The Business Year: Kuwait 2023

DOOH - A SUCCESS STORY

It delivers the right message to the right viewers, at the right place and time. DOOH advertising offers contextually relevant advertising based on location, consumer behavior, and demographic.

IMPORTANCE OF DOOH – GLOBAL

DOOH media is important as it’s measurable, accessible, effective, and less intrusive as compared to other forms of advertising. It allows businesses to stand out and cut through the noise.

SOURCE: Emarketer | Business Insider | Research & Markets | PQ Media

More and more brands are investing in DOOH for their marketing campaigns as it integrates well into the changing ways consumers interact with brands.

DOOH INTELLIGENCE – METHODOLOGY

The global DOOH advertising industry is set. To hit revenues of $27

billion

by 2023, growing at a CAGR of 10.7%

Audience measurement is a key component of DOOH, especially if you want to sell/book in programmatically. New technologies are being employed to get precise and real-time data to support real-time CPMs. One of the popular and accurate ways of collecting data is by using Masked Network Cell Tower Technology.

M2R Group collects audience behavior based on their commutes (using triangulation & GPS technology) and their network usage to prepare a nationally representative Outdoor Intelligence Platform for Kuwait, using masked network cell tower technology.

REAL DATA

Measurement is based on encrypted Network usage data and not sampling to improve the accuracy of the results.

SCIENTIFIC APPROACH

Data is collected by identifying key indicators like coordinates, size, height and angle of visibility.

CONSISTENT UPDATES

Data is reported for a 2 weeks period and updated every 3 months to account for seasonality.

SOURCE: Ipsos. (Gross Rates in Million KWD)

OOH (including DOOH) ad spend in Kuwait had been increasing at a CAGR of 25%. The COVID-19 pandemic brought it down to pre-2018 levels, dropping by 30%.

But post pandemic, the OOH industry has gained traction and in 2021 nearly reached the same levels as 2019, with 2022 estimated to surpass the KWD 100 million mark.

DOOH SCREENS PORTFOLIO

DOOH SCREENS 88 GOVERNORATES 6

THE TOTAL M2R DOOH UNIVERSE IS 1.4 MILLION UNIQUE INDIVIDUALS

AVERAGE TIME SPEND (ACROSS ALL SCREENS)

~ 6.3 MINS.

DATA BASED ON 2 WEEKS PERIOD ACROSS ALL SCREENS

JAHRA 3 SCREENS

THE CAPITAL 34 SCREENS

FARWANIYA 11 SCREENS

HAWALLY 24 SCREENS

MUBARAK AL KABEER 3 SCREENS

AHMADI 13 SCREENS

40 56m

OTS (OPPORTUNITY TO SEE) APPROX. IMPRESSIONS

DEFINING VIEWING DISTANCE & ANGLE OF VISIBILITY

The process of calculating the weight of a screen is as follows:

DETERMINE THE DISTANCE FROM WHERE A SCREEN IS READABLE, BASED ON THE SCREEN SIZE

CONSIDER THE ANGLE OF VISIBILITY (BASED ON SCREEN QUALITY)

Tejender Gandhi

THIS EXTENSIVE EXERCISE HAS ENABLED US TO REPRESENT THE MEDIA ROI OF OUR SCREENS MORE ACCURATELY & TRANSPARENTLY.

BASED ON THE VIEWING DISTANCE (RADIUS), DEFINE THE VIEWING AREA & DEAD ZONES

CALCULATE THE WEIGHT OF THE SCREEN BASED ON THESE KPIs

Head of Research & Development M2R Group

Have been part of the Media and Advertising Research Industry for 17+ years, currently heading the R&D department at M2R Group. Focused on making sense of data and telling the story of Insights & Intelligence to supplement media strategies. Driving innovation and pushing the envelope to ensure that the right Media ROI is delivered to clients at all times.

We at M2R have a 360 degree approach to your marketing and communication needs. We can put together a solution that will not only meet your business objectives, but take it to the next level.

THE BUSINESS YEAR: KUWAIT 2023

The sixth annual edition of The Business Year: Kuwait 2023 comes out at the peak of economic reawakening, as the country’s pandemic restrictions and regulations have lessened, and the local market begins to breathe once again.

Thanks to the participation and support of over 130 of the country’s business and governmental leaders, this publication offers a thorough macroeconomic analysis of the Kuwaiti market. Their insight allowed us to paint an accurate picture of the local economic landscape, supported by the increasing improvements in the name of Kuwait Vision 2035, digital transformation, and further empowerment of the private sector’s role in the country’s marketplace.

With its strong financial backing, small size, high level of education, and sophisticated business culture, Kuwait has all the ingredients needed to accelerate the changes for the better and flourish as a local hub for financial, energy, and logistical possibilities. Following the directives of the government, the local business community is eager to develop a variety of megaprojects that will strengthen local infrastructure and the economy. As you will read, many changes are currently taking place, some

of which could have a tremendous impact on the potential that the country has to offer.

This year’s publication explores the country’s outlook through the lens of sustainable growth, technological advancement, economic diversification, and entrepreneurial initiatives. As we explore the many success stories of the local businesses and governmental organizations, we shed light on the growing presence of women across all sectors of the economy, as they take the lead in their companies’ and country’s growth and development. Looking to the future, there are a number of opportunities for investments across the country’s economy, with a particular focus on healthcare, education, construction, renewable energy, and technology.

The Business Year: Kuwait 2023 is the result of seven months of on-the-ground research realized with the mission of presenting an up-to-date state of the local economy. The publication would not be as rich and successful without our long-term partner, the Kuwait Direct Investment Promotion Authority (KDIPA), as well as the Kuwait Banking Association (KBA), and the German Business Council Kuwait (GBCK), which supported The Business Year throughout the research. ✖

CEO Ayşe Hazır

COO Carlos Martinez

Regional Director Ioana Popa

Country Manager Agustina Dal Fabbro

Country Editor Wojciech Salski

Editorial Terry Whitlam, Aidan McMahon

Contributors

Pronto Publishing Services, Babak Babali, Mark Szawlowski, Adrian Espallargas

ISBN 978-1-80506-001-7

www.thebusinessyear.com

In partnership with:

ECONOMY

13 New areas of growth • Chapter summary

15 Meshaal Jaber Al-Ahmed AlSabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA) Interview

17 Mohammad Saud Al-Osaimi, CEO, Boursa Kuwait • Interview

18 Bader N. Al-Kharafi, Vice Chairman & CEO, Zain Group

• Interview

20 Khaled A. Mahdi, Secretary General, Supreme Council for Planning and Development

• Interview

21 Sheikha Dana Nasser Sabah Al Ahmad Al Sabah, Group CEO, Kuwait Projects Company (KIPCO)

• Interview

22 Issam Abousleiman, Regional Director, GCC countries, World Bank

• Interview

23 Pushing for change • Focus: Important matters matter

24 Fatima Al Salem, Director General, Kuwait News Agency (KUNA) • Interview

25 Faisal Mansour Sarkhou, Group CEO, Kamco Invest • Interview

26 Rasheed Al-Qenae, Managing Partner, KPMG Kuwait • Interview

27 Fahad Al-Sharekh, General Partner, Kamco JEDI Fund Kamco Invest • Interview

28 An eye on development • Focus: Sustainable development

29 Abdulrahman Al Khannah, Group CEO, Beyout Investment Group (BIG) Holding • Interview

32 Christoph Saager, Vice Chairman, German Business Council of Kuwait

• Interview

33 Business councils • Forum

34 Find a balance • Focus: Expats

35 Pete Swift, Chairman, American Business Council - AmCham Kuwait

• Interview

36 Managing change • Focus: Digital transformation: Present and future challenges

37 Khalifah Al Yaqout, Managing Partner, Al Yaqout and Al Fouzan Legal Group • Interview

38 Sustainability initiatives under Kuwaiti law Communiqué: AlYaqout & Al-Fouzan Legal Group

40 Dalal Al-Ghanim, CEO, Chairman’s Club • Interview

41 Voices from the sector

42 ENERGY TRANSITION

43 The long path • Chapter summary

44 Bader Al-Mulla, Deputy Prime Minister, Minister of Oil & President, Supreme Council for the Environment • Interview

46 Haitham Al Ghais, Secretary General, OPEC • Interview

48 Meeting the needs • Focus: Energy crisis

49 Shaikh Nawaf Saud Al-Sabah Deputy Chairman & CEO, Kuwait Petroleum Corporation (KPC) • Interview

50 Sara Akbar, Chairperson & CEO, OilServ • Interview

51 Anwar Al Mutlaq VP Kuwait & Country Chair, Shell • Interview

52 Anar Aliyev, Vice President bp Kuwait & Qatar, bp • Interview

53 Musaed Alawadhi, General Manager Kuwait, NOV • Interview

54 Khaled Al Awadhi, Deputy CEO, Kuwait Al-Zour Refinery • Interview

55 Rabaa Hussain Makki AlJuma, Kuwait & Qatar Country Manager, UN Global Compact • Interview

56 Paul Frain, CEO, Shamal Az-Zour Al-Oula Power & Water Company, Kuwait • Interview

57 Yassine Lafhail, Country General Manager, ENGIE Solutions

• Interview

58 Clean energy Forum

60 Sandra Draskovic, General Manager, Kuwait Green Building Council (KGBC) • Interview

61 Jorge J. Perez Garcia, Country Manager, TSK Electronica Y Electricidad S.A. • Interview

61 Joachim Dudey, CEO, Umm Al Hayman for Wastewater Treatment Company (KSPC) • Interview

64 From the ground up • Focus: Sustainable projects

66 FINANCE

67 The tech of tomorrow • Chapter summary

69 Abdulwahab Al-Rushaid Minister of Finance & Minister of State for Economic Affairs and Investment

• Interview

71 Basel A. Al-Haroon, Governor, Central Bank of Kuwait (CBK)

• Interview

72 Sheikh Ahmad Duaij Jaber Al Sabah, Chairman, Kuwait Banking Association (KBA) Interview

73 Abdulwahab Iesa Al Rushood Acting Group CEO, Kuwait Finance House (KFH)

• Interview

74 Elham Yousry Mahfouz, CEO, Commercial Bank of Kuwait

• Interview

75 Samer Alabed, CEO, HSBC Bank Middle East Limited – Kuwait

• Interview

77 Ali H. Khalil, CEO, Kuwait Financial Centre (Markaz)

• Interview

79 Saleh Saleh Al-Selmi, Chairman, Union of Investment Companies (UIC) • Interview

80 Dakhil Al Dakhil, CEO, Rasameel Investment Co.

• Interview

81 Abdullah AlTerkait, Chairman, Al Safat Investment Company

• Interview

82 Abdullah Mohammad Al-Shatti, CEO, A’ayan Leasing Investments Co. • Interview

84 Banking zero-and-one • Focus: Digital solutions

86 Abdulla AlSenan, Vice President, Insurance Regulatory Unit (IRU)

• Interview

88 Anwar Al Sabej, CEO, Warba Insurance

• Interview

89 Faris Al-Obaid, General Manager, Tamara, Kuwait

• Interview

90 Nasser Al Humaidi, CEO & CoFounder, UPayments Interview

91 Voices from the sector

92 DIGITAL SOLUTIONS

94 Dreaming of electric sheep

• Chapter summary

95 Mazen Saad Ali Al-Nahedh, Minister of Commerce and Industry and Minister of State for Communications and Information Technology Affairs

• Interview

97 Benoit Janin, CEO, Virgin Mobile Kuwait

• Interview

98 Alaeddine Karim, Country Manager, Microsoft KUWAIT

• Interview

101 Maziad Alharbi, CEO, stc Kuwait

• Interview

102 Dina Al Eissa, CEO, BOnline

• Interview

104 Izzat Abou-Amarah, CEO & Vice Chairman, Impulse International for Telecommunications

• Interview

104 Ayoob Kalathingal, Director, Emstell Technology Consulting Company

• Interview

106 Rico Lin, CEO, Huawei Kuwait

• Interview

107 Shadi Al Samad, CEO, M2R Group Interview

108 Sheikha Al-Zain Al-Sabah, Chairperson & CEO, National Creative Industries Group (NCIG)

• Interview

110 Bader Al Ghanim, Managing Director, talabat Kuwait • Interview

112 Seham AlHusaini, General Manager Kuwait, Deliveroo

• Interview

113 The sound of clicking • Focus: Digital innovation

114 Abdulaziz B. Al Loughani, Chairman & CEO, Floward

• Interview

118 Badih Hakim, Managing Director Kuwait, SAP • Interview

118 Magd Donia, General Manager, KASP – Boodai Group of Companies

• Interview

120 CONSTRUCTION & REAL ESTATE

121 Keep building • Chapter summary

123 Ayad Al Thuwaini, ViceChairman, & Elie Hani, CEO, Ahmadiah Contracting & Trading Co.

• Interview

124 Osama Jawad Ahmad Bukhamseen, Managing Director & Executive Manager, Bukhamseen Group Holding Co. • Interview

126 Sheikha Bibi Nasser Sabah Al-Ahmad Al-Sabah, Chairperson, United Real Estate Co. (URC)

• Interview

127 Mazen Issam Hawwa, ViceChairman & Group CEO, United Real Estate Co. (URC) • Interview

128 Ali Al Kulaib, CEO, Real Estate House (REH) • Interview

99 Call on me

• Focus: Mobile market

100 Abdulaziz Al-Babtain, CEO, Ooredoo Kuwait

• Interview

115 Athbi Alenezi, CEO & CoFounder, justclean

• Interview

116 Mohammed Al Munaikh, CEO, Ajar

• Interview

116 Suleiman Al Anjeri, Co-Founder & COO, Dabdoob

• Interview

117 Ali Al-Ibrahim, Founder & CEO, COFE App • Interview

129 Khaled Al-Mashaan, CEO, Al Argan International Real Estate Company (ALARGAN) • Interview

131 Voices from the sector

132 Ebru Özdemir, Chairperson, Limak Holding

• Interview

133 Going up • Focus: Megaprojects

134 INDUSTRY

135 Made in Kuwait? • Chapter summary

136 Mohammed Eid Ali Aladwany, Acting General Manager, Public Authority for Industry (PAI)

• Interview

137 A second life

• Focus: Recycling

138 Mubarak Mohammad Sabah Al Sabah, General Manager, ASLAA General Trading and Contracting Company • Interview

140 Abdulkarim Al-Saleh, Group CEO, FAWAZ Group • Interview

142 Sheikh Ali Fawaz Al Sabah, CEO, Gulf Glass Manufacturing Company • Interview

143 Construction materials • B2B

144 Marino Maganto, CEO, IKEA Kuwait • Interview

146 TRANSPORT & LOGISTICS

147 Top location • Chapter summary

148 Maen Mahmoud Razouqi, CEO, Kuwait Airways • Interview

150 Get myself connected • Focus: Kuwait International Airport

151 Adel Ahmed Albanwan, CEO, Aviation Lease and Finance Company (ALAFCO) • Interview

153 Ravi Varrier, CEO, Al-Rashed International Shipping Company

• Interview

155 Firas Sukkar, Country Manager, DHL Global Forwarding, Kuwait

• Interview

156 Henadi Al-Saleh, Chairperson, Agility Public Warehousing Company K.S.C.P • Interview

157 Mohammad E. Al-Muaili, CEO, Kuwait ResourceS House (KRH)

• Interview

158 Fouad Rouh, Founder & CEO, The Bridge Co.

• Interview

158 Ahmad Jaafar, General Manager, Auto Capital Co.

• Interview

160 EDUCATION & CULTURE

161 Readying for the future

• Chapter summary

164 Jacqueline Shaw, CEO, American International University (AIU)

• Interview

166 Yousef Al-Husaini, Co-Founder & CEO, Baims

• Interview

167 Universities • Forum

169 Prof. Suad M. AlFadhli, Former Acting President, Kuwait University

• Interview

170 Sheikha Intisar AlSabah, Founder, Alnowair, Intisars, Ebbarra, Bareec, and Intisar Foundation

• Interview

171 Sheikha Bibi Al Sabah, Chairperson, Al Sadu Society

• Interview

172 Alanoud Al Sharekh, Activist & Teacher, Ibtkar Strategic Consultancy

• Interview

172 Sheikha Souad Jaber Al Sabah, Owner & Founder, Sirdab 6

• Interview

175 Reaven D’Souza, Managing Editor, The Times Kuwait

• Interview

176 HEALTHCARE & LIFESTYLE

177 Curtailing the excess • Chapter summary

178 Ahmad H. Al Thunayan, Acting Director General, Public Institution for Social Security (PIFSS)

• Interview

179 Qais Al Duwairi, Director General, Dasman Diabetes Institute

• Interview

182 Aysha Yousef Al-Kandari, Owner Representative, Warba National Medical & Scientific Product Center

• Interview

183 Abdullah Alaskari, CDO, UFC GYM • Interview

184 Pedro Ferreira, General Manager, C Club & ARGAN Albida’a Club, Kuwait • Interview

186 Martin Kipping, General Manager, Four Seasons Hotel

• Interview

187 Adel Al Bader, CEO, Al Rawdatain Water Bottling Co.

• Interview

188 Ali Fahad Al-Fahad, Chairman, Union of Consumer Cooperative Societies • Interview

189 Mustafa Boushahri, General Manager, Boushahri Group

• Interview

189 Khadija Oubala, CEO, The Sultan Centre • Interview

191 Faisal Al Nashmi, Founder, Almakan Group • Interview

• Interview

162 Mishaal AlShaheen Alrubaie, Former Director General, Youth Public Authority (YPA)

180 Thamer Ibrahim Arab, CEO, Health Assurance Hospitals Company (DHAMAN) • Interview

191 Akram Kamal, General Manager, Del Monte • Interview

• Focus: Opportunities for young Kuwaitis

163 Children are the future

181 Medical facilities • B2B

Read more at thebusinessyear.com/kuwait

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International Inc. 2023. All rights reserved. No part of this publication may be

TAKING FLIGHT

KUWAIT’S LEADERSHIP, despite all the challenges of the COVID-19 pandemic, has quickly revived the economy, in part thanks to favorable oil prices. As the newly elected government under the leadership of HH the Deputy Amir and Crown Prince Sheikh Mishal Al-Ahmad Al-Jaber Al-Sabah leaves past shortcomings in the rearview mirror, the country’s chances of fully implementing Kuwait Vision 2035 and achieving its sustainable development goals are on the rise. With the aim of turning the page and diversifying the local market well beyond oil, the leaders of the Kuwaiti economy are seeking to shape the future in terms of digitalization, sustainability, and independence.

THE WILL OF THE PEOPLE

When it comes to democracy, Kuwait is looking to take a stand for the benefit of its citizens, with the 2022 elections setting the stage for the betterment of the economy. Understanding the challenges that come from staying within the comfort zone, many business and political leaders have been pushing their organizations to embrace imminent changes. The majority of our interviewees are cautiously optimistic about the outcome of the election, with expectations of lasting improvements and more private-sector engagement in developments across the country. Knowing that the future is shaped

by the present, the government, alongside international and local organizations, is actively promoting privatization, technological advancement, and public-private collaboration. The people have spoken; now, the time has come to see just how much of their voices has been heard.

COMMUNITY OF VALUES

Since the establishment of New Kuwait 2035, also known as Kuwait Vision 2035, the country’s leaders have been paying more attention to the impact and importance of sustainable solutions across a wide spectrum of operations that companies or organizations participate in. The past few years have witnessed the deployment of a UN Global Compact office within the country, the introduction of environmental, social, and governance (ESG) requirements across the local stock exchange’s top listings, and the emergence of many sustainability-focused companies, the efforts of which help save energy, preserve the climate, and ensure quality of life for all parties.

The country’s market is no longer a mere community of businesses—it has become a community of values. As more and more organizations are joining the UN Global Compact initiative, the World Bank’s experts are educating leaders across sectors, and companies are becoming more aware of the impact their operations have on

Kuwait has emerged from the pandemic more resilient, better prepared for crises, and more aware than ever for the need to diversify.

Image: KPC

society and the environment. Now, we are bound to see the impact of change. As always, values will determine actions.

TRANSFORMING PROGRESS

If there was any doubt regarding the progress of digitalization before the pandemic emerged, Kuwait’s ability to quickly adapt to the new normal more than proved a point. It is now a matter of “how,” not “if.” The quickest to dispel doubts was the Central Bank of Kuwait, which introduced a directive mandating all financial institutions to go digital as soon as possible. With its processes already digitalized, the financial sector has become an attractive space for all technologically specialized start-ups and companies in the digital sphere. Moreover, with efforts doubled to run their businesses and organizations more efficiently, the leaders of the Kuwaiti economy have been working on introducing digital solutions into their companies. From operational analysis to machine learning, Kuwait is engaging a myriad of technological solutions to pave the way forward. The transformation process started a while ago, but the fruits are now truly being reaped.

PROJECTS & COLLABORATIONS

Following the idea of developing the local economy and diversifying the oil-dependent economy, the Kuwaiti market has taken on a variety of projects and ideas created with the benefit of the coun-

try in mind. Known for its megaprojects, especially in construction and infrastructure, the public sector has been increasingly expediting areas of its work to international and local contractors, with the hopes of a better ROI and positive impact on the economy. As FDI grows, private-public partnerships (PPPs) are becoming more common, and strategies for diversification are being put in place. The country’s economy is experiencing a second renaissance, with highly anticipated benefits waiting down the road. Projects to bring the public and private sectors closer together and collaborations that demand international cooperation will play a major role in empowering Kuwait to become a logistics, financial, and digital hub in the region.

FEMALE LEADERSHIP

Kuwait’s business landscape has been, historically, one of the most progressive in the region. With local women being able to work and participate in elections, the country’s economy is benefiting greatly from increased economic participation. Highlighting the importance of women across all sectors, we have encountered multiple success stories, the majority of which involve extreme resilience, patience, and the ability to speak up for what is deemed worth speaking about. As the country continues its progress toward a more sustainable, diversified, and all-inclusive future, women will play an essential role in shaping its path. ✖

2022

FEBRUARY

COVID-19 restrictions lessen as parliament approves recommendations to alleviate pandemic rules and regulations

2022

APRIL

The EU lifts visa rules for Kuwaiti travelers, allowing them to travel into the EU for up to 90 days

2022

AUGUST

A study conducted by Bayt.com and market research agency YouGov finds that two-thirds of Kuwaiti respondents would like to be self-employed or have their own business if given the choice

2022

SEPTEMBER 29

General elections are held in Kuwait following the dissolution of parliament by Crown Prince Mishal Al-Ahmad Al-Jaber Al-Sabah

2022

DECEMBER

CBK points out that several Kuwaiti banks have started providing Apple Pay services, while the rest are in the process of launching the service imminently

2022

FEBRUARY

The Central Bank of Kuwait (CBK) issues guidelines specifying requirements for establishing digital banks

2022

JULY 24

The Amir issues a decree appointing Ahmad Nawaf Al-Ahmad Al-Sabah as the prime minister and tasking him with forming a new cabinet

2022

AUGUST

Kuwaiti oil expert Haitham Al-Ghais takes office as the new Secretary-General of OPEC at the organization’s headquarters in the Austrian capital, Vienna

2022

NOVEMBER

KIPCO announces the completion of its merger by amalgamation with Qurain Petrochemical Industries (QPIC)

Image: Craitza

NEW AREAS OF GROWTH

Kuwait swiftly implemented multiple strategies to safeguard its economy and population from the impact of COVID-19 and, according to the UN, quickly overcame the major challenges of this unprecedented crisis. Following the relaxation of COVID-19-related restrictions, the country’s economy emerged with renewed vigor, with Vision 2035 the blueprint.

Kuwait’s greatest advantage comes with its size and resources, said Abdullah AlNabhan, Regional Director of Palladium Group for the Middle East, in an interview with TBY: “Because it is a relatively small country in size with one of the highest GDP per capita figures in the world, there is room for the government and private sector to implement changes swiftly and effectively.”

With a swath of new legislators elected in October 2022, there is a growing sense of optimism and motivation, which our interviewees often expressed. Moreover, due to the increase in oil prices throughout the year, Kuwait’s economic outlook has greatly improved, with the Institute of Chartered Accountants in England and Wales (ICAEW) estimating 7% growth in 2022.

The country’s financial stability is further enhanced by its official currency, the Kuwaiti dinar, being pegged to a basket of currencies, which enables a stronger baseline. Bountiful hydrocarbons resources also mean Kuwait is able to offer

generous subsidies. So although the inflation rate has risen to the highest in years, the Kuwaiti economy remains in a much more stable position when compared to the Western countries, where mitigation efforts often come with painful side effects. According to the Arab Times, the National Bank of Kuwait (NBK) reported “a net profit of KWD237.8 million (USD775.4 million), compared to KWD160.8 million (USD524.2 million) for the same period in 2021, improving by 47.9% YoY.” This increase is but one of the reasons why, despite the economic challenges following the pandemic, the country’s market appears to be moving forward in a positive direction.

Finally, with Vision 2035 in mind, the leadership of Kuwait is aiming to supercharge the economic transformation and diversify the output of the local market. Through the deployment of digital tools and technological innovations, the many sectors of the economy are gradually pushing toward alternative solutions and increased efficiency. The country’s research institutes, such as Kuwait Institute for Scientific Research (KISR), and the legislative innovators like the Supreme Council for Planning and Development (SCPD), are constantly working on improvement and implementation of the approaches, which will allow Kuwait to diversify away from oil and increase its potential in new areas. ✖

Image: Lukas Bischoff

Photograph

advancing FACILITATION

As one of the economic enablers of Kuwait’s economy, KDIPA has been playing its part to help businesses adopt resilient, agile, and sustainable business practices.

KDIPA has recently successfully attracted several leading technology companies and supported them in setting up their hubs within the country. What has been the impact of these entries on the state of Kuwaiti technological developments?

Technology is a focus of Kuwait National Vision 2035 that capitalizes on the strength of the nation’s advanced ICT infrastructure. This is driven by robust market demand, an abundant talent pool, modern accommodative legislation, and competitive factor costs, which has contributed to successfully attracting some of the leading ICT companies. According to the E-Readiness Index, in 2022 Kuwait ranked first in terms of a population covered by at least a 3G mobile network, internet access in schools, and e-commerce legislation and sixth in ICT services exports and the use of virtual social networks. To date, KDIPA has licensed 67 investment entities, bringing a cumulative approved direct investment of over USD4.3 billion, of which 32.3% represents the ICT sector that has seen an expanded sustainable economic and social impact in the local economy. These international companies offered solutions for consumers, while enabling businesses to establish frameworks and policies to facilitate and accelerate Kuwaiti digital transformation through the use and adoption of IoT, AI, and cloud services, to develop smart e-government services, implement the smart cities strategy, nurture start-ups, and build the capacity of national human capital. KDIPA developed the Kuwait Economic Benefit Model (KEBM) to quantify the impact of the approved direct investment on the domestic economy generated by the licensed investment entities that commenced operations. In its Third Report Assessing the Cumulative Impact on the Kuwaiti Economy, expenditure exceeded USD2.3 billion in 2015-2020 covering salaries and the training programs of the national workforce, advanced technological devices and equipment, support for local content (goods and services), government taxes and fees, social responsibility activities, as well as the development of the national export potential. The technology sector has an impressive impact on the local economy with a multi-faceted indirect impact and positive spillover and externalities.

What is KDIPA’s strategy to ensure seamless participation for foreign investors?

KDIPA adopts a proactive strategy with a comprehensive approach that is focused on excellence in service delivery, aftercare, and facilitation in dealing with the potential and existing investors, in addition to maintaining open lines of communication with investors through various channels. Our one-stop shop serves as the single focal point, in parallel to KDIPA’s online Investor Service Portal that supports the digitalization of the process. KDIPA’s account managers are always ready to support investors and respond to their inquiries. KDIPA also has a team stationed at the Kuwait Business Centre (KBC), established under the Ministry of Commerce and Industry (MOCI), to facilitate issuing investment licenses. In addition, KDIPA approves annually a list of consulting companies and offices that are entitled to represent investment entities in managing their investment application and incentives. Furthermore, in accordance with good governance, KDIPA’s board of directors established a grievances committee for investors to refer to in the event of any disputed issue.

KDIPA is driving the agility and strength of the local economy. What priorities are on your agenda for the near future? Our goal is to foster innovation in advancing new work paradigms utilizing national youth talent, support KDIPA’s promotional, regulatory, and advocacy operations that are aligned with Kuwait National Vision 2035 objectives as we enter the fourth phase of Kuwait’s Master Plan 2040 that provides a comprehensive physical structure framework for residential development and industrial expansion. This aims to initiate an effective participation of experienced investors in a plethora of available investment opportunities yielding benefits for the investor and meeting Kuwait’s developmental goals in terms of realizing wide-ranging economic and social impact. KDIPA is also initiating concerted efforts to enhance regional collaboration among its investment promotion authority peers in the MENA region in its capacity as the Regional Director of MENA in the Steering Committee of the World Association of Investment Promotion Agencies (WAIPA). ✖

BIO

Meshaal Jaber Al-Ahmad

Al-Sabah is the Director General of KDIPA. He is also a board member at The Kuwait Foundation for the Advancement of Sciences (KFAS) and The Kuwait Investment Authority (KIA). In addition, he heads multiple committees, including the Permanent Committee for Streamlining Business Environment & Enhancing Competitiveness in Kuwait (PCK) established by the Council of Ministers, the trade & investment sub-group of the Kuwait-UK Joint Steering Group, and the economic & commercial coordination working group in the Kuwait-US Strategic Dialogue. Previously, he held the post of the chief of Kuwait Foreign Investment Bureau (KFIB) at the Kuwait Ministry of Commerce & Industry (MOCI) in addition to various posts at the General Secretariat of the Council of Ministers (CoM). He has sat on multiple boards and also headed multiple specialized committees. Meshaal holds a PhD from the University of Portsmouth, School of Business in the UK. He obtained a master's degree from Maastricht Business School (KBMS) and holds bachelors degree from Kuwait University (KU), College of Social Sciences.

Licensed 67 entities to date, empowering the national economy

Meshaal Jaber Al-Ahmed Al-Sabah DIRECTOR GENERAL, KUWAIT DIRECT INVESTMENT PROMOTION AUTHORITY (KDIPA)

catalyst FOR CHANGE

Over the years, Boursa Kuwait has helped drive the development of Kuwait’s capital markets and ensure world-class standards and practices.

Mohammad Saud Al-Osaimi CEO, BOURSA KUWAIT

What have been the major developments and highlights of Boursa Kuwait’s activity?

Looking at the bigger picture, one of the most important events since 2018 was the reclassification of Kuwait to an Emerging Market by MSCI in 2019 and the inclusion of seven listed companies on the Emerging Markets indices in 2020. On November 30, 2020, the exchange recorded one of the biggest trading values in the market’s modern history, with almost USD3 billion traded. The reclassification ensured that the Kuwaiti capital market achieved Emerging Market status in three of the world’s leading index providers, after reclassifications by FTSE Russell in 2017 and S&P Dow Jones International in 2018. Not only did we witness the development of the capital market, but Boursa Kuwait itself has also undergone some changes. The company underwent a privatization process in 2019, making Boursa Kuwait the first stock exchange in the Middle East to be fully owned by the private sector. In September 2020, Boursa Kuwait listed its shares on the “Premier” market.

In addition, Boursa Kuwait increased its stake in the Kuwait Clearing Company to 50% over the years, making KCC a vertically integrated settlement and clearing arm of the exchange. Boursa Kuwait also launched the first phase of its third Market Development (MD) plan in 2019, which included a plethora of products and services, including real estate investment trusts (REITs), tender offers, stock swaps, short selling, trade at last sessions, as well as enhancements on off-market trades and circuit breakers. The company subsequently launched tradeable rights issues and netting as well as margin lending and trading in collaboration with the CMA. Additional-

ly, Boursa Kuwait launched a brand-new website and suite of applications in 2021, available on smartphones, tablets, and watches.

What makes Boursa Kuwait so successful and highly valued across the region?

Boursa Kuwait has played a pivotal role in the development of Kuwait’s capital market to adopt world-class standards and practices, as well as diversifying the national economy in line with the goals of the New Kuwait 2035 vision. We have developed a detailed blueprint to realize our strategic objectives, create long-term values for our stakeholders and ensure business sustainability to create an attractive issuer base, broaden the investor base, increase our products and services, and upgrade our infrastructure and business environment to international standards. As the country’s stock exchange, Boursa Kuwait is home to many of the region’s most highly valued listed companies. Through our roadshows and Corporate Days, we consistently promote them and the Kuwaiti capital market, giving companies the opportunity to meet with some of the world’s biggest investment banks and asset management firms, highlighting their financial health, business outlook, and business strategies.

Can you tell us about Boursa Kuwait’s efforts to raise awareness and adoption of sustainable business practices?

Kuwait’s capital market has been one of the earliest adopters of ESG standards and practices. The field has only recently been explored, even on an international level, and we at Boursa Kuwait are cognizant of the need for listed companies to be aware of the latest trends. To that

end, we have worked with some of the world’s most renowned institutions to raise awareness of the ESG standards and practices that can make our companies more attractive to international investors. In 2021, we published an ESG Disclosure Guide to support listed companies to report on these issues and meet the growing needs of various stakeholders for transparent and regular information. We also published our first-ever standalone Sustainability Report, which details Boursa Kuwait’s Corporate Sustainability strategy, partnerships, and initiatives for 2021. The exchange has been working closely with CMA to implement its resolution for the requisites of sustainable finance, helping make the Kuwaiti capital market more sustainable according to the best standards and practices described by the International Organization of Securities Commissions (IOSCO) and in support of the UN’s Sustainable Development Goals. ✖

BIO

Mohammad Saud Al-Osaimi currently holds the position of CEO at Boursa Kuwait. Prior to this, he played a pivotal role in the reforms and development of the Kuwaiti capital market and the successful execution of Boursa Kuwait’s mission, vision, and strategic objectives, in his capacity as Head of Markets. He joined Boursa Kuwait as a member of its first assembled board of directors in 2015, after spending over two decades in various senior positions in the investment field. He holds a master’s degree in public administration from Carnegie Mellon University in the US and a bachelor’s of science degree in mechanical engineering from Gannon University in the US.

LEADING DIGITAL lifestyle provider

Zain is a pioneer in digital technologies, driving meaningful connectivity and socio-economic development in Kuwait and across its regional footprint.

Bader N. Al-Kharafi VICE CHAIRMAN & CEO, ZAIN GROUP

BIO

Bader N. Al-Kharafi is the Founder and CEO of BNK Holding, his personal holding company headquartered in Kuwait and established in 2016. BNK Holding oversees and manages a portfolio of businesses spanning over. multiple industries that include healthcare, technology, telecoms, industrial, securities exchange (through the Kuwait Boursa privatization), food & beverage, media, manufacturing, real estate, banking and automotive. He holds many board-level position, including being Vice Chairman of Gulf Cables, a manufacturing provider of cables and Vice Chairman & CEO at Zain Group, a leading mobile voice, data, and digital services operator to over 50.9 million active individual and business customers as of March 31, 2022.

In the past few years, Zain has gained great traction by transforming into a leading digital lifestyle provider. What milestones has Zain Group achieved in this context in the MENA region?

As a pioneer in digital technologies driving meaningful connectivity and socio-economic development in Kuwait and across our regional footprint, in accordance with our “4Sight” strategy to future-proof the company, Zain continues to digitally transform itself and pursue opportunities to innovate. We are maximizing the many technology developments within the core telecoms business while exploring new frontiers and diversifying into emerging lucrative business verticals in the ICT, digital infrastructure, fintech, and digital services space. To meet the ever-growing demand for reliable, high-speed connectivity in Kuwait and across our markets, Zain is making significant investment in spectrum license fees, 4G network expansion and 5G upgrades, and Fiber To The Home (FTTH). We are diligently monetizing these networks, offering appealing fintech, content, gaming, and other highly demanded services for our digital savvy consumers, as well as compelling and lucrative B2B services to governments and enterprises. In recent years, we have introduced a wide range of new digital services and new entities that are witnessing impressive customer uptake and revenue growth. ZainTech, our one-stop digital and ICT solutions powerhouse, has gained enormous traction since its launch in October 2021, establishing the groundwork for exponential profitable growth by being the digital partner of choice for governments and enterprises across our markets. ZainTech’s recent acquisition of leading managed cloud provider BIOS Middle East is set to supercharge our capabilities in the critical busi-

ness area of hybrid and multi-cloud managed services. Cybersecurity, IoT, AI, big data, smart cities, drones, robotics, and other emerging technologies are additional services and growth areas that ZainTech is focused on, which will drive revenues and enable the company to provide the most comprehensive suite of digital and ICT transformation services in the region to organizations and government entities all under one roof.

As a leader of the major digital services corporation in the Middle East, what is your perspective on the fintech sector across the region?

Achieving our fintech aspirations is a key strategic initiative of Zain as we continue innovating and expanding mobile financial services across our operating markets, providing much needed and life-enhancing services to our customer base and beyond. In Kuwait, we have applied for a digital banking license with the central bank and are keenly awaiting the grant of the license aiming to be first telco-led challenger bank across the Middle East. We are of similarly achieving confident (in Kuwait) the customer and transaction growth we witnessed with “Tamam,” our micro-financing arm in Saudi Arabia, the “ZainCash” mobile money platforms in Jordan and Iraq, and “M-Gurush” in South Sudan, which have been truly impressive in recent years. In Bahrain, we recently acquired a digital banking license from the Kingdom’s central bank and expect commercial launch in 2023, while in Sudan we are currently fulfilling the necessary regulatory requirements to be awarded a digital banking license and expect to launch in in the first half of 2023.

Zain was a pioneer in the sale and leaseback of its passive tower networks. What are the advantages of such?

Portfolio optimization is one of the key parts of the 4Sight strategy

Successful introduction of 5G services in various Zain markets

Portfolio optimization is one of the key parts of the 4Sight strategy centers that extends to the sale and leaseback of the passive infrastructure of our tower network, thereby unlocking capital and allocating resources for more effective and sustainable use. In 2017, we were the first in the region to announce the sale of our 1,600-tower network in Kuwait for USD165 million, followed by Jordan in 2021 for USD88 million. In early 2023 we completed the agreement with the Public Investment Fund in Saudi Arabia to sell 8,069 towers for USD807 million. Similarly, in January 2023, Zain Iraq entered into a definitive 15-year agreement to sell and leaseback its 4,968-tower portfolio for USD180 million.

