a nation of giving. As a people, we strongly believe in improving the wellbeing of humanity. Throughout our history, Kuwaitis have been known for promoting charitable and philanthropic causes; it is enshrined in the values and principles of Kuwaiti society, and those of the Kuwaiti government. This year my family celebrated the 20th anniversary of sponsoring a book prize in the name of my late father. The British-Kuwait Friendship Society Book Prize was founded thanks to an endowment by the Abdullah Al-Mubarak Al-Sabah Foundation back in 1999. This annual prize has close links with the Faculty of Asian and Middle Eastern Studies at the University of Cambridge, and the British Society for Middle Eastern Studies. The role of the foundation is to promote Kuwait-British ties, particularly those relating to educational, scientific and cultural initiatives. In Kuwait we strongly believe that promoting causes such as these helps to build bridges of cooperation, and support exchange and dialogue between different societies and cultures. Earlier this year, the Abdullah Al-Mubarak Al-Sabah Foundation and the Mansion House – the official residence of the Lord Mayor of the City of London – signed a memorandum of agreement for the Foundation to fund and collaborate in a scheme to provide partnership scholarships for the next three years. These scholarships will provide funding for two students each year from the Arab world to study for a Master’s degree in a finance-related subject at British universities.

I strongly believe that the alliance and partnership between Kuwait and the UK will remain close and strong for many years to come

How would you describe the importance of the Kuwaiti-British relationship and what is your vision for its future? Looking forward, Kuwait believes that British companies have an important role to play as reliable partners in implementing the Kuwait 2035 plan. More than US$70 billion have been allocated by the Kuwaiti government to diversify the country’s economy, upgrade infrastructure, and improve public services. There is no question this will provide huge opportunities to companies around the world, including those in the UK. At the same time, Kuwait is already one of the largest investors in the UK economy – be it through the government’s Kuwait Investment Authority or private Kuwaiti companies. I strongly believe that the alliance and partnership between Kuwait and the UK will remain close and strong for many years to come. F

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Key ally and vital partner By LEO DOCHERTY MP Chairman of the All-Party Parliamentary Group on Kuwait

LEO DOCHERTY was elected MP for Aldershot in the 2017 General Election and was subsequently elected to the Defence Select Committee. Prior to this, he attended the Royal Military Academy Sandhurst and was commissioned into the Scots Guards in 2001, where he was deployed to Iraq and Afghanistan. After leaving the British Army in 2006, his interest in the Middle East led him to become the Director of the Conservative Middle East Council in 2010. He is a frequent visitor to the GCC states and a vocal champion of BritishKuwait relations in the House of Commons.

he Persian Gulf has always been a focal point for the international community. It is the cradle of civilisation, its waterways are busy trading routes, its airports a gateway for millions of passengers throughout the world, and its oil remains the lifeblood of the global economy. In recent years, defence cooperation, particularly in the fight against terrorism and the unfolding crisis in Syria, has given the region a renewed focus. Despite many cleavages and instabilities, the Arab Gulf states have well and truly found their feet and are taking their places as serious players on the world stage. One such state is Kuwait. Although a relatively young country, Kuwait has a long and rich history and it has achieved remarkable development in the decades since the ending of the 1899 Anglo-Kuwaiti Agreement in 1961, and liberation from Iraqi forces in 1991. Kuwait is a very modern Gulf state and is one of the freest countries in the region in terms of civil liberties, political rights, and the media. Its legal system is largely secular and even exhibits aspects of English common law. It has a remarkable level of religious freedom and sees Sunni and Shias living together peacefully. In many ways, for those in the west, it is the model Gulf state and one with which we can - and should - work closely to further our mutual interests as well as help guide them towards even better human rights outcomes. Kuwait is a hugely important ally and a longstanding partner of the UK and they enjoy a particularly strong defence relationship. This has been built upon decades of friendship, mutual interest, cooperation, respect, and trust. It is the policy of the UK Government to further deepen this relationship. This makes sense for both sides, not least with a muscular Iran, ever seeking to extend its influence in the region. The UK helps train Kuwait’s Armed Forces and provides its defence institutions with military expertise through embedded officers, as well as partaking in US-led multinational joint exercises. Kuwait is not just interested in home defence, but also bolstering stability in the region. Itself no stranger to terrorist attacks, Kuwait has been a strong supporter of the highly successful and multinational counter-Daesh coalition, helping prevent the spread of terrorism. On the back of this cooperation, I know there is a strong appetite on the Kuwaiti side for

increased military cooperation which is something I wholeheartedly support. In 2018, I visited the country in my role as the Chairman of the All-Party Parliamentary Group on Kuwait along with a number of other UK Parliamentarians. We met with Prime Minister Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah – himself a former Defence Minister - and had an extremely productive discussion, focussing on boosting bilateral cooperation across all our areas of mutual interest and many aspects of our defence relationship. As well as maintaining a significant degree of hard power, Kuwait has emerged in recent years as a leading soft power, playing a pivotal role in helping promote stability and security in the region. The country continues to work to bring together the conflicting sides in Yemen and has also hosted humanitarian conferences with the aim of easing the pain caused by the ongoing crisis in Syria. This strong regional and international leadership reflects the astute, forwardlooking, and practical outlook of the modernising monarchy of His Highness Emir Sheikh Sabah al-Ahmad al-Sabah, his government, as well as his network of skilled diplomats. As a British politician, I give special mention to the very impressive and long-serving Kuwaiti Ambassador to the UK, His Excellency Khaled Al-Duwaisan, with whom I have had the pleasure of meeting on several occasions. Kuwait is an exemplar – not just for other states in the region, but for other countries around the world – of measured statecraft, practical governance, a pragmatic approach to military matters and an instinct to modernise without compromising the essential identity of the country. As we move towards an uncertain future with an emboldened Iran and an interventionist Russia, I am glad that the UK and Kuwait can rely on each other to help counter F emerging threats. State of Kuwait • Measured statecraft • Practical governance • Programme of modernisation • Pragmatic approach to defence

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More than a friendship By LT. GEN. (RET) SIR SIMON MAYALL KBE CB Former Middle East Adviser at the Ministry of Defence

SIMON MAYALL joined Greenhill in 2015 after a career with the British Army, where he held a series of roles including Commanding Officer, 1st The Queen’s Dragoon Guards, Commander, 1st Mechanised Brigade from and Deputy Commanding General for Multinational Corps (Iraq). He served as Deputy Chief of Defence Staff (Operations) from 20092011, Defence Senior Adviser (Middle East) from 2011-2014 and Prime Minister’s Security Envoy to Iraq from 20142015. He holds an MA in Modern History from Oxford University and an MA in International Relations from King’s College London.

An oil field on fire during the 1991 Gulf War

y first visit to Kuwait was on the morning of 4th March 1991, when the British 1st Armoured Division cut the Kuwait to Basra main road as part of the final phases of Operation Desert Storm, the campaign to liberate Kuwait from its seven-month occupation by Saddam Hussein’s army. Camped in the Mutla farms, just North of the Multa Ridge, where the main road rises out of Kuwait City, the scene was desolate and shocking. Destroyed vehicles and dead bodies littered the desert, and huge oil fires belched plumes of thick smoke into the air. A path had been cleared through the, so-called, ‘Highway of Death’ and, as an Arabic speaker, I was tasked to go into Kuwait City to contact our fellow Coalition partners from the Gulf States. We drove through quiet streets, where the results of the brutal and predatory Iraqi occupation were evident everywhere in looted shops and a general level of wanton destruction. However, already the remarkable Kuwaiti people were shrugging off the nightmare of their seven-month ordeal. Shopkeepers were putting goods out on display, women were shopping, children were playing outside their houses, and neighbours were

greeting each other again, and asking after friends and relatives that were missing. The Union Flag, flying from my Land Rover quickly attracted friendly and enthusiastic attention. Everybody waved, everybody wanted to shake hands, everybody offered tea. It was humbling, but uplifting at the same time. The British and the Kuwaitis: old friends getting together again after times of danger and hardship. The resilience of the Kuwaiti civilians was astonishing, as had been the courage and sacrifice of their soldiers, who had made such a contribution to the liberation of their own country. As a British soldier I felt honoured and proud to be in Kuwait on that bitter-sweet day nearly 30 years ago, and to watch brave and dignified people, who had been through great hardship and anxiety, dust off the trials and tribulations of the recent months, and set about restoring their lives. For we were old friends, and the United Kingdom’s relationship with the State of Kuwait is close, deep and enduring and, while Kuwait has many friends around the world, much of the remarkable success of Kuwait has derived from the close partnership between these two countries over the last 120 years. Historically famed as great traders, merchants, sailors and pearl-

divers, Kuwaitâ&#x20AC;&#x2122;s position at the head of the Arabian Gulf made her an important link in the trade routes from the Indian Ocean to the Mediterranean, via Basra and Aleppo, but also vulnerable to the predatory instincts of her larger neighbours. In 1899, threatened by the Ottoman Empire, the ruling Al Sabah family sought the protection of the British Empire, whose important links to India had already led them to establish mutually beneficial relationships with other tribes and families further down the Gulf. Under the provisions of the Anglo-Kuwaiti Agreement, Britain pledged to protect the territorial integrity of Kuwait in return for Kuwait restricting the access of foreign powers to the Sheikhdom. There would be frictions, inevitably, but so began a long and fruitful association, lasting through two World Wars and a range of global and regional upheavals, until Kuwaitâ&#x20AC;&#x2122;s new wealth, and her naturally independent nature, led to the ending of her treaty with Britain in 1961. This was the start of a new era in the relations between the two countries, and the benefits were seen almost immediately when Britain deployed troops rapidly in the same year to deter a potential invasion of Kuwait by Iraq. From that time, until now, the political, diplomatic, military and commercial links and bonds have remained strong and vibrant. These deep and important connections were seen again, at their most tangible, in the days that followed the invasion of August 1990, when Prime Minister Margaret Thatcher and, in his turn, Prime Minister John Major, committed tens of thousands of British soldiers, sailors, airmen and marines to confront Saddam Hussein, and

to ensure his crimes against the people of Kuwait would not stand. I was one of those servicemen. Since the successful outcome of that operation, hundreds of thousands of Kuwaitis continue to visit Britain each year, and huge flows of commerce, trade and investment go in each direction annually. Young Kuwaiti men and women attend British schools and universities, and Kuwaiti officer cadets attend courses at Sandhurst, Dartmouth, and Cranwell, while more senior officers attend Staff College at Shrivenham, and the Royal College of Defence Studies in London. A British Military Mission has been in Kuwait since the liberation, as an important element of a new BritishKuwaiti Defence Agreement, signed in 1991, helping the continued professional development of Kuwaitâ&#x20AC;&#x2122;s Armed Forces. A further Defence Agreement was signed in 2018, reflecting the changing politics of the region, new threats in the region, and new ambitions for the two countries. I have returned to Kuwait many times since 1991, and the welcome has always been as warm and as genuine as it was on that sombre March day. Kuwait continues to thrive, to be a force for stability and moderation in the region, and to offer its citizens security and freedom. It does this in the sure knowledge of the continued commitment of her international friends and admirers, not least those in the British military who have been privileged to have stood shoulder to shoulder with the Kuwaitis in both the bad and, thankfully more often, the good times. I salute the people of Kuwait as we mark, merely, the first 120 years of a remarkable and F successful association and friendship.

Kuwait continues to thrive, to be a force for stability and moderation in the region, and to offer its citizens security and freedom

A British Challenger tank during Operation Desert Storm

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NBK: A record of success By NASSER MUSAED AL-SAYER Chairman, National Bank of Kuwait (NBK)

O NASSER AL-SAYER holds a Bachelor‘s Degree in Economics from the University of Oklahoma, USA. He has been a Board Member of NBK since 1980. He was appointed as the Board Vice-Chairman in 1993 and Board Chairman in August 2014. He has been a Board Member of the Kuwait Banking Association since 1999, where he was also Chairman from 1999 to 2006. He has also served as a member of the Supreme Council for Planning & Development. Mr. Al-Sayer was Deputy Director-General (1973-1978) and a Board Member of the Kuwait Fund for Arab Economic Development from 1994 to 2000.

ver the course of the past 67 years National Bank of Kuwait (NBK) has demonstrated a record of success. The bank, which was founded in 1952 as the first home-grown bank and the first joint stock company in Kuwait and the Gulf Region, became the universal bank in the home market, delivering world class products and the highest service quality to its retail and wholesale clients. NBK has succeded in expanding its footprint and establishing a regional client base in MENA, playing an active role in trade flows between MENA and the rest of the world and building a global Private Banking and Asset Management franchise. Today, NBK is the largest financial institution in Kuwait with effective market dominance in the commercial banking market. NBK has been consistently awarded the highest credit rating of all banks in the region from Moody’s, Standard & Poor’s, and Fitch Ratings. NBK also stands out in terms of its local and international network, which includes branches, subsidiaries and representative offices in China, Geneva, London, Paris, New York and Singapore alongside its regional presence in Lebanon, Jordan, Egypt, Bahrain, Saudi Arabia, Iraq, Turkey, and the UAE. NBK’s strategy is focused on achieving consistently superior returns for shareholders. Our strategy is built on three principles that guide the bank’s priorities. These priorities have been set for all business units and internal functions. They are designed to secure bank leadership in core businesses, to grow outside the core, and to improve profitability. NBK’s business model leverages the considerable resources available to the group, which include a strong brand, an international reach, a high level of financial strength, and a powerful corporate culture. NBK is thereby able to focus its operations and initiatives on a wide range of customer types, across local and international markets, in order to build a suite of products and services that will meet and exceed our client’s expectations. According to our business model, the bank strives to deliver value to its key stakeholders – from customers and employees to the local community, regulators and shareholders. Financial Strength 2018 was another year of strong earnings growth for the Group, with increased contributions from