What are the major challenges facing Zain in Kuwait and across markets?

Zain’s diverse footprint sees our markets deal with multiple socio-economic challenges, and the management continues to effectively deal with such matters, including fluctuations in currency exchange rates, a changing taxation environment, regulatory and spectrum developments, intense competition, and the impact of inflation that is affecting consumer spending. In Kuwait, as the incumbent and dominant market leader in all key financial KPIs, maintaining this position presents many challenges due to the intense competition from two other operators, whereby we see unhealthy business practices, and a new MVNO that was recently launched. Nevertheless, the group and Zain Kuwait teams are focused on overcoming this and doing so successfully as 2022 resulted in Zain Kuwait witnessing impressive growth in its revenue and profit. Other challenges include the higher inflation rate that is impacting purchasing power and

cost of technologies, the population reduction of approximately 6% over the last few years, and regulatory challenges. With the new proactive CITRA board and management’s astuteness in constantly investing in technologies and 5G upgrades attracting key corporate and government customer accounts, we are confident that Zain Kuwait will prevail and maintain its premier position in the market.

As a listed entity in Kuwait, the place of origin for the company, Zain controls the biggest share of the market in revenue and profitability. What are your thoughts on the present situation in the country? Kuwait is having its challenges, yet the infrastructure stimulus investments and digital transformation undertaken in recent years by the authorities on multiple fronts is something we are building on. As the incumbent telecoms operator playing a leading role at the forefront of the country’s Vision 2035, we are focused on investing in and bringing the latest and most empowering digital technologies to our beloved country, in a sustainable manner. Our nationwide 5G state-of-the-art network, unique B2B offerings, and appealing digital mobile services stand out to consumers, enterprises, and government departments alike. This is driving revenue growth and creating shareholder value for all. As a leading listed entity on the premier market in Kuwait, Zain seeks to exceed the regulations issued by all financial regulatory bodies including the Ministry of Commerce and Industry, the Capital Markets Authority, and Boursa Kuwait by applying high ethical standards, transparency, and professionalism toward all our stakeholders, thereby promoting investor and market confidence in Zain.

What milestones has Kuwait achieved in the last few years?

BLUEPRINT for success

The Supreme Council for Planning and Development focuses on initiatives such as the country’s diversification and privatization processes, including setting the policies and creating a blueprint for improvement and implementation.

BIO

Khaled A. Mahdi is Secretary General of Kuwait’s Supreme Council for Planning and Development, the National Counterpart of UNDP’s Country Program in Kuwait, and a member of several high-level government boards and committees. He leads Kuwait’s National Standing Steering Committee for the Implementation of the UN Agenda 2030 for SDGs. In 2016, Mahdi established the Kuwait Public Policy Center (KPPC) and its Nudge Unit, reporting directly to him. He also oversees the three other in-house research centers: NKEC, NSDO, and NDRC. Mahdi is a graduate of the University of Toronto and holds a PhD in chemical engineering from Northwestern University. He is a certified consultant engineer, a project management professional (PMP) and PRINCE2, a certified GCC Arbitrator, and is a member on several international organizations. Khaled was an associate professor in the College of Engineering and Petroleum at Kuwait University.

We have made great progress in two areas: infrastructure and legislation. Many legislations have paved the way for a proper platform to carry out change in the country. We have improved and implemented new laws for PPPs, competition protection, privatization, and SMEs. These legal structures have been established in the country. Since announcing Kuwait Vision 2035, five years have been spent on issuing laws. Some of them still need to be modified and enhanced; however, the positive thing is that we have made a start. That was the establishment of legal structures of the country. In the next wave of the plan, from 2015-2020, the country was like a workshop because of the project infrastructure that was established, including roads, fiber optics, the inception of the airport, starting the Mubarak Port, infrastructure in the oil sector, clean fuel refineries, and LNG. These are some of the infrastructure projects that have been developed, and more are being created as we speak. The next step is to include more private-sector engagement in the projects by releasing more land and giving maps of investment in the country, like the entertainment city project, Jaber Causeway, and the islands. Most of these are in the tendering phase. In terms of those in full force, Health Assurance Hospitals Company (DHAMAN) is a great example of a PPP project that succeeded in providing healthcare services. On the PPP projects side, we also have renewable energy developments and the GCC railroad, which should be tendered next year.

How is the Supreme Council for Planning and Development participating in the diversification and privatization processes?

Our work at the Supreme Council focuses on setting the policies, including the country’s public and national legislation, and creating a blueprint for improvement and implementation. We are currently working on engaging the private sector more, as to allow it to contribute more toward the GDP of the country. This includes a policy for restructuring the government and shifting the government’s operational role to the private sector and partnerships. Another policy aims to push

this change through SMEs, private-public partnerships (PPPs), and privatization. The Public Authority of Manpower offers financial incentives to Kuwaitis to participate in the private sector. They are encouraged and trained to fill the skill gap between the public and private sectors, as in most situations the decision to switch is not an easy one.

Where do you see Kuwait’s place in the MENA region from a financial or technological perspective?

Kuwait has strong fundamentals. As the only democratic country in the region, we require a great deal of political navigation and consensus. When we started forming the national plan, we focused on legislation to put the proper legal platform in place before moving forward. When countries go through development and new changes, they require a stable and subtle legal structure to help them move ahead, and our legal structure is solid. When I reflect on the progress done so far, I always remind myself that even changing a small company is difficult; we can imagine how challenging it can be to change a whole country. Life in Kuwait is stable and comfortable, which does not make it any easier for the change to happen. We are making progress, one step at a time.

Where can you see potential for economic diversification in Kuwait?

The digital and knowledge economy best suits the diversification process, which is why most of the policies focus on innovation and encouraging people to be creative. We called this pillar of the vision: creative human capital. Building a creative human capital will provide us with a diversified economy in the future, though this is a long process and not an easy one. We need to do it as a part of the fourth revolution. We are extremely realistic. We know our challenges, and we know how to deal with them. ✖

“We have made great progress in two areas: infrastructure and legislation.”

Khaled A. Mahdi SECRETARY GENERAL, SUPREME COUNCIL FOR PLANNING AND DEVELOPMENT

back to BASICS

By complementing the government’s work through private sector, KIPCO is working to drive change forward and help realize the country’s vision.

Sheikha Dana Nasser Sabah Al Ahmad Al Sabah GROUP CEO, KUWAIT PROJECTS COMPANY (KIPCO)

What is your perspective on the progress being made in economic diversification?

Kuwaitis have been engaged in entrepreneurship for a long time. We had always traded and participated in the international market. In the industrial era, we were fortunate to have struck oil and build our country with its support. We cannot, however, depend on oil forever. When it comes to diversifying the economy and seeking alternatives, I believe the movement has already begun. With the ESG policies being implemented and the net zero initiatives in place, we can take the country forward toward a more sustainable future. The economy must be diversified. The government has a plan and will hopefully execute it in a timely manner, and we, as the private sector, stand ready to support where we can. Overall, we, at KIPCO, are staying optimistic.

Given its wide range of projects, where does KIPCO stand in empowering Kuwait economy’s development?

We are currently taking part in a merger with Qurain Petrochemicals that will enhance our portfolio. We are taking great steps toward integrating digitalization into all aspects of our business. It is an important milestone. In this new portfolio, we will include alternative investments or strengthen existing ones, such as the logistics and healthcare. We have education, food, petrochemicals, banking, media, and oil and gas. With the support of our other companies, such as SADAFCO and ATC, we aim to enhance our portfolio in the foodstuff and healthcare sectors. Especially with the net zero goal and the ESG, we are looking more into renewable energies. We are working

in alignment with the government, looking at its policies, and trying to support the change by creating jobs or putting Kuwait on the map for renewable energies. Additionally, Kuwait is facing a major housing problem, and this is where KIPCO can help the government, by delivering projects and accelerating the developments.

What are the greatest skills and strategies women can employ to excel in the Kuwaiti business scene?

When it comes to the ways in which women can overcome challenges, there are a few tools and strategies. First, women typically have to double or triple the amount of work to be viewed as having made progress in comparison to their male colleagues. This requires patience and resilience in order for us to move forward. Moreover, women are multi-taskers by nature and tend to be less emotional about business matters, which greatly improves their leadership and management skills. Business opportunities for women in Kuwait are significantly better now. In the 1980s, there were fewer women working in the private sector. Now, it is completely different. The entire dynamics of society have changed. For example, there are now three female CEOs in the banking sector. Women have also become more prominent in industry and logistics. Even at the government level, there are two ministers now. In the end, through diligent work and resilience women can truly excel in the workplace, as they do in life.

Where does KIPCO plan to focus its efforts in the coming months?

We will make the greatest effort in food security, medicine, healthcare, education, and technology. These are the basics. Since January 2022, we have been working on diversifying our portfolio, and due to the nature of Kuwait Vision 2035, it feels only natural to focus heavily on the fundamentals. We want to align ourselves with the government and help Kuwait grow. There are also other pillars, such as banking and insurance, which are the extras. We are working on improving our agility and become even larger following the merger. We will have to reevaluate our assets and choose our portfolio going forward. We aim to deliver great yield for our shareholders and grow our company. With the right strategy and a sustainable approach, we are certain to make the most of what is yet to come. ✖

BIO

Sheikha Dana Nasser Sabah Al Ahmad

Al Sabah was appointed KIPCO’s Group CEO in January 2022 and has been a board member since 2020. She is the founder & chair of the board of trustees of the American University of Kuwait (AUK) and chairperson of United Education Company. She was formerly CEO of Al Futtooh Holding Company and currently holds board positions in Gulf Insurance Group, OSN, and Kamco Invest. Sheikha Dana holds an honorary doctorate of Humane Letters from Dartmouth College in the US and a BA in English literature from Kuwait University. She also studied at Indiana University in Bloomington in the US.

THE RIGHT guidance

Abousleiman REGIONAL DIRECTOR, GCC COUNTRIES WORLD BANK

Reforms required to accelerate Kuwait Vision: 2035 Green Growth agenda could greatly improve the economy

As an organization with macro-expertise of the world’s economy, what is the World Bank’s perspective on the progress of Kuwait?

BIO

Issam Abousleiman joined the World Bank in 1989 in the loans department and, since then, has held various positions across the institution, including head of financial advisory and banking at the World Bank Treasury and principal investment officer in the banking and debt management department. His most recent assignment was country manager for Colombia in the Latin America and Caribbean region. His regional expertise includes Africa, Asia, Europe, Latin America, and the Middle East regions. Abousleiman is a graduate of the Harvard University Executive Management program and holds an MBA in finance and investment from George Washington University, as well as an MBA in management from the American University of Beirut. He is a certified Financial Analyst (CFA).

Kuwait’s economy is set to continue recovering from the contraction brought by the pandemic in 2020. Developments in the oil economy have supported the recovery, with Kuwait’s oil price and production levels increasing by 51.5% and 13.6%, respectively, during the first 10 months of 2022. Oil exports in Kuwait rose by 81% during 1Q2022 (YoY), prompting a 270% widening of the current account surplus, which is estimated to reach 28.5% of GDP during the same period. Economic growth is forecast to accelerate in 2022 to 8.5% before moderating to 2.5% in 2023 and 2024, respectively. After growing by 13.4% in 2022, the oil sector will continue supporting growth as more capacity from the Al Zour refinery comes online in 2023, despite signals of more cautious OPEC+ scheduled production. Likewise, the non-oil sector in Kuwait is anticipated continuing to expand in 2023 following a 7.7% uptick in 2022. More robust demand will be translated into additional upward inflationary pressures, though monetary tightening and decreasing global food prices will moderate inflation in the medium term.

Taking into account Kuwait’s heavy reliance on the oil and gas industry, what solutions could be implemented to increase economic diversification?

Kuwait, like other GCC countries, wishes to diversify its economy away from oil, and indeed, its potential is tremendous. Vision 2035 provides a solid road map; one that can be updated over time; however, significant reforms are needed to realize its objectives. Examining the case of other GCC nations can guide Kuwait to the right policies to diversify the economy—encouraging FDI by ensuring a streamlined and supportive business environment. Neighboring countries are moving ahead with 100% foreign ownership and long-term residency: developing the knowledge economy and moving into high tech areas. GCC countries are looking at what role their sovereign wealth funds can play in supporting growth industries such as the tech sectors and reorienting their education and training systems to meet the demands

of tomorrow’s workplace. Finally, rationalizing employment in the public sector and encouraging youngsters and women to embark on exciting careers in the private sector is also important Kuwait is a relatively a small country and can transform itself rapidly within the right policy reform framework.

What is the current scope of the World Bank’s support of the local authorities?

The government of Kuwait and the World Bank have a longstanding partnership built around an increasingly strategic Advisory Services Program begun in the early 1960s. Kuwait has been a strategic partner that has supported developing nations’ progress. One of the first reports delivered in 1961 focused on the state of the Kuwaiti economy. The opening of the World Bank’s Country Office in 2009 expanded the program with the aim of helping the government improve socio-economic conditions, including human capital, private sector development, and governance. The government has defined a clear path for sustainable growth with the Vision 2035/New Kuwait aimed at transforming the country into a regional financial and commercial hub by 2035. The seven pillars of the Vision are expected to be realized through the Third Kuwait National Development Plan (KNDP-3) 2020-2025 and subsequent national development plans. This is now also embodied in the Government Program approved in November 2022. Building on achievements and lessons learned, the World Bank and the government of Kuwait have agreed to a Country Engagement Framework (CEF) for 2021-2025 with the following thematic pillars: enabling the private sector to become the engine of growth and job creation in a diversified economy, investing in human capital as a key factor in wealth formation, enhancing governance and improving the effectiveness of public administration and service delivery, and promoting sustainable infrastructure and a healthy living environment. The CEF is also guided by a Gender Engagement Framework that will support a crosscutting approach to enhancing women’s economic opportunities, and promote an enabling environment for their employment, entrepreneurship, and leadership. ✖

Issam

The World Bank has been helping the Kuwaiti government to improve socio-economic conditions, private sector expansion and governance, and developing human capital.

By going green, Kuwait could export more oil

PUSHING FOR CHANGE

Public and private stakeholders are implementing programs of social uplift in Kuwait.

KUWAIT HAS SEEN a wave of societal changes over the last couple of decades. From the simplicity of the pre-oil era to its current state of wealth, multiculturalism, and modernization, Kuwait has seen quite a transformation. While retaining the essence of its Arabic and Islamic identity, the Kuwaiti culture has been truly dynamic in evolving in pace with the spirit of the age. The Kuwaiti people are increasingly caring about new values from equal opportunities to the importance of mental health.

This cultural transition is supported by public and private institutions in the country. Alnowair foundation, for example, takes pride in “bringing positive social and behavioral change” to Kuwait, while raising awareness about socially important issues, “one mind at a time.” Public stakeholders such as the Ministry of Education and the Higher Authority for Planning and Development are also trying to do their bit.

WOMEN IN LEADERSHIP

Kuwait has been among the first in the GCC region to embrace the empowerment of women. In the 1990s, Kuwait University, for example, was the first major Arab academic center to have a woman president, Dr. Faiza Al-Kharafi. There are similar instances of women making it to the top in the media, executive positions, and the judicial system.

In a historic turn in 2020, eight women took the legal oath of office, becoming the “first women to be sworn in as judges in Kuwait,” according to Kuwait Times. This was followed by the appointment of 13 female prosecutors in 2022—who made up nearly 25% of the new judicial appointments in that year.

“And to further support these gender reform efforts, the General Secretariat of the Supreme Council of Planning and Development formed the Women's Affairs and Business Committee in May 2021 with the mandate of boosting women’s economic empowerment,” reads a blog post by the World Bank. This has reinforced the place of Kuwaiti businesswomen in the nation’s economy. The likes of Sheikha Bashayer Al Sabah-Arab, Noor Al Qatami, and Rana Al-Nibari are frequently seen in the country’s business ecosystem these days.

Steps have also been taken to encourage leadership among women from an early age. The country’s Public Authority for Youth, in cooperation with Alnowair foundation, has launched an initiative which focuses on leadership skills among schoolgirls. The initiative uses the medium of drama and performing arts to foster skills such as public speaking, audience engagement, and performance under pressure among young women.

And in the private sector, companies in Kuwait recently launched the Women’s Economic Empowerment Platform (WEEP), providing

practical guidance to businesses to empower women

COMMUNITY VALUES

A thorough societal change will not be possible without the promotion of the right community values. Foundations such as Alnowair have taken it upon themselves to make a difference in this area. Sheikha Intisar Al-Sabah, Alnowair’s founder, spoke to TBY about its various initiatives. The Boomerang project, for instance, which has the support of the Ministry of Education as well as the private sector, has reached out to over 11,000 students so far to “prevent bullying and promote kindness among students and the wider community,” as Sheikha Al-Sabah puts it.

Sheikha Al-Sabah told TBY about yet another initiative called “30 Yellow Benches.” This progressive project is intended to increase the residents’ peace of mind through activities similar to meditation. The promotion of mindfulness and peacefulness is undoubtedly needed in a society in the process of modernization, where some may feel overwhelmed and confused. By designing and installing benches in Kuwait City, Alnowair has invited citizens to take a few minutes off, simply sit down, empty their minds, and engage with their environment.

“The wonderful thing is that you can find them everywhere. We have installed them in the desert, on the beach, at the animal shelter, and in the parks. The project has been a great success so far,” notes Sheikha Al-Sabah.

IMPORTANCE OF MENTAL HEALTH

With Kuwait’s transformation into a more complex society, the issue of mental health has indeed come to the forefront. With Kuwait rapidly evolving, the nation is more exposed to the stress and other downsides of modern life. Loneliness, anxiety, and depression are currently major threats inside and outside the workplace in many developed economies. Fortunately, however, health authorities in the country are taking mental health problems seriously, including by launching awareness-raising campaigns. The country’s Ministry of Health launched a campaign called “Now I Understand” in 2022 to support those affected by issues such as stress and depression, letting them know that there should be absolutely no stigma attached to these conditions.

Dr. Dina Al-Dhubaib from the Ministry of Health explained to The Times Kuwait that the “campaign emphasizes the importance of mental healthcare for all ages,” adding that “mental healthcare is not limited to the mental health clinic but is the responsibility of every individual anywhere.” It is hoped that the initiative will encourage those at risk to seek professional help, thus making the country’s population healthier and more efficient individuals. ✖

BIO

Fatima AlSalem holds a PhD in mass communication from Indiana University Bloomington in the US and is currently the Chairman and Director General of KUNA. She was previously an associate professor of mass communication at Kuwait University, where she has taught public opinion, global communication, digital media, and news writing. An avid researcher, she has published many research articles on journalism and social media in Kuwait in numerous international and Arab academic journals. She has also participated in many local and regional conferences where she represented Kuwait with her research. She has published three book chapters on Kuwaiti media and women’s political participation. Moreover, AlSalem has served as an advisor in several government committees.

Fatima Al Salem DIRECTOR GENERAL, KUWAIT NEWS AGENCY (KUNA)

What is KUNA’s mandate?

KUNA was established in 1979 to provide Kuwait with an international presence and be a source of information for the nation and for international offices. What makes us reliable, and what makes KUNA a successful story of over 50 years, is the way it is structured. KUNA is funded by the government, yet very independent. We have our own internal rules and regulations. We have the freedom to cover news stories and have our own sources. The whole structure is built to be an independent institute. In addition to that, when KUNA was first established, it hired excellent journalists, and provided them with international training. Then, it signed MoUs with various news agencies around the world for news sharing, but also training. Our journalists have been trained at the BBC and Reuters, and other major agencies around the world. The other thing is that KUNA has a unique position in our society, being the only news agency in Kuwait. What many do not understand is the fact that we provide the news to those entities who

provide the news to the public. This makes us unique. Moreover, our journalists are truly world-class. They are objective and strive towards accuracy. Our work ethic is built around the main values of journalism, which are objectivity, truth, and integrity.

What is your perspective of KUNA’s participation in the digitization of the media?

Kuwait has the highest registration rate for use of social media and digital news in the MENA region. We have a vibrant culture of digital media, and people are advanced in its use. The penetration rate of smart phones is 240%. One has to adapt to this reality or else go out of business. Many, if not all, have already become digital news providers rather than just a printed newspaper. The newspaper will stay, but the way they present news will certainly change. Al-Qabas is a great example of successfully turning a newspaper into a digital news platform. They offer podcasts and videos, addressing the need for digital data. When it comes to KUNA, we have had an app, that was later discontinued, yet now I have assumed my role here, this is one of the major projects on my agenda. We will have our application up and running again soon, and we have also started thinking differently about social media. ✖

strategic GROWTH

KAMCO Invest has grown to become one of the key players in the regional financial services sector and the sixth-largest asset manager in the MENA region according to Forbes.

Faisal Mansour Sarkhou GROUP CEO, KAMCO INVEST

What strategies have underpinned KAMCO Invest’s success as the company expands?

The most important factor is the clear vision and mission that we share across the entire organization. Our vision and mission lay a foundation for the fiveyear plan, budgeting strategies, and yearly revisions based upon progress achieved. We adopt a periodic theme to fit our strategy and early 2022 we focused on collaboration, cooperation and support one another. COVID was a challenging period, which helped us see that through cooperation we can overcome any challenges and were able to continue growing our client base and our asset under management. Today, our AUM stands at USD12.9 billion, making us the sixth-largest asset manager in the MENA region (Forbes ME ranking 2022).

What sustainable strategies and ESG approaches have you been working on?

There are many elements under the ESG umbrella, and we take care of our stakeholders and the wider society. KAMCO Invest was the first investment company in Kuwait to join the UN Global Compact initiative which is in line with our efforts to strengthen our business model by incorporating the UN SDGs within our business functions. This stems from our belief in its 10 principles which are integral to our core values. We are also committed to the Women Empowerment Principles in support of the UN sustainability goals. We published our first sustainability report for 2021 showcasing the company’s continued commitment across environmental, social, economic, and governance aspects. In addition, we focus on being a more transparent organization and our digital platform is designed to suit a diversity of customers.

Recently we have also provided regular support for universities, building Kuwait University’s common area for the finance society. Meanwhile, since the first sustainability report, we have introduced many changes both internally and externally. Our entire activity is digitalized with an environmental orientation.

What are the main advantages of the digital route and your new app?

In the digital arena and during COVID-19, we successfully managed the company offsite. One is today able to sign memos anywhere in the world through DocuSign and other systems. One can apply for leave and do everything else online. Building on that, we wanted to ease the journey of our investors by solving some of their challenges as, from a regulatory perspective, you need to stringently know your customer (KYC). Digitizing that process and allowing clients to do it at their convenience was critical. Now, the KAMCO Invest App allows them to learn how to update documents and helps us communicate with them directly and instantly. We need to do this from a compliance perspective for all our clients. This is part of the strict regulations of Kuwait’s Capital Markets Authority. We focus on the client journey to make their life easier, digitizing their interaction with us, and their ability to review reports and make requests online rather than calling someone. Currently, we are in phase two, where we enable people to invest in our products. Today, having a mobile civil ID in Kuwait allows anybody to open an account digitally with access to our mutual funds, which rank first and second among conventional funds and first for Islamic funds in the Kuwaiti stock market.

What are your plans to develop the app?

We hold public sessions to educate people on investments and financial literacy. Introducing more education-based content onto the app may occur over the coming years. From a technological perspective, creating content is an undertaking in itself. KAMCO Invest is the only company in the country with a fully-fledged research team with a substantial output on the app. We are creating reports on the energy sector, real estate, and banking, and provide daily and weekly market color. We have two types of research, the buy-side, and the sell-side, which is not client-centric. All of these contribute to KAMCO Invest’s ability to provide comprehensive and useful support for our stakeholders, and all interested parties. ✖

BIO

Faisal Mansour Sarkhou was appointed Group CEO of KAMCO Invest in 2014. He has extensive experience in investment services namely investment banking and asset management and joined the company in 2000. He has held several managerial positions including head of corporate finance and head of financial services and investments. Earlier in his career Sarkhou was a member of the corporate finance team at KPMG in Kuwait. He sits on the board of several companies, is a member of advisory boards and executive committees, and is a prominent speaker at various investment forums. Sarkhou holds a BSc economics degree with honors from the University of Birmingham, UK and an EMBA with distinction from HEC Paris, France.

FORWARD looking

KPMG is looking to help companies in Kuwait with upcoming changes such as ESG requirements in line with the increasingly diversification of the economy.

Rasheed Al-Qenae MANAGING PARTNER, KPMG KUWAIT

Which of KPMG’s solutions are the most sought after in the Kuwaiti market?

In Kuwait, KPMG provides audit, tax, and advisory services. In terms of our focus areas, we noticed that the COVID-19 crisis highlighted technology as the space to improve upon. Companies have seen how powerful technology can be for their business by helping in lowering costs, increasing efficiency and so forth. The pandemic also made people more aware of the need for cybersecurity, which became one of our priorities. Companies are exposed to cyber threats due to technological shifts, which is one of the major pain points of our clients. We have become a knowledge advisor and a means of improvement for our clients, working to resolve these potential concerns even before they arise. Technology can be extremely powerful when applied using the right procedures and tools. You need to develop the right infrastructure to support your system and keep your data safe.

In 2022, KPMG in Kuwait launched the first edition of the KPMG Private Enterprise Global Tech Innovator competition in Kuwait. How was this initiative received in the country?

came forward for the competition, and we are certainly noticing a spring in their step post completion. KPMG is only the facilitator and does not gain from this event.

What are the priorities of KPMG in Kuwait for 2023?

BIO

Rasheed Al-Qenae is the Managing Partner of KPMG Kuwait and Head of Tax—Middle East and South Asia (MESA) region. His expertise lies in advising large multinationals on tax-related matters and infrastructure projects in Kuwait. He brings valuable experience from working with the department of income taxes in Kuwait for years and has had a wide range of clients from multiple sectors, including oil and gas, aviation, financial services, and retail.

Kuwait has certainly responded positively to this idea. Early-stage tech companies from over 30 countries participated in the event, with 25 applications from Kuwait alone. The event provided a great platform to support the growth of participating tech start-ups and gave them the opportunity to present their ideas to a global audience and network with industry leaders, investors as well as other competitors. Bounce, an edtech start-up, emerged as the country winner and went on to represent Kuwait in the global finale at Web Summit, Lisbon, where Hull-based HiiROC was named the overall winner. We intended to put these young entrepreneurs in front of investors who are more likely to be interested in their ideas, considering many of them are constantly disrupting their respective sectors. Our goal was to promote great ideas and accelerate the development of innovative techpreneurs who

Our focus for 2023 will be ESG, which is the priority for KPMG globally and not just in Kuwait. We aim to contribute toward the diversification of the economy and help it become less reliant on the oil and gas sector. While there are still no ESG compliance rules in Kuwait, we expect them to be introduced soon. The positive thing about international companies present in the country is that they are likely already ESG-compliant due to the regulations elsewhere, which will certainly accelerate the transition. We are planning events and initiatives to make our clients more aware and prepared for these changes. We want to educate them on the reporting standards and systems they can use to advance their operations. We will ensure our clients and communities are ready for this change before it happens. Another focus for KPMG is digital transformation. We currently work with a number of organizations that want a complete digital makeover of their business. Along with this, we are focusing on cybersecurity. We want to help our clients transition to digital as early and swiftly as possible. Finally, we want to improve our team; our focus is mainly their work-life balance. We introduced several changes since the pandemic struck, and these work for the betterment of our team’s health and efficiency. At this point, we are working using a hybrid model. Some physical interaction is necessary because activities such as networking and negotiation are better done in person; however, organizational administration can, for example, be dealt with via online channels. The recipe for success comes down to balance and moderation, which is what we have been exploring. The hybrid model is likely to continue as the newer generations are becoming more tech-savvy. ✖

attractive OPTIONS

Considering the economic challenges of the present, what strategies and tools would you recommend in taking advantage of the investment opportunities available?

The opportunity is in investing in capital efficient start-ups, because we are seeing the best entry points, due to the economic reset. All other asset classes are going through a serious correction, and no one can determine when the bottom will be reached. This also caused the investments landscape to change materially since the end of 1Q2022. Rock-bottom interest rates since 2008 drove investors to take increasingly bigger risks, pushing stocks to record highs. That party is over now, and reality has set in. Moreover, the US Fed’s aggressive rate hikes—meant to cool the economy and, thus, consumer spending—rippled through the markets and upended the way investing has worked since the financial crisis.

What is your perspective on the different asset classes and their situations at the moment?

When it comes to real estate, in December 2021, the US rate on the 30-year mortgage was at 3%; now, it is more than 6%. The pandemic housing boom is a bust, and many companies in the sector have laid off their employees. It is not clear if US home prices are anywhere near the bottom. The S&P500 is down more than 20% for the year, as the higher-rate environment changed investors’ appetite. We cannot yet pinpoint where this will take the stock market in the coming months. Typically, when stocks are down, investors turn to bonds, though this is not the case right now. With rates on newly issued bonds moving higher, investors have dumped older bonds and favoured short bonds, making the market unreliable. Depending on how we measure it, this sell-off led to perhaps

Fahad Al-Sharekh GENERAL PARTNER, KAMCO JEDI FUND KAMCO INVEST

the worst sell off in decades. Finally, some consider cryptocurrencies to be a suitable hedge against inflation; however, as inflation rose, and the Fed started tightening, crypto sold off just like any other risk asset. This has set off a domino effect of several failed companies and currencies.

What investment advice would you provide for 2023? 2023 will be a great year to invest due to the major reset that all capital markets have realized. Therefore, it is the best entry point in over a decade. The uncorrelated asset class with the public markets that are going through a material correction in valuations and market capitalization is the early-stage VC; however, VC requires investing with experienced and well networked managers to get to the best deals early. Therefore, the best advice is to invest with emerging managers in VC funds. Emerging managers in venture capital, also known as first-time or new fund managers, are often considered to be a high-risk, high-return investment opportunity. The reason for this is that these managers are typically less experienced than established managers and have a smaller track record of investments. However, many emerging managers have unique perspectives and strategies that can outperform more established managers. Additionally, emerging managers may be more willing to invest in the early-stage and high-risk companies that established managers may not be as comfortable with. This can lead to a higher potential for returns when these companies are successful. Furthermore, emerging managers are typically more nimble and able to make quicker decisions than established managers, which can be an advantage in a rapidly changing market. ✖

BIO

Fahad Al-Sharekh is well versed in the technology and finance ecosystems in both MENA and the US, having previously served as group managing director of Sakhr Software, and is currently General Partner of The JEDI Fund and Vice Chairman of Kamco Invest - Saudi. He joined the Investment Banking team at Brown Brothers Harriman & Co. in New York at the start of the tech boom. He founded TechInvest in 2015, an advisory firm that provides opportunities for Middle East investors, including established sovereign wealth funds like Mubadala and Kuwait Investment Authority (KIA).

In an unpredictable and rapidly evolving market, Kamco JEDI Fund has valuable advice in terms of the available investment opportunities.

Venture capital demands experienced managers to be successful

2023 might be one of the best years to invest in over a decade

AN EYE ON DEVELOPMENT

THE STATUS QUO in a large number of sectors has been challenged by the introduction of several key technologies in just under a decade. Green energies have become a viable alternative to fossil fuels, leading to the reshaping of the energy sector. The transport sector, meanwhile, is undergoing a paradigm shift with the introduction of electric vehicles by many automakers. Most importantly, the finance sector has seen the rise of fintech, cryptocurrencies, and smart banking powered by AI.

Kuwait is no exception. In fact, thanks to its prosperous economy, Kuwait has been an early adopter of many game-changing technologies. The country’s private sector is leading the way, creating a wave of drastic reforms across several industries. This is in keeping with the Kuwait’s Vision 2035, which identifies digital transformation as one of its pillars.

In November 2022, the Kuwait Digital Transformation Conference was inaugurated in Kuwait City to “showcase the latest technologies & solutions for digital transformation,” according to Zawya. Held by the Central Agency for Information Technology (CAIT), the conference gathered together over 500 professionals and executive managers to discuss the country’s prospects in the face of an economic ecosystem in the middle of transformation.

Almost all presenters and panelists were unanimous that the region is caught in the middle of a rapid digital transformation and business practices need to be rethought accordingly. This may seem like a challenge in a society such as Kuwait, where routines, traditions, and the old way of doing things matter; however, the country’s leadership has been open in adopting new practices as long as they accelerate Kuwait’s path toward achieving its economic goals.

The event’s keynote speaker, Ammar Husseini, deputy director-general of the Central Agency for Information Technology (CAIT), summed up this attitude by explaining that “our aim is to enhance the efficiency of cloud-based applications and enhance the performance of key entities and industries in Kuwait in line with the Kuwait Vision 2035,” according to Zawya.

Sustainability is the common denominator of all these changes. While revolutionary changes are taking place across the finance and automotive sectors, the energy which powers these sectors is also increasingly coming from sustainable sources. The inevitable metamorphosis of the energy sector may be the greatest change that Kuwait’s economy is facing.

Despite its status as a traditional exporter of hydrocarbons, Kuwait has taken some steps toward embracing sustainable energies. The country’s goal is to raise the share of renewables to 15% in its energy portfolio by 2030. The Shagaya Renewable Energy Park is the focal point of Kuwait’s developments in sustainable energies. Located in the middle of a desert 100km to the west of Kuwait City, the energy park has huge potential for photovoltaic (PV) expansion. “Phase

2 of Shagaya will include a 1,500-MW PV solar plant, which will be the second-largest PV plant in the world,” according to the National Center for Atmospheric Research (NCAR).

Whether it is shifting to renewables or to accelerate digital transformation, many believe that Kuwait is agile enough to not only adjust its economy to the changing realities of the outer world, but also to make profits. “I think Kuwait can benefit tremendously from these developments and plans. Because it is a relatively small country in size with one of the highest GDP per capita figures in the world, there’s room for the government and private sector to implement changes swiftly and effectively,” said Palladium’s Abdullah AlNabhan to TBY recently.

Almost every observer is unanimous that Kuwait should not miss this opportunity to go through an economic transformation now, because thanks to reasonably high oil prices most GCC economies, including Kuwait, will continue to grow at least until 2023. This will provide the government with enough funds to safely implement an overhaul across its economy. The S&P Global Ratings has forecasted that “Kuwait’s economy will grow by 8% in 2022, followed by 5.5% in 2023, mostly on account of rising oil production as OPEC+ cuts are discontinued.”

All this has created a series of new opportunities for the tech-savvy youth of Kuwait. The nation’s entrepreneurs are trying to capitalize on the imminent changes in the way of doing business, especially in areas such as digital finance, green energy, and electric vehicles. “Youth, in particular, consider entrepreneurship as means to achieve their personal and professionals’ aspirations and contribute to socioeconomic development,” observed the Kuwait Foundation for the Advancement of Sciences (KFAS) in a 2021 report. The same report found that “there is a favorable perception, locally, regarding entrepreneurship,” with up to 60% of Kuwaitis believing that the time is ripe for new enterprises in the start-up scene.

The country’s inevitable transformation is also presenting the nation’s savvy entrepreneurs with an opportunity: the Kuwaiti economy can capitalize on its notable accumulated wealth to support new enterprises in emerging fields discussed here. Although some projects will fail, those that succeed will be able to drive Kuwait’s economic transformation. This will be possible only by raising the state’s investment in R&D—which in 2020 stood at 0.2% of the GDP—and then by offering financial helplines to entrepreneurial initiatives in emerging and sustainable sectors.

The trend has already begun. “The focus on start-ups relates to Kuwait, which is now home to a thriving start-up scene. In just the past year, start-ups Justclean, Floward and Raha have raised USD6 million, USD27.5 million, and USD6.7 million in funding, respectively,” reported Arab Times in 2022. And hopefully we will see more activities in the start-up ecosystem in 2023. ✖

Kuwait is witnessing a paradigm shift across several economic sectors from banking to energy, with sustainability being the common denominator.

Abdulrahman Al Khannah GROUP CEO, BEYOUT INVESTMENT GROUP (BIG) HOLDING

What is the scope of business and the story behind BIG Holding Co?

A ROLE to play

BIO

Abdulrahman Al Khannah is an experienced CEO, heading BIG Holding and its subsidiaries. With over 16 years of experience, he has held positions on the boards of several companies and currently sits on the board of Imtiaz Investment Group – Kuwait. Al Khannah holds an MBA from Gulf University for Science & Technology and a bachelor of engineering (civil engineering) degree from the University of Kuwait. He has also taken various executive courses in strategy and leadership.

BIG Holding Co. started as a family-owned business, which is why initially our company’s portfolio was quite broad. However, since we are targeting to be listed on Boursa Kuwait during this year, we must reshape and restructure the company differently and we have made some changes in the past months to address this. Our focus will be on real estate and logistics as our two main areas of operation. When it comes to real estate, we are focusing on developing facilities for the government and managing them once they are complete. We are working with the government on many tenders, some of them industrial, commercial, and residential. We plan to grow in those areas, which are associated with our traditional real estate activities. What distinguishes us in the sector is that we specialize in the build, operate, transfer (BOT) projects. On the logistics side, we provide complex operational abilities. We are particularly helpful in projects that require major manpower. Our focus lies in manpower supply for support operations. We have been the dominant service provider for US government organizations in Kuwait since 1991, because we are known for the standard and quality of our service, especially related to human rights. Recently, we began penetrating the oil sector, providing companies with highly skilled engineers and support service workers. Another key milestone regarding logistics is healthcare. In 2023, we will have many nurses and technicians supporting the healthcare sector. We also provide healthcare staff to the oil and gas sector with some having their own hospitals. Healthcare is becoming a key sector for us, and we have received positive feedback on the quality of our services and candidates. With the growing privatization, we expect to play a big part in that process by integrating more functions and adding to our portfolio.

What investment opportunities do you observe in the country?

The investment climate here for local

and foreign investors is promising in connection with Boursa Kuwait. The stock exchange rating, MSEI qualification, and FTSE qualification are all improving, so there are more investors coming in. It is an excellent platform that provides foreign investors with liquidity and exposure to the Kuwaiti economy. Privatization initiatives are also promising, and one sector that is currently attractive for investors is healthcare. If Kuwait decides to start privatizing hospitals, we will see many foreign investors coming in. The region around us, such as Saudi Arabia, Dubai, and Qatar, is extremely attractive, and international investors are opportunistic, so the government needs to become more active in attracting those investors by offering incentives, facilities, and projects worth their time. We have a great opportunity in logistics, especially due to our geographic location. For example, if we improve our ports and allow a company like Amazon to have privileges and build here, Kuwait could become more attractive than other locations nearby.

What is your opinion on the topic of sustainable solutions and their implementation in Kuwait?

When it comes to real estate, the government mandates already come with some requirements for sustainability solutions. Even though we have only started this shift recently, the government has already launched projects which include sustainable solutions that we, as developers, must accommodate. Implementing sustainable solutions is heavily dependent on the regulatory framework. What will boost sustainable solutions is a regulatory platform imposed by the government on investors. Incentives are also important. For example, in the UK there are monetary incentives to buy electric cars. There was also an agreement between the UK and Uber for Uber to start using electric cars. The private sector needs regulations and incentives to move forward. From our perspective, it is a matter of time and regulation that this shift will truly reshape our market. ✖

BIG Holding has played a major role in Kuwait’s development, with operations in the areas of real estate, healthcare, industrial, oil and gas, and even logistics.

INVALUABLE assistance

Christoph Saager VICE CHAIRMAN, GERMAN BUSINESS COUNCIL OF KUWAIT

What was GBCK’s experience of the pandemic, and have you changed the way you conduct your activities?

The German Business Council of Kuwait has played an important role in the country, providing members with invaluable advice and networking activities as well as events and reports.

We have changed considerably and were obliged to adapt to the new situation. No personal meetings were permitted during the pandemic. For us, this was our core means of communicating and sharing information with our members. We have set up a group on WhatsApp for German Business Council members to communicate the facts. In the early stages of COVID, there was a lot of conflicting information shared on social media, especially about the situation in Kuwait. We found an approach in which we focused on sharing the facts to the members. That was really an appreciated game changer for many members because at that time, many were operating on a day-to-day basis. There was just the visual side, and nobody knew what was going on or where we were headed. It has affected both the business and the private dimension of everyone’s life. Offices were closed, and home offices were established for the first time. We used video conferencing to host our events online, but we were looking forward to having them in-person again. Now, we are back to personal meetings after restrictions eased, but it gave us a lot of food for thought on how to communicate in the future.

opens our doors to non-members that add and receive value from the event. With every new year, we review our membership process and events and adapt to the current situation. This has been even more the case since the pandemic.

Are there any particular plans and expectations for the German Business Council going forward into 22 in terms of enhancing its activities or changing the way you operate?

BIO

Christoph Saager joined Standardkessel Baumgarte Group (SBG) in 2009. After he graduated during his military career with an MBA from the University of the Federal Armed Forces in Hamburg, he served as military officer and a civil servant in various federal authorities, the Ministry of Defense, and the Ministry of Foreign Affairs mainly in Europe, the Middle East, and North Africa. His last employment was as first secretary in the German Embassy in Kuwait.

Have you revised or changed the application process, allowing people and companies to join even though they are not from those countries?

Yes. In the beginning, we had a waiting list because of the limited space available for events held at the residences. The board then decided to focus on the quality of our services by focusing on a core membership with the added value of guests, depending on the topic of our business event. This enables us to be more flexible when it comes to venue changes and

We all volunteer to sit on the board, which we do on top of our daily jobs. We will continue with our core program, the monthly “Stammtisch,” which is an informal get-together where everyone can join and the official business meeting for sponsors and members, which usually happens at the residence of the Ambassador. When inviting speakers, we will continue to focus on important topics and once a year, we attempt to realize a site visit to one of the more interesting projects in Kuwait. Just after the restrictions were lifted in 2021, we visited the new airport, which was interesting for our members, content and contact related. We would like to come back to this initiative in 2023. This is a popular event for the members and the diplomatic core alike. Overall, we try to offer a broad range of support to our members. Our improved set-up allows us to also be specific in response to demand. Usually when companies request information relating to Kuwait, such as customs clearances, set-up of offices or schools for their children, we allocate these questions and information to one of our (board) members in that particular sector. Furthermore, we keep our members up-to-date with reports and economic information as well as about business-related events. We work closely with the German, Austrian, and Swiss embassies and are well-connected to local organizations, which complements to the quality of services we offer. ✖

TBY ANALYTICS KUWAIT 2023

100 interviews were conducted for The Business Year: Kuwait 2023 Analytics.

BUSINESS CONFIDENCE INDEX

How confident are you about the outlook for business in Kuwait this year (1-5)?

SECTORS TO WATCH

3.8

3.5

ADVANTAGES & CHALLENGES

What are the most commonly mentioned advantages and challenges of doing business in Kuwait?

ADVANTAGES

• Government-led digitalization initiatives

• Stability

• Robust Islamic banking sector

• Strong support for entrepreneurs

• Education sector adapting to future business needs

CHALLENGES

• Over reliance on hydrocarbons

• Ongoing impact of COVID-19

• Fluctuating oil price

• Slow recovery post COVID-19 in construction sector

BUSINESS COUNCILS

Working to facilitate not only business opportunities in Kuwait with companies from their respective countries, these councils are also increasing local relations and raising awareness of their cultures and success stories.

INDIA AND KUWAIT enjoy historical bonds of friendship based on a string foundation of over 100 years. This was established in 2001 under the patronage of the Embassy of India in Kuwait. There are nearly one million Indians residing in Kuwait. They comprise the largest expatriate community in Kuwait and are engaged in a wide spectrum of professions including medicine, engineering, education, finance, banking, business, and also form a large part of the blue collared workers. They are highly regarded for their honesty, hard work, qualifications and contributions to the development and progress of Kuwait. IBPC’s focus is to promote Indian business and services to enterprises in Kuwait, and classical cultural performances as well. At the moment, we are pursuing a couple of keynote speakers from India to visit Kuwait.

THE ONGOING EFFORT and commitment to implement the Kuwait Vison 2035 will drive the country toward greater success. I believe Portugal, with its entrepreneur DNA, will be able to contribute with its know-how on some of them, including training and sharing of best practices in sectors such as renewable energy, among others. There is room for many mutually beneficial partnerships between Portuguese and Kuwait companies to explore business opportunities. Portugal welcomes Kuwaiti investment and supports all Kuwaiti companies; Kuwait is also a great opportunity for the Portuguese companies. PBCK is also keen to help in that effort by exchanging experiences with Kuwait authorities and the private sector in areas such as the energy transition and economic sustainability; technology, industry, and innovation; AI, data, and cybersecurity; construction; tourism, leisure, and culture; education and R&D; trade; and diversity, equity, and inclusion.

SBCK AIMS to establish a corporate and social platform that will play a supporting role to strengthen ties between the Spanish business, sport, and cultural communities, with public as well as private entities in Kuwait. The council also plans and executes all its activities in close cooperation with the Embassy of Spain in Kuwait and its commercial office. We aim to create a platform for building relationships between the Spanish and Kuwaiti communities. We are focused on not only business, but also on cultural events to promote the Spanish culture in Kuwait. We want to educate the Kuwaiti public about the unique aspects of Spanish culture. Our mission is to start introducing Kuwaiti companies or stakeholders in Kuwait that can add value to Spain and help Spanish companies understand the context of doing business in Kuwait. We are also ready to collaborate with any local entity interested in working or investing in Spain.

THE BRITISH BUSINESS FORUM aims to bring together companies, individuals, professionals, and diplomats to foster partnerships, interactions, and business across borders and sectors. We were more active in the past, though we hope to see a growth in our community in this post-pandemic landscape. Our forum organizes events and quarterly meetings to bring together the different groups and help businesses thrive. We also work closely with the Embassy of Great Britain in Kuwait. Construction is currently the biggest sector in the local economy, especially the Airport Terminal Two project. British companies are taking care of the technological part of that development. Then, there is energy; British Petroleum is still participating in Kuwait, and I doubt it will leave anytime soon. Kuwait is a great space for business in construction or energy. These two areas appear the most prominent for British businesses coming to Kuwait or thinking of coming to the country.

Gurvinder Singh Lamba CHAIRMAN, INDIAN BUSINESS AND PROFESSIONAL COUNCIL KUWAIT (IBPC)

Antonio Campos PRESIDENT, PORTUGUESE BUSINESS COUNCIL OF KUWAIT

Yahya Mahmoud Al-Sheibani PRESIDENT, SPANISH BUSINESS COUNCIL OF KUWAIT (SBCK)

Barry Fautley CHAIRMAN, BRITISH BUSINESS FORUM

FIND A BALANCE

Economic ties between other nations and Kuwait are crucial for the empowerment of expat communities in the Gulf country.

WALKING IN THE BUSINESS DISTRICTS OF KUWAIT CITY, you are more likely to come across foreign nationals than Kuwaiti citizens. Many vacancies across the country’s economy, ranging from manual labor jobs to senior management, are filled by foreign individuals. It is estimated that expats make up 70% of Kuwait’s 4.6 million population.

The reasons behind Kuwait’s popularity with expats are multiple. Kuwait’s famously strong currency combined with the absence of personal income tax is a major attraction for many professionals and unskilled laborers alike. High safety standards and low crime rate have also made the country a desirable choice for many international businesspeople on the lookout for opportunities in the GCC.

The presence of a large number of expats has inevitably affected the local community. Kuwait as we know it is run with the help of foreign workers, and it will be difficult to imagine a Kuwait City without them. However, the expat population has been slightly declining in recent years. The decline led to a 2.2% drop in total population in 2020 followed by another 0.9% drop in 2021. “This may impose more pressure on the labor market in the future,” noted Zawya, adding that “there is an increase in the number of citizens of working age.”

This essentially means that Kuwaitis may want to reclaim some of the jobs previously performed by foreign workers. Although the drop in migrant population may be triggered by the COVID-19 pandemic, the fact that the trend has continued well into 2022 is indicative of other causes. Above all, the decline may be attributed to the country’s longstanding Kuwaitization program.

Kuwaitization is a campaign championed by the country’s government and parliament to gradually decrease the economy’s reliance on foreign professionals by capacity-building among Kuwaitis. “The Kuwaitization drive is part of the government’s push to recruit more of its citizens, a similar push is underway across the GCC where Saudi Arabia and Oman have also been trying to increase the number of locals in employment,” according to Arab News.

In its moderate interpretation, the Kuwaitization drive is indeed a positive thing, as the current ratio of expats to citizens in Kuwait (70% to 30%) is not optimal; however, certain radical interpretations of the Kuwaitization initiative demand a 50% reduction in the population of expats in the space of five years—even if it is through deportation.

Such a rapid change in the country’s demographic can be harmful, leaving many businesses without enough human resources. Nor as Nejoud Al-Yagout reasons in Kuwait Times is it humane to turn away migrant workers en masse. “The more we love our coun-

try, the greater our duty to ensure that it moves in the direction of inclusivity and equality rather than on a path of polarization and exclusivity,” Al-Yagout remarks.

Aside from the ongoing political discussions about the place of expats in Kuwait, all-in-all migrant workers have had a good life in Kuwait so far, as the Indian community is a case in point. With over 1 million Indians living in Kuwait, they form the largest expat population in the country. Over 170 Indian community associations have been registered in Kuwait, which contribute to the welfare and morale of Indians in Kuwait. Meanwhile, there are dozens of schools ran in accordance with guidelines set by India’s Central Board of Secondary Education (CBSE).

However, in the larger scheme of things, the large number of expats in Kuwait is mainly attributable to the large volume of business activities between Kuwait and the rest of the world. As such, business councils can make a difference in the way foreign professionals and businesspeople are perceived in Kuwait. The German Business Council of Kuwait (GBCK), for instance, describes itself as a“platform connecting German-speaking individuals and companies with the local and regional business industry.” And, since its launch in 2005, the council has been successful in cultivating relations between Kuwait’s larger businesses community and “professionals from Germany, Austria, and Switzerland.”

The strengthening of business ties will empower the expat communities living in Kuwait. The American chamber of commerce, better known as AmCham, recently held an event “with the goal to continue fostering business relationships amongst the different business communities,” according to Arab Times. The networking event was held in collaboration with a dozen other business forums, from the Lebanese Business Council to Australian Business Group in Kuwait.

When foreign businesses are contributing to the realization of Kuwait’s economic goals, including Vision 2035, expat communities will undoubtedly enjoy a better image. “Several American companies doing business in Kuwait have supported Kuwait’s vision through different scopes,” told AmCham to TBY. The same is true of businesses from several other countries. “There are many success stories in Kuwait of Indians and Kuwaitis being partners in a variety of businesses like automotive, medical, oil and gas, electrical and industrial fields to name a few,” observes Gurvinder Singh Lamba, chairman of Indian Business and Professional Council Kuwait (IBPC), in an interview with TBY, adding that the “Indian diaspora has proved to be a very trustworthy and reliable partner, in business or as an employee.” Such a win-win deal is unlikely to end any time soon. Kuwait, meanwhile, will emerge as an example of productive cooperation between the local and expats communities. ✖

supportive PARTNER

AmCham Kuwait will continue to work on partnering with local and overseas partners on different initiatives to support the Kuwaiti private sector and the advancement of Vision 2035.

Pete Swift CHAIRMAN, AMERICAN BUSINESS COUNCIL - AMCHAM KUWAIT

What have been the major developments and milestones for AmCham Kuwait in the last few years?

We were able to strengthen our strategic partnerships with local business councils in Kuwait with the support of our partners in the different governmental organizations. Another milestone was becoming the first business council in Kuwait to become a signatory of the Women Empower Principles by the UN’s Global Compact, which has provided us with different tools to educate ourselves and our companies in regard to having a more diverse workforce and creating different opportunities for women in the workforce. We have signed an MoU with the other American chambers of commerce in the GCC to continue our strategic partnership and enable our members to connect with one another, helping them to enter the different markets in the GCC through collaboration with their fellow regional members.

With Vision 2035 in mind and ESG developments well underway, what has been the contribution of American companies toward these goals?

Several American companies doing business in Kuwait have supported Kuwait’s vision through different scopes. Becoming a signatory of WEPs enables companies to further support women in the workforce, and Kuwait has become a strong advocate of women empowerment in the past years, especially with the newly formed Women Economic Empowerment Platform. Several American companies have also developed sustainable practices and have been in discussion with the Kuwait government to start implementing sustainability, as they know that it is important to include policies that protect the well-being of Kuwait’s environment. We have also

seen some major American company names entering the market in this past year alone, which demonstrates that Kuwait has incredible potential to diversify its economy and a wealth of opportunities awaiting to be discovered.

What other initiatives is the council promoting to increase the transparency and fluency of financial abilities of businesses and individuals in Kuwait?

AmCham Kuwait has a banking and finance focus group that discusses the most current issues within that sector. One of the points the group has highlighted is the need for financial literacy, especially amongst young people and women. We will continue partnering with our member companies in order to continue educating folks in subjects such as budgeting, taxes, and more. Financial literacy is crucial for the success of any business, and we will continue to partner with our financial entities, including banks, to create more educational opportunities for our members so that they will be able to utilize different tools for the benefit of their businesses, especially SMEs that might not have access to financial literacy assets.

What investment opportunities and potential developments do you see for Kuwait in the coming year?

During the pandemic, we saw a major switch from traditional work environments to digitalized ones. Even as the pandemic becomes the norm, we see major interest from the government to digitalize several of its sectors, one of them being healthcare. There are some investment opportunities within digital enterprise, blockchain, and healthcare. Kuwait is also continuing with construction, especially certain groups that continue to improve the country by creat-

ing and expanding recreational outlets. We definitely see major opportunities for investment and foreign partnership to bring innovative ideas for entertainment to Kuwait. One interesting subject that is slowly gaining interest in Kuwait is sustainability-related projects, and we hope to see more of these projects in the pipeline. We also hope to see at least 60% of these projects be activated within the next three years so that Kuwait can continue to attract investment and innovation.

What priorities and expectations does AmCham Kuwait hold for the coming months?

Our main priority for the coming months is to continue working closely with our partner companies and our embassy and support the private sector with some of the common challenges within industries. After the pandemic, Kuwait will continue to innovate and work toward economic diversification by supporting different projects and initiatives that are currently in the pipeline. ✖

BIO

Pete Swift is the current Chairman of the American Chamber in Kuwait and has been a key leader on the American Chamber Board of Directors since 2016, having served as the Vice Chairman prior to stepping into the role of Chairman. Pete Swift also serves as the Senior Project Manager- Government Programs for KGL, a post he has held since September 2008. He supports the group’s efforts in operating and managing the US Government business while supporting the group’s capabilities in Supply Chain Management solutions for all US Government businesses and contracts.

MANAGING CHANGE

businesses must face as the digital transformation accelerates.

DIGITAL TRANSFORMATION has been a hot topic and a key pilar of any development strategy in recent years. However, this notion isn’t new, because businesses have been continuously transforming the way they operate since the introduction of advanced technologies. Technology itself has also evolved from an enabler for business to being an integral part of corporate development strategies. Organizations invest in advanced technologies to achieve operational and service efficiencies on a greater scale than few years ago.

However, digital transformation plans need to properly consider the present challenges if they are to succeed. First and foremost, one of the most significant challenges that face digital transformation is the need to adapt an organization’s business model and align it with the overall digital change that is taking place around it. However, transforming the way businesses operate is not an easy fate. For organizations to change from traditional business models to ones that support the successful digital transformation journey, a change in mindsets needs to take place beforehand.

Organizations also need to find the right kind of talent, so they can compete in today’s world. This means they should not just focus on finding employees with skills that match their corporate culture, but also on finding natives who understand how the latest digital trends will shape the future. Technologies are constantly evolving in today’s world, and the only thing that is certain is that it keeps changing. Advancements in AI and disruptive technologies such as robotics, for example, have seen significant investments in recent years and they will undoubtfully replace existing technologies and old practices soon.

Ultimately, the workforce will change due to digital transformation initiatives and the introduction of disruptive technologies will introduce the fear of job losses in markets. As these technologies mature, companies will shift their investments from people to machines. It

is inventible that this will eventually create a warranted employment vacuum that will significantly impact employment markets in the future.

To keep up with the ongoing changes in technology and the workplace, organizations must also be open-minded to embrace change and overcome all these challenges. In today’s world, even non-technical positions necessitate some form of basic tech know-how. However, as businesses embrace and implement digitalization within their organization, virtually every role in the future will require some form of digital skill.

The demand for digital skills in non-technology companies has significantly increased in recent years. Multiple studies have identified a shortage in the availability of talent with digital technologies in markets. Many companies seem to also lack the understanding of the digital skills they require while recruiting employees. These disruptions have created significant challenges for companies as they digitally transform their businesses in the post-pandemic world. Therefore, organizations must provide plans to fill the gap while moving into the future.

Over the next few years, digital transformation is expected to be the top strategic business priority of enterprises in almost all industries. Digital transformation presents organizations with the opportunity to redefine the way their businesses are run using new digital processes. However, for digital transformation to succeed, organizations must adequately invest in technology, and most importantly the intellects that can translate digital plans into tangible results. Organizations that do not properly address the requirements to succeed or tackle the challenges in this continuously evolving digital era will find it extremely difficult to survive a future where disruptive technologies will become key drivers for corporate success. ✖

Khaldoun Al-Tabtabaie, Senior Consultant and Board Member at Warba Bank (Kuwait) and Muscat Clearing and Depository (Oman), discusses the challenges

making a real DIFFERENCE

Al Yaqout and Al Fouzan Legal Group recognizes that it has a key societal and economic obligation toward contributing to sustainable development that extends beyond professional regulations and ethics.

Khalifah Al Yaqout MANAGING PARTNER, AL YAQOUT AND AL FOUZAN LEGAL GROUP

How does Al Yaqout and Al Fouzan Legal Group apply the SDGs in terms of building a sustainable practice?

In 2015, the United Nations introduced the 2030 Agenda for Sustainable Development, which provides a roadmap for eradicating poverty, disease, and inequality, and increasing peace and prosperity for people globally. In addition, it also includes addressing environmental sustainability goals to address climate crises and increase the use of sustainable and clean energy resources.

Primarily, in order to contribute towards sustainable development of the community, employing sustainable development measures must first be done internally. Initially, it is our responsibility to ensure that its environment is healthy and safe to allow its employees to work in an environment where they can excel based on merit. We recognize that the work of both our legal professionals and support staff mainly depends on mental effort. Accordingly, in order to maximize their potential, which would in turn mean maximizing the value give to clients, this requires implementing measures that give effect to the UN SDG (3) Good Health and Well-Being, which covers both mental and physical health well-being. This is achieved by leveling the playing field—by promoting diversity, inclusion and gender equality in accordance with SDG (5) Gender Equality—providing access to learning opportunities, and including measures that promote employees’ physical and mental health such as flexible work schemes that allows for a work-personal life balance. Furthermore, SDG (8) provides for Decent Work and Economic Growth. As studies suggest, decent work does not only entail financial reward, but also moral reward, in which an employee

feels the value of their work and that they are making a difference. Finally, we have partnered with LexisNexis with the aim of advancing the rule of law in line with the LexisNexis objectives—in line with SDG (17) Partnerships for the Goals. To put simply, this entails building awareness of laws and regulations through training programs and seminars, providing legal technology solutions, and engaging in partnerships with government entities, nonprofits, and intergovernmental organizations for legal research projects and continuing educational programs for legal professionals.

How does Al Yaqout and Al Fouzan Legal Group contribute toward achieving the SDGs?

One of the means of achieving sustainability is through legislation, which regulates sustainability and sustainable development, and address long-term issues.

Legislators and policymakers are now introducing laws and regulations that promote sustainability (for example, requiring companies to comply with human rights or environmental protection laws), which are updated frequently to take into account any issues based on the outcome of litigation and recommendations made by the law society in the respective jurisdiction. Al Yaqout and Al Fouzan Legal Group recognizes that we have a societal and economic obligation toward contributing to sustainable development, which extends beyond professional regulations and ethics. The obvious sustainable goal is ensuring access to justice in accordance with UN SDG (16) Peace, Justice and Strong Institutions, which we achieve through an ethical practice of the law through value creation and moving away from a traditional practice involving only the application of the law without taking

into consideration the impact of such action. However, our lawyers play a more critical role in terms of furthering the SDG agenda. Several SDGs go hand-in-hand, which means working towards one goal would also achieve at least one other. Through our legal advisory and advocacy, our lawyers work towards creating solutions to complex legal and regulatory issues, balancing different stakeholder interests, and creating value in their jurisdiction. For example, at YFLG, we adopt a stakeholder capitalism approach in corporate law advisory works, with lawyers assisting in meeting UN SDG (8) Decent Work and Economic Growth as more job opportunities are created. Also, YFLG also includes a project advisory practice, in which our lawyers advise on infrastructure projects—hence meeting SDG (9) Industry, Innovation and Infrastructure— and renewable energy projects—SDG (7) Affordable and Clean Energy—which collectively leads to meeting SDG 11 Sustainable Cities and Communities. ✖

BIO

Khalifah Al Yaqout is the managing partner at Al Yaqout and Al Fouzan Legal Group. He is an experienced litigator, with the right of audience before the Court of Cassation. In addition to his managerial role at the firm, Khalifah frequently advises and litigates on behalf of clients in relation to commercial, civil and administrative cases. Furthermore, he is also an arbitrator in the Kuwaiti International Chamber of Arbitration, as well as a consultant to the Minister of Social Affairs. Previously, he was also a consultant to the Minister of Electricity and Water and the Minister of Commerce and Industry. Al Yaqout is a recommended lawyer by Legal500 in Kuwait.

Al-Yaqout & Al-Fouzan Legal Group discusses sustainability initiatives under Kuwaiti law.

SUSTAINABILITY INITIATIVES UNDER KUWAITI LAW

FOREIGN DIRECT INVESTMENT LAW

Foreign direct investment is regulated under Law no. 116/2013 (“Foreign Direct Investment Law”). The Law established the Kuwait Direct Investment Promotion Authority (“KDIPA”) which is responsible for licensing, regulating and overseeing the activity of foreign investment in Kuwait.

Under Article 3 of the Foreign Direct Investment Law, KDIPA is authorized to exercise its authorities in light of the general policy of the State of Kuwait, the adopted economic development plans, the development of the productive sectors, the diversification of the sources of national income in the State of Kuwait as well as the creation of job opportunities for the national workforce and the improvement of its productivity and professional skills in using the latest technology in accordance with the best international practices adopted in this regard.

In addition to the Foreign Direct Investment Law and its Executive Regulations (Ministerial Decision no. 502/2014), KDIPA set out its criteria for foreign investors to meet in order to be eligible for an investment license.

The criteria is geared towards sustainable development and guiding foreign investors to have a stakeholder capitalism approach when investing in Kuwait. In order to qualify for an investment license, KDIPA requires the foreign investor to include sustainable development initiatives

The

in its business plan for Kuwait. This includes contribution to the non-oil sector to GDP, or contribution to industry, innovation and infrastructure of Kuwait. In addition, consideration is given to aspects such as transfer of technology, creation of job opportunities and training programs for Kuwaitis, creating research and development facilities or programs, and introducing modern management methods in Kuwait. Last but not least, investors are also encouraged to create corporate social responsibility and environmental sustainability initiatives as part of their investment in the Kuwaiti economic.

The application for an investment license is based on a point-based system, whereby the more an investor demonstrates its contribution towards the local economy via the aforementioned criteria, the more points an investor is granted which in turn makes the investor eligible for tax and customs exemption for up to 10 years.

PPP

LAW

Public-private partnership projects (“PPP Projects”) is a model used to build, finance, and operate projects between a government agency and the private sector, which is most commonly used for government megaprojects for public use or benefit such as public transportation networks, energy plants, educational and medical facilities. There are several sustainability

goals that the PPP model seeks to achieve, including building resilient infrastructure, developing public services using innovative private sector technology, and engaging the private sector in major projects (thus creating jobs which lead to economic growth). Furthermore, with reference to the UN Sustainable Development Goals (SDGs), other goals such as Goal 3 Good Health and Well Being, Goal 4 Quality Education, Goal 5 Clean Water and Sanitation, Goal 7 Affordable and Clean Energy, Goal 11 Sustainable Cities and Communities and Goal 17 Partnerships for Goals are met depending on the type of project as well.

PPP Projects are regulated under Law no. 116/2014 (“PPP Law”) and its Executive Regulations (Decree no. 78/2015).

Article 4 of the PPP Law establishes the Kuwait Authority for Partnership Projects (“KAPP”) which is cooperates and coordinates with Kuwaiti public authorities for the implementation of PPP Projects. Its responsibilities include (as per Article 6 of the PPP Law), among other things, undertaking preliminary studies to identify projects that may be tendered under the PPP Law, conducting feasibility studies for such projects, and if deemed feasible, tending the project under the PPP Law –including drafting tender documents and project contracts. Subsequently, once the PPP project is awarded to a successful investor, KAPP is entrusted with the authority to monitor the implementation of the

content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

project, and (if applicable) incorporate the project company.

As per Article 2 of the Executive Regulations, ideas for projects may be submitted to KAPP by the Supreme Committee for Public Private Partnerships (created pursuant Article 2 of the PPP Law), a public entity or the private entity. In case of the latter two, KAPP submits its recommendation to approve or reject the project idea to the Supreme Committee, based on a detailed analysis of the project concept (Article 5 of the Executive Regulations). The objective of these provisions of the PPP Law is to provide leeway for ideas to flow from different sources, while KAPP focuses on defining and monitoring compliance with economic and social development goals. In order to ensure transparency and level the playing field between investors, the PPP Law and its Executive Regulations sets out the principles of tendering a PPP project for each phase (Expression of Interest (EOI), Requests for Qualification (RFQ) and Requests for Proposals (RFP)) as well as the requirements to incorporate the project company by the successful investor for projects whose value does not exceed KWD 60 million, and the incorporation of the project company by KAPP for projects with a value higher than KWD60 million including percentages of shareholding allocation (Article 60 of the Executive Regulations).

As per Article 18 of the PPP Law, the

term of investment is not more than fifty years from the date specified in the Project Agreement. At the end of the term of investment, the ownership of the project and its facilities are transferred to the public entity (Article 18 of the PPP Law). Having a long term for a project is one of the key aspects of its sustainability, as supported by UN SDG Goal 17 ‘Partnership for the Goals’.

ENVIRONMENTAL PROTECTION LAW

Another key legislation contributing towards sustainable development in Kuwait is Law no. 42/2014 - Environment Protection Law. As per Article 3, the Law aims to achieve the following objectives:

1. Protection of the environment and its natural resources, and maintaining the natural balance in the entire territory of the State of Kuwait.

2. Combating the environmental pollution and degradation in all its forms and avoiding any immediate or long-term damage resulting from the plans and programs of economic, agricultural, industrial, touristic, architectural development or other activities and development programs that aim at improving the living standards.

3. Development of natural resources and ensuring the achievement of the sustainable development objectives and the conservation of biodiversity in the entire territory of the State of Kuwait.

4. Protection of society, human

health and living organisms against all hazard activities.

5. Protection of the environment against the hazard activities and actions that take place outside the territory of the State of Kuwait.

The Environmental Protection Authority (EPA) was established under Law no. 21/1995, whose primary responsibility is to set and enforce the laws and regulations in relation to protecting the environment, conserving natural resources and ecosystems, and ensure environmental sustainability (Article 7 of the Environmental Protection Law). Furthermore, in addition to its responsibilities defined under the Environment Protection Law, pursuant to Decree no. 8/2017, the EPA is also responsible for regulating air pollution.

The EPA is also responsible for issuing its approval to entities which are involved in project development, based on a mandatory environmental impact assessment required before commencing any work on the said project.

In essence, the Environmental Protection Law along with all international environmental conventions and treaties signed by the State of Kuwait, aim to meet certain UN SDGs such as Goal 6 Clean Water and Sanitation, Goal 7 Affordable and Clean Energy, Goal 12 Responsible Consumption and Production, Goal 13 Climate Action, Goal 14 Life Below Water and Goal 15 Life on Land. ✖

BIO

Dalal Al-Ghanim is the CEO of Chairman’s Club. She holds a BA in advertising from American University of Beirut, an MA in public relations management from Syracuse University in the US, and a BA in fine arts from the Academy of Art College, San Francisco in the US. She was previously general manager of the Chairman’s Club before becoming its CEO in 2015. She was also previously with Gulf Consult and the Commercial Bank of Kuwait.

Dalal Al-Ghanim CEO, CHAIRMAN’S CLUB

The most important thing is to continue learning. They should focus on their education and prepare themselves for the future, whatever it may be. They must continue learning and surrounding themselves with people that help them grow. It is extremely important to keep up with the latest technology.

What can you tell us about the Chairman’s Club activities?

The Chairman’s Club has the atmosphere of getting together the same as public relations.

I did my master’s degree in public relations from Syracuse University in New York. This helped me fit in this business much more. We are an organization that encourages, networking on a high level with the possibilities of creating an environment for collaboration. Our goal is to facilitate change, bring businesses leaders together, and help them make valuable connections.

What is your message for young people looking to have a meaningful career?

What skills and abilities should be fostered by the Kuwaiti education sector?

First we need to use market research to understand what skills are needed for the market of Kuwait. The world is changing rapidly, and we need to use up-to-date fresh information and take action quickly to help learning appropriate for our time. It would be great to see university professors exploring the market and teaching, and teaching their students what they have found from their research. There needs to be an informed cycle of knowledge transfer. Otherwise, we are just repeating echoes of the past and what we need are perspectives on the future; our youth needs to know how to find the right place for themselves in the market. ✖

Amit Arora TAX PARTNER, EY KUWAIT

What priorities and expectations does EY have for the upcoming months?

Our offerings are tailored to what our clients need. We see a sharp focus on digitization, adoption of new technology, improvements in internal controls, and a better framework for cost control. This is where we have focused our attention. We are currently working with many of our clients to make their systems robust and implement new technology solutions. Technology offers two advantages: internal controls on data and business operations, and the ability to achieve cost savings. Our products or service offerings in tax technology space are based on both the models i.e. in sourced and outsourced. For example, while assisting our clients with payroll processing, we do not just replicate what they used to do. Instead, we introduce our products to the process and make sure the systems are robust and cost efficient. Aside from private clients, there is a lot of thrust within government departments and ministries on the digitalizing process. It is a mindset change, which gives us the confidence that leaders of the Kuwait market are open to the new trends in the global market.

Ihab AlKhatib GROUP GENERAL MANAGER MOHAMED ABDULRAHMAN AL-BAHAR GROUP (BKGH)

What has ensured Al-Bahar Group’s success over 85 years in the Kuwait market?

The Mohamed Abdulrahman Al-Bahar Group (BKGH) is definitely associated with its founder, the late Mohamed Abdulrahman Al-Bahar. He began his journey in the business sector in the late 1930s with a profound vision. His business was built on four pillars. The first pillar and primary consideration was the people, the employees of Al-Bahar Group. Second, seeing the value of partnerships, our founder created a network of reliable and long-lasting collaborators. One great example of his approach is the partnership between Al-Bahar and Unilever, which goes back over 75 years. The third pillar in his philosophy is focused on customers. Al-Bahar prides itself on the trust it inspires among its customers and partners. Al-Bahar Group takes pride in being one of the most reliable and committed companies in the country. Even when Kuwait underwent harsh regional challenges in the 1990s, Al-Bahar Group continued to provide the service, support, and keep its commitment to its to its stakeholders and clients. This kind of trustworthiness is the key factor that made Al-Bahar different. Based on these four pillars of the founder, we continue to build and grow the group.

What underpins Towell International Holding’s success?

For us, the most important aspect of business is human relationships. Business is, after all, about people. We believe in valuing our employees, clients, and partners, giving them the support and the highest level of reliability. We treat everyone as a part of our family, making sure their needs are met and their achievements fulfilled. Our values are based on respect, transparency, integrity, and quality.

Abdullah AlNabhan REGIONAL DIRECTOR FOR THE MIDDLE EAST, PALLADIUM

What areas of Palladium’s expertise are currently helping the Kuwaiti market and the MENA region?

Our goal is to solve the world’s most complex challenges. Our business model is focused on creating a positive impact, which is how we measure our success. We usually start with a large-scale program management project, within which we design frameworks and policy reforms. We start by taking a broad approach and break it down into smaller more actionable pieces and projects. We are running these projects across the whole region, and across several sectors, including agriculture, social development, and health among others. At the moment, there are over 30 such schemes being realized in the region. Our work varies dramatically by sector and location. We are not your typical consultancy firm, but a solutions-oriented expert with a wide range of services.

What are Palladium's expectations and priorities for 2023?

In Kuwait, we will focus heavily on the renewable energy sector, government modernization, and competitive improvement. We anticipate an increase in direct investment in Kuwait, which will expedite the process. We intend to be there and available to support both the public and private sector in taking advantage of and making the most of these improvements.

What is the story behind Towell International Holding?

Towell started as a family business in Oman in 1866. My great-grandfather was a business partner with a Scottish man called William Jack Towell, which is where our name comes from. In 1947, part of my family moved to Kuwait to start business here. The Iraqi invasion destroyed most of our businesses, leaving the company in a challenging place. Most of our companies were completely taken by the Iraqis, whether it was food, telecom, electronics, cigarettes, or automotive businesses. So, after we returned, we agreed with our partners to reform the company and restart its operations. Since then, we have grown exponentially becoming, yet again, a thriving local business with international partnerships.

Toufiq Bin Ahmed Bin Sultan CHAIRMAN, TOWELL INTERNATIONAL HOLDING

Energy Transition

THE LONG PATH

There is no country in the world unaffected by the progressive deterioration of the planet’s climate and, as extreme weather intensifies, Kuwait’s government and local organizations are increasingly concerned. With ESG policies slowly but surely being implemented across the economy, leaders in Kuwait are taking action and facilitating change. With the presence of the UN Global Compact on site and Kuwait's stock exchange pushing for lasting improvements, there is a scent of hope fluttering in the winds of the Kuwaiti desert.

Yet, despite being one of the smallest oil-producing countries by area, Kuwait is among the top-10 producers of oil in the world. Through its team of state-owned companies, commonly known as the “K” companies, Kuwait’s oil production industry is as healthy as ever. Under the leadership of the Minister of Oil, followed by the Director General of Kuwait Petroleum Corporation (KPC), under which all “K” companies are set, the country’s energy sector is heavily subsidized and increasingly successful, as the price of oil soars. According to the Country Chairman for Shell, Anwar Al Mutlaql, “Kuwait has developed its national industry and switched from the International Oil Companies (IOCs), which has driven the sector forward.”

Following an OPEC decision in 2022, Kuwaiti oil output is set to increase. With many international companies participating in and sharing the burden of exploration, production, and distribution of oil, there is no doubt that the country’s efforts to increase output and amplify results will continue with success. Yet Kuwait hopes that while it must continue to drill for oil, it can at least do it cleaner. With that in mind, the authorities have commissioned three world-scale refineries producing greener products conforming to Euro-5 specifications, including low-sulfur fuel oils.

Moreover, through harnessing the power of its geographical location, Kuwait can greatly ben-

efit from solar energy power plants, which are continually developed across the local area. With the support of European companies, the Kuwaiti government has been introducing solar-powered plants such as Shagaya, which in the long term are to become a major source of renewable energy for the country. Thanks to the work done by local scientific entities like the Kuwait Institute for Scientific Research, the nation’s leaders are becoming better informed and more aware of the benefits the introduction of solar energy plants could have for the country.

But considering the contrasting nature of sustainable solutions and oil exploration activities, one could say that the Kuwaiti energy sector is facing a challenge making the switch. While the majority of sustainable, environmentally friendly projects are being developed by the private sector, the government has a major role to play in regulating and incentivizing the change everyone wants to see. As energy prices in Kuwait are one of the lowest worldwide, the regulation of energy use and incentivization of sustainable practices may just be the only way to induce real change. Organizations across all sectors of the economy are increasingly interested in educating the public regarding the benefits of “going green” and the potential risks associated with maintaining the status quo.

Since need is the mother of invention, change for the better is heavily reliant on people’s understanding of the challenges the current economic and energy environment is posing to our planet. Kuwait is making changes and these are bound to increase with time. According to a recent report issued by MEED magazine, Kuwait has clean energy projects worth USD6.3 billion under implementation, while only 0.5% of its generation capacity currently comes from clean energy. With many such projects planned to be introduced and developed in the coming years, Kuwait may just be on the right track toward a sustainable and safe future. ✖

UPWARD trajectory

Given that the State of Kuwait is already looking ahead to a more diversified and sustainable economy, the Ministry of Oil is working accordingly to leverage on current oil prices and focus on expansion and future innovations.