operations in the domestic market and from operations across our international network. NBK continued to reap the ongoing benefits of its diversified business model and has long enjoyed the sustained earnings power of NBK’s brand and reputation. 2018 saw the group deliver its twin strategies of maintaining leadership in its home market and selectively increasing its operational footprint in the GCC. These achievements have enabled NBK to report net profits of US$1.2 billion (KD 370.7 million) for 2018 and total assets reached US$90.4 billion (KD 27.4 billion) at the end of year, while shareholder equity stood at US$9.7 billion (KD 2.9 billion). Solid Resources NBK derives its strength from four main resources. Firstly, the bank has its strong brand position coupled with strong relations and a high reputation among its clientele. It has as international recognition as a trusted institution and a regional leader. Secondly, NBK enjoys an international reach which enables the bank to bridge capital and trade flows within MENA and with global markets. Thirdly, NBK’s financial strength enables the bank to support its clientele with significant transactions. Fourthly, the bank’s further resource is a very strong corporate culture that values passion, integrity, conservatism and knowledge. In 2018, the world’s three leading rating agencies reaffirmed their confidence in the stability of NBK as a strong financial institution. With a stable outlook – Moody’s confirmed Long-Term Rating at Aa3, Fitch Ratings confirmed a NBK’s Long-Term Rating –AA and Standard & Poor’s at A+. Digital Transformation The diversification of NBK’s structure and operations was a key area of focus in 2018. Diversifying a financial institution of NBK’s size has wide-ranging characteristics, borne out by the breadth of the initiatives which the bank has undertaken. A core component of the diversification process is the considerable effort made by the bank towards its digital transformation. During 2018, NBK has accelerated this program across markets, taking important steps towards its long-term objectives. This was a year when the bank positioned itself for the next generation in digital banking.

The digital transformation is taking place across segments and geographies, impacting bank internal processes and systems as well as enhancing the experience and opportunities of bank customers. NBK is building a digital mindset for the bank, to support its efforts towards a cultural transformation, which focuses on bank employees. Aside from innovative products and services, the most important achievement of 2018 was the completion of NBK’s Digital Roadmap, which we will follow in the coming years. This Roadmap includes defined KPIs that are directly linked to profitability, and which will allow accurate tracking of our progress. Awards & Accolades NBK has a long track record of being recognised with global awards which reflect that NBK remains a fundamentally robust bank, and is borne out by the continuing trust that customers and shareholders have placed in the bank. This long track record continued into 2018 with six awards from Global Finance magazine as Best Private Bank in Kuwait, Best FX Provider in Kuwait, Best Bank in Kuwait, Best in Mobile Banking – Consumer in Kuwait, Best Consumer Digital Bank in Kuwait and Best Mobile Banking App – Consumer in Kuwait. Euromoney magazine also awarded NBK three awards during last year as Best Bank in Kuwait, Best Private Bank in Kuwait and Best Cash Management for Non-financial Institutions. NBK also received awards from Brand Finance magazine as Most Valuable Banking Brand on Kuwait and by The Banker magazine as Bank of the Year – Kuwait. Teamwork NBK features a diverse staff of 6318 employees, representing 53 nationalities and 45 per cent of the team are women. Recognising that NBK’s success as an institution is made possible by the people who work within it – at every level – the HR strategy is at the heart of the group’s broader strategic plan. The quality of NBK’s team ensures the quality of services to customers of all types and in all markets, which is why our people are such a high priority as the bank continues to grow. NBK’s professional development efforts remain a source of real pride across the Bank. NBK delivers tailored management-level training to reduce attrition and to improve cohesion in middle management. In 2018, NBK provided specialised training to Private Banking, with a focus on enhanced relationship management, which was rolled out in the fourth quarter. In addition, efforts were made towards building a new development program, which will focus on a corporate executive curriculum, aimed at business chiefs, to help create better linkage and collaboration between divisions.

Sustainability Practices NBK’s approach to sustainability is constantly evolving, in order to meet and exceed the conditions and expectations that exist in the market. NBK’s sustainability model is also closely aligned with the Kuwait National Development Plan – in which NBK considers itself a vital stakeholder – as well as United Nations Sustainable Development Goals (UNSDG), Boursa Kuwait Sustainability Indicators and Global Reporting Initiative (GRI) standards. NBK has six sustainability pillars, which shapes our sustainability policy and program. The first pillar is supporting economic development, which includes working closely with the Kuwait National Development Plan (KNDP). NBK supports the National Vision 2035, aligning bank economic sustainability goals with those of the country. Our second pillar is serving NBK customers – aiming to provide complete satisfaction. We have a number of platforms for customers to provide feedback easily, which then triggers an efficient operational response. Third is promoting best practice in Corporate Governance as we believe that good Corporate Governance is based on a set of values and behaviours that underpin our day-to-day activities. The fourth pillar is respecting and developing people – providing more than 6000 employees with access to a training and development program that grows in reach and sophistication every year. Fifth is caring for the environment as NBK supports the judicious consumption of energy and water, responsible waste treatment and disposal, and the reduction of carbon emissions. The sixth pillar is giving back to the community. We believe that NBK has a duty to serve the community based on NBK’s corporate Social Responsibility (CSR) programme, which continues to promote social development, children’s care and F healthcare throughout Kuwait.

Today, NBK is the largest financial institution in Kuwait

NBK head office in Kuwait City

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A shared vision of progress By RAED JAWAD BUKHAMSEEN Chief Executive Officer and Vice Chairman, Kuwait International Bank (KIB)

2 RAED JAWAD BUKHAMSEEN is Chief Executive Officer of KIB, where he has also served as Vice Chairman since 2015 and a member of the Bank’s Board of Directors since 2010. He continues to hold positions as a board director at several companies in Kuwait and the Middle East, including Warba Insurance Company, Shared Electronic Banking Services Company (K-net), Egyptian Gulf Bank in Egypt, Layan Real Estate Company in Dubai, Salmiya Market Real Estate Company and Credit One Kuwait Holding Company. He holds a Bachelor of Science degree in Business Administration from Boston University.

019 marks a historic year for UK-Kuwait relations: commemorating 120 years since the signing of the Anglo-Kuwaiti Agreement. Throughout these years, the UK-Kuwait relationship has steadily strengthened, as mutual understanding through regular high-level dialogue on economic development, infrastructure, healthcare, etc., demonstrate the depth of this relationship. Since then, the two countries have enjoyed ever-growing bilateral cooperation across many areas, particularly trade. Today, the UK is one of Kuwait’s most important trade partners, ranked as the fourth largest commercial partner in the GCC to the UK. Having said that, both countries are paving the way for stronger trade ties, as the UK has made the Gulf region a priority investment and trade area, despatching several senior figures, including the Lord Mayor of London in 2019. The solidification of a strategic partnership As a sign of the continued strengthening of the mutual alliance between the UK and Kuwait, the two countries formed the Joint Steering Group during HH the Amir Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah’s visit to London in 2012. Composed of a number of Kuwaiti and British ministries and state bodies, the Group holds its meetings alternately between Kuwait and London. Since its formation, the Group was able to take the historic Kuwaiti-British relationship to new prospects; boosting the strategic partnership between the two nations and furthering opportunities for exchanging expertise and knowledge across various fields. As a result of several meetings of the Joint Steering Group, the Kuwait British Business Centre (KBBC) was established to increase British investments in Kuwait. A memorandum of understanding between the KBBC and the Kuwait Direct Investment Promotion Authority (KDIPA) was signed to boost and facilitate the flow of UK investments into Kuwait, encouraging British companies to take advantage of the new economic laws recently adopted by the Kuwaiti government. These new laws have been implemented as a means to diversify income sources and encourage foreign investment in order to achieve Kuwait Vision 2035, removing a number of obstacles faced by foreign investors. With the implementation of Law No. 116/2013 for foreign direct investment, there are set to be a number of large-scale projects carried out across