Bader Al-Mulla DEPUTY PRIME MINISTER, MINISTER OF OIL & PRESIDENT, SUPREME COUNCIL FOR THE ENVIRONMENT

What is the ministry’s strategy to leverage the success of the country in light of the present price of oil and global demand for energy delivery?

In light of the present price of oil, which is expected to continue in the short to near-term horizon (at a range of USD80), our strategy mainly focuses on increasing sustainable crude production capacity. Our updated strategic directions are to reach 3.5 MMBPD (including the Divided Zone) by 2025 in order to be among the leaders in the oil and gas industry.

Considering the Kuwait’s heavy reliance on the oil and gas industry, what solutions and strategies could be implemented to promote increasing diversification of the country’s economy?

As petrochemical products are in great demand globally, which are based on oil and gas products, we aim to diversify the country’s economy through the planned expansion in the petrochemical industry inside and outside the State of Kuwait.

Digital solutions and technological advancement are at the core of increasing the country’s industry ability for sustainable and developing growth. How is the Ministry of Oil planning to enhance Kuwait’s resources potential through regulating and implementing solutions in the oil sector?

We are aware of the importance of digital solutions and technological advancement, as it will improve operational efficiencies, portfolio growth, safety, and customer experience. Accordingly, we plan to digitalize the hydrocarbon value chain inside and outside the State of Kuwait from the core operations to meeting needs.

Looking at the Kuwaiti oil output in the regional perspective, what strategy does the Ministry of Oil aims to implement to ensure a strong economic presence and increasing participation of the oil industry on the regional level?

The Ministry of Oil’s strategy ensures strong economic presence in the region through continuing expansion in crude oil, natural gas, petroleum, and petrochemical products with low carbon intensity. In addition, we plan to enter into new energy businesses as part of the 2050 Energy Transition Strategy such as advanced mobility (such as installing chargers for EVs), recycled plastics, biofuels, and green hydrogen.

Looking toward the future, what priorities and plans are being put in place for the country’s oil and gas sector in the coming year?

In the coming year, we are targeting to increase revenues from oil prices in order to implement our expansion strategy by

completing our major projects with the lowest cost per barrel as well as with the least GHG emissions. Moreover, it is important to remain fiscally responsible by optimizing the capital and operational expenditures. ✖

BIO

Bader Al-Mulla was a lawyer by profession and has been an elected member of the Kuwaiti Parliament since 2019 for three consecutive legislative sessions, including the current semester. He was appointed by an Amiri decree as Deputy Prime Minister of the State of Kuwait and Minister of Oil on October 16, 2022. In previous legislative terms, he served as Chairman of the Parliamentary Committee on State Budgets and Final Accounts Affairs and as a member of the Parliamentary Committee on Financial and Economic Affairs, and the Parliamentary Committee on Human Resources Affairs as well. He was also a practicing lawyer before the Constitutional Court, the Court of Cassation, and the Kuwait Commercial Arbitration Center. Al-Mulla’s previous roles include assistant professor of civil law at the Saad Al-Abdullah Academy for Security Sciences, member of the faculty of law at Kuwait University, and head of investigations in the Technical Office of the General Department of Investigation. Al-Mulla holds a PhD in civil law, a master of laws in private law, a bachelor of laws, and a bachelor’s degree in police sciences.

An oil worker at an onshore drilling rig in South Ratqa oilfield near the Iraqi border

Image: AsyrafS

IMPACTFUL solutions

OPEC is focused on harnessing the resources and expertise of the oil industry to help develop cleaner and more efficient technological solutions that will help the world meet its future energy needs.

Haitham Al Ghais SECRETARY GENERAL, OPEC

What are currently the major challenges and priorities for OPEC?

For OPEC, for our partners in the Declaration of Cooperation (DoC), the key priority remains helping ensure a balanced and stable market, in the interests of both producers and consumers. The team at the OPEC Secretariat review the market outlook on a daily basis, which is vital in a market as dynamic as the current one. This supports our decision-making process and enables DoC to be transparent in its approach, measured and attentive to the evolving market, and objective and agile in terms of providing longterm guidance. This also feeds into the enormous and often complex challenges around the interplay between energy affordability, energy security, and the need to reduce emissions. We have all seen this play out in regions across the world in 2022. In this regard, we need to recognize that there is no one-size-fits all pathway to the energy transition. We need to take an all energies, all technologies, and all people approach. This is a priority for us all. We cannot afford to get the energy transition wrong, particularly given that in our World Oil Outlook (WOO) 2022 we see global energy demand increasing by 23% by 2045, with oil continuing to play the leading role.

What particularly impactful solutions have been implemented among OPEC members using digital tools and strategies?

Technology has always been a key enabler for our industry, and it is clear that digitalization is being leveraged in member countries to help cut costs, improve efficiencies and productivity, reduce emissions, advance the availability of assets, and add value. For example, the Internet of things (IoT), as well as blockchain, AI, and data analytics provide technological options to streamline downstream oil and gas supply chains. Autonomous machines, robotics, and new exploration tools are providing answers to questions of how to access previously elusive upstream deposits. Digital solutions are also assisting with preventive maintenance, detecting, and reducing emission leaks, and improving the sector’s environmental footprint. Moreover, they also have great potential for the circular carbon economy (CCE), with CCE actively promoted by many of our member countries.

In the World Oil Outlook 2045, OPEC specifies the challenges of developing economies, which heavily base their economy on oil production. What strategies and tools can these countries employ to address the climate crisis without abandoning the essential part of their economies?

The specific circumstances and capabilities of every country, including natural resource endowed countries, should be considered in future climate action and in developing environmental policies.

At OPEC, we have no doubt that the resources and expertise of the oil industry can be harnessed to help develop cleaner and more efficient technological solutions. The strategy focuses on not only reducing emissions, but also helping enable the world to meet its future energy needs. For example, carbon capture utilization and storage, direct air capture, blue hydrogen, and other technologies can be leveraged. Such innovative approaches offer wider benefits not only for natural resource endowed countries, but also for the rest of the world to ensure an inclusive, just, and sustainable transition. To put the future of energy into three simple statements: we need to ensure energy is affordable for all; we need to transition to a fairer and equitable world in which every person has access to energy as referenced in UN Sustainable Development Goal 7; and we need to reduce emissions. OPEC member countries are fully committed to these points. For example, the challenges of climate action, energy security, and economic prosperity to help shape a sustainable energy future are front and center of the Saudi and Middle East Green Initiatives.

Could you elaborate on the importance of the MENA region oil production output in terms of safeguarding the stability of worldwide energy consumption in the coming months and years?

OPEC member countries are committed to ensure the oil market is stable and well supplied and that investments are made to meet future demand. The proactive and pre-emptive DoC decision taken in October 2022 to adjust production downward by 2 million barrels a day (mb/d) from November 2022 has proven to be the right course of action in terms of stabilizing the market. The decision has also given an additional spare capacity buffer to the market, the majority in the MENA region, in case of any unforeseen eventualities. Moreover, the analysis and data in our Monthly Oil Market Report has been shown to be an accurate gauge of market developments. In terms of investment in the region, Kuwait has plans to hit 4 mb/d, Saudi Arabia has plans to reach 13 mb/d, and the UAE targets 5 mb/d. Iraq has significant potential too, as does Iran, and we see opportunities in Algeria and Libya too. We see significant downstream capacity expansion in the region too, such as the Al Zour refinery in Kuwait. It is important to stress, however, that the investment challenge is a global one. We need to recognize that globally there is that not enough investment going into the industry, and this is true for all energies. For the oil industry alone, we see global investment requirements totaling USD12.1 trillion between now and 2045. This equates to over USD500 billion each year. We need all industry stakeholders

to work together to ensure a long-term, investment-friendly climate, with sufficient finance available—one that is sustainable and works for both producers and consumers and developed and developing countries. It is a multi-year supply and investment challenge, one that has to be tackled head on, and we have to start today. If the world does not get it right, it could sow the seeds of future energy crises. This serves neither the interests of producers nor consumers.

What expectations and priorities does OPEC have for 2023?

Vigilance remains the key word. We see some optimism, but we are also cognizant that many uncertainties remain. These include persistently high inflation that may necessitate further monetary tightening measures by major central banks, rising interest rates, the relaxation of China’s zero-COVID-19 policy, and any resolution of the geopolitical conflict in Eastern Europe. OPEC and the DoC will remain attentive to any changing market dynamics as exhibited by our regular meetings. We are focused on the full oil market picture. We believe this agile approach continues to bring reassurance to the market. One major priority for the organization in 2023 is the eighth OPEC International Seminar that will take place on July 5-6 under the theme Towards a Sustainable and Inclusive Energy Transition. The event looks

to strengthen cooperation and dialogue among energy stakeholders by facilitating discussions on the critical issues affecting the petroleum industry. We looking forward to welcoming participants to Vienna for what we believe will be a truly memorable and informative event. ✖

BIO

Haitham Al Ghais began his tenure as Secretary General of OPEC in August 2022. With 30 years of experience in the global oil and gas markets, Al Ghais managed international and regional teams worldwide in Kuwait, Beijing, and London. In 1991, he was appointed diplomatic attaché in the Kuwait Ministry of Foreign Affairs, working closely with the deputy prime minister and foreign minister. He joined the Kuwait Petroleum Corporation (KPC) in 1993 in the international marketing sector and has since held multiple managerial functions. In 2021, Al Ghais was appointed as KPC’s Deputy Managing Director for International Marketing. He has held a leading role in the historic Declaration of Cooperation between OPEC and nonOPEC oil-producing countries, facilitating the development of the methodology of monitoring conformity to the production adjustments.

MEETING THE NEEDS

Global demand for hydrocarbons will remain high for decades to come, so Kuwait has a portfolio of projects to develop to address the plant’s energy needs in an increasingly sustainable manner.

THE ENTRY INTO THE 2020s began with the disruption caused by the COVID-19 pandemic as a strong global tipping point to accelerate the transformation of the energy matrix toward a green and clean system; however, the world’s immediate energy consumption remains dependent on the oil and gas sector, a pillar in which Gulf countries, such as Kuwait, play a key role with investments to increase their production efficiency and production capacities. One example is the Duqm (Oman) refinery project, an innovative facility developed by a joint venture of Oman Oil Company and Kuwait Petroleum International that is scheduled to come online in 2023.

These downstream facilities, which show the potential for regional partnerships, require substantial investments that serve to keep the heart of the global economy running in the long term, as fossil fuel consumption is expected to account for 78% of the global energy matrix by 2032, up from 81% in 2022, according to estimates by the Economist Intelligence Unit. Countries are developing a multitude of decarbonization projects and many oil companies expect to be net zero by 2050. But the energy transformation is moving slowly, so Kuwait is preparing to keep up with the world’s need for fossil fuels with facilities such as Duqm and the commissioning of the Al-Zour refinery complex, which is expected to start operations soon.

The main processing units of the Al-Zour complex, involving an investment of USD16 billion, are being developed by a consortium between Tecnicas Reunidas, Sinopec Engineering and Hanwa Engineering & Construction. Once operational, the facility will be able to process 615,000bpd of Kuwait light crude or 535,000bpd of blended heavy crude. Some of the objectives that the country seeks with this refinery is to produce high quality fuels for the international market and, in that respect, it is a Kuwait-China cooperation project that is part of the Belt and Road Initiative. This Chinese initiative, in which there is a huge investment in approximately 150 countries, seeks to create a global infrastructure network that serves to improve world logistical connectivity.

“Kuwait’s oil and gas business has significantly accelerated recently. In comparison to the past few years, the change is extreme. Production is up, and the increase in work across the sector has allowed us, and external investors, to significant increase their participation,” said Robin Bose, CEO at Petrogulf Gulf Petroleum Investment, which offers equipment and assets to companies involved in the oil and gas sector. Bose, who foresees an important development for the Kuwaiti hydrocarbons industry, believes that the development of large oil

projects offers a great opportunity for local companies, as they are not big enough to take on projects. In this situation, they are looking for international companies to partner in joint ventures to bid for each project.

While in the hydrocarbons industry there is a large participation of foreign players, in the utilities sector there is still work to be done in that area to bring about the development of a local private industry. In this sector, the slow development of local private utility companies is due to factors such as the low adoption of the PPP framework by foreign investors and the global pandemic, said Paul Frain, CEO of Shamal Az-Zour Al-Oula Power & Water Company. “Shamal is the only independent power and water project (IWPP) in Kuwait. The contract was signed in December 2013, and the expectation was that it would be the start of the bigger privatization rollout, yet nine years later we remain the only IWPP,” he said.

This utility is a good example of how local companies in the energy sector are adapting to production systems based on sustainability. “Our plant primarily runs on fuel gas, and as such we do have emissions; however, our emissions are reduced to the minimum as we adopt the best available technology,” Frain said. As part of its sustainability activities, the company continuously monitors its emissions and conducts studies in collaboration with scientific entities in the country on topics such as the environment or the development of more efficient methods of energy generation or water desalination.

Partnerships to promote sustainable operations is one of the main areas in which Kuwaiti companies have recently entered into collaboration agreements. This is the case of OilServ, which offers services for oilfield operations, which in the last year has concluded several agreements for emissions control and management to improve the environmental performance of its operations. “We have established a partnership with Questor, a Canadian company, to help us bring emissions to net zero. It is done either by generating electricity or taking care of waste in an alternative way,” said Sara Akbar, CEO of OilServ.

All of these efforts are enabling Kuwait to continue to invest in its important hydrocarbon sector, which will be key to its development and to maintaining the level of product quality needed to sustain the global economy. But it is also expanding the development of projects that enhance the sustainability of economic operations, which, in turn, is creating initiatives that serve as the foundation for a cleaner, greener Kuwaiti economy. Transformation is underway. ✖

an INSTRUMENTAL ROLE

KPC optimizes the value of Kuwait’s hydrocarbons endowment by producing, refining, transporting, and marketing these resources globally through eight operating subsidiaries.

How has the energy crisis impacted your operations and financial results?

Our norms and operating philosophy remain sound. And in view of the challenges, we have implemented a number of measures to sustain our market position and ensure the highest financial returns. These measures include optimizing expenditures and reprioritizing our capital and exploration programs, securing supply-contracts, and leveraging our strong relationship with longtime clients, and focusing on refining and petrochemical products of higher value and returns.

In 2022, KPC announced an increase in crude oil production in line with an OPEC+ agreement to meet the demands of the global market. With KPC’s crucial role in oil production, what is the group’s strategy?

To meet our supply commitment to the global market, KPC has long and short-term plans to increase its crude production capacity. For the short term, we are working to fast-track our drilling and workover programs, as well as expedite the completion and commissioning of our production and water handling facilities. With our current progress, we are confident of meeting our quota and supply commitments. With respect to KPC’s long-term targets, we are pursuing strategic programs to increase and sustain crude oil production capacity at 4 million bpd in 2040, and 2 billion cbf of non-associated gas.

Kuwait Vision 2035 and ESG initiatives are aimed at transforming the economy of Kuwait into a more diversified and sustainable market. In what ways can KPC and other national companies positively impact these efforts?

Our role is instrumental in supporting the Kuwait Vision 2035 in terms of global positioning, developing infrastructure, providing access to cleaner energy, maintaining creative human capital, and leading a sustainable and diversified economy. It is our duty to fuel the growth of our economy. In this regard, we are constantly mobilizing our strengths and resources to create employment opportunities for our national workforce, expanding the contribution and participation of the local private sector in

Shaikh Nawaf Saud Al-Sabah DEPUTY CHAIRMAN & CEO, KUWAIT PETROLEUM CORPORATION (KPC)

the oil sector, and initiating attractive investment and partnership opportunities for foreign investors to partner in the petrochemical and downstream industries, oil and gas field services, and various R&T opportunities that will help transfer technology and knowledge. In addition, our 2050 Net Zero strategy demonstrates our commitment to reducing GHG emissions and creating a sustainable living environment. We recently commissioned three world-scale refineries producing greener products conforming to Euro-5 specifications and low-sulfur fuel oils. Our strategy draws a roadmap for future energy businesses and growth opportunities such as carbon capture and storage, sustainable green hydrogen, biofuels, and petrochemical recycling, among others.

With digital transformation becoming an important aspect of improved efficiency and automated operations, the oil and gas sector is increasingly implementing new technological solutions. What is the corporation’s approach? We recognize the importance of digital transformation and its role in improving organizational performance. Digitalization is being embedded into day-to-day operations to achieve operational efficiencies and optimize return on assets. It is a tool for re-inventing traditional operating models to unlock more and new sources of revenue, as well as supporting improved decision-making. In this regard, we have developed a digital transformation strategy to digitalize the hydrocarbon value chain from core to customer.

A strong and stable oil and gas sector will play an essential role in ensuring steady growth for the country. Considering the near future, what are the corporation’s plans and expectations for the coming year?

We will continue our efforts to make the best use of our hydrocarbon resources through ramping up our sustainable production capacity, timely completing and commissioning our main capital programs, pursuing renewable and alternative energy opportunities where they add value to our business, and developing our national workforce to enable them to manage the future of the Kuwaiti oil sector. ✖

BIO

Shaikh Nawaf S. Al-Sabah was appointed Deputy Chairman & CEO of KPC in March 2022.

Prior to this, he was president & CEO of KPC Holdings (Aruba) AEC, the international downstream subsidiary of KPC. Shaikh Nawaf was CEO of Kuwait Foreign Petroleum Exploration Company, the international upstream subsidiary of KPC, for almost nine years from 2013. Before that, he spent 14 years at KPC, the last eight of which as deputy managing director and general counsel of KPC.

Shaikh Nawaf holds an AB degree magna cum laude from Princeton University’s School for public and international affairs and a doctor of laws degree cum laude from Harvard Law School.

Continually developing the national workforce and its capabilities

Pursuing programs to increase and sustain crude oil production capacity at 4 million bbl/d in 2040

Sara Akbar CHAIRPERSON & CEO, OILSERV

What progress have you noticed in Kuwait in terms of entrepreneurship, infrastructure developments, and foreign policy improvements?

MORE to do

ably wherever we are.

BIO

Sara Akbar has over 35 years of experience in the oil and gas industry and is currently the Chairperson & CEO of OILSERV Kuwait. She is a member of the Kuwait Supreme Council for Planning and Development and an active member of the board of trustees of Kuwait’s Silk Territory project. Previously, she has worked for Kuwait Oil Company and Kuwait Foreign Petroleum Exploration Company. In 2005, she co-founded Kuwait Energy. Sara has received many accolades, including a Global 500 Award presented by the UN’s Environmental Program and Leader in Energy award at the Women in Leadership Awards & Forum in 2009. In 2013, she received the AIME Charles F. Rand Memorial Gold Medal. She was named among the top 100 Most Powerful Arab Businesswomen of 2017 by Forbes Middle East. In 2018, she also received the Hall of Fame award recognizing her as a pioneer in the oil and gas industry. She has a bachelor’s degree in chemical engineering from Kuwait University.

All these are still in progress, but Kuwait has been stalled by the political deadlock, and no useful laws can be passed, as the government and parliament cannot agree on their execution. The Northern Economic Zone cannot be created without a law in place. What Kuwait needs is political harmony. During the pandemic, many businesses had to close leaving people jobless. This mobilized some to establish their own businesses. Some of these entrepreneurs still do their old jobs, in the meantime running highly effective and successful ventures. This trend is not only found in the country, but region wide.

What opportunities and challenges did digitalization offer OilServ?

The pandemic made us use online platforms, which brought the company closer together. We have adopted tools to communicate more efficiently and increased our digital intelligence. Furthermore, we used this shift to increase our abilities in tracking our assets and measure efficiency on all fronts. These are all small improvements of a great value.

Are you looking into other markets or partnerships to be established?

We have signed a few partnerships that are important for the company. These are mainly in the areas of emission control and management. We have established a partnership with Questor, a Canadian company, to help us bring emissions to net zero. Our second partnership involves gas-to-liquids (GTL) system. This way, in small quantities, we can take care of gas waste in an environmentally friendly way. The third partnership is with a company where we take all the gas and use it to create electricity; however, as transporting gas in small quantities is not efficient, we have decided to use our partnership with EWP and create data centers attached to our system, so we can offer data space for international companies to use. This way, we can take care of the emissions sustain-

What important steps still need to be taken for a better inclusion of females within the business community?

I would advocate three things. Although women on paper have political rights, they are not represented in Parliament. We have only had one female minister, and there is plenty of space for improvement. Recently, there has been positive developments, because four women were placed in the Municipal Council. For a more inclusive space to be available, there should be a practice of recommending women whenever a new opening in the government takes place. When it comes to politics, women lack experience and connections in that sphere, since they only entered this space recently. To close the gap here, we should establish a temporary system to introduce more women into the sphere, so they can gain exposure and establish their networks. As long as women are not in that circle of decision-making, their influence will not increase. The third element is in decision-making in the private sector. We should introduce an initiative similar to the UK or Europe, where 30% of executive-level positions must be filled by women. We do have some fantastic women sitting on boards and C-level chairs, and we need to enhance that further with regulations. Once we have these in place, there can be a more even playing field for all.

What priorities and expectations does OilServ have in the coming months?

We would like to expand our business and service the industry in various areas of the sector in Kuwait. We are here to stay, so all the services we offer are already executed elsewhere. Currently, we only provide one service in Kuwait, and there are at least 17 more to explore and provide. There is a whole suite of other things that we can do to improve the market. Our priorities therefore are to grow, expand, and train up more Kuwaitis to serve the industry with the best possible service. ✖

With many opportunities still available in the country and region, OilServ is looking at expanding its operations and training more local talent.

maximizing VALUE

Working on several Kuwaiti oil fields at the moment, Shell continues to play a key role in supporting the growth and maturity of the local oil sector.

Anwar Al Mutlaq VP KUWAIT & COUNTRY CHAIR, SHELL

What has been Shell’s experience in Kuwait to date?

Shell started business in Kuwait in 1948 with trading being a major focus back then, where we traded Kuwaiti crude oil across the international markets. Our partnership with Kuwait evolved over time across the oil and gas value chain. Today, we are working under an enhanced technical service agreement with Kuwait Oil Company (KOC) and through our licensing technology with Kuwait National Petroleum Company (KNPC). We are one of the major suppliers for liquified natural gas (LNG) that feeds Kuwait onshore LNG Terminal. We also provide LNG to Kuwait. We are privileged to be the largest IOC in country, where we support three major fields: conventional oil, heavy oil, and Jurassic gas. With these three assets, our role is to maximize value from Kuwait’s natural resources for the benefit of the country.

What technologies and strategies have you implemented in Kuwait?

Technology is a significant component of our collaboration with the K-companies, especially in the space of digitalization, water flood multi well pads, Shell Turbo Tray, process improvements amongst other areas. We have a team dedicated to technology and learning to ensure we deploy and support our partners to maximize use of technologies and knowledge transfer. We also supported KOC to launch a comprehensive Technical Competency Ladder that is being rolled out in the whole organization. We have also launched an initiative called STARS program, through which we brough into Shell several KOC colleagues to be fully

embedded into the Shell organization. I must say we are proud of the local talent available in Kuwait oil sector.

What can be done to increase the oil production output in the country?

Kuwait has worked without IOCs partnership for many years and has done well. If we look around, we will see IOCs in joint ventures in many countries that have helped those countries build their capabilities. Since the 1970s, Kuwait has done well on its own and has been able to meet Kuwait’s OPEC quota. Even with market volatility, Kuwait has come through different sets of crises, COVID being one of them, and a fiscal crisis at a certain point, while staying resilient. Despite its successes, Kuwait has many opportunities that are still untapped which represent great opportunities but also challenges in fully exploiting the resource base while navigating through net zero emissions. I am also glad to see that KOC has already started to take initiative in the space of NZE, and we will continue to support them in that space

What sustainable solutions have you implemented in Kuwait?

We have done several things to support Kuwait on sustainability. We were looking on blue hydrogen, even before the country set its net-zero emissions target. We are also working on co-generation to generate power and steam to heat up heavy oil resources. We are already supporting KOC to explore carbon capture for enhanced oil recovery. We are also making sure that local talent gains the experience and knowledge from working with an IOC such as Shell

What do you expect from the coming year?

We will continue to focus on the delivery of our agreements for the upstream sector in Kuwait. For us, it is about the commitment to continue delivering on the growth of oil and gas. In addition, another key priority for us next year is to look more actively at energy transition solutions, which can be deployed in the oil or non-oil sectors. With the support of the Kuwait Direct Investment Promotion Authority (KDIPA), we gained our commercial license earlier in 2022, and this set up will help us be more competitive and to enable us to support Kuwait 2035 Vision. ✖

BIO

Anwar Al Mutlaq was appointed Shell’s Vice President Upstream & Country Chairman for Shell group of companies in 2020. Prior to his current role, he was the administrator for the Shell New Venture Branch in Algeria as well as government relations advisor for MENA based in the Hague. Almutlaq joined Shell in 2013 as the commercial and planning manager and played a key role to support Shell’s growth agenda in Kuwait. Before joining Shell, he was with Kuwait Petroleum International (KPI) in Denmark, Spain, and China. From 1997-1999, he worked for Schlumberger as a wireline field engineer in Egypt, Saudi Arabia, and Kuwait. Almutlaq holds a degree in petroleum engineering from Colorado School of Mines and an executive MBA from Instituto de Empresa.

LONG-TERM partnership in Kuwait

Having embarked on a transition toward net zero for over two years now, bp stands ready to support Kuwait on its own energy transition plans.

Anar Aliyev VICE PRESIDENT bp KUWAIT & QATAR, bp

Over 80 years in Kuwait

Supports State of Kuwait’s most strategic assets

Focused on diversification and green energy solutions

What is the scope of bp’s operations and initiatives within Kuwait?

For us, Kuwait is hugely important. The relationship between bp and Kuwait goes back a long way, and we highly value our long-term ties and strategic cooperation over the years. The Kuwait Oil Concession Agreement of 1934 was signed with the Anglo-Persian Oil Company (now bp) and Gulf Oil Corporation (now Chevron), creating the Kuwait Oil Company (KOC), which discovered the giant Burgan field in 1938. Kuwait’s first export oil was loaded on the bp tanker called British Fusilier in 1946. Years later, after liberation in 1992, we were the first IOC to be invited back to Kuwait for the redevelopment of oil and gas fields. Today, we are entrusted to support two of the most strategic Kuwait assets: the Great Burgan Oil field, the largest sandstone oil field in the world; and the Al-Zour refinery, Kuwait’s largest capital investment in the country.

What is the company doing to advance toward the net zero strategies by 2050?

What is your perspective on the present state of the oil and gas sector of Kuwait?

Kuwait is the 10th-largest oil producer and a leading OPEC member, and the Greater Burgan Field that bp supports produces approximately 50% of Kuwait’s total production. It is our most important project, and we support it through professional technical expertise, technology transfer, people development, and support with short, medium, and long-term production challenges. At COP27, Kuwait committed to becoming a net zero emitter from oil and gas by 2050, with its economy following a decade later by 2060. Various energy outlook scenarios indicate that demand for oil and gas will decline in the decades to come but it will still be an important part of the global energy mix. Producers will compete for the cheapest and least carbon-intense oil and gas, and Kuwait is well placed for this considering it has one of the lowest carbon-intensity oil and lowest cost per barrel.

BIO

Anar Aliyev is a member of the bp MENA regional leadership team. He has been a resident in Kuwait since 2016 and was appointed Vice-President of bp Kuwait & Qatar in 2020. His prior roles include chief of staff for bp in the Middle East and Enhanced Technical Service Agreement (ETSA) finance manager, seconded to Kuwait Oil Company. He joined bp in 2005 and has held various commercial and leadership roles in the company.

In 2020, we embarked on a profound transformation called the reinvention of bp. As part of this, we have set an ambition to be a net-zero company by 2050 or sooner and help the world get to net zero. Our purpose is reimagining energy for people and the planet, and as part of the new ambition, we aim to reshape bp from being an international oil company focused on producing resources to an integrated energy company focused on delivering solutions for customers. bp’s new strategy has three focus areas: resilient hydrocarbons; convenience and mobility; and low-carbon energy, which together make an integrated energy company. The three strategy focus areas have five growth engines comprised of bioenergy, convenience, EV charging, renewables, and hydrogen. Since setting out the strategy in 2020, strong progress has been made across each of the three parts of the strategy and growth engines, and the company is on track to meet the targets set for 2025.

Are there any developments that you expect to see in 2023 in terms of this transition?

bp has been on a transition journey for just over two years and looks forward to supporting Kuwait and Kuwait Petroleum Corporation (KPC) with its energy transition plan. In the Middle East and North Africa, we are already partnering with some of the countries. In 2022, ADNOC, bp, and Masdar agreed to expand UAE-UK new energy partnership to explore the development of clean hydrogen hubs, comprising 1GW in the UAE and 1GW in the UK. In Oman, we signed a strategic framework agreement that will support the potential development of a multiple gigawatt, world-class scale renewable energy and green hydrogen development. In Egypt, we signed an MoU with the government, under which we will explore the potential for establishing a new green hydrogen production facility in the country. bp will carry out studies to evaluate the technical and commercial feasibility of developing a multiphase, large-scale green hydrogen export hub. ✖

powering THE INDUSTRY

Selling, renting, and servicing equipment and technologies that optimize drilling and well completion operations, NOV is a key equipment and technology provider in Kuwait and the wider region.

Musaed Alawadhi GENERAL MANAGER KUWAIT, NOV

What has been NOV’s experience in Kuwait to date?

NOV is a leading, independent equipment and technology provider to the global energy industry. Our technology portfolio supports Kuwait’s full-field drilling, completions, and production needs. We currently operate under three segments: wellbore technologies, completion and production solutions, and rig technologies. In 2019, NOV established a new joint venture in Kuwait, which enabled significant capital investment to allow localization and ramp up our in-country services. We aim to create more jobs for Kuwaitis and introduce value-adding technologies including proprietary technologies to support Kuwait’s drilling and completion needs and Kuwait Petroleum Corporation’s plan to increase production capacity. We mainly represent the Wellbore Technologies segment and some parts of Completion & Production Solutions. Our business affects every aspect of the drilling process supported by our in-country set-up. We sell, rent, and service equipment and technologies that optimize drilling and the well completion operations. Kuwait’s market is an important growth market for NOV’s MENA operations and offers a great range of opportunities.

What unique set of solutions and services do you bring to Kuwait’s oil and gas sector? We bring innovative technologies that enable better, safer, and faster drilling performance. We have set new drilling records with Kuwait Oil Company (KOC). We help our customers mitigate many drilling challenges. With new technologies and developments in multiple product lines including drilling agitators, drilling motors, and drilling bits, we have

been able to set numerous performance records. With our new Delta™ drill pipe connection, you no longer have to sacrifice performance for cost. We are focused on this important technology, both in Kuwait and the wider region. We are also building the digital foundation for drilling automation, and today, NOV is among the leading players in this area. We are applying AI to optimize drilling using KAIZEN™ app, for example. KAIZEN is an application developed for intelligent drilling optimization. We are introducing wired drill pipe as a new technology that can deliver downhole data at high speeds in real time. These technologies and more can help operators to achieve their strategic goals. We are helping performance gains and prolonging the lifetime of assets.

What is your perspective on the Kuwaiti market?

Kuwait is a highly active market. KOC and Kuwait Gulf Oil Company (KGOC) are both looking for technologies that meet and addresses their challenges. Their challenges are unique and different from what is seen in other regions. The drilling parameters are particularly difficult, and we continue to introduce technologies that are proven to work in this tough drilling environment seen in deep wells. Many companies have tried different technologies but have failed in the harsh environment of Kuwait. At the end of the day, we are here to support the industry and our customers. KOC is pushing for an increase in exploration and drilling activity with a requirement to drill more wells, which is part of why we are here today. We like to say that NOV “powers the industry that powers the world.”

What is NOV’s perspective on providing energy efficient solutions for the Kuwait market? In terms of ESG, we focus on issues such as energy transition, the impact on our business mix, climate related risk, and greenhouse gas emissions. Some of our achievements to-date include introducing products that lower the emission profile of our customers oil and gas operations. We develop technologies that enhance the economics of their respective entries into the renewable energy marketplace. Meanwhile, we have recycled about 60% of our total waste generated. Most of our waste comes from manufacturing plants located in numerous countries. In terms of applying ESG policies in the country, Kuwait occupies a special place. It has a low cost of extraction for oil and gas. The government, meanwhile, continues to explore viable options that make sense in this region and are in line with its plans and strategy. When it comes to renewables, most projects today are related to solar power which is abundantly available. ✖

BIO

Musaed Alawadhi started with NOV as general manager of NOV Tanajib Kuwait (a KDIPA licensed company) in 2020. He was previously GM Kuwait of Tanajib International for Petroleum Services, representing various international principals and introducing value adding technologies in the Kuwaiti upstream and downstream sectors. He holds a master’s degree in civil and environmental engineering - engineering and project management program from University of California at Berkeley.

BIO

Khaled Al-Awadi holds the position of deputy CEO at the Kuwait Integrated Petroleum Industries Company (KIPIC) responsible for Al-Zour Refinery Project. He has extensive experience in the oil and gas industry, especially in the management of capital projects, spanning more than 33 years. He holds a bachelor’s degree in civil engineering from Kuwait University. Prior to assuming this position, Al-Awadhi held several administrative and leadership positions, including chairman of the board at TKSC and chairman of the capital budget committee at KPC for FY 2021/22. Al-Awadi also participated in the heading and membership of a number of committees and technical teams in KIPIC.

Khaled Al Awadhi DEPUTY CEO, KUWAIT AL-ZOUR REFINERY

What could you tell us about the greatest advantages and opportunities for Kuwait offered by the refinery?

Al-Zour Refinery project has entered the construction phase end of 2015 and was completed early this year. The commissioning of the mini refineries has started in sequence and the first refinery is already in commercial operation, soon by March 2023 the second and third refineries will be online. Main advantages of Al-Zour Refinery are its high-quality product specifications meeting the latest environmental standards for clean petroleum products and fuels. As an example, the refinery is producing fuel oil with low sulfur content of 0.5% wt. which meets the International Maritime Organization new regulation for sulfur limits in banker fuel. In addition, it produces for international export the Ultra-Low Sulfur Diesel, Aviation Turbine Kerosene ATK with high quality petrochemical Naphtha. While for domestic export the refinery produces liquified petroleum gas LPG. In addition, the project opens an attractive opportunity for further downstream integrations with Petrochemicals projects to upgrade the low sulfur fuel oil to higher value products.

What is your perspective of the potential offerings in the country in terms of wealth generation and financial stability in the coming months?

Refinery operators around the world would always look to the margin between crude oil prices and finished products market prices. This margin is the main financial driver for refinery operators to generate revenues and ultimately profits. Such margins sometime narrow down with increased crude prices. However, for crude oil exports from oil producing countries such improvement in crude prices will provide higher financial returns and accordingly financial stability.

What could be done to further increase the potential of Kuwait’s oil and gas sector capacity?

KIPIC derives its growth strategy from KPC long term strategy to ensure that oil and gas sector works as one large body with homogenous and consistent growth. The present dynamics drives into energy transition toward clean and renewable energy, and KIPIC has already started working on its energy transition plan along with KPC and other sister companies in the oil, gas, and petrochemicals sector. On other hand, moving faster into digitalization and AI is a key aspect when it comes to increasing the potential of oil, gas, and petrochemical sector. ✖

Image: KPC

effecting REAL CHANGE

The UN Global Compact is working to galvanize the local business community to make important changes in line with global movements to improve the state of the world and the quality of life overall.

Rabaa Hussain Makki AlJuma KUWAIT & QATAR COUNTRY MANAGER, UN GLOBAL COMPACT

What is the mandate of the UN Global Compact?

We are active in 177 countries. The United Nations Global Compact was launched in 2000 by former Secretary-General Kofi Annan, who reached out to a group of CEOs about coming together to initiate a Global Compact of shared values and principles: to give a human face to the global market. Forty companies and their CEOs signed up to create what is now known as the UN Global Compact. They devised a set of principles or values, forming the basis upon which responsible businesses would operate. These principles covered human rights, labor, environment, and anti-corruption. They lay at the heart of the Global Compact. All participating companies of the UN Global Compact commit to applying those criteria and embed the principles into their business strategy and operations. When it comes to the region, our Global Compact local network advances the initiative and its 10 principles at the country level, either for Kuwait or Qatar, and helps companies understand what responsible business means. We do so within the context of diverse national cultures, law, and language, and facilitate outreach learning policy dialogues. We also foster the connection between different businesses, stakeholders, NGOs, governments, and communities. They are able to put their sustainability commitment into action with the support of our guidance. The initial step is to sign a letter of commitment, which declares alignment of their strategy and operations with the 10 principles of the UN Global Compact.

What is the process, and why should companies participate?

The application to the Global Compact is submitted online. After that, comes an important component—the Communication on Progress (CoP) framework—considered the DNA of the Global Compact. It is perhaps this element that makes certain companies hesitate. While the CoP has many positives, it may expose a few things that companies still lack in their strategy. For example, a company may implement and report its ESG, yet be reluctant to apply because it reported not having any women on their board of directors, which would not align with the gender equality category. I recommended that they apply, whereupon we will guide them through any weaknesses as they progress. While they may not align this year, they will the next. There are many goals to be achieved through our new CoP, and the only way to progress is to start. Whenever a company enlists, we send them a toolkit with all the information and guidance they should need to follow through. Moreover, our platform will be open for them, and they will be connected with peers from government, UN at global and national level, other organizations and companies. Moreover, they can join our academy to interact with accelerators and think labs to enhance their developments. Their employees can join in too, so they can see the areas that require work and act upon them. It will take some time to succeed and go through all the changes involved; however, the sooner they start, the better prepared they will be for the future. ESG policies will soon become required, and

for that, there is no better way than to start working toward them today.

What progress has been made by the UN Global Compact in Kuwait and Qatar so far?