multiple sectors, including healthcare, education, transport, infrastructure and many more. Major investment projects and enhanced trade cooperation In 2015, the decision was made to double bilateral trade and investment from £2 billion to £4 billion. As a result, the trade agreement positioned the UK as Kuwait’s trade partner of choice for delivering much of its US$140 billion development plan, involving more than 1,000 projects covering infrastructure, healthcare, housing and education. British companies are currently working on projects such as the Kuwait International Airport, while British Telecom is helping in the development of the telecommunications sector. With the new laws and regulations in Kuwait facilitating foreign investment, UK small and medium-sized firms are able to be part of major investment projects, where in just the first three months of 2016 projects worth US$4.8 billion were injected into Kuwait. UK-Kuwait cooperation is at an all-time high and a bilateral trade relationship is going from strength to strength over the last few years alone, where the two countries enjoy substantial trade and investment links. British businesses are working with Kuwaiti partners across a wide spectrum in taking forward Kuwait’s ambitious development plan and achieving Vision 2035. A partner in Kuwait Vision 2035 Kuwait’s government still remains strongly committed to Kuwait Vision 2035, seeking to transform Kuwait into a financial, cultural, as well as trade leader. In order to achieve this vision, the government has plans to invest in various facets of the economy. Kuwait is also looking to achieve its goal through Public-Private Partnerships as a vehicle to drive its growth and pave the road to an increase in foreign direct investment. Both governments have established several investment and trade groups, playing a key role in achieving trade targets on both sides. These strong trade relations between the two countries are worth billions, where both governments manage significant investments. Currently, there are a large number of British companies in Kuwait, working in construction, shipping, banking, real estate, and more; helping Kuwait achieve its ambitious national development plan, Vision 2035. F

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Seven decades of partnership By WALID AL NADER Kuwait Country Chairman and Managing Director, Shell

WALID AL NADER has been the Shell Kuwait Country Chairman and Managing Director since 2014. He joined Shell in 2008 as MENA Business Development Director. His role included providing strategic support, services and technologies to a wide range of National Oil Companies across the region. He graduated with a degree in Mechanical Engineering from the Ecole Supérieur de Mécanique Paris in 1991. He holds a Masters in Automated Production from the Ecole Centrale Paris and a MBA from the Ecole des Ponts et Chaussées Paris.

hen you see the twinkling lights of Kuwait’s landmark buildings or experience the throngs of visitors to its world-class shopping malls, it is easy to forget the traditional maritime industries that powered its economy a century ago. Back then, the port of Kuwait was the busiest port in the Arabian Gulf. Dhow-building, maritime trading and pearl-diving generated prosperity and status, however the decline of the pearl industry had a marked effect on the economy, not only in Kuwait but across the region. It was in the face of this decline that Kuwait spotted a new opportunity on the horizon in the form of its natural oil reserves. Using its resourcefulness and trading expertise to take advantage of this major natural resource, by 1946 the State of Kuwait had become an oil-exporting nation. Today, Kuwait is among the world’s ten largest crude oil exporters. The industry has helped to make the country one of the most developed in the region. Royal Dutch Shell has witnessed first-hand the emergence of modern Kuwait. In 2018 our company was proud to mark seven decades of partnership with the country. From the outset, we have shared a common vision to optimise oil and gas production and to help deliver the capability the industry requires. Over the decades, Shell has forged close business relations and today our collaborations can be seen in oil trading, lubricants and the supply of liquefied natural gas (LNG). A trusted partnership Shell began its operations in Kuwait in 1948 through its stake in Gulf Oil – which owned 50 percent of the Kuwait Oil Company. By the 1960s Shell had established two relationships in the country to market its refined products. In this decade we also began distributing lubricants and providing jet fuel to Kuwait Airways aircrafts, a relationship that continues to this day. In 2010, Shell entered into an Enhanced Technical Services Agreement (ETSA) with the Kuwait Oil Company (KOC) to help it meet its strategic production targets. This agreement is focused on sharing of our global knowledge, technical innovation and best practices and working

with our partners on developing the skills of Kuwaiti professionals. As part of our relationship with Kuwait Petroleum Corporation (KPC), Shell has also jointly developed new business opportunities, including the supply of LNG, to meet the country’s rising energy demands. Laying new foundations As a global organisation operating in more than 70 countries, it is crucial that we also have a positive impact on the societies in which we operate, which goes beyond generating energy revenues for the country. In Shell we look to the future and we aim to inspire and develop local capabilities. Through a number of initiatives, we are building relations between Shell’s leaders and Kuwaiti talent who will play an important role in the future of the country. In cooperation with Kuwait’s National Fund for Small and Medium Enterprises, in 2018 we launched Intilaaqah, part of our global LiveWire programme, to contribute to Kuwait’s National Development Plan, Vision 2035. Its aim is to support Kuwaiti entrepreneurs and local business development, bring positive social change to communities and generate sustainable job creation. Looking to the future We have come a long way in the last 70 years. The world has changed, and we have changed with it, but one thing that has not changed is our commitment to Kuwait. We are privileged to have such a good working relationship with KPC and we hope to see it go from strength to strength. With our shared history we have an opportunity to do much more. By deepening our partnership with Kuwait, we can help in the drive to meet the needs of Kuwaitis today and support the State of Kuwait and its people in achieving energy security F into the future. Shell in Kuwait • Shell began operations on 1948 • ETSA with Kuwait Oil Company in 2010 • Strong and enduring relationship with Kuwait Petroleum Corporation 43

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120 years of friendship By NICK LYNE Senior staff writer, FIRST

Lord Curzon had been appointed Viceroy of India three weeks before the treaty signing of 1899

This page: Lord Curzon, as Viceroy of India (1899-1905) was a signatory to the Friendship Agreement

Opposite: A copy of the Friendship Agreement

n January 1899, as the European powers, Russia and the Ottomans competed to expand their empires, Kuwait’s ruler, Mubarak the Great, discreetly signed an agreement with Britain laying the basis for a relationship that would help both nations withstand future global and regional conflicts. 120 years later Kuwait and the United Kingdom continue to enjoy very close and friendly relations. Kuwait and Britain were already long-standing allies, thanks to the efforts of the East India Company, which in the mid 17th century had established a presence throughout the Arabian Gulf to help Britain protect its maritime lines of communications from India. In 1775, recognising Kuwait’s wish to remain entirely independent of the Ottoman empire, the East India Company negotiated a deal to route British mail through the port of Kuwait. The British had helped to stop piracy endangering sea trade in the Arabian Gulf, but could not do much to deter Turkish incursions, until a crucial figure in