We have only recently started. We are in the process of establishing our local network and recruiting companies. We organize events and raise awareness on how this program and our platform can help them. Many companies that have already joined are still rather confused about the whole process, which is why our assistance and advisory is so important for their progress. There is a lot of work to be done; however, I am certain our impact will rapidly grow. We are heading toward that tipping point, and with the enthusiasm of both the Qatari and Kuwaiti communities, the UN Global Compact will soon reach major milestones at the local level. ✖

BIO

Rabaa Hussain Maki AlJuma is the Chief Editor & CEO of Bariq Al Dana magazine and was appointed Country Manager of Kuwait & Qatar of the UN Global Compact in January 2022. She also serves as the UN senior stakeholder’s advisor (UN Resident Coordinator Office) in Kuwait. She studied medicine at Kuwait University and completed her fourth year of medicine at the Arabian Gulf University in Bahrain during the Gulf invasion. AlJuma also studied a course in sociology in the University of Lebanon. She has also completed the ICRC IHL Regional Arabic Course in humanitarian law and a postgraduate course of the Executive Master of Advanced Studies in international law in armed conflict. She also acquired a master’s of international law in armed conflict from Geneva Academy in Switzerland.

reliability FIRST

The only company listed in the utility sector of the Boursa and the only independently owned water and power project in Kuwait, Shamal Az-Zour Al-Oula Power & Water Company has become a leading private utilities provider in the country.

Paul Frain CEO,

What has been the outcome since Shamal AzZour completed its IPO in 2019?

The IPO closed at the end of 2019, and the company was successfully listed on the Premier Market of the Kuwait Stock Exchange (Boursa Kuwait) in August 2020. Since then, we have declared slightly over KWD63 million in dividends to our shareholders. A lot of hard work was done by the Shamal team to ensure a smooth transition from a private to a public company and to manage the burden of further audit, reporting, and compliance requirements. The pandemic had a minimal impact on the company mainly because utilities saw the same, if not higher, demand. However, that demand was met thanks to our operations and maintenance teams at the Az-Zour North Phase One plant who made great efforts and sacrifices. If there had been a COVID-19 outbreak there, we would not have been able to operate the plant and generate power and water. Shamal AzZour Al-Oula is the only company listed in the utility sector of the Boursa and the only independently owned water and power project in Kuwait. Our customer, the Ministry of Electricity & Water, depends heavily on Shamal, and we make a significant contribution toward Kuwait’s power and water supply. Typically, it is 10% and 20% of Kuwait’s total demand for power and water, respectively, and there are times of the year when it exceeds that. This reflects the high availability and reliability of the plant and the dedication of the project and site teams.

How would you assess the need to increase the privatization of the utility sector in Kuwait? Shamal is the only independent power and water project in Kuwait. The con-

tract was signed in 2013, and the expectation was that it would be the start of the bigger privatization roll out, yet nine years later we remain the only IWPP. There has been a much slower roll out of the private utility industry, which is probably due to factors such as low adoption of the PPP framework by foreign investors and the global pandemic. One key item that investors look for is political stability, which Kuwait struggles to offer; however, there is some good news. The bidding documents for AzZour North Phase Two and Three have been prepared and published.

What has Az-Zour recently worked regarding the digitalization of systems?

We pride ourselves on our operating efficiencies and how we can increase our profits. We have digital tools to help our operators on site and have rolled out several mobile field technologies that help operators gather data from the operating plant. This data is then stored, analyzed, and reviewed to provide us with any early warning signs should there be any issues. This helps us with maintenance planning and managing our costs. We also have digital tools at the governance level and have introduced some digital board software, which helps us manage our board meetings and minutes. We will consider opportunities to digitalize business processes where efficiencies can be gained. Our expertise together with the digital technology gives us the confidence to also introduce industrial process efficiency measures.

What is Az-Zour doing to promote Kuwait’s Vision 2035?

Kuwait’s Vision 2035 has pillars drawn

from the UN’s SDGs. The goals we plan to work on are the infrastructure development and advancing human capital. Our plant primarily runs on fuel gas, and as such we do have emissions; however, our emissions are reduced to the minimum as we adopt the best available technology. Our plant meets all the regulatory standards, especially Kuwait’s Environment Protection Agency standards. We monitor our emissions continuously and have a license based on those emissions. Another area where we contribute is investing in our human capital and ensuring our staff are well-trained, and we adopt the latest standards for health and safety. We actively promote education and create employment opportunities. ✖

BIO

Paul Frain is the CEO and executive member of the board directors of Shamal Az-Zour. He graduated with a bachelor’s degree in integrated engineering systems from Manchester Metropolitan University and has a master’s of science degree in energy from Heriot Watt University in Edinburgh. He has over 25 years’ experience in worldwide power generation and water production projects. He has a background in design, project management, business development, and operations and has worked for consultants, EPC contractors, and equipment manufacturers throughout Europe the Middle East, Africa, and Asia Pacific.

SHAMAL AZ-ZOUR AL-OULA POWER & WATER COMPANY, KUWAIT

A NEW era

Since 2017, ENGIE in Kuwait has demonstrated its expertise and added value in the local market whilst providing a safe, ethical, and compliant one-stop shop for services.

Yassine Lafhail COUNTRY GENERAL MANAGER, ENGIE SOLUTIONS

What have been the company’s major highlights in the last few years?

Yassine Lafhail is Country General Manager of ENGIE Solutions Kuwait. He holds a MEng from the Higher Education in Engineering Applied to Thermal, Energy and the Environment in Paris. He has been working with ENGIE Group for more than 10 years, where he first joined as energy and FM project manager in France. He held several positions before moving to Kuwait in 2018 to develop the energy services business of the new local entity.

ENGIE has two main business units in Kuwait, ENGIE Thermal & Supply, which partially owns, operates and maintains Az-Zour North Plant, and ENGIE Solutions, which provides energy services and solutions. We have successfully operated Az-Zour North plant for the last six years. The gas-fired power and water plant opened in 2015 and marked ENGIE’s entry into the Kuwaiti market. AzZour North power plant was our first in the country and Kuwait’s first Independent Water and Power Project (IWPP). We began operations in 2016 and continue to operate, producing 1.5GW power and 486,000cbm of desalinated water a day. Our solutions business unit is more active in the country. We have made great progress since commencing ENGIE Solutions’ operations in Kuwait in 2017 and are the first energy solutions specialist in the country to launch an energy management team that paid for the savings they generated. In Kuwait, long-term industrial projects normally involve multiple contractors on one project, however, ENGIE Solutions offers an all-encompassing facilities management service. We were awarded a contract for a major hospital in Kuwait in 2020. We consulted for two consortiums that have been awarded two 25year PPP projects for facility management and energy. As the nation moves toward reducing its greenhouse gas emissions, mitigating Kuwait’s high per-capita power consumption is crucial. ENGIE Solutions already provides energy efficiency solutions for various facilities in Kuwait. Recently, we have been auditing projects for a total electrical consumption of 200GWh per year, which is just a start, so we can only imagine the country’s true potential. So far, we have identified potential savings of 25% and are talking about 50GWh. The scheme amounts to around 30,000 tons of CO2 emissions prevented per year, which would have required 140sqkm of forest to absorb.

How is ENGIE Solutions contributing to environmentally-friendly national initiatives?

We wholeheartedly support Kuwait’s initiatives to transition to renewable sources of energy and achieve carbon neutrality. ENGIE Group has a strong commitment to its purpose, to accelerate the energy

transition, which we do in three ways: by replacing conventional energy with renewables, deploying cooling and heating networks, and saving energy through our energy services. As legislation regarding renewable energy and diversification comes onto Kuwait’s statute books, we are capable of rapidly deploying our proven solutions in Kuwait. To raise awareness of the issues and our solutions, we conduct regular workshops and webinars with Ministries and expert organizations like Kuwait Institute for Scientific Research (KISR). We also provide financing projects to our clients. A long-term partnership approach can enable carbon reduction, cost savings, and rapidly turn renewable energy investments from capital expenses into operating expenses. We can retrofit buildings, for example, making them more digitally “smarter” and connected, and then earn revenues from client savings.

What technological solutions does ENGIE provide?

As an accredited energy services company (ESCO), ENGIE Solutions provides customized, guaranteed energy efficiency solutions aimed at drastically reducing consumption for our clients. From our audits conducted in Kuwait, we estimate minimum potential savings of 80-90% through digitalization and automation. We currently provide a raft of technology-driven solutions to the market. Apart from providing desalinated water from Az-Zour, we focus attention on ESCO models, energy performance contracts, and integrated facilities management systems. We deliver energy-as-a-service, cooling-as-a-service and smart building technology (the future of facilities management, utilizing IoT). We see facilities management as a significant business growth area, as 85% of the energy consumed by buildings in Kuwait in the summer goes to ventilation, air-conditioning, and lighting. Our solutions division is actively developing solutions based on AI, blockchain, and IoT to unlock substantial savings, for example, by helping predict when and where building maintenance is required in advance. We also finance the implementation of smart building systems and energy retrofits, including renewable solutions through guaranteed or shared saving plans with an agreed payback period. ✖

BIO

CLEAN ENERGY

With Kuwait moving toward a cleaner and more sustainable future, companies are helping it along its journey with their new technologies and extensive know-how.

AEPCO is a dedicated renewable energy developer. We only function and operate with renewable energy assets. We heavily emphasize decarbonization and reducing our clients’ carbon footprint. We do not only provide financially viable solutions, but also build uptake plant work for our clients, helping them save money and reduce their carbon footprint. What we sell them is a clean source of energy. From that perspective, we are among the few unique companies in the region. We not only build power plants as utility power plants or government-owned facilities but also build small power plants for private enterprises. We can go to any major corporate and assign a long-term contract to sell electricity. This model is typical in the region, as BOT and BOO projects are popular. The problem in Kuwait is that there is no demand due to highly subsidized energy. The other reason is that the awareness of the requirement of carbon reduction or carbon footprint reduction is taking time to take root. Awareness of environmental requirements and factors is being developed. The government is aware of these limitations and addressing them is part of Kuwait’s 2035 Vision.

SINCE 2019, we have been planning to expand beyond Kuwait and identified a need for our expertise supporting interest of investment entities to implement renewable energy projects worldwide. We have had the chance to interact with many projects, mainly on the power purchase agreement (PPA) side, and we have undertaken a substantial volume of work beyond the Gulf region. Kuwait started to work toward renewable energy faster than we had expected. I personally meet with many decision-makers to discuss their plans, and most are moving to renewables. The government has introduced a regulation for new buildings of public entities to produce 10% of the consumption of electricity with renewables. Today, there is a program for private entities offering discounts on electricity fees when tangible efforts are made to save energy. We are mostly focused on solar-generated energy, so with the increased interest here in Kuwait, we have returned to engage with the local market. Kuwait has a strategy of working with and supporting us locally, with the government leading the initiative. This has come as a big relief and a good opportunity to start looking at what we can do in the wider region.

THE OIL AND GAS SECTOR is the backbone of the country and accounts for about 96% of our GDP. We need to diversify with agricultural and other industries and create recycling, green construction. Oil and gas is an important sector, and it already has certain codes in place to support green solutions. If the sector had clearer targets and mission by participating in the green evolution, it could lead by example. We believe that it can indeed make a big change, but it must be part of their strategy. Instead of inviting an international company for a contract, the better alternative would be to include local businesses and strengthen the national market. Our focus is to come up with an elevated solution. We provide solutions based on the client’s needs. We collaborate with everyone, and each has their own requirements. We are focusing on having a diversity of solutions for the client such as a gray water system, smart meter system, electric vehicle chargers, and other aspects related to recycling. The government should push more and join the private sector in increasing awareness and developments toward a greener future for Kuwait.

Hassan Qasem CEO, ALTERNATIVE ENERGY PROJECTS CO. (AEPCO)

Hamad Al Radhan CEO, LIFE ENERGY

Ahmed Hamada GENERAL MANAGER, GREEN ENERGY

Green Island, Kuwait City

Image: trabantos

better WAY FORWARD

KGBC has played a pivotal role in sustainability leadership in Kuwait, driving sustainable transformation in real estate practices across the local construction sector.

What is the progress level of sustainable practices being applied in Kuwait?

Sandra Draskovic GENERAL MANAGER, KUWAIT GREEN BUILDING COUNCIL (KGBC)

BIO

Sandra Draskovic holds a master’s degree in architectural engineering from University of Belgrade. For more than 10 years, she has worked in the field of architectural consultancy divided between conceptualizing, designing, managing, and executing a diverse residential, commercial, and hospitality projects in Europe and Asia. Draskovic has six years of experience in a leading management position focused on sustainability, green building consultancy, and SDG advisory. Prior to joining KGBC in 2017, she was an architect and project manager at several companies, including Global Ideas LLC, Sinestezia LLC, Belgrade Harbor Master Plan, and DASH Architects LLC, and as an art and design instructor at American University of the Middle East, Raffles International Institute, and Orchlon International School.

Currently, there are several major developments in the country and more on the horizon. One is housing development that includes five pillars and is focused on Kuwait Vision 2035. The government is planning to provide at least 65,000 housing units. There are also existing projects like the Kuwait Terminal and an extension of Kuwait’s Scientific Center. All of these projects are aiming to obtain green building certification. Some of them are applying for LEED certification or to be LEED compliant. For example, The Kuwait Scientific Center will be LEED compliant, which means they will follow sustainable practices during construction. The challenge lies with the new 90,000 housing units because these are private investments and projects, which do not expect sustainable solutions. The government is working in that segment, especially the Ministry of Electricity, Water, and Renewable Energy. It is difficult to make a drastic shift from non-sustainable to high-performance buildings. The first step is to change the behavior of the people and give them incentives to save water and energy. We also try to provide information and the know-how regarding the technical sector including engineers, consultancy offices, architects, and even the governmental sector like the Kuwait Municipality. It is important to know how to build sustainably. Increasing the energy tariffs for the end consumer is one of the solutions to guide behavioral change. Nevertheless, the government’s main goal is to save resources for the future generations and reduce consumption. Indeed, this is one of the sustainability pillars of Kuwait Vision 2035. We first need to reduce by introducing no-cost solutions, then by introducing passive design solution and cost-solution, build and equip buildings with high-performance MEP systems, and operate them and maintain in a better way to have building units that are energy and water efficient. When we have this in place for existing and new buildings, then we can think about increasing the energy tariffs.

What can the KGBC offer companies entering Kuwait?

KGBC is the best membership-based platform in Kuwait to provide information on current de-

velopments in different segments of sustainable construction and green buildings. We have access to information related to governmental initiatives, country building and energy codes and building legislations, governmental entities, and private sector organizations who are practicing in the field of building material manufacturing, supplying, engineering, contracting and consultancy. We aim to be an online and printed platform. Our goal is to have a magazine that will be issued every four months to provide information to each of our members from all related sectors. We already provide people with information, consultancy, and one-on-one support, but we want to improve that service and will create a single platform where everyone can access required information, through paper-based and digital magazine. We believe this will be the best way for companies seek to partner with each other, enter a tender, or offer their services. We are putting together a business plan and will likely partner with certain governmental entities as well. We hope to bridge the public and private sectors and start issuing information in 2023.

What key initiatives is KGBC focused on for the upcoming year?

We will focus on education and consultancy, hosting conferences, webinars, seminars, and Green Talks. We also intend to work closely with schools and universities through frequent visits to offer students some insight into the private sector. We also plan to provide technical workshops, training, and courses mostly for companies and the government sector. At the same time, we will deliver knowledge on LEED and other sustainable certifications such as WELL and BREEAM. We will provide technical sessions on how to design, build and operate sustainable building, facility management, operations, deep retrofitting, and everything related to those issues, plus provide engineering, and consultancy offices tools enabling the design, construction and operation of green buildings in Kuwait. And of course, we plan to launch our magazine. ✖

Will launch a magazine to be issued every four months providing information on a wide range of participating sectors

Seeking to incentivize individuals to save water and energy

BIO

Jorge J. Perez Garcia has been in the utility sector for more than 20 years, leading all the parts of a power plant project, from concept, engineering, construction, commissioning, operation, and maintenance. He started working in renewable energy in the US in the first modern concentrated solar power plants built. Currently, he is Country Manager for TSK Kuwait. He is vice-president and co-founder of the Spanish Business Council in Kuwait and a member and participant of World Economic Forum and Chatham House.

Jorge J. Perez Garcia COUNTRY MANAGER, TSK ELECTRONICA Y ELECTRICIDAD S.A.

How did TSK enter the country, and what can you tell us about the international participation in Kuwait?

TSK opened a Branch in Kuwait in April 2016, through Kuwait Direct Investment Promotion Authority (KDIPA) in line with the company’s objectives. Thanks to KDIPA, our experience in Kuwait has been successful and positive. The best part of being partners with KDIPA is our ability to maintain our mode of operations with its support. As an international company with highly qualified personnel, we have found it useful to conduct our work in the manner we would always do, without interruptions and influence of external agents. We collaborate with KDIPA in order to transfer technology to Kuwait, which will help the country become more renewable-agile in the future. Kuwait has great potential due to the local talent, especially between the youth population that is well prepared and highly educated. We are collaborating in expanding their skills and abilities with trainings and a real work experience in a multinational company,

and these Kuwaiti engineers and professionals are playing a major role in our local projects. We are working on a multicultural project with collaborators from 14 different countries that have enriched our practice, giving us the opportunity to learn from others’ perspectives and experiences.

What are TSK’s priorities for the near future regarding the MENA region?

Greenhouse emissions from the MENA region increased at a rapid pace in the last decade because of the economic development, construction boom, high demand for oil, and the heavy reliance on oil for power generation. The projected slowdown over the next several decades reflects the regional government’s efforts to decarbonize the economy by expanding the role of natural gas and renewables in the energy mix. Particularly, in 2015 the emissions per capita in Kuwait was 21.1 tons of CO2, among the world’s highest, and the country has pledged to reduce its carbon emissions and set a goal of using more renewable energy by 2030. TSK can help Kuwait and the rest of the region to achieve this goal in collaborating in the success of projects like Shagaya Renewable Energy Park (SREP). ✖

BIO

Joachim Dudey is a graduate of the University of Applied Sciences in Düsseldorf in business administration studies. He worked in BdF Bank Düsseldorf before becoming head of financial consulting department of Dr. Pecher AG. He was also head of finance for WTE Wassertechnik GmbH. Since 2019, he has been CEO of Umm Al Hayman for Wastewater Treatment Company.

Joachim Dudey CEO, UMM AL HAYMAN FOR WASTEWATER TREATMENT COMPANY (KSPC)

As one of the country’s first PPPs, what has been the progress of Umm Al Hayman to date?

The early days were challenging because we signed the contract just before COVID-19 struck. We had to postpone many operations, which at the time set us back slightly. Nevertheless, we kept working on the developments. We were in fact working on two projects in Kuwait simultaneously: the treatment plant for wastewater, which includes piping and electrical facilities; and the sewage system, wastewater pumping stations, and reservoirs for cleaned wastewater. We had to lay 450km of piping in the ground, which is no small task.

Considering ESG policies in Kuwait, what is Umm Al Hayman’s contribution to such initiatives?

We are a single purpose company. We aim to construct, design, partly finance, and operate assets within a project. We are not allowed to look for other business opportunities and our contract is specified within a time frame of 28

years, meaning that we will finish the construction and operate the plant for 25 years to come. Our work contributes to the long-term strategy of the country, because through our operations Kuwait can save and reuse cleaned wastewater instead of consuming water from the sea through desalination. Our plant cleans about 500,000cbm of wastewater per day, serving 1.7 million people living in the south of Kuwait. It can always be reused not only for industrial use, but also agricultural, making it even more environmentally friendly and efficient.

What do you expect to achieve with the project over the coming months?

In 2023, we will complete construction of the plant and start operating the plant. We anticipate the plant being up and running by the autumn 2023. When it comes to the sewer system, we may expect to see the project done and dusted by 2025, depending on how efficiently the network is developed. It was foreseen in the tender that the piping would take longer than the wastewater treatment and are continuing the construction as planned. At the end of 2023, we are obliged by law to take the project public. ✖

FROM THE GROUND UP

Aiming to drive the country’s green transformation, Kuwait has several energy efficiency initiatives underway to improve the sustainability of its flagship projects.

SUSTAINABILITY HAS BECOME the key for Kuwait to mitigate the environmental impact of its oil production, an economic activity that accounts for approximately 43% of its GDP. Kuwait’s petrochemical industry, with the massive Al Zour refinery as its flagship, will remain one of the most important in the world according to the Vision 2035 roadmap. But in addition to that fossil fuel-focused facility, the country has developed several environmental projects for the production of clean fuels, with the intention of remaining a regional leader in downstream refining.

One of these is a new hydrocracking unit at the Mina Abdullah refinery, which became operational in 2021, to produce up to 70,000bpd of low-sulfur diesel and kerosene that meet European standards. Another major project is the Sulaibiya wastewater treatment plant, which covers 26% of the country’s overall water demand, serving non-potable uses in agriculture and industry, as well as aquifer recharge. Another important water treatment facility is the Umm Al Hayman plant, another project with which the country is highlighting its interest in eliminating the waste of water resources so that they can be used by the economic sectors.

“ENGIE has a strong commitment to accelerate the energy transition, which we do in three ways: by replacing conventional energy with renewables, deploying cooling and heating networks, and saving energy through our energy services,” said Yassine Lafhail, Kuwait general manager at ENGIE Solutions. With the digitalization and automation solutions offered by the company, Lafhail estimates that Kuwaiti companies can reduce their energy costs by up to 90%, a percentage that, if achieved, represents an environmental saving that reduces carbon emissions into the atmosphere. “As the nation moves towards reducing its greenhouse gas emissions, mitigating Kuwait’s high per-capita power consumption is crucial,” he added.

Part of Kuwait’s sustainability vision is to increase the share of renewables in its energy mix to 15% by 2030. A major project to achieve this goal is the planned Subiya solar PV water storage plant in Al Jahra with a generating capacity of 30MW, which will start its construction phase in 2023 and enter commercial operation in 2025. Another asset playing a key role in this transition is the Shagaya renewable energy project, which is expected to have a clean energy generation capacity of 3.2GW by 2030. Some phases of the commissioning of this facility, which mixes wind and solar generation systems, are already in operation.

With such projects, the solar energy sector in Kuwait is expected to register a compound annual growth rate of 7% between 2022 and

2027, according to a report by consulting firm Mordor Intelligence. Much of this demand comes from companies, such as those in the oil and gas sector, which through power purchase agreements (PPAs) seek to decarbonize their energy supply and part of their operations with solar projects.

“We have received many inquiries for solar energy in the private sector. Most private sector clients are large companies looking into solar and renewable energy,” said Hamad Al Radhan, CEO of Life Energy, a firm that provides smart renewable energy solutions in Kuwait and the Gulf region. This company has closed several PPAs with companies and currently sees significant solar energy development in the country, but in recent years has seen a great opportunity in energy efficiency management around new government buildings due to local regulations.

“The government has recently introduced a regulation for new buildings of public entities to produce 10% of the consumption of electricity with renewables,” said Al Radhan, who points out that there is also currently a program that offers discounts on electricity rates to private companies that make tangible efforts to save energy. “Efficiency solutions are one of the most prominent services we can provide in Kuwait. We have tried to push for those types of projects and strategies and shift the priorities from producing clean energy to saving energy, which cuts 10% of the initial cost of solar power, renewable energies, and more,” he added.

One of the flagship projects in terms of energy management is Terminal 2 of the international airport, currently under construction. This project, which aims to become the largest building in the world to achieve LEED Gold certification, will have solar panels on its roof to supply part of the energy it will consume, will use a system to collect wastewater from the laundries and treat it to provide 30% of the water needed for the toilets, and uses low-carbon materials for its construction.

“It is difficult to make a drastic shift from non-sustainable to high-performance buildings that are respectable of the environment and resource consumption,” said Sandra Draskovic, General Manager at the Kuwait Green Building Council. Achieving a change in engineering techniques to build sustainably must be done gradually, so one of the government’s priorities to advance tangible sustainability initiatives is to get citizens to improve their efficient management of resources to save energy. “If consumers achieve a certain percentage of water and energy, they will have their annual bill amount reduced by 40% for electricity and 50% for water bills,” Draskovic concluded. ✖

SUSTAINABLE PROJECTS

Kuwait is one of the leading countries in the GCC, if not the world, when it comes to sustainable projects.

GREEN TECHNOLOGY (AVERAGE ANNUAL GROWTH)

OPPORTUNITIES IN RENEWABLES

• Green energy is now cheaper than that produced by fossil fuels

• Wind energy could form 25% of global energy production by 2030

• Costs have fallen by more than twice the optimistic forecasts

MAJOR PROJECTS

SUBIYA WATER STORAGE SOLAR PV PLANT

• Location: Al Jahra

• Operational: 2025

• Cost: USD60 billion

• Capacity: 30MW

SHAGAYA RENEWABLE ENERGY PROJECT

• Fully operational: 2030

• Capacity: 3.2GW

• Size: 250ha

• Reduces CO2 emissions by 81,000 tons per year

Source: The World Bank

THE TECH OF TOMORROW

Since 2018 Kuwait’s banking sector has been progressively changing its modus operandi. Under the leadership of the Central Bank of Kuwait, financial institutions across the country are being encouraged and incentivized to implement digital banking solutions. Moreover, following the issuance of the Regulatory Sandbox Framework document, the Central Bank of Kuwait has opened the door to digital-based financial services and organizations, which are able to further address the needs of the market. Through a four-step process, any emerging technology or organization likely to improve the provision of financial services to the country’s population can be explored and evaluated. And, if successful, they gain access to the Kuwaiti marketplace. The Governor of the Central Bank, Basel A. Al-Haroon, stated that the “goal of this transformation is to make processes faster, cheaper, and more efficient without compromising security or privacy.” This shift has propelled the country’s start-up and SME culture, creating opportunities for increasing digitalization of services within the financial sector and beyond. The local economy has seen a great amount of growth in terms of digital products and services and this is only expected to continue.

If there is one thing that the pandemic taught us all, it is the fact that the use of technology can and does increase productivity. Taking this into consideration and seeing it work its magic throughout the time of COVID-19 lockdowns, the government as well as the private sector have been much more active in approaching their operations with an open mind. Following the creation of the “Shlonik” app, utilized by the Ministry of Health during the pandemic, many different public authorities started to think how they too could leverage technology to smooth their own processes.

This trend has taken the financial sector of Ku-

wait on a journey, leading the development of technological applications for both private and public use. During events such as Digital Transformation Kuwait Conference and the MoneyTech Summit, a multitude of digital solutions were presented and discussed with the leaders of the local economy, shedding light on the potential opportunities for further development and transformation in the financial sector.

Elsewhere, the Insurance Regulatory Unity (IRU) has revolutionized the insurance claims system of the country, creating the IRUSOFT program, which allows easy and quick access to the entire insurance sector database. And the financial side of the F&B sector has been addressed by an array of fintech organizations, starting with systems to manage deliveries during COVID-19-related lockdowns.

The finance sector did not stay idle, either, with companies creating their own mobile and online apps to make their services more accessible and increase the financial literacy of the country’s population. Many organizations have taken it upon themselves to educate the public of Kuwait in terms of financial literacy and investment opportunities, aiming to safeguard the country’s financial footing for years to come.

Furthermore, due to the current energy crisis, as well as the strong financial aptitude of Kuwaiti banking leaders, the country’s financial sector experienced a successful and strong comeback in the wake of the darkest days of the pandemic. With future generations in mind and a stable, diversified monetary policy in place, Kuwait is on course for YoY growth. While the banking institutions of Kuwait are progressively implementing technological solutions, and fintech firms increase their market share and participation, the country’s financial sector is well equipped to overcome the challenges of the future. ✖

PERCENT OF BANK ASSETS HELD BY TOP THREE BANKS

The Kuwait Stock Exchange building in Kuwait City

Image: Matyas Rehak

safe HAVEN

Kuwait’s Ministry of Finance has worked hard to establish a clear and transparent legislative and governance process and constitutional safeguards that have resulted in one the safest and most robust financial services sector in the world.

Abdulwahab Al-Rushaid MINISTER OF FINANCE & MINISTER OF STATE FOR ECONOMIC AFFAIRS AND INVESTMENT

The revenues from a rebounding oil market are expected to replenish the state’s shortterm cash reserves. What does this positive outcome mean for the country’s fiscal situation?

Naturally, the rebounding oil price over the past 18 months helped shore up Kuwait’s revenue and cash reserves; however, short-term liquidity matters aside, there is no doubt that Kuwait has one of the strongest sovereign balance sheets in the world, with one of lowest sovereign debt to GDP levels globally, and a strong rebounding economy.

The Kuwait banking sector is celebrating its 80th anniversary, being one of the most stable and liquid of the markets worldwide. Which of the aspects of finance in the country contributed the most to this ongoing, sustainable success of the finance sector?

The Kuwaiti financial sector is one of the stable and robust financial sectors in the world and a safe harbor in a turbulent region. Our financial services sector

benefits from the country’s clear and transparent legislative and governance process, prudent policy making by the Central Bank, and constitutional safeguards that have differentiated Kuwait’s financial sector and earned it the stellar reputation it enjoys globally.

Infrastructure spending is a catalyst to economic growth. How has Kuwait approached infrastructure?

Kuwait has consistently allocated between 12% and 18% of its budget to infrastructure and capital expenditure over the last 10 years, reflecting a clear commitment by both executive and parliamentary policy makers to Kuwait’s infrastructure evolution plan and to maintaining healthy economic growth. Though we see infrastructure spending as a catalyst for economic growth, we believe it is only one of the catalysts. In parallel to our commitment to continue our infrastructure modernization drive, we are also focused on creating a con-

structive environment that is conducive to effective policymaking, and ultimately enable the private sector to lead the economy in the years to come. ✖

Abdulwahab M. Al-Rasheed was reappointed as Minister of Finance and Minister of State for Economic Affairs and Investments for a second term on October 16, 2022. He is the former chairman of the Kuwait Economic Society (2021) and has over 15 years’ experience in asset management at various financial institutions. He was also part of Kuwait’s ambitious development program for northern Kuwait, known as Silk City, and was the head of the Technical Committee at the National Fund for Small and Medium Enterprise Development. Al-Rasheed holds an MBA from the Gulf Institute for Science and Technology and a bachelor’s degree in finance from Kuwait University.

BIO

Image: Craitza

better way FORWARD

In addition to focusing on the health of the financial sector as a whole, CBK is also working on establishing an environmental, social, and governance framework to ensure the sector is in line with both global and national goals.

What is the CBK’s approach to fostering greater monetary stability and engaging the banking sector to increase its digitalization?

CBK will maintain the system, implemented since May 20, 2007, that ensures stability of the Kuwaiti dinar against major foreign currencies by pegging the dinar to an undisclosed weighted basket of currencies. To create a conducive environment for growth in the sector, CBK will continue to implement a modern and flexible approach to regulation, encouraging sustainable innovation and contributing to the advancement of digital and technical insights and knowledge. CBK aims to harness technology to become better equipped to fulfill its mandate in an increasingly complex environment with ever-growing risks. CBK has adopted technology and upgraded its capabilities with a 360-degree view of regulated units, end-to-end paperless processes, insights informed by targeted analytics, future-proof technology at the heart of the new digital foundation, and best inclass capabilities within a solid structure. CBK has been diligent in ensuring it builds the infrastructure to underpin the banking sector’s future needs. The sector has shown a high level of readiness to enable the offering of digital services securely within CBK’s cybersecurity framework. To further enable the technical environment, CBK issued instructions to entities to clarify and alleviate usage of cloud computing to enhance efficiency, scaling of infrastructure, and improve access to next generation application architecture solutions. CBK had outlined a clear path for enabling open banking in the State of Kuwait, as well as its governance. This aims to provide customers with better services without compromising confidentiality and/or information security.

What is your perspective on the digital transformation taking place in Kuwait’s economy?

Kuwait sees critical value in the digital economy, as it is an important element of the Kuwait Vision 2035 pillar of building a sustainable diversified economy that aims to curb the country’s reliance on hydrocarbon exports. Establishing a knowledge economy is a key component of this pillar, which includes several key projects underway. The “developing the infrastructure” pillar also includes projects to upgrade the IT and telecoms infrastructure to improve the standards of living for citizens. Digitalization has been a national priority for several years now, and the COVID-19 outbreak accelerated the need for digitalization across sectors. The goal of this transformation is to make processes faster, cheaper, and more efficient without compromising security or privacy.

The Gulf’s banking sector has witnessed robust growth, especially in Kuwait. How would you characterize the strength of Kuwait’s banking sector?

The banking sector in Kuwait is indeed both strong and resilient. At the end of 2Q2022, the sector remains well capitalized with a CAR of 18.4%. Moreover, banks continue to show healthy growth, where on a consolidated basis, total assets grew by 8.8% in 2Q2022 on an annual basis. This growth was supported by expansion abroad, where domestic banks continued to be competitive in global markets. Kuwaiti banks were able to achieve this while maintaining ample buffers and healthy asset quality, with the NPLR at 1.46% and provision coverage at 302.5%. Profits have also been robust, with ROAA and ROAE registering 1.23% and 10.42%, respectively, as of 2Q2022. These indicators highlight CBK’s policy success, not only in

fostering financial intermediation but also in ensuring financial stability and banking system resilience.

Considering Kuwait’s Vision 2035 and the ESG goals, what is CBK doing to progress these initiatives?

As Kuwait moves steadily toward a transformed economy, CBK works to solidly contribute to and underpin the New Kuwait 2035 goals and support the political leadership as a regional financial and trade center. A central pillar of the vision is creating a sustainable diversified economy. An attractive business environment, conducive to economic growth and attractive to investors can only exist within a strong and stable financial system. CBK will continue support of the drivers of sustainable economic development and outline the monetary and credit policies to promote investment, maintain local prices within reasonable limits, achieve economic and social advancement, and increase the national income and, hence, the welfare and prosperity of Kuwait. ✖

BIO

Basel A. Al-Haroon was appointed Governor of CBK in April 2022. He has held several high-ranking positions in the banking and financial sectors. He started his career at CBK in 1989, advancing in various posts last of which being the manager of the foreign operations department, until he became the executive director of operations and research sector to oversee both the foreign operations department and economic research department until 2012. Al-Haroon was appointed a member of the board of commissioners of the Capital Markets Authority (CMA) in 2012. In 2021, he became the President of Kuwait Financial Intelligence Unit until 2022.

Basel A. Al-Haroon GOVERNOR, CENTRAL BANK OF KUWAIT (CBK)

Sheikh Ahmad Duaij Jaber Al Sabah CHAIRMAN, KUWAIT BANKING ASSOCIATION (KBA)

What role does KBA play in contributing to the strength of the local financial sector?

LOOKING ahead

KBA continues to drive the local banking sector forward so Kuwait can become a regional and global financial and commercial center and retain its leading position in the region.

BIO

Sheikh Ahmad Duaij Jaber Al Sabah has been the Chairman of the Commercial Bank of Kuwait since April 1, 2018. In his capacity as Chairman of the Commercial Bank of Kuwait, he was nominated as Chairman of the Kuwait Banking Association effective from February 20, 2022 and became a member of the World Union of Arab Bankers in May 2022. He has also been a board member of the Kuwait Institute of Banking Studies since April 2018. Furthermore, he held the position of board member at Kuwait Clearing Company, representing the Commercial Bank of Kuwait, from 2018 until 2019. He was recommended once again on May 11, 2022 as member of the board of directors of Kuwait Clearing Company. He previously held the position of Chairman of Al Tijari Financial Brokerage Company from 2014 until 2020. He graduated with an MBA from Maastricht School of Management in March 2008 after obtaining his bachelor’s degree in science with a major in finance from Bentley College, US, in May 2000.

The Kuwaiti banking sector remains profitable and resilient thanks to the Central Bank of Kuwait. The performance of Kuwaiti banks highlights their strength, sound financial position, and flexibility. KBA in coordination with the Central bank of Kuwait has several plans to improve Kuwaiti banking and financial system. For example, KBA strives to effectively serve the interests of banks by analyzing new legislations and raise recommendations to the regulators and other bodies to maximize the positive effects of such legislations. KBA also conducts several awareness campaigns to the public about the role of banks in the society. In line with its commitments towards social responsibility, KBA continues to raise contributions to help and provide the required support to protect the environment and other social related issues. KBA also plans to prepare economic and research studies in major areas of interest to the banking sector and the economy. KBA has prepared several studies in the past years addressing fiscal challenges facing Kuwait, potential risks of current public spending, and policies to improve the fiscal conditions of the country. From time to time, KBA arranges public forums where renowned experts are invited to discuss critical and important banking issues. KBA also represents the banking sector in public conferences and forums by submitting speeches and research papers.

How is KBA engaging with the digital theme and pioneering ideas that are driving the financial sector forward?

Kuwaiti banks are proactive in adopting digital solutions, launching several new initiatives that are improving interoperability, e-payment systems, digital customer service delivery, and doing transactions more efficiently, securely, and reliably. Banks compete daily to develop their electronic applications and provide best innovative and most secure banking services available around the clock to enhance customer experience. Among the advanced services launched by banks are opening accounts online without the need to visit branches, requesting person-

al finance, making money transfers locally and abroad, and many other services that characterize Kuwaiti banks. The Central Bank has opened the door for the establishment of digital banks which is a new milestone for digitization in Kuwait and helped in keeping abreast with the latest trends in global financial services. In 2019, KBA formed a specialized committee from all local banks to study developments in modern financial technologies, the risks and challenges associated with them, and provide proposals to reduce those risks and challenges. The committee conducts studies on all services and technologies that serve the business of banks, where experiences from other countries are being evaluated. In addition, KBA provides its observations on the legislative environment governing digitization processes. Moreover, KBA conducts workshops and seminars in cooperation with major regional and global institutions to keep the banking sector abreast with important developments and recent technologies adopted.

As Chairman of the Kuwait Banking Association, what is your vision for the association going forward?

KBA’s vision is renewed and developed periodically according to the developments of this vital and sensitive sector. KBA always looks forward to serving member banks, taking into consideration the development in Kuwait’s economy, especially with the five-year development plans and Kuwait Vision 2035 launched by the government, which includes hundreds of billions of investments. Our vision for the future is ambitious so that the banking sector will be one of the growth engines driving towards the realization of Kuwait as a regional and global financial and commercial Centre. In this context, KBA plays a pivotal role on more than one level to help Kuwaiti banking sector expand and retain its leading position in the region. KBA’s board of directors is keen to continue enhancing KBA role, and we work as a group to achieve our mission for KBA. In that context, we review KBA’s workflow from time to time to achieve our objectives and improve the overall performance and efficiency of different KBA committees. ✖

leadership POSITION

KFH can attribute its success in Islamic finance to its innovative products as well as use of new technology and automation to best serve customers.

What are the core values of KFH?