Kuwait’s modern history stepped forward. Sheikh Mubarak Al-Sabah, known as Mubarak the Great, had led a palace coup in 1896, in response to concerns that his brother was about to let the Ottomans appropriate Kuwait. Initially fearful of diplomatic problems with other powers, Britain’s then Foreign Secretary, Lord Salisbury, became convinced that influence over Kuwait would be necessary to thwart Russian and German expansionist intentions in the region. C o l o n e l M . J . M e a d e , B r i t a i n ’s p o l i t i c a l representative in the Gulf, was asked to conclude an agreement based on the treaty he had negotiated with the Sultan of Muscat in 1891. Meade and Mubarak concluded the agreement on January 23, 1899. The Sheikh, for a consideration of £1,000, bound “himself, his heirs and successors not to cede, sell, lease, mortgage, or give for occupation or for any other purpose any portion of his territory to the government or subjects of any other power without the previous consent of Her Majesty’s Government for these purposes.” Lord Curzon had been appointed Viceroy of India three weeks before the treaty signing in 1899. In the following years, based in his palace in Calcutta, he implemented a policy that treated the Arabian Gulf States in much the same way as the Indian princely States. This approach, symbolised by his State Tour of the Gulf in 1903, did much to consolidate and strengthen Britain’s position in the region. The creation of a modern state Until his death in 1915, Mubarak would lay the foundations for a modern state in Kuwait. Government welfare programmes provided for public schools and medical services, along with postal and telegraphic services. Estimates put the population of Kuwait City at around 50,000 people at this time, with 3,000 permanent residents, 500 shops and three schools, while the economy depended heavily on the 700 strong fleet of pearling boats, employing 10,000 men. When Mubarak died in 1915, he was replaced by his son Jaber. When Jaber, in turn, died in 1917, Salem became ruler. On Salem’s death in 1921, Sheikh Ahmad al Jaber assumed the leadership and ruled until his death in 1950. This was an important period of stability and prosperity amid Kuwait’s tumultuous 20th century history. Kuwait would remain a British protectorate until

full independence in 1961, giving Britain substantial influence over Kuwait’s economic and international affairs. In 1909, Britain obtained Sheikh Mubarak’s agreement that he would offer no oil exploration concessions to anyone without prior approval from the government of Great Britain. In 1913, Britain negotiated the Anglo-Ottoman Convention with Constantinople, extending Sheikh Mubarak’s authority over the major Kuwaiti islands of Bubiyan, Faylakha, and Warbah. Mubarak could collect tariffs and taxes within a 60-mile radius, a considerable financial advantage to the Al-Sabah fortunes. Moreover, Kuwait’s status as an autonomous district under Ottoman suzerainty meant that the Ottomans would not interfere in Kuwait’s affairs. A year later, in 1914, Britain moved to seal its relationship with Kuwait, recognising Kuwait as “an independent government under British protection.” Even when the Ottoman Empire sided with Germany in late 1914, Mubarak remained pro-British during the First World War and made generous donations to the British Red Cross. Kuwait also provided logistical support to British forces operating in Iraq, while providing protection to British hospital ships. However, when Jaber II took over following the death of his father in November 1915, he increased the caravan trade from Kuwait to Syria, helping break the British blockade on Turkish forces in the eastern Mediterranean. Salem’s concern when he became Sheikh in 1917 was focused on the claims of Arabia’s de facto ruler, Ibn Saud regarding Kuwaiti territory. London was supporting the Saudis’ anti-Ottoman campaign and Salem feared the British would back Ibn Saud if Kuwait did not distance itself from the Turks. In the event, the collapse of the Ottoman Empire meant the Anglo-Ottoman Convention was never ratified. However, when the new Kingdom of Iraq rose from the Mesopotamian ashes of the fallen Ottoman Empire, disputes over Kuwait’s borders were not long in emerging and required definition. With the war over, Britain recognised Kuwait as an independent Sheikdom, reiterating its commitment to Kuwait’s national defence. The first need to protect Kuwait came in 1919 as Ibn Saud tried to consolidate control of the Arabian Peninsula using the ikhwan (brotherhood), fearsome Bedouin warriors from the Najd, the interior of Arabia. After a number of low level incursions, in September 1920 Ibn Saud claimed that Salem’s authority was limited to Kuwait City. The following month, Ibn Saud sent his Ikhwan warriors to conquer Kuwait, but they were stopped at the Red Fort, some 35 miles west of Kuwait City. There, Salem dug in for a siege. The British sent in a detachment of Royal Marines backed by British warships and the siege was soon lifted, with

the Ikhwan withdrawing from Kuwaiti territory. Britain decided to convene talks on the boundaries of Kuwait, Saudi Arabia and the newly created Kingdom of Iraq. In November 1922, a meeting was held at Uqair, on Saudi Arabia’s Gulf coast, some 300 miles south of Kuwait. The Uqair Protocol established the boundary between Kuwait and Saudi Arabia. Kuwait lost almost two-thirds of its territory to the Saudi ruler. It was a bitter pill, but the new Sheikh, Ahmad, had no option but to accept. The Kuwaitis understandably resented the delineation of their southern border, which was now more than a hundred miles closer to the capital city. However, at least the boundaries with Saudi Arabia were finally fixed and this treaty has governed Kuwaiti–Saudi Arabian foreign relations to the present day. But it would take until 1923 for the British to accede to Sheikh Ahmad’s request for Kuwait’s border with Iraq to be defined in line with the Anglo-Ottoman Convention. Kuwait and Iraq formally accepted the British findings in August 1923, and again in 1927. In 1932, Iraq became completely independent from post-Ottoman Turkey and applied for membership of the League of Nations based on its new boundaries, but while the issue was now closed for the Kuwaitis, later Iraqi leaders, including Saddam Hussein, would be unwilling to concede Iraq’s claim to Kuwait, particularly after Kuwait began exploring the vast oil reserves.

A year later, in 1914, Britain moved to seal its relationship with Kuwait, recognising Kuwait as “an independent government under British protection”

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The willingness of Kuwait’s sheikhs to spend oil revenue wisely would shape Kuwaiti strategy for the rest of the century

This page: The Late Sheikh Ahmad Al Jaber Al Sabah in front of a spitfire that Kuwait helped to purchase for the Royal Air Force during WW2 Opposite Left: Sheikh Abdullah Al-Jaber Al-Sabah and HM The Queen during the folklore concert held on the occasion of Her Majesty’s visit to Kuwait in 1979

Opposite Right: The Late Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah, Sheikh Saad Al-Abdullah Al-Salem Al-Sabah, HM The Queen and the HRH Duke of Edinburgh in 1979

Kuwait emerges as a global oil producer In the first years of the 20th century, Kuwait’s economy depended largely on the pearl industry. However, the global depression of the 1920s and the advent of Japan’s cultured pearl industry had a negative impact on the economy. But within a few years, Kuwait would enter a new era. In 1936, the first oil well was established by the Kuwait Oil Company (KOC), a British and US petroleum enterprise. Within two years, one of the largest deposits on the planet had been discovered. The willingness of Kuwait’s Sheikhs to spend oil revenue wisely would shape Kuwaiti strategy for the rest of the century. Additionally, the Al-Sabah family insisted on ever-greater Kuwaiti participation in the management of joint oil ventures, setting the stage for the nationalisation of all Kuwaiti oil production in 1976. By 1946, pipelines and other petroleum-handling facilities had been built and exports commenced in earnest. That year, 5.9 million barrels were produced, rising to 16 million barrels in 1947, and production continued to increase until 1972. Offshore exploration and production was initially awarded to a number of smaller Western oil companies, which in turn fed royalties back into Kuwait’s rapidly expanding treasury. In 1950, Abdullah III replaced Ahmad as Sheikh, ruling Kuwait until 1965. It would be his responsibility to prepare Kuwait for full independence, with oil revenue profits preparing the way for these significant developments. By 1953, Kuwait was the largest oil producer in the Arabian Gulf, but a lack of water, electricity, and natural resources hampered development. Work began on port facilities for oil tankers, along with a modern

road network, power plants and distribution grids and desalination plants. Kuwait soon concluded that additional revenues could be created by refining its own oil, and in 1960 joined Saudi Arabia, Iraq, Iran and Venezuela in founding OPEC. Kuwait’s leaders also knew that the oil would not last forever. British financiers helped the Kuwaiti government make long-term investment choices and by the 1960s, Kuwaiti investors would begin to invest their money in overseas real estate. Kuwait also channelled foreign aid to friendly nations and entities. At the same time, Sheikh Abdullah, who would rule until 1965, started to create a welfare state, spending on health care and education. The Al-Sabah family had always been willing to use personal funds to address social needs, but domestic spending bankrolled by oil wealth increased to new levels. Independence brings new challenges On 19 June, 1961, Kuwait become an independent country, ending the defence and foreign policy guarantees Britain had provided since 1899. Kuwait was a fabulously wealthy new nation sitting atop vast oil reserves, attracting the attention of powerful and covetous neighbours. Independence also meant the fledgling nation had to give up what it most needed, protection. Britain had made a conscious decision to let Kuwait go after India and Pakistan become independent in 1947. The period from the mid-1950s to 1961 was one in which the military and political bonds connecting Kuwait and Britain may have loosened, but as the role of institutions such as the British Council demonstrate,

the advent of an independent Kuwait in 1961 cannot be characterised as a cultural or a political rejection of Britain. On the contrary, beneath the surface of the march to independence lay an important undercurrent of cultural and educational engagement with Britain that actually intensified during this period. The British Council performed much unacknowledged work liaising between the Kuwait government and various international agencies. Given that Kuwait desired an independent but aligned relationship with the British government, such mediation was extremely useful and illustrates the ways in which UK-Kuwaiti relations have functioned at a multitude of different levels, typically behind the scenes. In November 1962, Kuwait’s new constitution was ratified by an ad hoc constituent assembly. Full elections were held, and the first National Assembly of the new Kuwaiti nation convened at the end of January 1963. Kuwait joined the United Nations that year, completing the process of nationhood, but the question of national defence was still unresolved. That said, Britain had taken steps to help Kuwait defend itself: a police force of around 600 men had been converted into a defence force of 2,500 troops and naval and air forces were established. Within a week of Kuwait becoming independent, Iraq’s leader, Abdul Karim Qasim, who had seized power in a coup in 1958, announced that his country was incorporating Kuwait. In response, Britain launched Operation Vantage, sending a naval task force and ground forces to Kuwait. By October, British forces had been replaced by Arab League troops. Qasim was killed in a coup in 1963 but, while Iraq recognised Kuwaiti

independence and the military threat was reduced, Britain continued to monitor the situation and kept forces available to protect Kuwait until 1971. Abdullah III was replaced by his chosen successor, Sabah al-Salem, or Sabah III in 1965. The country handled the transition smoothly and Sabah III’s domestic and foreign policy approach was generally consistent with that of his predecessor. Sabah III ruled until 1977, naming Jaber III his successor. The new constitution provided for the Crown Prince to assume the position of Emir upon the Emir’s death, but it was the family’s responsibility to choose the Crown Prince, although the selection was subject to ratification by the popular assembly. Jaber III’s accession in 1977 was uneventful and with each smooth transition, Kuwait’s peaceful political traditions have become ever stronger. In 1982, the government created the Kuwait Investment Authority (KIA). The first-ever sovereign wealth fund, the KIA’s roots date back to 1953, when the Kuwait Investment Board was established with an account at the Bank of England to collect oil revenues. After Kuwait gained independence from the UK in 1961, the investment board was renamed the Kuwait Investment Office (KIO) and given specific responsibility to manage what became known as The Future Generation Fund. Since 1976, 10 per cent of the country’s annual income has been allocated to the fund, which assumed considerable importance after liberation from Saddam Hussein’s invasion. Rebuilding the country cost more than US$85 billion, according to official figures. The Future Generation Fund funded the reconstruction.

Britain had taken steps to help Kuwait defend itself: a police force of around 600 men had been converted into a defence force of 2,500 troops and naval and air force were set up

KUWAIT

Britain had taken a special role in the 1991 intervention: Prime Minister Margaret Thatcher had been closely involved in building the strong international consensus over the Iraqi occupation of Kuwait

The late Sheikh Jaber Al-Ahmad Al-Jaber Al-Sabah with HM Queen Elizabeth II and HRH Duke of Edinburgh at Buckingham Palace in 1995

Invasion and reconstruction Kuwait’s military was not prepared for war or invasion, although it had used its oil wealth on national defence spending. By 1989 Kuwait was sixth in the world in per capita military spending, with most of that equipment coming from Great Britain. On August 2, 1990, Iraqi forces invaded, overrunning Kuwait City within 24 hours. The UN Security Council immediately passed a series of resolutions, the first of which demanded Iraq’s immediate and unconditional withdrawal from Kuwait. Economic sanctions against Iraq were instituted. The United States and Great Britain understood that no further Iraqi gains could be allowed and rallied more than 30 countries to join a military coalition, with some 7,000 Kuwaiti troops participating in the liberation of their country under Operation Desert Storm. As well as playing a key diplomatic role behind the scenes in the six months that led up to Operation Desert Storm, Britain was the second-largest contributor to the operation to remove Iraqi forces. Operation Granby, the code name given to the UK role in the Gulf War, involved more than 53,000 British personnel on land, air and sea. On the morning of February 27, 1991, the Kuwaiti flag was officially raised in central Kuwait City. Following 42 days of allied military operations, the Kuwaiti people had survived the nightmare of invasion and occupation and Kuwait was liberated. Britain had played a vital role in the 1991 intervention. Prime Minister Margaret Thatcher had been central to building the strong international