KFH’s core values as a world-leading Islamic financial institution are based on key pillars inherent in the principles of shariah. Our business model possesses examples of comprehensiveness-based financing with important features of social sustainability, especially those committed to wider ethical and moral codes. As Islamic finance is based on ethical Islamic legislation and principles, this has helped KFH to strengthen its leadership in sustainability. Among other core values of KFH is concentrating on growing its core banking business within main customer segments such as financing, savings, investment, and daily banking. For greater customer centricity as a niche growth business area, KFH launches and engages in several transformation projects and has adopted fintech innovation in products, solutions and customer interaction in ways that build and deepen both understanding and relationships. Also, KFH focuses on increasing operational efficiency in processes and means of working to simplify its customers’ financial lives and realize the value of investments and resources.

How does KFH differentiate itself from the competition?

Along with its long experience in the Islamic financial industry, KFH has strengths that distinguish it from other institutions. KFH’s strengths include being the largest Kuwaiti bank and the world’s second largest Islamic bank by assets. We have a leadership position in Kuwait and Bahrain. Furthermore, it maintains a robust financial position, having a significant and growing customer base, experienced staff, solid operations, stable performance, geographic reach, innovative solutions, and diversified modern products. Today, KFH is an undisputed leader in innovation. For example, it released the first fully automated 24-hour digital self-service branches in Kuwait under the theme of KFH-Go. Moreover, in the last few years KFH has introduced a wide range of high-end digital banking services. It also teamed up with financial services technology providers who offer unique solutions and expertise, with the aim of enhancing an innovative technology environment that accelerates and automates the

Abdulwahab Iesa Al Rushood ACTING GROUP CEO, KUWAIT FINANCE HOUSE (KFH)

banking operations. KFH enjoys a solid competitive advantage through its highly qualified and experienced staff, which is why our highly trained workforce sustains KFH’s advance as a world-leading Islamic financial institution.

What significant developments or initiatives did the bank undertake in the past year in the areas of ESG and sustainability?

The crossover between sustainable investing and Islamic finance boosts appetite for Sharia-compliant products. Dramatic growth is expected in the number of investment funds combining environment, social and governance (ESG) and shariah compliance over the next few years. In this regard, KFH is moving forward in leading the sustainable Islamic finance industry, contributing to providing greater support for growth and sustainable investing, and considering ESG standards. For example, KFH signed an MoU with the UN Development Program to support the SDGs. KFH has an environmentally friendly auto showroom (KFH Auto) that is fully compatible with the standards of green buildings and global sustainability. KFH was the first bank in Kuwait to receive Global Sustainability Assessment System GSAS certification – Gold level for KFH Auto. KFH is also active on the sustainability front through the issuing of green sukuk. In addition, KFH launched the Keep it Green campaign and published a comprehensive report on sustainability highlighting the leading role of the bank on that front.

What are KFH’s expansion and growth plans?

The successful completion of KFH’s acquisition of AUB-Bahrain enhanced KFH’s regional footprint with access to new markets (including the UK and Egypt). KFH ranked first among the largest listed companies on Boursa Kuwait in terms of a market capitalization, exceeding KWD11 billion. To sustain this growth and expand our customer base, our focus remains on automation and digitalization. To achieve this, KFH has signed several strategic partnerships and agreements with various innovative digital solutions providers and fintechs. ✖

BIO

Abdulwahab Issa Al-Rushood received his bachelor’s degree in mathematics and computer science from Western Oregon State College in the US. He has also completed a specialized training course on strategic leadership at Harvard Business School. He is the Acting Group CEO & Group Chief Treasury and Financial Institutions Officer at Kuwait Finance House. In addition, Al-Rushood is the chairman of KFH Capital Investment Company and a board member of Kuwait Finance HouseBahrain. He has vast banking experience, spanning more than 33 years, having held numerous prominent leadership roles. He has served as board member of numerous leading companies including Kuwait Finance House - Malaysia, Liquidity Management House (KFH Investment Company), and Aviation Lease & Finance Company (ALAFCO), among others.

1st Kuwaiti bank to receive Global Sustainability Assessment System GSAS certification –Gold level

Focused on simplifying the financial life of the customer

THE NEW generation

Focusing on developing the new generation of talent in the financial sector, Commercial Bank of Kuwait has come up with initiatives such as coaching and a training program for young Kuwaitis.

Elham Yousry Mahfouz CEO, COMMERCIAL BANK OF KUWAIT

What can be done to improve the situation of the banking sector in Kuwait?

The key areas of improvement for the banking industry in Kuwait are consolidation, digitalization, and human capital. In Kuwait, banks have already commenced digitalization because of its inherent efficiency, cost reduction, competitive advantages, and adaptation to online shopping anywhere and anytime. Consolidation in the banking sector will strengthen banks, but it is not easy in Kuwait because of the ownership structure. More stable capital brings increased sustainability. Moreover, banks and institutions need human capital to be successful, which means people need to be employed and appropriately trained. Kuwait has always pursued a Kuwaitization policy. When I started my career nearly 36 years ago, the percentage of Kuwaitis in the private sector was 20%, and it is now at 70%. Sometimes we cannot find suitable candidates in certain areas such as risk, financial planning and control, audit, compliance, and corporate governance. These are the areas of expertise we need more people in.

What kind of graduates should banks in Kuwait look for?

tion is asked in different ways to check for honesty and consistency. Using these results and outcomes, coaching, and guiding fresh graduates, we track their development. Each generation is different, and we need to find the right way of helping the youth of today to grow and develop themselves.

As a woman in a leadership position, how would you evaluate the current situation of Kuwaiti women and their career prospects?

Today, we see more and more women in the government and private sectors across the region. More women are becoming leaders since the developments seen in the gulf region in terms of women empowerment, which have recently shown significant and sudden change. I believe that due to their high levels of education and perseverance, women in Kuwait have achieved significant success over the past years in their careers and will continue capitalizing on this. Kuwaiti women will also occupy an increasing number of leadership positions across the market. Progress was in evidence for some time, but the real growth has been quite recent.

BIO

Elham Yousry Mahfouz joined Commercial Bank of Kuwait in 2000 as manager – international banking and progressively occupied top executive positions such as GM – New York branch, acting GM – international banking, GM – international banking, and acting CEO. In 2012, she was promoted to deputy CEO and was later appointed CEO of the bank in 2014. Before joining Commercial Bank of Kuwait, she worked in a number of Kuwaiti financial institutions. She has extensive experience and a proven record of accomplishment exceeding 37 years in the banking sector. Mahfouz holds a bachelor’s degree with honors in business administration from the American University in Cairo.

The typical graduation area is business administration, economics, and accounting. Yet the world market needs more IT-related majors, such as cybersecurity. While this is a part of education in Kuwait, not many universities offer a full degree in this specialization. There are many engineering graduates available in the Kuwaiti market, but we need more people skilled in digitalization. Commercial Bank has introduced a 12-month program for fresh graduates called Al-Ruwad. These graduates are trained within the bank in several departments and judged on their capabilities. They were given assignments and got to discuss real issues. We also sit with them one-on-one and decide which department is best for them. We have appointed an external coach to conduct questionnaires and analyze the outcomes. The external coach explores life facts and participant’s personality through questionnaires. The same ques-

What are your strategies to retain your clients? Our customers go with the pricing, service models, and digitalization. The older generation used to stand by the bank that supported them. In comparison, the new generation needs to know how much we charge them and which type of banking technology and solutions we offer them. There are things that many banks do not take care of because they think it is a waste of time and cost; for example, labor accounts. We started doing that in 2003, while other banks said no to providing such service. We also have a mobile app considered to be one of the most user-friendly out there. It is regularly upgraded, updated, and easy to use. We have a machine called BTM, dispensing bulk money in thousands for customers who do not have time to enter a branch. There are no more tellers, and the machine can help you choose your denomination in papers or coins. We have a call center that does everything for the customer. ✖

unique PERSPECTIVES

HSBC Kuwait plans to employ its strengths such as its global footprint, international network, and cross-border connectivity to support the financing of large infrastructure projects in Kuwait.

What is the present stance of HSBC in Kuwait?

As one of the largest international banks based in Kuwait, the focus is on our global network and connectivity that open opportunities for growth for our internationally minded customers. We help clients in Kuwait access markets all over the world through our unique trade and receivable finance offering as well as our cash and payments product suite. We also facilitate international customers’ growth into Kuwait. We have unique success stories in the aviation and consumer goods sectors. With substantial investment in digitization, we now have 99% of our customers transacting through our electronic channels. Given one of the four pillars of the group’s strategy is attracting and retaining top talent, we want HSBC to be an employer of choice for our people. We offer a hybrid working style and have proven during the pandemic that we can provide excellent uninterrupted service to our customers with a workforce that works flexibly.

How is the company taking advantage of the technological solutions?

HSBCnet is a global payment solution, and our target is to have 100% of our clients doing 100% of their transactions on the digital platforms. A great example is Jazeera Airways, where we worked with them on our Corporate and Treasury API and Virtual Account solutions globally whereby offices around the world can connect their booking system to our payment system. The airline’s financial controllers can instantly check balances, payment requests, and cash management in any

Samer Alabed CEO, HSBC BANK MIDDLE EAST LIMITED – KUWAIT

of the countries that they operate, connecting Jazeera Airways to its clients worldwide. The greatest advantage of digitization for companies is cost efficiency, quick turnover, and greater transaction security.

What are HSBC’s focus areas for the coming months?

The Kuwait Vision 2035 is the key driver for growth and economic activity in the country. Kuwait’s projects for infrastructure and sustainability as part of Vision 2035 are at the top of our agenda. The competitive strength of HSBC’s global footprint, international network, and cross-border connectivity—particularly our position as the leading international bank in China—can be of help in bringing together all the parties needed to successfully deliver ambitious infrastructure projects. We expect a considerable number of Chinese contractors to come to Kuwait to participate in these projects, especially related to the Silk City project, Failaka Island, and the roads infrastructure that will be developed. The strong growth and positive outlook for the GCC economies is also fueling investment activity for Kuwait. We see many Kuwaiti clients wanting to expand into the GCC market, with Saudi Arabia as a key growth area where we have a substantial presence too. The financial markets will also continue to be important to our clients. We expect more capital markets issuances next year in Kuwait driven mainly by the banks but also from some key large corporates. Our focus will remain to open up a world of opportunity by serving international-oriented clients and helping them access markets globally. ✖

Helps facilitate business across the globe

Aims to turn

100% of clients

100% digital

BIO

After a 15-year spell in Dubai with HSBC Middle East Limited, Samer Alabed was promoted to CEO for HSBC Kuwait in 2020. Prior to this, he was head of institutional sales for global markets in HSBC Bank Middle East. He has been running institutional sales across the region in all treasury products lines. He was also part of the EMEA institutional sales team based out of London.

Prior to joining HSBC in 2005, Alabed was based in London working for Morgan Stanley. He holds a degree in economics management and is also a CFA charter holder. He has over 25 years’ experience in finance, banking, and sales.

Crowned with Trust

Crowned with Trust

Crowned with Trust

Crowned with Trust

Crowned with Trust

Crowned with Trust

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

Throughout the past decade, Kuwait Financial Centre “Markaz” won more than 60 awards from prestigious financial institutions and publications. These awards reflect “Markaz’s” reliable performance and constant endeavor to achieve excellence in the investment banking and asset management fields.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

With commitment towards wealth creation for its clients, dedication in offering innovative financial solutions and professionalism in all that it offers, Markaz has proudly gained the trust of its clients and international experts, who remain a key priority at Markaz.

| +965 2224 8000

markaz.com | +965 2224 8000

dedication AND HARD WORK

One of the oldest financial institutions in Kuwait, Markaz has positioned itself among the leading asset management and investment banking institutions in the MENA region.

Ali H. Khalil CEO, KUWAIT FINANCIAL CENTRE (MARKAZ)

What makes Markaz so successful in the regional asset management and investment banking market?

Established in 1974, Markaz is one of the oldest financial institutions in Kuwait. Over the past 48 years, it has firmly positioned itself among the leading asset management and investment banking institutions in the MENA region. Offering best-in-class wealth creation opportunities through our investment banking and asset management services and products, we serve a strong client base of high net-worth individuals, governments, quasi-government institutions, and investment arms of corporations in the region and globally. We take great pride in being an independent financial organization. This independence has been instrumental to Markaz’s success and its excellent track record in the market, across all our activities. An unwavering commitment to putting the client’s interest at the center of our business, innovating suitable and balanced investment products, extending our services beyond geographical borders, and adhering to our core values to preserve and strengthen our reputation has been the key differentiator of Markaz always. Our organization relies heavily on research, which assures our clients that their investments are diligently taken care of. In a nutshell, we are consistent, reliable, research-driven, independent, and diligent in our work.

What has been the company’s experience of the pandemic and what lessons or improvements came out of it?

Thanks to its resilience, adaptability and market positioning, Markaz has emerged stronger from the pandemic. The pandemic brought significant challenges,

but extensive experience in navigating major geo-political and economic crises enabled us to weather them and run our business without disruption. While we are proud of our achievements over the past two years, we would never overlook the learnings in the process because continual improvement has remained a key driver of Markaz’s success. The safety and well-being of our staff and their families were our topmost priority while we devised plans and implemented measures to tackle the challenges. Equally, we were steadfast in our commitment to continuing to serve our clients, irrespective of the fast-evolving situation. We had to ensure they feel confident about their funds being in safe hands even under the worst circumstances and our ability to continue our service. There were new challenges that we had to overcome quickly, such as the transition to remote working. Thanks to the diligence of our IT team, we successfully allowed our staff to work from the safety of their homes and continue to serve our clients seamlessly. Another key learning from the pandemic is the potential of automation in ensuring business continuity and enhancing efficiency. These learnings and experiences made us invest efficiently in pertinent technology and the digitization of our business post-pandemic.

Part of Kuwait’s vision 2035 is the idea of making Kuwait a financial hub of the MENA region. How is Markaz helping to attract foreign investment?

Over the past few years, Kuwait has had a substantial money inflow to its capital market. Thanks to our Capital Markets Authority’s (CMA) investor and market-friendly reforms and regulations,

investment in Kuwait is becoming an appealing option for international investors. Similarly, Boursa Kuwait, the national stock exchange, has also been striving to provide an enabling investment ecosystem through its wide-ranging market development efforts and attractive service offerings. Boursa Kuwait and CMA have significantly improved the regulatory environment and many of the processes involved in investing, further strengthening Kuwait reputation as an attractive capital market investment destination. Markaz has long-standing partnerships with these organizations and has been contributing to their exemplary efforts. On the direct investment front, Kuwait has progressed remarkably in recent years. Markaz has worked with many multinational firms helping them establish their presence in the Kuwaiti market and obtain their licenses. The government is willing to accept more foreign entities in Kuwait and that will make all the difference. Meanwhile, more privatization means more investment opportunities and available international expertise leading to high quality job creation. It is a win-win. ✖

BIO

Ali H. Khalil has more than 33 years of experience spent between Kuwait, the US, and France. Prior to that, he was Markaz’s COO from 2010-2020, whereby he oversaw both the asset management and the investment banking activities. He joined the Markaz group in 1989 as the president of Mar-Gulf Management, the real estate arm of Markaz in the US. Khalil holds an MBA degree from INSEAD in France and a MSc and a BSc in industrial engineering from Texas A&M University, US.

SIMPLER DIGITAL BANKING SERVICES ACROSS THE REGION

Enjoy the convenience of ABK’s digital banking services in Kuwait, Egypt, and the United Arab Emirates.

Simpler Banking

THE BIG vision

BIO

Saleh Saleh Al-Selmi has over 35 years of expertise in the field of financial advisory and asset management in addition to active involvement in derivatives, particular to the Kuwaiti market. He is regarded as one of the influential traders in the Kuwaiti Stock Exchange. Moreover, he has actively pursued diversified international investments all over the globe, with a focus in optimal return/risk portfolios. He sits on the boards of many companies, where he was the chairman of International Financial Advisors Co. and IFA Financial Services Co., as well as vice chairman of First Takaful Insurance Company (FTIC) and Union Insurance Federation. He holds a bachelor of commerce in business administration and finance from University of Kuwait.

Saleh

Saleh

Al-Selmi CHAIRMAN, UNION OF INVESTMENT COMPANIES (UIC)

What developments have been brought about in the Kuwaiti market by the companies in your association?

World-class investment companies that deliver high level digital financial services, providing financial advice, access, and exposure to global markets in a cost-effective manner are crucial for the country’s development. Such companies have played a major role in fintech adoption and talent development. In addition, local investment funds contribute significantly to attracting investors by acting as natural market makers and institutional investors. A key role played by investment funds is to attract investment into domestic institutions, from companies with extensive and robust experience, knowledge, and performance. In addition, qualified investment managers play a key role in managing potential risks within an investment environment and capturing opportunities arising from market repercussions. The success of investment management depends on several key factors such as long experience and high levels of professionalism, as well as research and studies available that help the investment manager make decisions and help seize opportunities that arise from challenges.

From an investment perspective, which sectors of the economy are currently the most attractive for foreign investors?

A diversified economy is envisioned in the Kuwait Vision 2035 Development Plan; however, the implementation of the vision and its materialization are expected to take time. Moreover, the country places great importance on clean fuel projects and environmentally friendly oil processing. Clean fuel and oil and gas service projects provide an attractive opportunity for international investors with specialized skills. In addition, the government is investing heavily in infrastructure projects related to electricity and water in order to meet the demands of a growing population. Most of the projects are being developed by the government through PPPs or by inviting foreign companies to provide engineering, design, and construction capabilities. The use of renewable energy as a source of electric power and other related projects is widely encouraged. In addition, investors can participate in opportunities created by the development of warehousing and logistics projects by offering sophisticated

solutions to enhance airport and port efficiency and operability.

UIC collaborates with the Supreme Council for Planning and Development to present greater opportunities to Kuwaiti women. What is UIC’s contribution to this initiative, and what are its plans for the coming periods?

As a union, supporting and encouraging women’s contribution to the investment sector is considered a priority. Therefore, the union will start with the adoption of the initiative, released by the General Secretariat of the Supreme Council for Planning and Development (GSSCPD) through its Women and Business Committee and supported by the UNDP, Women Empowerment Principles (WEPs), contacting and encouraging our members to adopt and implement these principles in their companies and achieve Signatory status. We plan to stage seminars in collaboration with the Supreme Council to introduce the WEPs to our members.

What is your organization currently doing to contribute to fruitful economic growth?

Endogenous economic growth theories have pointed to private investment as one of the determinants of long term, sustainable economic growth. One of the main reasons the Kuwaiti economy has not achieved its aspired degree of economic diversification over the decades is the relatively low level of private investment. UIC presents the possibilities available to the investment sector, considered one of the leading sectors in the Kuwait economy, as a private contributor. It participates in activities and actions that encourage and support investment at various levels. Such steps can be broken down into the following: organizing economic forums, suggesting new rules and regulations, and proposing amendments to facilitate private sector contribution to economic growth and investment across diverse sectors. This includes the privatization of institutions that provide public services. Partnering and collaborating with international institutions specialized in investment and financial services and conducting awareness seminars to provide knowledge required for investment decisions. These factors all contribute to the development of the investment sector, which in turn attracts foreign and local investors and promotes economic growth. ✖

UIC is focused on educating and improving the nation’s investment landscape while spearheading national investment potential and shaping the economy of tomorrow.

win-win SITUATION

As an investment organization focused on SMEs and start-ups, Rasameel Investment Co. now helps its clients make money, while empowering technological advancement around the world.

Dakhil Al Dakhil CEO, RASAMEEL INVESTMENT CO.

What

qualities do you seek when deciding to financially support newcomers to the market?

Rasameel has been through many changes over the past years. We have changed the structure of our company, focusing on asset management and venture capital investing. This is actually a new unit that we have recently opened. When it comes to investments, we do not want to “reinvent the wheel.” Instead, we look at the potential of replicating a particular product or service of a company when put in a different market; if there is a chance of success elsewhere, we know the company is a good fit. We want to invest in companies that have the potential to grow and expand beyond the borders of the GCC. With each investment consideration, we think of the bigger picture, and based on our calculations, we decide whether to go for it. The things to pay in mind are also the company’s ability to pivot and approach challenges, and their financial backing. It is important to understand the team that is leading the SMEs before investing. A great advantage of our firm, as a shariah-compliant organization, is the fact that we do not invest in initiatives that are not sustainable. Our philosophy determines our actions, and we believe that whatever we do, we should help the world develop and keep it safe. We are all responsible for the wellbeing of the planet and people, and anything you do has to bring value—that is our philosophy. With all these in mind, the underlying strength and uniqueness of our approach is the fact that for us to participate, both parties have to be able to gain from this participation.

What changes have you observed in terms of the entrepreneurial ventures in the Kuwaiti market?

Right now, there is a trend toward entrepreneurship and SMEs. Many people with great ideas have launched their businesses with success over the past few years. There are a few major reasons why Kuwait is a great space to start a business and scale. First, there are no taxes, which allows companies to save as much as they can while they try to break at the beginning. Secondly, the environment is peaceful here. There are not many costs, and, especially for Kuwaitis, the support is immense. Finally, the population is small, so you can quickly experiment and explore what works and what does not before you take your product or service abroad; however, for that same reason you have to take it abroad at some point, because there aren’t enough people here to make a business scalable. That is the model and success story of the many companies that started here: practice, grow, experiment within, and then take it elsewhere.

What is your approach to investing and the unique strategy of Rasameel?

First, we should use our investments to not only save for the future but build and empower advancement. This is what we are doing at Rasameel. Through our products such as the disruptive technologies portfolio, we help our clients gain and make money, while empowering technological advancement of the world. This way, we are truly investing in the future, rather than just invest-

ing for the sake of saving money. There is not much innovative investing in the country, which is what we are trying to change. By empowering these new solutions and experimental approaches, we can influence the growth and change in our economy. Moreover, we will soon launch an all-encompassing platform that will enable our clients to learn about investments, build their own portfolios, and research the market with the use of our expertise and technology. Instead of looking through dozens of websites and magazines, they will be able to go onto our platform and see it all, segregated, analyzed, and updated on the daily basis. We provide the power from insights with conviction on the direction of certain stocks and themes. ✖

BIO

Dakhil Al Dakhil started his career in early 2004 in private equity at the Industrial and Financial Investments Company in Kuwait. He was a founding executive member at Dimah Capital after serving a substantial period of time at Al Aman Investment Company. With a background of industrial engineering from the Pennsylvania State University, Dakhil has been a Chartered Financial Analyst (CFA) from the CFA institute since 2008.

solid GROUND

Al Safat Investment Company has built a healthy foundation for the growth of the firm and is now looking to expand its footprint around the world.

2023 will mark the 20th anniversary of Al Safat Investment Company’s transformation into a fully-fledged, licensed investment company. What projects have marked the performance of Al Safat over this time?

Al Safat Investment has a rich history; it launched in 2003 and became one of the leading investment companies in the last few years. Following the 2008 crisis, we were de-listed from Boursa and worked hard with the board and the executive team to restructure the company, reduce its debts, and revise all its assets. We relisted the company in 2021, and it is indeed a success story. We also became one of the Islamic investment companies with zero debt within the last five years of profit and last two years of dividends. We are planning to expand; in fact, we will merge with an investment company in Kuwait in the coming months to be a larger entity under the name of Al Safat Investment. We have built a healthy foundation for the growth of the firm. Our executive team has created a strategy for us to follow in the last three years and further amended the upcoming three-year strategy in light of recent global developments to ensure we are heading in the right direction. We operate through our subsidiaries worldwide and are currently present in the Middle East. Al Safat is applying for a new license from Capital Market Authorities to be a “market maker.” We are looking to expand into Europe, as with the currency depreciation there, we can see opportunities to enter the market. We want to build a portfolio of real estate there.

Al Safat Investment Company is placing increasing importance on supporting SMEs and venture capital projects. What has been the impact of these investments?

I am extremely positive and excited about this. We look forward to supporting SMEs through the National Fund and our partnership with that organization. We work with it to provide SMEs with advice, facilities, resources support, and business

development strategies. We have already set aside a space in Safat Tower for them, and we will do the opening in the coming months. Personally, I am extremely interested and optimistic about these businesses because there are many entrepreneurial success stories in Kuwait. I trust we can help them with what they need to thrive. They need support, investors, more knowledge, and experience on how to guide a project or business from the beginning up to autopilot level. With the support of the Al Safat team and other companies, many of these young business leaders will be able to truly excel.

How is Al Safat Investment Company addressing the two crucial components of long-term sustainability, namely the social and the environmental aspects?

We are extremely interested in corporate social responsibility. We have organized many activities in the last year regarding education, health, and training. We are active in providing middle schools with training opportunities to educate and empower the youth. When these students go to university, knowing that investment companies have different sectors, they will be interested to become a part of the team after they graduate. We have created a course on this working with the Kuwait Investment Authority. We have trained many students with this program at Al Safat. In terms of the environmental care, we provide electric chargers here for cars. We are taking care of the environment and doing our own part. Tackling the negative challenges of climate change is something that everyone has to take part in, and we want to give a good example. It is a small step, but it is a positive one. We all have a responsibility to our society and the planet, which is why all these initiatives we are working on are dedicated to the sustainable growth of the local and worldwide ecosystems that we are a part of. ✖

BIO

Abdullah AlTerkait heads the board of directors at Al Safat Investment Company. He holds a Global Executive MBA degree from London School of Economics and a bachelor’s degree in management and political science from Kuwait University. He was appointed Chairman of Al Safat Investment Company in 2013 and is also the co-founder & Partner of AlTerkait Group for Construction of Buildings and Executive Investment Director at Gulf Cable and Electricals Company. He is also board member of Kuwait Clearing Company, Shuhaiba Industrial Company, and National Consumer Holding Company, as well as vice chairman of the Union of Investment Companies in Kuwait.

Islamic investment company with zero bank debt within last five years of profit and last two years of dividends

Plans to improve and become bigger after merger

Abdullah AlTerkait CHAIRMAN, AL SAFAT INVESTMENT COMPANY

SUCCESS story

Listed on the Kuwait Stock Exchange in 2002, A’ayan Leasing Investments Company is a successful shariahcompliant investment organization.

Abdullah Mohammad Al-Shatti CEO, A’AYAN LEASING INVESTMENTS CO.

BIO

Abdullah Mohammad AlShatti is a qualified Chartered Financial Analyst (CFA) and holds MBA in finance from The Hong Kong University of Science and Technology and a bachelor of engineering – computer engineering from Kuwait University. He started his career at the engineering training program of the Kuwait Fund for Arab Economic Development. He then moved to private equity department at Kuwait Financial Center Company. He joined A’ayan Leasing & Investment Company in 2006 and has held several positions until he was appointed CEO. He is a board member on several investment and real estate companies across the GCC and is Chairman of Mubarrad Holding Company.

What is the mandate and the unique approach of the company?

A’ayan’s establishment processes started in 1998. Initially, the company was based on two pillars: operational and financial leasing of vehicles and real estate. This is mainly due to the background of the major shareholders such as the families of Alghanim and Behbehani. Because of the success that we had during the first two to three years, we also entered more areas of investment; both in equity and companies. By 2008, the company had grown exponentially. At that time, we had total assets of almost USD1.5 billion, and we expanded considerably in both real estate and equity investments. Most of the investments we made were basically strategic investments in which we took on the major shareholding of companies. We also made many investments in the leasing area because of our expertise. We were active in the heavy equipment, medical, and office leasing businesses. Unfortunately, the global financial crisis in 2008 impacted us dramatically. As a major investment company at that time, our total debt was around USD1 billion. Because of the liquidity issue, the mismatch between the liquidity of assets and liabilities, we had discussions with our creditors in search for the right solution for everyone. We successfully made a restructuring plan, and by 2012 we had signed it with the majority of our creditors. We decided to find a new plan and successfully settled almost all our debts by 2020. Now, we are in a particularly healthy position. A’ayan did not lose any momentum during those years. We invested in many areas, either directly, or through our subsidiaries and associates. All those activities continued over the years, and I believe our restructuring experience is rather unique in the market, in terms of a company achieving a healthier position with satisfied creditors. We are proud of the success story of our settlement and the current strong fi-

nancial position of A’ayan. In Kuwait, there are the main market and the premier market in the stock exchange. A’ayan is currently on the watchlist to be promoted in 2023 to the premier market. This is what we are planning to do and it will give us a great opportunity for further success.

What investment opportunities do you see in the market and where can we expect the most pronounced growth over the coming years?

People are starting to believe and trust in the vision of both the country and the government, and we are witnessing changes in the way assets and resources are managed. Going forward, I believe many of the involvement and contributions of the private sector will happen and should happen. There is a great deal of evidence to suggest that the government is serious when it comes to improvements. For example, in 2022 alone, we, as a company, have participated in three projects that the government presented to the private sector. Now, the government is aware that there is a better role for the private sector, and they are starting to act on this potential. It appears that the government is willing to open the door for the private sector to invest in certain major infrastructure projects. The second area, which is crucial for the country to find the right solution for, is housing. The government is working to establish appropriate regulations and an alternative solution to expedite the process through the private sector involvement. And such an opportunity will get many different companies from various sectors involved, which is great as it moves the economy forward. Kuwait is also making huge investments in major infrastructure projects in the country, e.g., the refinery or the port to the North. We believe that those major projects will play an important role in the coming years, and can only hope for stability within our region. ✖

On the watchlist for promotion next year to the Premier Market of the stock exchange

Image: Vladimir Zhoga

BANKING ZERO-AND-ONE

In the digitalized financial world even the word disruption has adopted a wholly positive meaning.

IT MUST BE ASKED: What are digital solutions and financial fluency, and the fintechs behind them, actually disrupting? Perennial financial exclusion among individuals, and bureaucratic obstacles that dam up swift investment decisions and further innovation. Not to mention potential loss of revenues that could be sitting in state coffers. In a TBY interview, Central Bank of Kuwait (CBK) Governor Basel A. Al-Haroon notes that “at the end of 2Q2022, [Kuwait’s banking] sector remains well capitalized with a CAR of 18.4%. Moreover, “on a consolidated basis, total assets grew by 8.8% in 2Q2022 in annual terms.” Digitalization, therefore, reflects the global tendency toward still greater efficiencies.

A DIGITAL WATCH

Galvanizing the knowledge economy is essential to the Kuwait Vision 2035 goal of a sustainably diversified economy liberated from dependence on hydrocarbon exports, a necessity merely underlined by the pandemic. “The objective,” says Al-Haroon, “is to make processes faster, cheaper, and more efficient without compromising security or privacy.” To this end, “CBK has adopted technology and upgraded its capabilities with a 360-degree view of regulated units, end-to-end paperless processes, insights informed by targeted analytics, future-proof technology at the heart of the new digital foundation, and best in-class capabilities within a solid structure.” This built-in readiness ensures that digital adoption is pragmatic, rather than adventurist.

SETTING THE PACE

In early 2022—a hugely prolific year on the digital front—CBK released fresh guidelines for establishing digital banks. The digital

banking framework to enable and support new entities was based on a study of how 25 other central banks had tackled the subject. Accordingly, digital banks were divided into three key models. First, a unit within a traditional bank. Second, a partnership between a bank and a digital institution where the bank performs core banking operations while the other party undertakes customer relations, trademark, and other service areas. The third model involves a standalone digital bank. CBK welcomed the added value that the digital banking route promises to deliver to the consumer and broader economy. It then required all completed application forms and documentation as of the date of issue of the guidelines by June 30, 2022. Initial approval was then to be given by year-end.

CASTLES IN THE SAND…

Incidentally, in August CBK took the major innovative step by testing an open banking product within Kuwait’s pioneering regulatory sandbox, with the participation of voluntary customers. The sandbox, of course, provides the opportunity to iron out any kinks that could be costly to banking system integrity post roll-out. The sandbox was launched in 2018, its scope being expanded a year later.

…AND A PRACTICAL PORTAL

Two months earlier, CBK also announced it was to gradually roll out an advanced banking sector digital portal to improve internal system mechanics. The portal, part of the country’s overarching digitalization program, works to expedite request processing between CBK and the sector while expanding service offerings. The initial phase was to deliver a series of e-services to slash pa-

per-based requests, establish a pre-set time frame to completion, gee-up operational processes, and improve decision-making capabilities.

CAPITAL MARKETS CLAIM THEIR SHARE

Kuwait’s financial markets overall are riding the digitalization bandwagon, with patent success. Also in August, Kuwait’s Capital Markets Authority joined the ranks of the Global Financial Innovation Network (GIFN). The international network champions financial innovation while acting as a regulatory mechanism for emerging technology.

In July 2022, World Finance magazine named Kuwait’s stock exchange, Boursa Kuwait, the “Most Sustainable Company in the Financial Services Industry.” The accolade acknowledged initiatives to generate awareness and adoption of sustainable business practices, internally and among wider capital markets. The exchange is vocal about its corporate sustainability (CS) strategy, having joined

the UN’s Sustainable Stock Exchange (SSE) initiative in 2017.

A SHARE OF SOCIAL AWARENESS

In keeping with its commitment to the support and promotion of responsible, sustainable, and impactful business practices, Boursa Kuwait has also partnered with the UN’s Development Program (UNDP) in workshop addressing the standards, practices and tools required for the implementation and reporting of environmental, social, and governance (ESG) principles. On the occasion, the marketing and communications senior director at Boursa Kuwait emphasized the need to inculcate an awareness of those principles among market participants and pursue sustainable business operations and practices that foster greater operational efficiency and realize corporate objectives.

In Kuwait’s financial markets, then, the wheels of digitalization are not merely in motion, but doing so on carefully monitored tracks. ✖

AN EXAMPLE to follow

Established to independently supervise the insurance sector in Kuwait, IRU has gone above and beyond to make the sector more transparent to outside investors and deal with unprofessional behaviors in the sector.

What is IRU’s mandate?

IRU was established on the basis of Bylaw 125 in 2019 to supervise the insurance sector in Kuwait independently. Kuwait was among the first countries in the GCC region, along with perhaps Bahrain, to initiate insurance sector regulation. Some of our insurance companies have been listed since the first stock exchange was established in the 1970s, and the gap between regulation and supervision within the insurance sector had widened because the sector developed without the improvement in regulations. In 2019, the law was enforced, and IRU became the only governmental entity established with zero finance from the government. We initiate and regulate new insurance activities like third-party liability insurance (TPL), which are not regulated by OCI. We are studying the extended warranty activity and looking to regulate unique insurance activities in the region. However, this is at an early stage.

How did the pandemic impact the insurance sector?

After the pandemic, all sectors improved their digitalization abilities. The insurance sector in Kuwait gained, because the number of insurance claims dropped. The Ministry of Health also enforced travel insurance to cover COVID-19. These changes were reflected in the stock market. According to the record, almost all insurance companies gained in earnings per share in 2020, 2021/2022. Over that period, we took part in regulating multiple acquisitions, GIG and AXA being one of them.

What is the role of Kuwait insurance sector in relation to the international market?

Our performance needs to be improved, and we are looking to increase the insurance concentration rate. For example, we are studying the business interruption cover for all commercial entities. Under the umbrella of IRU, we can set a list of requirements for companies and for the investment companies to get insurance coverage for their own liabilities and operation activities. That will improve and increase the dollar premium. We also aim to reform the TPL business, because the cost of TPL for a private car is around KWD20, or less than USD80. If we look at the inflation rate with the consumer processing index, the value of KWD1 in 1981 is equivalent to KWD3.4 today, while the cost of insurance was KWD16.5 in 1981 and KWD56 today. There is no limit on liabilities, and all of this was regulated by the traffic bylaws. Now, we will be the ones to regulate it.

How do you expect this regulatory change to affect the interest of western investors in the Kuwaiti insurance sector?

We aim to make the Kuwaiti market fully transparent with all the available information about the companies, risks, claims, and so on. We want to simplify the procedure of exercising new activities in Kuwait for external investors. We will start to translate all the insurance laws and bylaws to English, so foreigners will have easier access to it. We hope to collaborate with another regulator in Europe, America, or East Asia to establish a database for information and clear procedures. Moreover, we are thinking out-

Abdulla AlSenan VICE PRESIDENT, INSURANCE REGULATORY UNIT (IRU)

side the box. In Kuwait, we are currently dealing with many unprofessional entities, and we have decided to approach it differently. We have developed our own initiative IRUSOFT to monitor and regulate insurance claims and disputes in a user-friendly, automated manner. It is solely monitored by IRU, so there is no risk of third parties influencing the outcome of these disputes and claims. Our team is able to swiftly check each complaint and look through the backlog if necessary. What is more, anyone can file a complaint through the system, and the system will deliver it to the company under our supervision. This way, we can stay on top of everything that takes place, and it only takes a moment. It is simple to use and much more efficient. To make it even easier, we only check the complaint after escalation. This way, we can regulate without unnecessary time loss and escalating workload for any of the parties involved. ✖

BIO

Abdullah Alsenan graduated with a bachelor of finance and financial institutions from the Kuwait University College of Business Administration. He then went on to work for the Kuwait Clearing Company in the role of senior compliance officer. In 2016, he joined the Capital Markets Authority as registered compliance officer and soon after became the advisor to the Minister of MOCI within the Competition Protection Authority. He was later promoted to executive director in the Compliance and AML department in 2019. In 2020, Alsenan became the Vice President for IRU.

KUWAIT’S EXAMPLARY MODEL FOR PUBLIC SERVICES

About:

The Insurance Regulatory Unit was established in accordance with Law No. (125) of 2019 regarding the regulation of insurance issued in the Official Gazette on 01-09-2019, and according to the law, the unit regulates insurance activity and controls it in a manner that is fair, transparent and competitive, and develops insurance activity. In line with international best practices and providing protection for all stakeholders involved in the insurance activity.

www.iru.gov.kw Irukuwait

Goals:

•Regulates insurance market activities in a manner that is fair, transparent and competitive.

•Develops insurance activities and mechanisms in line with best international best practices.

•Providing protection for all stakeholders involved in insurance activities.

•Applies policies that achieves fairness, transparency and prevents conflict of interests.

•Ensures compliance with regulations pertaining to insurance activities.

•Raises public's awareness of insurance activities, benefits, risks, and legal obligations.

Anwar Al Sabej CEO, WARBA INSURANCE

Warba’s history goes back over 46 years. What makes the company so consistent and successful on the Kuwaiti market?

We pride ourselves on our customer service, which originates with our Kuwaiti culture and values. Our transparency is another foundation where it is evident by our main assets, our employees, which drive our company’s success.