consensus against the Iraqi occupation of Kuwait: in August 1990 she and her Cabinet embarked on the deployment of British troops to the Middle East in order to deter any further Iraqi aggression. The unambiguous support of the United Nations Security Council and the fact that Iraq had clearly violated international agreements helped to convince many MPs to support the military operation. Great Britain worked with Kuwaiti military officials to assess the continued threat posed by Saddam Hussein’s Iraq and to formulate both short- and long-term defence strategies to deter that threat. Defence agreements were quickly signed with the United States, Great Britain, and France. While the Kuwaiti army, naval force, air force, and coast guard had all fought bravely in the liberation of their country, they required outside assistance to maintain Kuwait’s security. Training of Kuwaiti military forces by teams of American and British officers began almost immediately under new defence agreements. More recently, in 2018, Michael Davenport, British Ambassador to Kuwait, said Britain was considering establishing a permanent military presence in Kuwait at the request of its government. As 1991 drew to a close, more than seven hundred oil fires, set alight by the Iraqis, were finally extinguished. Kuwaitis were finally able to make decisions about their country’s future. Oil pipelines had been cut, pumping stations had been demolished, refineries stripped of machinery and almost every petroleumrelated physical asset had been damaged. Rebuilding Kuwait was not only one of the largest and most rapid construction programs in history, but was also an opportunity to overhaul the nation’s economy, streamline its bureaucracy and reshape its work force. A solid foundation for UK-Kuwait relations Britain and Kuwait’s solid relationship has been further cemented over the last 120 years by the strong ties between the two countries’ royal families. Twenty years after the Treaty of Friendship was concluded in 1899, George V welcomed Sheikh Ahmad Al Jaber as the first official Kuwaiti visitor to Britain. In 1979, Her Majesty the Queen and Prince Phillip visited Kuwait, and in 1995, HH Sheikh Jaber Ahmad AlJaber Al-Sabah visited Britain. HRH The Prince of Wales has made seven visits to Kuwait.

A key outcome of the State Visit to Britain by Sheikh Sabah Al Ahmed Al Jaber Al Sabah in 2012 , the first since 1995, was the creation of a new framework for UK-Kuwaiti bilateral relations: the Joint Steering Group, aimed at broadening and deepening the two countries’ long-standing relationship. Since then the Group has taken action in many areas such as defence, migration, healthcare, education, higher education, trade and investment and energy. Defence talks have established a clear goal of strengthening Kuwait-British ties on military equipment and training, with a particular focus on tackling terrorism. Discussions on migration have focused on improving information exchange on people trafficking. On healthcare, a range of British public and private sector organisations are supporting Kuwait’s ambitious plans to revolutionise its own healthcare sector while continuing to provide top quality care for the thousands of Kuwaitis who receive private medical treatment in Britain each year. On education, representatives from the British Council and the Department of Education continue to provide advice and support to reforms in Kuwait’s education system, including in English language teaching and special needs education. At the same time, cooperation in higher education and research has increased substantially. On trade, Kuwait has done much to reduce barriers to market entry to UK companies and investors, while there have been further increases to the Kuwait Investment Office’s multi-billion pound

investment portfolio in the UK. The UK is also supporting Kuwait’s ambitious plans on transportation infrastructure in the rail, airport and port sectors. The two countries are now increasingly working together on energy policy by cooperating on managing global energy markets, Kuwaiti involvement in the UK energy sector, and on the potential for further technical cooperation in this field. Looking to the future Several key developments occurred during the first two decades of the 21st century that have had, and will continue to exert, a powerful, long-term impact on Kuwait and the Kuwaiti people. One was external and one was internal. First was the forceful removal of Saddam Hussein from power in 2003. Overall, the long-standing Iraqi threat to reinvade Kuwait was reduced, though ongoing instability in Iraq, including sectarian violence, is cause for concern. Located in the geoplitical heart of the Middle East, Kuwait understands the importance of realpolitik better than most: it is intricately and irrevocably linked to regional events. Kuwait will maintain its pragmatic foreign policy and continue mediating with all its neighbours. At the same time, Kuwait will be focused on its quest to remain a strong, prosperous and unified state with a leading influence in Gulf politics and economics. Britain will continue to support Kuwait in its ability to serve as a neutral state that provides regional players with assistance to resolve conflicts through diplomacy, maintaining Kuwait’s vital interest in regional stability. F

On trade, Kuwait has done much to reduce barriers to market entry to UK companies and investors Left: Sheikh Jaber Al-Ahmad Al-Jaber AlSabah with of the HRH Duke of York at Bayan Palace in Kuwait 2003 Right: Rupert Goodman, Chairman and Founder of FIRST, and HH Sheikh Sabah Al-Ahmad Al-Jaber Al-Sabah, Amir of Kuwait

Kuwait International Law School (KILAW) is the only private law school in Kuwait, offering legal education leading to LLB and LLM degrees under license from the Kuwait Private Universities Council by the Amiri decree no 144 for 2008. As a private Kuwaiti Law School, KILAW has a duty to comply with the rules, regulations and accreditation criteria set by the Private Universities Council (PUC) in Kuwait, the Ministry of Higher Education, and the National Bureau for Academic Accreditation Education and Quality Assurance (NBAQ). KILAW values the importance of academic relations and academic links with other Arab and international universities and institutions. Areas of cooperation include exchange of visiting faculties, student exchanges, site visits for assessment and follow up of the School’s programmes and their evolution, fields of mutual research and joint

academic degrees and certificates. KILAW’s Vision is ‘to achieve excellence in legal education informed by critical thinking and contextual approach.’ It has a mission ‘to participate in providing society with qualified personnel who distinguish themselves in the legal profession, performing to the highest professional standards, in both theoretical and practical aspects of the law’. The School offers the following programmes: Diploma of Law for paralegal staff; Bachelor of Law (LLB); Master of Law (LLM) with three routes, Master’s in Public Law, Master’s in Private Law and Master’s in Law and Financial Transaction. All KILAW’s programmes were accredited by The Quality Assurance Agency for Higher Education – QAA for five years starting from December 2018, along with the institutional accreditation for five years starting from December 2017. 

Kuwait International Law School, Block 4, Doha City, Kuwait. Tel: +965 22280222 Fax: +965 22280209 Email: info@kilaw.edu.kw Web: http://kilaw.edu.kw

KUWAIT

A win-win partnership By BRETT SOSO Managing Director, Middle East, Africa & Latin America, McLaren Automotive

BRETT SOSO was appointed Managing Director – Middle East, Africa & Latin America at McLaren Automotive in August 2018. Prior to joining McLaren, he held a number of executive management positions within the automotive industry, including most recently Regional Director – Middle East and Africa for Rolls-Royce Motor Cars. In his current role, based in Bahrain, he leads a motivated team working across twelve markets overseeing sales strategy and performance, the retail network, aftersales, parts and accessories, brand and product marketing, as well as communications and PR.