What does Warba Insurance offer for the expat population in terms of insurance and retirement plans?

As a composite insurance company, Warba provides various insurance solutions to the expat community starting from householders, travel, motor, savings, and local and international health insurance policies. These plans

can be still maintained while the expat returns back to their home country.

How can Kuwait make the economy more open to foreigners?

To attract any foreign investment, the investor requires clear regulations that can protect their rights and give them control of their investments. Once the foreigners have control in their investment, they will be encouraged to reinvest their savings thereafter will encourage more growth into Kuwait’s GDP.

What are your priorities and expectations for the upcoming year?

We expect to see double-digit growth. We aim to see more digital transformation and are developing processes to enhance that digital experience. We are working with our international partners and establishing new ones in order to create more synergies to enhance our products and services. ✖

BIO

Anwar Al-Sabej is a strategic resultoriented business executive with more than 25 years of hands-on experience in the insurance field. His successful career with Warba goes back to 1999. He has held several positions and was appointed CEO for Warba Insurance & Reinsurance Company in 2013.

Image: trabantos

taking the NEXT STEP

Tamara is setting its sights on being a strong payments player in the Kuwaiti market that can support its customers well and provide different products for the market.

Faris Al-Obaid GENERAL MANAGER, TAMARA, KUWAIT

What has been Tamara’s experience setting up in Kuwait?

Tamara is the leading buy now, pay later (BNPL) player in the MENA region. Our core offering is enabling customers to split their payments at checkout, completely interest-free. For merchants, Tamara offers seamless integration with existing processes and ultimately an increase in key metrics such as average order value, conversion, and purchase frequency. Crucially, our service is also risk-free—partners receive the full purchase price up-front excluding a commission while their customers enjoy paying overtime. The entire organization was built from the ground up during COVID-19, offering seamless payments and facilities in a market that was quickly shifting its focus towards fintech and the future of payments, so we have always prioritized careful and sustainable growth. In the two years since launch, we have quickly grown from Saudi Arabia to the UAE, with millions of customers and more than 3,500 merchants using our services. Kuwait as a market is a logical extension for us and the next step in Tamara’s growth journey.

How would you distinguish Tamara from its competitors in the payment and fintech sectors?

We fully established and incorporated a company on the ground and plan to go live with our full operations in Kuwait. We are ahead of the game in terms of the competition. On the merchant side, our unique partnership approach emphasizes growing together and offering an unparalleled level of support to every business that works with us, whether they are a multinational retailer or small e-commerce start-up. Something else that

distinguishes us is the combined experience of our team. We have more than 50 nationalities working in Tamara, with more than 200 employees globally. We work on a hybrid model whereby most of our teams work remotely, and some go to the offices. Being a youth-driven company, we know what we need and aspire to deliver that.

How important is Kuwait to Tamara’s global portfolio of operations?

A payments player that is strong, understands the market, can support, facilitate, and provide different products for the market, and actively supports different communities is key for a strong post-COVID-19 recovery in Kuwait. We hope to be that player and take care of all needs and all segments of Kuwaiti society.

What trends do you see driving BNPL forward in the region, particularly in Kuwait? The trend will grow toward having fast cash disposal in your hand and a seamless experience whereby payment platforms can immediately onboard and facilitate customers. We facilitate this by having a quick KYC process online and a seamless operation for the customer to click and get their item as soon as possible without any friction.

What are Tamara’s priorities for the next six to nine months?

We see ourselves as a win-win solution for all segments of society, whether it is the customer or the merchant getting more revenues, especially at times where customers are not spending as much as they used to. We offer flexibility to our employees with a remote work model, we are conscious of their lifestyle

and want them be happy. We aspire to support society and promote financial literacy to all segments, particularly the youth graduating from university. We want to instill the concept that they need to save money for a rainy day—Tamara can be their support system to purchase low-ticket items. We aim for a long-term presence within the market and would like to work with local universities in Kuwait to facilitate and provide courses, lectures, and workshops on financial literacy. We seek to work with the government and private sector to identify areas to bolster financially conscious spending and defining a framework that supports innovation in Kuwait. I strongly believe in Tamara’s mission, which is why I decided to join the company. As a team we aim to support the economies and societies and educate our customers. ✖

BIO

Faris Al-Obaid is the General Manager for Tamara Kuwait, a member of multiple high-profile committees for Kuwait, and an investor and advisor to multiple start-up businesses. He has navigated his career, from his days studying international communications, business, and political science in college to his most recent endeavors on the global stage. He is also set to compete for the Kuwait the 2026 Winter Olympics in skiing.

ONE-STOP shop

Providing innovative payment solutions, UPayments has expanded significantly in the last six years, creating products to address demands in the market.

Nasser Al Humaidi CEO & CO-FOUNDER, UPAYMENTS

Plan to duplicate Kuwaiti operations abroad, notably in Saudi Arabia

Both the public and private sector have increasingly adopted digitalization

Established in 2016, Upayments quickly increased its market share in the Kuwaiti fintech arena. What accounts for your success and competitiveness?

The company was founded in 2016 by Ali Alhabshi as a prop-tech, and in late 2017 he invited me to join. I purchased a stake, and we changed the concept to UPayments. There were not many players in the sector back then, and we decided to enter the market with a different concept, which is why we decided to create the many services that UPayments offers: u-rent, u-store, u-pay, and u-interface. We were competing with a number of companies and service providers, not only fintechs, which prompted us to diversify our services leveraging the innovativeness of my partner Alhabshi, who had brought certain technologies into the game. In 2021, we were granted an electronic payment license from the Central Bank of Kuwait, which made us a more accepted and respected service provider. It was a true milestone for us. We consider ourselves a one-stop shop where the client has the ability to get links to collect online, access the e-commerce website, as well as point of sale machines, and payment gateways if you have an application or a website. Also, our team helps by signing third parties such as local delivery, shipping, and storage companies. I should also say that none of our success would be possible without our agile and highly skilled team. When it comes to entrepreneurial ventures such as UPayments, people are often demanded to wear many hats and take up multiple tasks at the same time. Therefore, I always say that our company’s core assets are its people. We make a great team, which underpins our competitiveness and ultimately our success.

the products themselves, we have recently introduced a payment system for the education sector. It is available in Kuwait and will shortly be available in the Kingdom. This is a time-saving solution for parents when shopping for their children. We partner with schools, institutions, and unions to provide convenient purchase methods. We have an ecosystem of partnerships at UPayments, all serving our merchants’ needs, including shipping, storage, local and international delivery—all available through one platform.

What is your perspective on the current progress of digitalization in Kuwait, especially in the public sector?

The pandemic made huge changes in everyone’s mindset. Both the public and private sectors became more open to digitalization and have already begun related works. One solution that the government introduced is called SAHEL, which marked the first step toward digitalizing and simplifying bureaucracy. I have even noticed the Ministry of Interior becoming more digital, which is a positive sign. It is encouraging to see these changes occur in the official institutions themselves, and now the challenge is for the government to connect them all.

What are your priorities for the coming year?

Nasser Al Humaidi is the CEO & Co-Founder of UPayments, the first regulated fintech company in Kuwait. He has 10-plus years of experience in telecommunications and holds a political science degree from Kuwait University.

What are your expansion plans for the coming years?

We are in the expansion stage as we speak, having established offices in Saudi Arabia, Qatar, and Bahrain, and we will be particularly focused on Saudi Arabia in the coming year. When it comes to

Competition is stiff and healthy and keeps us on our toes, whereby we constantly work toward better and new solutions. We should review and improve our services and products annually. In fact, we are also focused on making such changes monthly or even daily, which will allow our customers to get better quality without noticing the changes. In terms of expansion, we plan to duplicate what works in Kuwait elsewhere, especially in markets like Saudi Arabia. We have a plan regarding what service we might focus on in that market. In brief, I foresee notable achievements for our team over the coming months. ✖

Alok Chugh CEO & FOUNDER, HELIOS CONSULTING FZE

What digital tools and approaches does the company use?

In the last two years, we have had discussions with our clients on their digital journeys, process gaps, and areas where to add value. Most organizations have predictive or repetitive processes that take hours to deliver, though about 60-70% of these tasks are repetitive and can be easily automated. A sizable percentage of our clients are working with no or minimal automation. Helios Consulting together with our technology partner helps the clients identify the gaps and presents solutions and tools for automating some of those processes. We have teamed up with the right technology partner with over 150 specialist resources based in Bahrain, the UAE, Oman, and India and have invested in the right resources to deliver value driven solutions to our clients. Our client portfolio includes the largest power company in Saudi Arabia, a fashion retail group in the UAE with presence across the Middle East, and banks and financial institutions in Kuwait and Bahrain. We are also working with one of the biggest international chain of hotels in Dubai to automate some of its processes and a semi-government authority in Qatar on automation and submission of information onto a government portal as per regulatory requirements.

Dalal AlRayes CO-FOUNDER & CEO, SPARE

What is the idea behind Spare?

Spare is a leading open banking services provider in the region and the first such provider in Kuwait. Countries around the world are rolling out open banking regulations that will allow customers to securely share their financial information with third parties. Enabling data sharing in a secured way requires an open banking platform service provider that can connect banks, customers, and businesses—this is where Spare comes in. Spare is Kuwait’s first and only open banking service provider that is currently in the Central Bank of Kuwait’s regulatory sandbox. Spare is already licensed and operational in Bahrain and is in the process of being licensed in KSA.

What is the role of Spare in the digitalization of the finance sector in Kuwait?

Open banking is taking this forward, with Spare acting as the facilitator and catalyst for the change. Spare is working closely with stakeholders such as the regulator and the banks to ensure a successful roll-out of open banking in the country. In the current phase, Spare has partnered with three banks to test select use cases in CBK’s regulatory sandbox. We will bring our knowledge from our operations in other markets and help shape the design of open banking in the country.

Fadwa Darwish SECRETARY GENERAL, UNION OF INVESTMENT COMPANIES (UIC)

What is your perspective on female leadership across the Kuwaiti market?

Rakan Al Adsani CEO, HESABE PAYMENT COLLECTION CO.

What competitive edge does Hesabe offer its customers?

First, we are highly flexible. Our support and IT teams are built on the basis of satisfying the merchants’ needs. We are not afraid of admitting if we are unable to deliver some part of their requests. Instead, we either provide them with alternative solutions or point them in the right direction to one of our partners. This way, we are able to practice integrity and provide services at the highest level. Moreover, we are able to adjust our solutions to fit clients’ challenges. We also work closely with K-net and our banking partners to provide IPOs or kiosk K-net machines as well as the regular mobile machines to our clients. We aim to address all types and ranges of needs that clients may require solving.

What will be Hesabe’s priority for the coming months?

We want to continue building our online presence, and that can only be realized with the increasing participation of our IT partners. Second, we are working on increasing the sales team for POS. We tend to hire from the industry, which allows our employees to know their niches inside out. We want to enhance our ability to facilitate online payments, and for that we need to address the needs of different sectors and companies.

Despite the high rates of skilled and educated women who remain largely unemployed in the MENA region, the gender gap still exists. Therefore, I hold a responsibility toward women to normalize and increase women's participation at the decision level in the investment sector. Taking my words into action, UIC participated and organized events addressing women's empowerment and closing the gender gap. As a result, we collaborated with the UN and took part in several business-related events organized by different women-related organizations aiming to raise the voice for women equality and gender gap within the business community. From my position, I have been encouraging UIC member and in particular female leaders to be part of different events organized by well known institutions in the MENA region, such as the Center for Inclusive Business and Leadership for Women at the American University of Beirut. On a personal level, I am a member of the Women in Business Focus Group at the American Business Council in Kuwait, as well as a member of the Kuwaiti Women Leaders for Change organization.

Image: Anson Fernandez Dionisio

DREAMING OF ELECTRIC SHEEP

ncreasing digitalization is one of the most important and obvious avenues of growth for the Kuwaiti economy. Being geographically small and a tad on the hot side, Kuwait can benefit greatly from developing a strong digital economy, allowing the population to punch above its weight, all from the comfort of an air-conditioned living room.

Digital Solutions I

Whether in finance, telecommunications, or delivery services, digital solutions are finding their way into every sector of the economy. Some solutions providers are implementing changes in the 80-year-old banking sector, while others are revolutionizing connectivity by providing digital-only services to an oversaturated mobile market. And while there is still much to be done before Kuwait can lay claim to a true digital economy, progress continues apace.

According to the CEO of Virgin Mobile Kuwait, the local mobile market is extremely saturated, with the data usage per person reaching above 200GB a month. This fact alone places Kuwait on the top of the list for mobile data usage worldwide. Moreover, with its geographical location, the country has great potential for exporting internet and data services at a regional level. As Dina Al Eissa, the CEO of BOnline, told us, Kuwait could be transformed into “an international internet hub for international companies and content providers.”

During our research, we had the chance to speak with many SME and start-up leaders, whose ability to translate their ideas and plans into thriving business opportunities have enriched the local economy and offered a potential route to diversification. After the impressive success of Talabat, now a region-wide leader in food delivery, many Kuwaiti ventures have spread their wings, challenging the status quo and overachieving through their innovative solutions and services. Companies like Dabdoob, Floward, and Just Clean have been increas-

ingly conquering the markets and expanding their services elsewhere. The potential for the IT sector is duly noted by the Supreme Council for Planning and Development. Dr. Khaled Mahdi, the Secretary General, shared with us the organization’s perspective that “the digital and knowledge economy best suits the diversification process, which is why most of the policies focus on innovation and encouraging people to be creative.” Such a narrative fits greatly into the ambitious aspirations of the country’s administration, which through the support of companies providing smart solutions, hopes to turn Kuwait City and its surroundings into a “smart city” over the coming decade.

As technological advancement progresses, many companies whose expertise lies in the realm of innovation and technology are expecting to be of help for the country’s leadership and the organizations within. Microsoft, SAP, KASP, and many others play a crucial role in helping companies transform their systems and structures, with the vision of a more sustainable and fool proof digital ecosystem in place. Many voices point to the risks connected to negligent approaches toward technology, particularly on the cybersecurity side, which is why an increasing number of companies have decided to outsource this aspect of their operations to a reliable partner. Such a tendency creates further opportunities for international companies to enter and participate in the growing economy of Kuwait. Looking ahead, Kuwait has a promising future. Through the implementation of smart solutions, efficiency boosters, and online businesses, the country’s market is apt to increase its attractiveness, while boosting diversification efforts. With its strategic location, a strong financial footing, and an outstanding entrepreneurial tradition, the “Pearl of the Gulf” has the potential to shine once more. All it will take is a healthy amount of investment and plenty of smart work. ✖

future PROOF

Ministry of Commerce and Industry and Minister of State for Communications and Information Technology Affairs has bold plans to enhance diversification by embracing the technologies of the future.

Mazen Saad Ali Al-Nahedh MINISTER OF COMMERCE AND INDUSTRY AND MINISTER OF STATE FOR COMMUNICATIONS AND INFORMATION TECHNOLOGY AFFAIRS

The COVID-19 pandemic led to an accelerated process of digitalization. What is the Kuwait Ministry of Communications and Information Technology Affairs’ perspective on the current level of development on this front?

The State of Kuwait, including its Ministry of Communication and Information Technology Affairs, recognizes the importance of digitalization and the true transformational power of digital systems and services. The COVID-19 pandemic accelerated and facilitated an even stronger collaboration with the private sector and the results are platforms that enhance services provided by the government to citizens, residents, and businesses operating in Kuwait. Successful examples include the unified government apps of “Sahel” and “Sahel Business” as well as “Haweity,” or My Digital ID, Meta, a centralized government appointment booking platform, and many more. Since the pandemic, the public and private sectors’ potential has been realized through our collaborative focus on adopting smart technologies and our strategic partnerships and alliances with tech giants such as Google, Amazon, Microsoft, and Huawei to accelerate the digital transformation further and optimize the quality of services to our citizens, residents, and businesses.

At the Ninth e-Government Forum, we heard about the close relationship between digital transformation and country’s development. What can be expected from the ministry’s efforts to implement Kuwait Vision 2035?

The Ministry will continue to work with its strategic technology partners to drive digital transformation across Kuwait’s public institutions. We are about to form the Central High Committee for Digital Transformation headed by the Minister of State for Communications and Information Technology Affairs and all relevant ministers and government entities. The committee will be responsible of the country’s digital transformation master plan and unify

all related projects under one umbrella. The ministry is supportive of all efforts to digitalize and collaborate to create diversification and transform the nation to a resilient regional and international financial and trade hub. Therefore, further development of information and communication technology infrastructure is a top priority for the ministry, and in correspondence to fulfilling Kuwait’s New Vision 2035, which seeks to develop and modernize our infrastructure and improve services and quality of life for all. The ministry is actively working toward making government services more efficient, transparent, and accessible to the public through digital transformation. This includes the implementation of e-government services and the use of digital technologies to streamline administrative processes. Additionally, the ministry is engaging and supporting the diversification of Kuwait’s economy by promoting the growth of new industries and technologies, such as big data, software development, AI, robotics, and virtual reality. We are building environments for innovation by promoting R&D, encouraging collaboration between academia and industry, and supporting startups and small businesses.

Cloud computing and cybersecurity have become essential to the country and organization’s safety and independence. How does the Ministry of Communications and Information Technology Affairs address these challenges and what projects or developments are planned for the coming year?

Recently, the Council of Ministers released a decree to establish the National Cybersecurity Center for the State of Kuwait. This center will proactively manage national threats and risks of cyberspace as well as secure state institutions within an integrated security framework of policies, procedures, standards, and technical controls, thereby securing Kuwait’s cyber infrastructure. The Ministry is working

on raising awareness about cybersecurity among individuals and organizations in the country through various campaigns and training programs. We are at this point running Cyber Monday for all Kuwaiti government employees through CAIT in cooperation with the leading companies in the market such as Microsoft, Cisco, Palo Alto, Huawei, Trend-Micro, and Fortinet. The ministry is working on developing a comprehensive cloud computing strategy that enables organizations to securely adopt cloud technology and reap the benefits of cost-effectiveness, scalability, and agility. The ministry is also working to ensure that data privacy and security are maintained in the cloud through the proper governances, procedures, and policies currently under review by CITRA. We are excited about our recently signed deal with Google Cloud to establish three cloud-based centers in Kuwait; we look forward to more engagements with other technology partners in the near future. In the coming year, the Ministry is expected to continue its efforts to enhance cloud computing and cybersecurity in the country. This includes the implementation of cloud computing services, the expansion of cybersecurity initiatives, and the development of new technologies to enhance the security of online transactions and data. ✖

BIO

Mazin Saad Ali Al-Nahedh serves as Minister of Commerce and Industry and Minister of State for Communications and Information Technology. Prior to that, he was CEO of Kuwait Finance House Group and held several positions in the Kuwaiti banking sector. Mazin Saad Al Nahedh received his bachelor’s degree in business administration with a major in finance from California State University. He has also completed numerous specialized executive programs, including the General Management Program (GMP) at Harvard Business School.

future FORWARD

A digital disruptor, Virgin Mobile has embraced Kuwait’s Vision 2035 since the beginning and provides many programs and services to increase digital literacy and support the development of the economy.

What makes Virgin Mobile so unique in the telecom market of Kuwait?

Kuwait is one of the most digital markets in the world. We strive to bring an inventive digital business model that eliminates the old-school ways of telecommunication. We bring in the latest technologies and seek to change the game. We like to say we are a digital app and not a telecom operator, because we have an all-in-one app where customers can activate a SIM and even do self-onboarding with e-SIM. It is simple. We also offer two free streaming services, music, and video, in all our plans by default. With us, there are no contracts or commitments. We do not expect customers to come into branches, sign anything, or go through a long process; everything is simplified and made as user friendly as possible. We are bringing a completely new digital experience for mobile consumers in Kuwait. We are also coming up with a new number range (4 prefix), which is important in Kuwait as people prefer fancy numbers. We always work to bring the most disruptive digital approach.

How is Virgin Mobile striving to progress the Kuwait Vision 2035 initiatives across society?

We expect a bright future for Kuwait. We have embraced Kuwait’s Vision 2035 since the beginning. There have been many efforts in the country to support foreign investment and make Kuwait attractive to investors from abroad. We have benefited from that support from KDIPA and other authorities, such as CITRA, to enter the market, invest, and hire. We believe our presence in Kuwait is important. Virgin Mobile has capacity-building programs for digital interest because it is a digital disruptor. Our programs are about increasing digital literacy and capacity for kids, teens, and young at heart, so that we can develop their understanding of the gig economy.

How does Virgin Mobile ensure an environmentally friendly future?

This is a major part of Virgin’s DNA—not only

Benoit Janin CEO, VIRGIN

Virgin Mobile but also the entire Virgin group. It is one of our top priorities. We are already carbon neutral. Our SIM packages are biodegradable. We will implement a feature whereby every user can offset their mobile carbon footprints through the app. We have been working on developing that and it will be launched soon. The idea is to calculate the carbon footprint of our users and our own internal carbon footprint as a company. Users will be able to allocate a part of their fees to offset their carbon footprint. We are also considering different options and are still in talks with partners to implement initiatives such as planting trees, cleaning the ocean, and so on.

Virgin Mobile Kuwait has announced its Metaverse sphere project. What does this mean for the company, and what are your expectations for this development? We support the youth digital entrepreneur community in Kuwait and the region to boost tomorrow’s multi-dimensional services. The idea is to develop a program for young entrepreneurs to be the first ones in Kuwait to elaborate on the whole environment and the ecosystem of Web 3.0. Eventually, all those ecosystems and universes will become increasingly intelligent, and it is about leveraging on this trend. We will have more interconnected digital platforms and that will make us unique and successful.

What is unique about the mobile users in Kuwait versus other countries?

Digital usage here is incredibly high; Snapchat is the second worldwide in terms of penetration. TikTok is fifth, and Twitter is eight. It is incredible that average mobile data consumption in Kuwait is the highest worldwide, at around 200GB per user per month on average. That brings us to another question about sustainability. We are considering starting an awareness campaign about the consequences and downsides of being addicted to internet usage and want to promote a healthier lifestyle. As the leading digital provider in Kuwait, it is our responsibility to educate mobile consumers. ✖

Carbon-neutral company

Providing the most disruptive approach Bringing completely new digital experience for mobile consumers in Kuwait

BIO

Benoit Janin joined Virgin Mobile MEA in 2020 as the CEO of Kuwait. He has over 23 years of experience within the telecoms industry in different countries and continents. After 10 years in Orange group, Janin joined Veon as the CCO in Cambodia. He then became the CEO of Millicom, first in Chad and then in Tanzania. His last position prior to joining Virgin Mobile was at Airtel as the CEO in Congo. He graduated from the ICN business school in France with a master’s degree in general management and entrepreneurship. Janin has also completed executive programs in Stanford and INSEAD business schools.

MOBILE KUWAIT

BACKBONE of innovation

Alaeddine Karim COUNTRY MANAGER, MICROSOFT KUWAIT

Considering the increasing digitalization initiatives in the country, what is your perspective on Kuwait’s digital transformation progress?

The Kuwaiti government’s forward-looking leadership approach has helped lay the foundation for the country to become an advanced society that is sustainable with a focus on key areas such as economic, social, human, and environmental development. Microsoft shares this vision, and we are committed to working closely with the Kuwaiti government to realize it. We have seen a considerable acceleration toward the use of technology and the drive for digital transformation across the country, especially in the past two years, and there is a clear roadmap for consolidating all government services through the new application, Sahel. It is proof that the leadership understands the importance of digital transformation and working toward achieving a future that leverages technology and the power of the cloud. Digital transformation is a journey, and as a company, Microsoft keeps learning by engaging with our customers to understand their business and technological needs, which also applies to the government. We are encouraged by the progress Kuwait has made.

How is Microsoft supporting SMEs and local start-ups to increase their success rate in the Kuwaiti market?

resilience. To further ensure people are ready to use and support this technology, we are partnering with Kuwait’s Communication and Information Technology Regulatory Authority (CITRA) and other agencies to supercharge the skillsets of the country’s software architects and developers to solve common industry challenges and become tech specialists. Several retail-based companies are forming and establishing themselves in the market. However, we can go beyond retail and channel more innovative ideas to provide a new concept or service and take that to a global level. Microsoft strives to drive innovation in Kuwait and contribute to developing a competitive and diversified digital economy. We are here to support those companies with technology and business.

What has been the reception to the Smart Government Summit organized by Microsoft?

BIO

Before taking on his current role, Alaeddine Karim headed Microsoft Gulf Retail and Travel industry out of Dubai and helped grow Microsoft’s footprint in one of the fastest-transforming industries. Earlier in his career, he spent several years as an international business director for Sakhr Software and as a marketing support manager and systems engineer at the Diawn Al-Amiri Project in Kuwait. He earned a computer and communication engineering degree from the American University of Beirut in Lebanon.

SMEs and start-ups are the backbones of a digitally-driven market and economy. It is crucial for Kuwait to create and encourage platforms for these enterprises to thrive. Microsoft has implemented several programs to support start-ups—either providing the necessary technology and expertise or helping them realize their business and development potential in the country, regionally, and globally. Those programs encourage SMEs and star-up to grow and achieve more by empowering them with advanced technologies like AI and IoT that are secure and powered by the most trusted and sustainable cloud and provide support and facilities for any Kuwaiti who wants to start their business. We stimulate SMEs and start-ups to be change agents who make doing more with less possible— less time, less cost, less complexity, with more innovation, more agility and more

The Kuwait Smart Government Summit was an excellent opportunity to share some suggestions and showcase success stories in Kuwait over the past two to three years. The summit showed how technology plays a pivotal role in enabling governments, organizations, and industries to respond to the challenges of the pandemic and navigate an uncharted landscape. For example, Kuwait managed to continue delivering education via Microsoft platforms like Microsoft Teams, serving almost 600,000 students over the past two years. Besides that, the Shlonik app, adopted by the government to tackle COVID-19 and to analyze data, is an example of a forward-thinking application of technology. Those success stories have helped the country limit the damage of the pandemic. The summit also saw Microsoft and the Central Agency for Information Technology (CAIT) expand our partnership to accelerate digital transformation with the launch of the MASAR initiative. Microsoft has been in Kuwait for over 24 years, partnering with the government to drive digital transformation, implement skilling initiative to leverage advanced technology and encourage innovation. We know the market and the challenges. This gives us a better chance to efficiently support the government in its transition and approach to the challenges. ✖

With digital transformation and advanced technology adoption becoming a top priority for the Kuwaiti government, Microsoft is keen to cooperate as a key technology partner in the country.

CALL ON ME

A review of Kuwait’s highly competitive mobile market and its newcomers.

OVER A DECADE after a longstanding duopoly in Kuwait’s telecoms market was broken, the sector has become highly saturated, with a handful of players competing for dominance. In such markets, newcomers and even long-established companies need to come up with innovations and new incentives to improve their market share, which is exactly what is happening in Kuwait: the mobile phone operators are quickly rolling out one incentive package after another to maintain their place.

All this is obviously to the subscribers’ advantage who are enjoying the latest telecom technologies in return for a competitive fee. With the widespread availability of double-sim smartphone, most Kuwaitis are now subscribed to more than one carrier, which gives them a higher freedom of choice. One can use the best packages offered by each operator from one month to another. This is making the competition even fiercer. Below is a list of the main market players and their strategies to raise their market share in 2022-2023.

ZAIN

The oldest mobile operator in Kuwait, Zain, has accumulated over 3.5 million active subscribers in Kuwait, which makes it the market leader. Zain which was once a traditional service provider has gone through a phase of transformation, re-emerging as a pioneering operator which is quick to embrace new technologies. The company recently launched its nationwide voice over 5G (Vo5g) coverage—a new technology that draws on 5G networks to offer HD voice services.

Even after the breaking of the sector’s duopoly, Zain has been successful in maintaining its market share. This has translated into a reasonable margin of profit. In the first nine months of 2022, Zain reported a consolidated revenue of USD4.2 billion, indicating a 12% in its profit YoY.

OOREDOO

Formerly known as Wataniya, Ooredoo has been around since the turn of the millennium. This Qatar-based company operates in several countries across the region, though Kuwait remains among its main markets, where Ooredoo serves some 2.5 million subscribers. The company recently announced strong performance records for 1H2022. Ooredoo’s consolidated revenue for the said period was over USD1.2 billion, marking a 4% YoY increase.

In terms of technology, the company has been betting on cloud services. In 2022, Ooredoo was the first operator to obtain a license for cloud-based services from Kuwait’s telecoms regulatory authority, CITRA. Ooredoo has hinted that it will use this license to roll out new services in 2023.

stc KUWAIT

Kuwait Telecommunications Company (stc) has been in the sector since 2008, running its own GSM infrastructure. Formerly known as Viva, stc was in fact the carrier that broke the mobile phone market’s duopoly with its arrival. The company states that it owns the largest 5G network in the country, which serves its 2 million users. In 2021, stc was the first Kuwaiti mobile operator to launch standalone 5G (SA 5G) services, meaning that its service runs purely on the 5G bandwidth, without any reliance on legacy networks such as 4G LTE.

Also in 2021, stc partnered up with an international telecoms company, Virgin Mobile, to bring a new generation of mobile operators to Kuwait. stc Kuwait CEO Maziad Alharbi, attended a press conference along with the CEO of Virgin Mobile Kuwait and dignitaries from the Ministry of Communications and Information Technology. During the press conference, Alharbi explained that “In line with our commitment to assist in the development of the Kuwaiti economy, we are proud to partner with a prominent global brand to engage in a new market layer within the local telecom sector.” He was referring to the MVNO framework that Virgin Mobile Kuwait was about to use.

VIRGIN MOBILE

Virgin is one of the latest operators to enter the country’s telecoms market and the first mobile virtual network operator (MVNO). This means that Virgin Mobile Kuwait does not have to maintain a separate infrastructure. Instead, the company will share the existing hardware and base transceiver stations (BTSs) with other carriers— specifically STC. Despite the market’s saturation, Virgin has reported healthy sales, which is indicative of the Kuwaitis’ openness to try new service providers as long as they have something new to offer. As it happens, Virgin has a number of new offerings, one of which stands out: free streaming service memberships for those who use the carrier’s data plans. This bonus has made Virgin more popular among the younger generations.

REGULATORY SYSTEM

Despite all thus, the telecoms market is not left to its own devices. The country’s telecoms regulatory authority, CITRA, was launched in 2014 to oversee the sector and intervene whenever an intervention was due. CITRA’s mission is mainly to ensure the market’s sustainability for both the operators and subscribers as well as fair competition among the market players. Furthermore, CITRA intends to “protect the interests of users and service providers and regulate the services of telecommunication networks in the country, while ensuring transparency, equality of opportunity and fair competition,” according to the regulatory authority. ✖

ENHANCED connections

Ooredoo Kuwait hopes to improve the telecoms and digital experience of both businesses and individuals across Kuwait, while providing opportunities for talented Kuwaiti workers.

Abdulaziz Al-Babtain CEO, OOREDOO KUWAIT

2.65 million customers registered

Smart solutions will support Kuwait Vision

What is the current position of Ooredoo in the Kuwaiti market?

BIO

Abdulaziz Al-Babtain has decades of experience in many business fields, telecommunications, technology, and sales. He is widely commended for his passion and commitment to leadership, seeking to make a difference as an enabler of change and advocating for the region’s IT sector and using his own story of achievements to stimulate progress in the realm of technology and sales. Currently, he is the CEO of Ooredoo Kuwait. Before joining Ooredoo Kuwait, he was the CEO at FASTtelco.

Today, Ooredoo is leading the telecoms companies in the local market in terms of market share in the consumer segment, and serves the highest enterprise entities across the nation. The implementation of the Shift+Transformational strategy, which took place back in 2020, made a clear route toward this growth. We’ve recorded the highest consumer growth in the local market since the pandemic, meanwhile B2B and enterprise solutions made it the main choice for corporate clients when it comes to ICT and telecoms infrastructure provision. Reliability, responsibility, and being a proactive provider has uplifted the standards of this local market, and we are very proud of having Ooredoo as top leader in the local market. This success is greatly affected by our B2B area and our acquisition of FASTtelco. The pandemic has affected our business, with many clients leaving the country because of the restrictions and being away from their families. Yet, thanks to our amazing team and the many strategies we have swiftly adopted, we have quickly recovered and achieved a return to full strength in no time. We have kept our prices competitive and our offers attractive. The mix of our services and the strength of our newly acquired subsidiary has allowed us to create a one-stop-shop offer for clients, especially on the business side. Taking into account the client’s particular needs, operational costs, and connectivity requirements, we tailor the solution to fit their budget and demand. This is the best way to ensure a lasting relationship and best-in-class provision. That is what success looks like. If you want to be successful as a provider, make sure to listen to your clients carefully, tailor your offer to fit them, and add to your services regularly.

What is the potential impact of smart city concepts on the local economy?

Smart city is a catchy phrase describing any kind of efficient, sustainable, or sophisticated solution that contributes to the betterment of the overall system. In other words, it is a concept of creating

a better working city. From improved transportation to a better waste management system, this idea can greatly impact the local lifestyle and quality of the economy. As a telecoms company, our expertise lies in connectivity, and we have already proven the utility of this kind of service in the region, especially in Qatar. We can help in connecting the local governing system or create an all-inclusive system of smart solutions to measure and minimize energy waste. The pandemic has shown us that there is a lot to be gained from utilizing telecoms-based solutions on the smart side. We have introduced smart meters in public mosques, schools, and multiple buildings and the saving hits up to 80% of the energy and water.

Where do you plan to focus your efforts over the coming months?

Our goal is to support the government in empowering national improvement and transition. We are working closely with many public authorities and are likely to be the number-one partner for it in terms of digitalizing its processes and systems. We want to contribute toward the betterment of our country. Most of our employees are Kuwaitis, and that is for a reason. I trust that by employing local people, I am employing people who actually understand the community and culture, and are thus able to and capable of understanding their needs and demands. I want them to care. Ooredoo focuses on social responsibility and sustainability, creating an array of activities and offers to improve the lifestyle and quality of the domestic market. It is worth mentioning that we have been working with a number of local universities and have already offered internships to local talent. We want to attract young professionals to our business, because they are the future of Kuwait. We believe that by creating a better work environment and educating our staff we are enhancing the possibilities available for the country. There is a lot of potential in increasing the private sector’s contribution to overall GDP, and that will only happen if we work together and increase engagement within the sector. It is our duty and pleasure to do so. ✖

enabling digital TRANSFORMATION

Over the years, stc has transformed from a traditional telecommunications service company to become an ICT business solutions and digitization services enabler.

What explains stc’s success in the competitive Kuwaiti telecoms market?

In 2019, we launched our new strategy, after diagnosing and reorganizing our priorities and operations, focusing especially on the employee and customer. By improving employee satisfaction and rewarding success, we were able to increase our sales and provide excellent customer service. We spent a great deal of time and effort in creating a performance-driven organization. The root to our success is ensuring that our employees are satisfied and successful in what they do. As for our customers, our objective is to understand their needs so that we can divert our efforts to the right place. We discovered that individuals highly appreciate simple and fast digital services. Considering that 70% of Kuwait’s population is under 30, we find those to be our primary customer base. Individuals within this segment expect the gamifying of systems and instant provision of products or services. Therefore, we invested in changing and simplifying the customer journey for them. This came in the form of investing heavily in digitizing our experience and enhancing services such as connection latency. In terms of connectivity, we are the only operator in the region to offer full standalone 5G that is referred to as SA technology. We find this to be essential to our connectivity offerings as it differentiates us amongst competitors to experienced customers. Businesses, on the other hand, want a one-stop shop with ICT capabilities and cloud services with cybersecurity. This has been apparent to us since 2019, and since then we acquired two companies operating within those fields. We first acquired Qualitynet, a company that specialized in fixed connectivity. The second company was e-Portal holding, an advanced Cloud services and professional software and services provider. These acquisitions enhanced our capabilities and expanded our portfolio to fulfill the requirements of businesses. We are now a Kuwaiti company of considerable capability in ICT, and we offer an array of complete solutions, on site, or on

Maziad Alharbi CEO, stc KUWAIT

the cloud. We are also working with the government to build a huge data center and are investing heavily in connecting Kuwait to a submarine cable that will provide connectivity to Africa, which will in turn connect Africa to Europe and Asia. We are doing all we can to enhance our provision of service and sustain our success.

What is stc’s focus for 2023?

In 2019, we launched our AHEAD strategy, an approach that has served us well but will end this year. A strategy aimed to position us as one of the leading entities in Kuwait within our field, which we have successfully achieved. In 3Q2022, our market share had reached 40% of the local market. Meanwhile, we had just launched our new strategy for the next three years called LEAD. The new strategy focuses on fulfilling the digitalization requirements of businesses and government entities. Our services are certainly essential for the nation’s ability to digitalize and transform. We are also working on our partnerships; some of our existing partners include Microsoft, Cisco, Huawei, and Oracle. Through the support of our partners, we have been able to further expand and enhance our solutions and offerings. There is much progress to be achieved over the coming year, yet we are certain that our efforts will pay off. With the right team and a solid strategy, we are geared toward a successful journey ahead.

What is the company’s role in the market’s digitalization?

Before the end of 2019, stc introduced 5G connectivity in Kuwait. Our coverage spanned across Kuwait before the pandemic, making it possible for people to connect online even at peak consumption times. Nowadays, companies and organizations have ramped their R&D and investment into digitalizing their systems to increase automation and transform their traditional processes. stc has the technology and experience to make that happen. That is why our focus for the next three years will be to enable digitally transformation throughout Kuwait. ✖

Offers full array of ICT solutions

Focusing on employees and customers Supporting national digital transformation

BIO

Maziad Alharbi was appointed CEO of Kuwait Telecommunications Company (stc) in 2019. He has over 25 years of proven executive management experience across the telecommunication, media, and technology industries. Prior to joining stc, Alharbi served as CTO at Etihad Etisalat (Mobily) from 2014 to 2019, in addition to being the chief corporate affairs officer (CCAO) between 2017 and 2019.

A NEW era

Focused on the connectivity business in the region, BOnline diversified offerings and entered the market with new products and added-value services.

Goal to connect GCC and create 1 connection network for entire region

What technological changes have you recently observed in the Kuwaiti market?