he story of McLaren Automotive is quite unprecedented. The company was officially established in 2010, with a heritage rooted in racing and a vision to be an iconic supercar manufacturer. Despite being a newcomer in the world of highperformance supercars, our history goes back to 1963 when Bruce McLaren founded his Motor Racing team in Woking, England. Our founder was born in New Zealand and is today remembered as one of the great motorsport pioneers of his era. In addition to being a fearless racing driver, Bruce was also a savvy entrepreneur and a talented engineer. He had a longheld dream of starting his own road car company, culminating in a road-going prototype called M6GT. Powered by a Chevy V8, it was meant to be the company’s first ever street car. Unfortunately, the dream was not fulfilled as Bruce tragically died whilst testing a Can-Am racing car at Goodwood in 1970 and only three M6GTs were ever built. His spirit, determination and values remain alive at McLaren and have been guiding us from when we started our automotive operations in 2010. Since then, McLaren has been growing from strength to strength with an award-winning product portfolio and firm foundations for a sustainable future. We achieved this through our focus on creating the best drivers’ cars and using technology to enhance the driving experience. We have also remained true to our values and our ongoing commitment to mid-engine carbon fibre sports and supercars. As a result, we have come to rival the establishment in a very short space of time. 2018 was another milestone year with the groundbreaking McLaren Senna and 600LT launched to the highest of critical acclaim. Our global sales have increased to a record 4,806 vehicles delivered to discerning customers around the world. We have also received a number of prestigious awards, not least for being Britain’s Most Admired Car Company. All of these are astonishing achievements for a company which sold its first car in 2011. Determined to build upon our success, we are not resting on our laurels and have set out a clear road map for future vehicles, production and technology under our Track25 Business Plan. This £1.2 billion investment will see an astounding 18 new models or derivatives by 2025. These exciting new products will

further enhance our position as a global player in the supercar market and set us on a path to an exciting and successful future. None of this success would have been possible without a dedicated network of retail partners that support our global operations with their local understanding and expertise. McLaren Automotive entered Kuwait in 2012 through partnership with Ali Alghanim & Sons Automotive, one of Kuwait’s most eminent families and renowned for the highest standards of business operations. The brand opened doors to a phenomenal reception and gained a strong market share, as well as a loyal customer base of automotive and racing enthusiasts. Since then, the number of McLaren vehicles in the market has exceeded 150 examples and we are humbled to challenge our established competitors. To recognise the importance of the market and to express our gratitude, we took the decision to host the regional debut of the new McLaren 720S Spider in Kuwait. This latest Super Series model combines the thrill of open-air driving with unparalleled dynamic performance, luxury, driver involvement and usability. The car took centre stage at the Kuwait Motor Show in January, and I am fully convinced that it will delight our discerning customers in the country. We are also very excited that our local clientele can now experience the thrill of driving a McLaren at the new world-class Kuwait Motor Town Race Circuit. This state-of-the-art FIA Grade One race-track brings some great opportunities and will further enhance the remarkable automotive culture and infrastructure which already exists in the country. To conclude, I want to thank our customers and fans in Kuwait for their passion, trust and enthusiasm for McLaren. I would also like to recognise our exclusive retail partner Ali Alghanim & Sons Automotive for their entrepreneurship and unparalleled initiative in delivering outstanding customer experience throughout all areas of the business. With a growing line-up of breath-taking supercars and an excellent local partner, our operations in the country look bright. I believe that we have built strong foundations for sustainable future and that our partnership will continue to set new standards for driving and ownership experience in Kuwait for F many years to come.

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A long history of cooperation By DR HAMAD AL-HASAWI Secretary General, Kuwait Banking Association

K HAMAD AL-HASAWI currently holds the position of Secretary General at the Kuwait Banking Association. From 1995 to 2011 he held several positions, including Head of Financial Services at Rasameel Structured Finance, Commercialisation Senior Advisor at the Kuwait Institute for Scientific Research, Chief Operating Officer at Gulf Holding Company in Bahrain, Senior Vice President at KIPCO Asset Management, Vice President at Gulf Investment Corporation, and advisor to the Ministry of Defence. He holds a PhD in Management and Organisation from the University of Stirling.

uwait-UK relations, which go back far into history, are special and distinguished. The close ties between Kuwait and Britain date back to early in the past century. The UK and Kuwait have deep and long-established political and economic ties with a historically strong trading relationship, that continue to thrive today. The Kuwait-UK economic relationship is long and fruitful. This long relationship remains strong and Kuwaiti investments in the UK have grown significantly over the last decades. Important milestones in Kuwait-UK past relations include the role of the British oil companies in developing Kuwait’s oil resources and the establishment of the Kuwait Investment Office (KIO) in London. This relationship was further solidified when the UK took part in an international military campaign, in 1991, ousting occupying Iraqi forces from the country. Many other events and examples symbolise the close ties that exist between Kuwait and the UK. Nevertheless, the present era, characterised by a forceful drive for globalisation as a mainstay of international relations, requires us to focus on the present and the future in order to safeguard the achievements of the past. In general, the GCC countries have changed dramatically in recent years. Its economies are developing rapidly, creating exciting opportunities for investment in both directions. And while the energy sector remains essential, this is also a region that is diversifying. Kuwait sits on a wealth of oil, with 8 per cent of the world’s total reserves, but Kuwait is not resting on the finite product for its future. Kuwait has unveiled a new, comprehensive strategy that will empower the country for generations to come to transform the economy by 2035, create jobs, attract foreign direct investments and facilitate knowledge transfer in the fields of renewable energy, information technology, and the services sector. The Kuwait National Development Plan’s short-to-medium terms objectives include positioning Kuwait as a global hub for the petrochemical industry and increasing foreign direct investment into Kuwait, which will help expedite its economic development agenda. The Kuwait National Development Plan also aims to develop the country’s tourism sector to generate additional revenue streams and create a new jobs market and plans to further develop the country’s transportation and power sectors by building on the recent success in PPP projects.

By undertaking such big development plans, Kuwait will welcome British firms to carry out building and construction projects for oil refining, power plants, infrastructure development, housing, information, technology, education, scientific research, health, media and sports. For an efficient economy, it is vital to have strong and competitive financial intermediation to facilitate the flow of funds and smooth relations between local and foreign business partners. In Kuwait, this sector has come a long way in the last decade. In fact, it is currently witnessing a historical golden era of unprecedented performance surpassing all previous records. Kuwait’s banking sector is among the healthiest in the region, well positioned and equipped to absorb economic shocks and support economic stability for future growth. Based on its financial soundness indicators, Kuwait’s banking sector will have a major role to play in supporting both government and private sectors in the implementation of the national development plan. As part of implementing the new strategy to increase the role of the private sector in the economy and to accelerate the implementation of the privatisation program, I believe that taking advantage of the success of the British experience in implementing privatisation in the 1980s and early 1990s will be an important element of cooperation between Kuwait and UK. Another area where enhanced UK intervention may effectively sponsor economic development in Kuwait is that of technology transfer through foreign direct investment. The UK’s active investment in various projects will help the Kuwaiti economic plan and revival, which will lead to its economic diversification. I think Kuwait and the UK are working from a good base and I believe there is real scope to strengthen the links further, from increasing co-operation on security to expanding exchanges in cultural areas. It is clear that Kuwait’s relationship with the UK will remain key to our country’s prosperity and security. It is an evolving relationship that will continue to change as the region develops and as global energy trends shift. This poses both opportunities and challenges – for Kuwait and the UK. I believe that if the two countries work to sustain a broader relationship, they will remain enduring partners, even in these rapidly F changing times.

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