BOnline (formally known as Gulfnet) was established in 1991 and was focused on delivering the latest in technology and networking solutions. Our core network has evolved over the years with our latest upgrade and revamp to the network in 2019. However, the fiber infrastructure development in the country was rather slow. About 99.4% households in Kuwait have internet access at home, but 84.8% of these households use routers from mobile network providers. The majority of Kuwait still depends on DSL internet services, which represents a real challenge. We speak of digitalization and automation of Kuwait; however, we need to realize that the first pillar of achieving these goals is investing in the country’s infrastructure. Having said that, I am positive that with the government’s latest changes to the telecommunications industry and with the implementation of new Kuwait Vision 2035, we will turn around these obstacles. Technology and innovation will play a bigger part in our economy.

BOnline has joined a venture to simplify the digital business infrastructure in the region. What has been the progress of this initiative, and what are the company’s expectations following such collaboration?

Dina Al Eissa CEO, BONLINE

region and clients on a higher and bigger level.

What is BOnline’s strategy for success in the market? When it comes to technology, to survive you have to keep evolving, adopt change quickly, and always look at the market and its needs. You also require an organizational culture that empowers creativity; only then will success be guaranteed. BOnline as an internet service provider is focused on the connectivity business though it is not limited to providing internet only. We have diversified our offerings and entered the market with new products and added-value services. We aim to ensure providing our customers with what they truly need and want. We have positioned ourself as one-stop-shop when it comes to ICT solutions. To make sure we stay in the game, we are doing all we can to be unique and better than the others. Our way of succeeding is by creating long-lasting relationships with our clients, letting them know we keep our word, and providing them with the best deal possible. It is all about trust.

What is your outlook for the technology sector in Kuwait in the coming months?

BIO

Dina Al Eissa holds a bachelor’s degree in computer engineering from the George Washington University with a master’s degree in business administration. She has over 20 years of experience in the telecommunications and financial sectors, specializing in performance management. She has proven experience in successful restructuring and business transformation in the telecommunications industry and is a strong believer in the importance of encouraging the younger generation, especially woman, to succeed in the innovation and ICT sector.

Alliance network is a new venture that BOnline has invested in. The idea of an alliances network is the future of telecommunications. The first phase of this project is defined as the interconnection phase, in which all the GCC countries will be connected to function as a single region. This will bring enhanced network performance, low latency, and direct cloud connectivity to the region. The solutions provided by Alliance will elevate the standards of communication in the region.

We are proud to announce that Alliance has successfully obtained its telecoms license from TRA in Bahrain and is close to establishing its network and launching its operations. I have no doubt this initiative will improve our ability to serve the GCC

I am extremely optimistic, and things are improving now. The current leadership and vision from the government has the potential to truly improve the country’s future. There is great potential in Kuwait on an international and geopolitical level. As a location, Kuwait offers great advantages in all the GCC. We can transform Kuwait into a global internet hub for international companies and content providers. This will help the telecoms sector generate high revenues and contribute positively to the economy. On a local level, Kuwait Vision 2035 includes 13 megaprojects with a budget greater than KWD250 million per project and 56 projects with a budget of less than KWD250 million, totaling an investment of KWD23 billion in the next 13 years. This can only stimulate the economy and encourage more creativity and innovation within Kuwait. ✖

BIO

Izzat Abou-Amarah has over 20 years of investment and operational experience in the ICT sector. Prior to Impulse, he was the AVP-Investments at NTEC. Prior to that, Abou-Amarah was an applications engineer at Analog Devices in the US. He holds a bachelors and masters degree in electrical engineering from Boston University and a minor in business administration.

Izzat Abou-Amarah CEO & VICE CHAIRMAN, IMPULSE INTERNATIONAL FOR TELECOMMUNICATIONS

What has been Impulse’s experience in Kuwait thus far, and how is the company in addressing the needs of the local market?

In general, we focus on the ICT space, particularly on three main areas. The first is on the investment side, and the second is on the operations side. In Kuwait, we have mostly worked in network infrastructure because there is a fair amount of development happening in this area. Another big theme for us is enterprise automation; namely automating processes, or workflows whether they are related to business, assets, or tracking so that there is a full automation and digitalization of a client’s business. The third area is security. We manage security services to safeguard an enterprise. These three areas constitute the largest inbound requests that we receive as a company. These are also the most active in our pipeline in both the public and private sectors in Kuwait. The size of the projects may vary, but we always ensure that anything that we develop has an added value for the client. We get involved in the most stra-

tegic and transformational projects for these enterprises. In terms of the market, its agility varies significantly depending on the readiness and commitment of the entity that we are dealing with. In some cases, there is a learning curve or a benefit that we must demonstrate before they buy-in to the need or importance of our offerings.

What progress have you observed regarding the digitalization process in the finance sector following CBK’s regulations?

The finance sector is in the process of transition. It is changing its platforms and offerings and strives to make its entire infrastructure digital and automated. Kuwait has a high concentration of youth, so there is a need to meet their expectations and demands. The way they interact with a service provider is different than previous generations. They prefer solutions that involve as little human interaction as possible. Impulse supports banks in terms of this transition via its services. We also launched Virgin Mobile Kuwait, which is a 100% digital mobile provider, because we see a need for such solutions in the market and the need to offer a onestop-shop solution that integrates financial services within the mobile offering. ✖

Ayoob Kalathingal DIRECTOR, EMSTELL TECHNOLOGY CONSULTING COMPANY

Considering the characteristics of the Kuwaiti market, what are the main areas of activity for Emstell in the country?

What is your strategy to increase your market share in Kuwait?

BIO

Ayoob Kalathingal, a Certified Project Management Professional, is the Founder & CEO of Emstell Technology Consulting, a pioneer organization in IT consulting and services operating in the UK, Kuwait, Canada, and India. He has worked with over 80 companies, SMEs, and start-ups to implement software, web, and app solutions in the Middle East. Prior to Founding Emstell, Kalathingal worked with global IT firms like Infosys and Cognizant and was involved in large e-commerce and ERP implementations for organizations in Europe and North America.

Since entering the market about 11 years ago, we have been mostly working with SMEs, as well as large banks and enterprises whose main area of focus is to support start-ups. Most of the SMEs are within the service delivery sector, e-commerce, delivery, and logistics segments. We aim to work primarily with SMEs and help them develop their systems and grow through the second stage of their development. We also have some projects that we have been developing for years now. Currently, we have at least 12 of our projects, which were started with clients a while ago and we are their main point of contact to develop and grow their businesses. Our expertise lies in providing start-ups with the complete technology guidance. We are able to help them find the right solution from a technological perspective and make it work. And depending on where they are at the moment, we guide them accordingly.

Our strength lies in transparency and openness about the process. We want to make sure our clients get the best service possible. Most of the time, the evaluation of finding a right partner in terms of solutions and technologies are not well addressed at the beginning. Companies choose with whom to work based on the blueprints and ideas, but not much actual data. We always tell our clients that everything that is done should be documented. Second, they should not evaluate their partners based on the budget perspective but rather the added value and technological perspective. They end up eventually wasting their time and idea. Our advice and strategy are to evaluate the technology first and see what others are doing. We want our clients to minimize their losses, because they made the right choice from the beginning. In our view, it is best for an individual or a company to take it slow at first, prepare for the launch better, focus on the strengths, and then start in the market. That is our recipe for success and that is what makes Emstell prominent in the sector. In the long run, this attitude will help us grow our market share in Kuwait. ✖

Image: Nordic Studio

more TO ACHIEVE

For the last 15 years, Huawei has continued to invest in Kuwait and its digital transformation, helping the country’s ICT sector to develop rapidly.

What is the impact of Huawei’s activity regarding the digital future of Kuwait’s economy?

Huawei’s mission is to bring the potential of digital to every person, home, and organization for a fully connected, intelligent world. Over the past 15 years, Huawei has continued to invest in Kuwait and apply the world’s latest technologies. As a result, Kuwait’s mobile communication market has developed rapidly, connecting 99.7% of the population, leading in internet usage, and offering the best user experience, ubiquitous connectivity, and the most affordable communication rates. And now with advanced 5G technology and applications, we have enabled distance learning that complied with the government’s social distance policy during the epidemic. With 5G technology, we can support essential services during lockdown, such as bringing mobile banking and ATMs to the community, which helped people deal with their day-to-day issues immensely. In the future, we hope to see 5G technology adoption across more industries and entities. Huawei has cooperated with the Ministry of Communication (MOC) to overcome various challenges. For the construction of national broadband projects, we have delivered fiber optics to over 50,000 households, enterprises, and governments. Fiber is key to providing fast and stable connectivity for all ICT technologies and is seen as the essential infrastructure enabling digital transformation and realizing Kuwait’s Vision 2035. Compared to neighboring countries, Kuwait’s fiber penetration still has a gap. Since 2016, Huawei Kuwait has continued to cooperate with government ministries and commissions to introduce automated tools and platforms to facilitate office automation.

Meanwhile, we intend to better support the government’s digital transformation with our cloud services.

Huawei is collaborating on IT and AI literacy courses with the Central Agency for Information Technology (CAIT). What has been the impact of this initiative since its inception in 2021?

Huawei and CAIT have a cooperation agreement to support IT talent in government sectors that provides a training platform and free qualification opportunities to participants. The cooperation will also provide Arabic-based training on cloud computing, AI, and other advanced technologies in line with that of Huawei to support digital transformation and empower a diversity of talent. With professional trainings and certifications, employees within the public sector’s IT divisions will have the knowledge, skillset, and understanding to develop and implement next-generation intelligent solutions that will elevate Kuwait’s society and propel its digitalization journey. So far, hundreds of employees in the IT departments of over 30 government entities in Kuwait have joined this initiative. Participants from several government entities such as the Ministry of Electricity and Water (MEW), Ministry of Education (MOE), and Public Authority for Sport (PAS) have passed exams to be awarded Huawei certification.

What can Huawei offer in the area of cybersecurity?

Cybersecurity is Huawei’s priority, and we have maintained a solid track record in this. In Kuwait, we have signed a cybersecurity agreement with CITRA in 2019. Our engineers in Kuwait are working hard to help countries maintain a

safe and stable network. Over the past 30 years, our products have been used in over 170 countries and regions, with 1,500 carrier networks serving over 3 billion users in total. As a pledge, Huawei’s commitment to cybersecurity will never be outweighed by its own commercial interests. We remain open and transparent, use internationally recognized cybersecurity standards or best practices in the industry.We proactively communicate with customers, industries, and governments to meet their security requirements and ensure compliance. And as the ICT supply chain is global, we have signed cybersecurity agreements with over 3,400 cybersecurity-related suppliers worldwide to jointly build security assurance. We actively participate in the formulation of the security standards of international standards organizations such as ITU-T, 3GPP, and IETF and strive to promote globally unified security assessment standards and certifications. ✖

BIO

Rico Lin is CEO of Huawei Technologies Kuwait & President of Huawei Zain Group Key Account Department. He joined Huawei in 2008 and has been the CEO of Huawei Kuwait Technologies since 2018. Lin has 20 years of experience in the telecoms industry and has been in the Middle East region since 2008. In support of Kuwait’s ICT vision development, Lin has led many critical projects in the country, including nationwide 5G deployment, working with carriers and policymakers to ensure Kuwait is among the first worldwide to deploy 5G networks.

Rico Lin CEO, HUAWEI KUWAIT

UNLIMITED offerings

Shadi Al Samad CEO, M2R GROUP

How has accelerated digitalization impacted M2R?

With a dedicated marketing and development as well as a department specializing in data, M2R Group stands out as the premier digital and dynamic media ROI solutions provider.

There is no denying that digitalization has become a vital aspect of every industry. Those who resist the change are setting themselves up for a difficult road ahead, as it will become increasingly challenging to integrate their products and services if they are not digital ready. Since the static business in Kuwait was negatively affected, there was an increase in our business and online advertising. Digital transformation is a core value of M2R Group, something that we strive to achieve every day. Our digital solutions department has tripled in size compared to 2019. The perception of advertisers of outdoor digital screens is different from static. Clients have the ability to be innovative when they work with us and can choose animation and the like. Our existing clients are also reducing their use of static advertising and increasingly use digital options. COVID-19 helped accelerate this growth. New clients have decided to work with us because of the new market trends the pandemic help spearhead.

What are your plans to expand in new markets? The goal was to expand M2R in different countries, but we have concentrated more on internal expansion due to regulations after COVID-19 and travel constraints. We later proceeded to expand in Lebanon, which was an enormous opportunity. We have finished the full setup, but there are some challenges due to the economic situation in Beirut. The project is ready, and we had a discussion about it recently. In Qatar, we do not have plans. There were some opportunities, but we will wait for after the World Cup to judge the situation. We have a plan for Saudi Arabia too, and negotiations are underway to achieve an affiliation with a significant player in the Saudi market. It wants to come to Kuwait, and we want to enter the Saudi market.

How have you leveraged on changing consumer behavior?

ganizations have even made it permanent. Although not that prevalent in Kuwait, it is still an option now; hybrid models are even being explored. One positive side effect of all this is the increase in e-commerce activities, which is buoyed by the 99% internet penetration in the country. The uptick has continued even after things returned to normal, which has forced every organization to invest in digital or lose out on their market share, especially B2C platforms. We have a department specializing in data, and with targeted advertising algorithms, we can categorize audiences according to nationality, gender, purchasing power, and even the applications they use. Through our systems, we are able to provide a better advertising service to our clients and grow as the major digital media advertiser in the region.

Can you tell us more about moving into digital sector?

BIO

The pandemic has been a major learning event in our lives. One obvious trend that developed due to the pandemic is the work-from-home culture, which is still prevalent in many countries, and some or-

We are the only outdoor supplier with a Chief Marketing Officer. We have a marketing and development section that keeps track of local and global market trends. We are the only company that owns its own mediums. We are also the oldest and largest media rep in Kuwait. We believe in investing in development. We are proud and confident in our product enough to give data away for free; which no one else would do. M2R Group has always prided itself in putting the right media ROI for the client as the top priority in any dealing. Our USP is the 360 media solutions we provide our clients that complete the media journey for their consumers, something few others can boast of. We have exclusive representation rights with our partners, which sets us apart from the rest. However, perhaps our biggest distinguishing factor is that we work with our clients as partners and not suppliers; their success is our success. ✖

Shadi Al Samad holds a BA in economics from Balamand University of Lebanon. He has over 20 years of experience in management, marketing, sales, and negotiations across well-established organizations.

Digital transformation is a core value of M2R Group, something that we strive to achieve every day.

wealth of TALENT

NCIG was founded to produce impactdriven content to bridge eastern and western markets and provide a creative haven for talented regional storytellers and help spread messages of peace and plurality.

What is the mission and mandate of NCIG?

The acronym NCIG translates to “weaving” in Arabic and, much like a web, NCIG weaves together different components of industry, creativity and community, working to bridge the gaps in our local creative economy, and allowing the sector to have more of an impact both regionally and internationally. At NCIG, we bring together writers, producers, directors, and so on in order for the community to function as one healthy entity. We also bridge the gaps between the East and West. Human stories are exactly that—human—and they are universal in scope. NCIG works to bridge the gaps between the private and public sectors. We weave connections between these components through facilitation, incubation, and production. Facilitation includes our assets and our activity-driven studio offerings, incubation empowers the transfer of knowledge between people and companies, and production refers to creating original content in collaboration with many companies worldwide.

According to your website, less than 1% of GDP is invested in the Kuwaiti creative economy. How would you assess your success in promoting this ecosystem so far? Even though the 11 sectors that make up the creative industry of Kuwait employ more than 35,000 individuals and generate hundreds of millions of dinars for the local economy, this field is extremely underappreciated. The income generated by CI translates to about 24% of the entire value of the non-oil manufacturing sectors and about 72% of non-oil business services sector. Given all these variables and understanding the need to diversify our sources of income in the country, NGIC seeks to build a community that believes in the role of CI in driving the economy forward and creating a sustainable ecosystem for this to become a reality. To address these challenges, we have built a world-class multi-media facility and studio cam-

Sheikha Al-Zain Al-Sabah CHAIRPERSON & CEO, NATIONAL CREATIVE INDUSTRIES GROUP (NCIG)

pus to offer space for creative people to meet and collaborate. Second, we have started working on a legislative blueprint for the industry. When it comes to TV and film, at the moment, there are many restrictions and laws binding creative expression in many ways. We find this to be crippling, and we are determined to develop a new approach to remedy the landscape and update these laws and regulations with our lawmakers. Finally, we are working on the incubation aspect and helping artists in Kuwait and the region to find their way and gain the courage to create, collaborate, and succeed.

What is the nature of the NCIG’s partnership with Netflix on the Lab 6x6 Project created with the support of the New York Film Academy? Such partnerships are extremely important for us if we want to effectively cultivate the creative industries sector of Kuwait. This project, created in partnership with Netflix, focuses on empowering up-and-coming TV writers. In summary, Lab 6x6 was a pilot program that we did with Netflix at the beginning of the year. We created a six-week program for six writers—three from Saudi and three from Kuwait—who came together to learn and develop their ideas. In the end, they emerged with six full-fledged projects ready to be pitched to Netflix. With this process, we also brought in the New York Film Academy to build a toolbox curriculum, allowing our creators to experience what it feels like to be part of a writers’ room. The executives at Netflix were extremely generous with their time and were available to assist us throughout the whole process. The program itself was great, though the submission process for the program also showed us the true ocean of potential in both Kuwait and Saudi Arabia. Moving forward, we hope to work with Netflix and similar organizations interested in co-investing in the development of the creative community in the region. ✖

A pioneering film/TV producer and social entrepreneur, Sheikha Al-Zain Al-Sabah AlZain currently serves as Chair & CEO of NCIG. Prior to this, she served as the Undersecretary of State for Youth Affairs in Kuwait. She also serves on the board of a number of like-minded international organizations including UNDP’s Development Advisory Board, Boston University’s COM Board, the Equality Now Board, the 10 Arts Foundation at the New York Film Academy, and the OSN Board of Directors, where she serves as Vice-Chair. Before taking on her executive roles, Al-Zain worked for ABC News’ World News Tonight in New York. She is the recipient of the Arab Woman Award for Inspirational Woman of the Year 2015, the United Arab Media Council’s 2017 Haithem Media Award, and Leaders Middle East Power Women of Arabia Award. Al-Zain is a MELI fellow at the Aspen Institute and holds a BS in journalism from Boston University and an MFA from the University of Southern California’s School of Cinematic Arts.

Closes the many gaps in Kuwaiti creative economy

BIO

Liberation Tower in Kuwait City

Image: Philip Lange

best-in-class EXPERIENCE

talabat Kuwait has grown in just a few short years, supported by the growth in digitalization across the country as well as its focus on improving the customer experience above everything else.

Bader Al Ghanim MANAGING DIRECTOR, TALABAT KUWAIT

What major milestones have you achieved over the past few years?

One of our biggest achievements was our ability to continually provide everyone using the talabat app with a reliable and convenient experience throughout the COVID-19 lockdowns. Our ability to continue providing customers with a safe and reliable service by leveraging our technology allowed people to withstand the challenges during that period. Additionally, being able to order your grocers online was significantly important for customers. In Kuwait, within days we were offering a free-of-charge service to the Union of Cooperative Societies. As a business we made sure to support this from a financial perspective, but it also meant that we were there to support our local community.

What is your perspective of the progressive digitalization across the Kuwaiti market?

I am proud of what the government has been able to do in terms of digital transformation. COVID-19 certainly accelerated this shift, pushing the organizations to change. Meanwhile, our government was quick to adopt these changes and now many processes at ministries are much easier and more facilitated than ever before. When it comes to the private sector, and the market at large, e-commerce is the most prominent format in digital terms. Many companies within the food delivery and e-commerce sector were already there, even before the pandemic struck, but have gained immensely from withering competition. We used to have foreign and local competitors and restaurants

with their own delivery. Hence, there was a great advantage to being online based when the pandemic hit. As with Dabdoob or JustClean, there are still many niches to explore in terms of digital solutions and services in the market. We will surely see the rise of many more unique products over the years to come. There are many opportunities for entrepreneurs in Kuwait.

What is the scope of talabat’s commitment to charitable causes such as the company’s involvement with Delivery Hero?

Arab culture is highly charitable. When you add to that a business like ours, which plays a part in the daily life of many people in the region, we feel we have an obligation to be a part of the community that gives back. Our corporate responsibility initiatives mostly take the form of charitable events. It is amazing to hear that Pakistan is being supported from a Delivery Hero standpoint, as is Latin America. We pursue numerous initiatives like free meals, collaborations with charitable apps like Give, and organize initiatives on a local level. Early in 2021, we decided that across all our markets for number of hours we would give back from the business generated during that time. This was a massive event, and we saw people order multiple times to make sure we paid as much as possible to the cause.

What are the major near-term objectives and developments for talabat Kuwait?

We plan to continue looking inward and improving our processes and service. We want to further improve customer expe-

rience and logistics to ensure we consistently offer a best-in-class experience for everyone using the talabat app including customers, riders, and vendors. For some vendors we are a large part of their business. For vendors keen to adopt a delivery model we may end up representing all their business. Therefore, it is important that we consider them and make efforts to improve their experience with us. And for the customer, the number-one thing we are working on is experience, although we are also looking to expand our offerings. We have created talabat Pro, a service that allows customers to get free delivery on all their orders. We are also starting to grow our ecosystem and partner with other major brands to offer rewards set to start in 2023. We are advancing from a traditional order, pickup, and delivery model to creating an ecosystem for customers and vendors to enjoy. ✖

Bader Alghanim is the Managing Director of talabat Kuwait, currently spearheading the company’s operation expansion and growth trajectory in the Kuwaiti market, leading a team of over 250 people. He started his journey with talabat as general manager of tMart in Kuwait, Qatar, and Bahrain. He was tasked with launching and scaling tMart across the MENA region. Alghanim has a bachelor’s degree in quantitative economics from Bentley University in Boston.

The Culture Tech

commit. We take responsibility. We raise the bar, every single day.

We are challenging and creative in our thinking

We believe in lean product development, pushing the boundaries through user research, discovering JTBD, experimentation, and taking decisions based on validated insights

Our aim is to release in small batches, early and often, so that we can learn faster what our user really need.

With more than 2,000+ employees, 4 million users, 15,000 brands operating in GCC, Jordan, Egypt and Iraq

ABOVE the rest

Seham AlHusaini GENERAL MANAGER KUWAIT, DELIVEROO

How has Deliveroo performed in Kuwait over the last few years?

Generally, we have experienced exponential growth since COVID-19 in terms of our overall market share in Kuwait. In the 12 months from April 2020 to April 2021, we saw the largest growth leap since our launch in 2019. There was a great deal of growth and market share grab, and we continue to see that improvement in our overall market share month-on-month and year-on-year.

What differences do you observe in customer behavior in Kuwait compared to other countries?

The biggest difference in consumer behavior in Kuwait is the frequency of ordering. Customers in Kuwait order anywhere from 30-40% more on a weekly or monthly basis than their counterparts in other countries. It is a high frequency consumer base.

Were there any changes in the performance of Deliveroo over the pandemic?

need to prioritize scaling up our restaurant selection.

Year after year, Deliveroo Kuwait has won the best delivery app award. What makes the company so successful and positive for both customers and employees?

BIO

As the General Manager of Deliveroo in Kuwait, Seham AlHusaini spearheaded the launch of the food delivery platform in one of the region’s food capitals. She has extensive experience in leading multi-functional teams for multi-milliondollar companies in both Kuwait and the US. Prior to joining Deliveroo, she was COO of Shipa Freight, a digital logistics platform, and also served as a senior manager at Agility. AlHusaini also spent four years as a management consultant at Strategy&, a top-tier strategy consulting firm in New York, tackling projects for the banking industry in North America. In 2021, AlHusaini joined the board of directors at Jazeera Airways as an independent board member. She holds a bachelor’s degree in civil engineering from the University of Texas at Austin and an MBA from Columbia University.

Our active customer base increased tremendously during COVID-19, and there was an increase in e-commerce activity overall. Deliveroo Kuwait made great progress thanks to our aggressive strategy of growing our market share. We signed up many major brands during that time and immediately saw shifts in our market share and ability to acquire new customers, which came as a result of new selections on the platform as well as COVID-19 related factors. Customers also started ordering more groceries, which was a new aspect of Deliveroo’s services we are yet to develop further.

In 2021, OrderGrid started working with Deliveroo for groceries. Has that been implemented in Kuwait yet?

We use OrderGrid for Hop—our rapid delivery-only grocery service—in the UK, Italy, France, and soon in the UAE, though we have not launched in Kuwait yet. For now, we are focused on the restaurant business. We have only been in the market here for three and a half years, while our major competitors have been here for 15, so we

For customers, it is a combination of three things. First, we have a sophisticated algorithm that is designed to pick the right rider at the right location to go to the right restaurant. That is a fundamental piece that makes our service levels great. The second piece is a strong operational team on the ground. You need to have the local know-how and a strong leadership culture that makes things happen. Finally, the third part is our in-house customer care team that is state-of-the-art for the region. We have exceptional SLAs to respond to customers, answer queries, and make sure clients are informed and happy. When we combine those three things around service, Deliveroo provides an exceptional experience. We have set targets for ourselves from the beginning of the year on how we want to perform in terms of service. We measure them every week, and we make sure we stay on track. Then, there is also our internal team culture and leadership structure, which makes our employees driven. We learn from our London office and share the insight with our peers so everyone is constantly learning and gaining experience.

What is Deliveroo doing to actively promote Kuwait’s Vision 2035?

From the top of the company in the UK all the way to this organization, we are heavily focused on diversity, having women leadership across the business, and tackling the pay gap issue. The main thing is to take tactical and real decisions. We monitor all these factors and first try to understand the problem, because otherwise we will not be able to fix it. Here, in Kuwait, our office consists of more women than men, though overall in Deliveroo globally there is a balance. This is something that Deliveroo recently worked on consciously as a company. ✖

Deliveroo seeks to grow in the competitive Kuwaiti food delivery market and acquire the largest market share with the right balance of riders, operational team, and customer care.

THE SOUND OF CLICKING

State policy is feathering the nest of digital innovators with tangible results.

KUWAIT’S DIGITALIZATION DRIVE, fundamental to Vision 2035, has tamed bureaucracy through accessible e-government, while the Sahel application unifies electronic services across government departments. It has also galvanized industrial efficiency from manufacturing to logistics, and championed consumer choice and convenience. The agents of change, the fintechs and content creator SMEs, are systematically plugging any gaps to create a more fluent, and circular, digital economy. Momentum is brisk, and according to Allaedin Karim, Country Manager of Microsoft, “The government and private sector are in the process of mapping out digital transformation to fit their current challenges and opportunities and see how they can take it forward.”

CREATIVE PLAYTIME

In a landmark moment in May 2022, Virgin Mobile Kuwait became the world’s first telco to launch in the Sandbox Metaverse. This will expedite digital literacy and showcase potential money-spinners. Furthermore, Virgin Mobile inked an MoU with US global digital content provider Nonvoice LLC to keep Kuwait abreast of digital innovations. In the nature of beast, practicality itself is gamified, and interested Kuwaiti coders were invited to test their mettle through Virgin Mobile Kuwait’s MetaTribeKW Community. It was underlined at the time that Kuwait ranks second worldwide in TikTok penetration, boasting a legion of eager content creators living the app lifestyle—all fertile soil for digital consumer services from banking to shopping and education. Incidentally, market data indicates that Kuwati youth across the board prefers solutions of minimal customer interaction. While we leave the emotional consequences of that to the sociologists, one thing is sure. There is nothing optional about going digital to capture the attention and wallet of Gen-Z.

A FORCEFUL COUGH

In a TBY interview, local venture capital firm Impulse International for Telecommunications CEO Izzat Abou-Amarah notes how the pandemic demonstrated the “country’s ability to be dynamic, flexible, and adapt quickly to circumstances.” COVID-19’s catalytic effect has prompted government “initiatives and plans to undergo transformations as seen in the different regulations of the Communication and Information Technology Regulatory Authority (CITRA) and cloud services.” In the information economy, big data is all about actionable information. And to advance Kuwait’s capacity to generate it, he adds that “next year, we are planning a strategic infrastructure opportunity [given that today] connectivity, data, and analytics are becoming increasingly valuable to enterprises.”

This requires development “on the infrastructure, back end, processing and securing of data, and provision of analytics, and we are embedding our portfolio into the market to deliver that.” When ushering new technology into Kuwait and the wider region, the company tends to “invest in the business idea once it is past the starter and initial seed stages of capital funding.” The rest is up to good business practice, good old market forces, and a pinch of luck.

NOT JUST TOYING AROUND

Creative digital solutions offer a wealth of verticals. One Kuwaiti example is e-retailer Dabdoob—translating to teddy bear. Co-founder and COO Suleiman Al Anjeri explained to TBY how his initial slogan of “just toys” was swiftly amended to “just kids,” given the platform’s scope. “We are now focused on gifts and toys but […] also want to include products for babies, mothers, newborns, and school supplies.” The education arena is also in the crosshairs. Knowing a branding opportunity when he sees one, “Dabdoob,” he insists, “wants to be the Mickey Mouse of the region.”

AT THE STARTING LINE

Microsoft’s Karim argues that “SMEs and start-ups are in a better position than they have ever been, [encountering] no borders or limitations in the market.” Meanwhile, prominent digital service provider Zain in 2022 sponsored Kuwait’s preeminent outdoor vehicle for local SMEs, Bugsha Market. Through various competitions the event identified tomorrow’s pulsing brains of the digital economy. The year before, Zain had premiered the region’s first Startup Innovation Digital Video Report, in conclusion of the sixth edition of its digital start-ups accelerator program: Zain Great Idea (ZGI). The event shone the spotlight on 25 digital start-ups, namely finalists who pitched their ideas to potential business partners from the MENA region.

Looking ahead, Izzat Abou-Amarah reveals the company’s next juicy endeavor to be “enterprise automation, namely automating processes or workflows whether they are related to business, assets, or tracking, for full automation and digitalization of a client’s business.” Kuwait is keen to play its role in Industry 4.0, with increasing reliance on local talent for in-country value. And while the playground of the private sector, digitalization is ultimately a state policy. And so we leave the final word to Microsoft’s Karim, who observes that “finally, for the first time, Kuwait has a minister focusing only on IT and communications.” Proof positive, he maintains, that the “leadership understands the importance of digital transformation, […] a journey without end.” ✖

BLOOMING business

The preferred online flowers and gifts destination in MENA and UK, Floward has become one of the largest e-commerce players in the Arab world.

Focused on branding and customer experience

Planning an IPO in 2024

Operating in 37 cities across 9 countries

BIO

Abdulaziz B. Al Loughani is the Chairman & CEO of Floward.

He is also Managing Partner at Faith Capital as is a member of Endeavor, the first Kuwaiti to be selected as an Endeavor Entrepreneur. Previously, Al Loughani was the founding executive vice chairman of the Kuwait National Fund for SMEs Development. Prior to this, he was a co-founder & CEO of Talabat.com. He also previously served as director at Global Capital Management. Al Loughani has served as an executive and member of board on a number of companies within the MENA region. He holds a bachelor’s degree with a double major in information systems and e-commerce from the University of Toledo and an MBA degree from London Business School.

What is the story behind Floward, and how did it all begin?

Five years ago, we saw an opportunity in the gifting industry in the MENA region. I have been investing and operating in consumer internet for the past 16 years, and we had decided to explore this niche after realizing there is no real market leader in the region. The flowers vertical was a USD1.5-billion market in the Gulf, with 99.9% of it being offline, traditional, brick-and-mortar businesses all around. There was no company bringing it all together or brand royalty and recognition. The first question for us was the business model, and we chose pure-play e-commerce for two key reasons. The first was unit economics. Flowers and gifts are not something that consumers procure every day and were clear that we didn’t want to buy growth for ever. We were conscious of the need to build a sustainable business. The second reason was user experience; given the thousands of shops available in the region, significant upgrades were required to provide a great online experience for customers. We wanted to develop a brand and provide that experience to customers, rather than work with multiple providers and wait for them to step up their game. We handled the basics in terms of user experience extremely well and enhanced our advantage in comparison to other flower stores in the market by creating true variety and value for money in terms of our products. Our goal was to provide the best value for money and a quick turnaround time along with the right variety of products and customer experience. Today, we operate in nine countries to service 37 cities, and customers receive the same turnaround time and experience everywhere they are. We usually deliver within 90 minutes.

What is Floward’s strategy and approach to leveraging its success with ESG initiatives and solutions in mind?

Abdulaziz B. Al Loughani CHAIRMAN & CEO, FLOWARD

Within our overall vision and strategy, ESG is an important element, and we address its different aspects, whether it is the environment, social responsibility, or governance. On the environmental side, given the nature of our business, we only sell fresh-cut flowers. We do our best to avoid any artificial flowers or artificial plants. Our printing, packaging, and delivery materials are all also moving toward environmentally friendly solutions. We are extremely creative with our designs, though we recognize the limits of our capacity, which is why we have started involving members of the community to create designs. We launched Floward Community, a crowdsourcing space, in summer 2022. Anyone can come up with a certain arrangement or design, upload it onto our platform, and describe it with a few photos. If we like their arrangement designs and are accepted, we will push the design on our website, and whenever the item is sold, they get a royalty for their design. We also dedicate a portion of our revenue to social causes, and we have averaged one CSR initiative per week over the past year. It is important to us to remain close to our community. This is something close to our hearts. We take social responsibility seriously and often organize sponsorship for initiatives such as conferences or campaigns with many NGOs. The last piece of our ESG participation is governance. Floward is a start-up; today, we are one of the largest e-commerce players in the Arab world. In Kuwait, for example, we generate more revenue than 95% of listed companies. This is how powerful of an engine we have built and brand we have created. We have since institutionalized our practice and added more governance to it. We started a board with representation from our shareholders and partners. Earlier in 2022, we also installed an independent director as part of our board. We already plan to go public in 2024. In addition, we plan to launch our ESG reports soon. ✖

secrets TO SUCCESS

Finding a niche in the market for cleaning services, justclean has made a name for itself based on service, convenience, shorter delivery times, and expanded service offerings.

justclean has grown exponentially over the past few years. Are there any plans to expand into new markets? We always look forward to expanding to generate more revenue. Over the past few years, we significantly expanded in Kuwait, Qatar, Saudi Arabia, and the Emirates. We also expanded in the business verticals that we offer. Initially, we focused on laundry. To make things more organized, we realized the need to invest in logistics that can offer more capacity for the laundries and building an SAS system, a management system that enables the laundry managers to read the day-to-day data and thereby enhance their business and make proper decisions, while giving us a clear vision of the market. Then, we moved into another vertical of home cleaning. Users can book an hour or two for someone to come and clean their homes, do the dishes, clean the bathrooms, and leave. These services are in high demand at the moment because people are working from home more. We recently added a car washing service as well. From the beginning, we called ourselves justclean, not just laundry, because the vision was to become the super app for cleaning. We took our time to sort out the laundry and then expanded into many new verticals. Country-wise, our biggest focus in 2022 is Saudi Arabia. We started there two months before the pandemic, but then we had to put the operation on hold. We launched this year in Saudi Arabia’s Eastern Province, Riyadh, and Jeddah. Now, we are focused on expanding into smaller cities, such as Alahsaa, Al Jubail, and others. We are looking at the Egyptian market, as Egypt has been receiving high investments over the past two years. There are a few massive new areas in Cairo that demand such services.

What makes justclean so successful and unique?

The cleaning industry has received many investments in the region. We have received USD30 mil-

Athbi Alenezi CEO & CO-FOUNDER, JUSTCLEAN

lion to date. There is yet to be a major acquisition or a merger in the cleaning sector. It has to take place at some point for this industry to raise its level of attractiveness. Big exits have already been seen in the taxi and fintech sector, but the cleaning sector has yet to see notable exits or IPOs. Until that happens, we must keep fighting to prove that this is a healthy market. The best way to be competitive is to offer the best possible service. We have been leading in the region, through understanding what the customer wants and the industry. A shorter pickup or delivery time makes a difference among the competition. It is all about the little things. We also came up with solutions to give more to our clients and make them feel confident about our service. One example is the compensation policy on damaged or misplaced clothes. We give the money back within 24 hours if such incident occurs. With these things in place, we can see our retention rates steadily rising.

What digital developments have occurred for justclean? We have become 100 times better in the technology that we use in-house. Initially, the focus was placed on services and customer experience, but after these were taken care of and established, we turned more toward efficiency and problem-solving. The back end is developed much more than is visible on the front end. On the front end, we have added payment options, where users can now buy KWD20 or a KWD5 free voucher and use it on any laundry. It adds value to the customer and provides the edge to our service. As our services range grows, we learn to adapt and implement changes more actively. We are no longer looking at how others operate but focus on being the leaders by being the innovators ourselves. In fact, we have spent substantial resources on developing our products and technology over the past few years. ✖

BIO Athbi Al-Enezi is the CEO & CoFounder of justclean. Prior to founding justclean, he was a HR officer for NBK in Kuwait at the head office. He graduated from Shrewsbury College of Arts and Technology in the UK.

Egypt is a market of interest, having received high investments over the past two years

Vision to become super app for cleaning

BIO

Mohammed Al Munaikh CEO, AJAR

What is the mandate of Ajar, and what have been the company’s milestones since its founding in 2016? Ajar was founded to digitalize and transform the real estate sector. As we grew, we learned about our customers’ needs and evolved into a management system for real estate. Ajar is a solution for any property manager. They can manage their properties, collect rent, or organize their portfolios through Ajar. The biggest milestone since 2016 is that we manage about 10% of the units in the Kuwaiti market. With such a base, we are able to quantify and qualify market trends. We are increasingly being approached by financial institutions and banks seeking information related to these trends in real estate. The beauty of it is that we know what is happening at the moment; it is up-to-date, live research. We can offer valuable information that helps with companies’ decision-making processes. Even the Central Bank of Kuwait has been using our data for its recent real estate reports. Generally, our vision is to be

the foundation of technology for anything real estate related. We want to revolutionize the real estate market; that is the purpose of our company.

Ajar recently partnered with Visa. What is the scope of this partnership?

Our partnership says a lot about Visa’s focus on real estate and its support for digitalizing payments. Every payment provider or card issuer knows that most of the cash being handled is in real estate and digitalizing it will take a host of partnerships rather than just one player. That is where Visa’s partnership helped in terms of reducing the cost on both the landlord and banking sides. This way, we can provide better and more affordable payment options. Both Mastercard and Visa understand the dynamic of real estate and that it has to be treated separately and differently. A landlord does not want to pay a transaction fee, which is why they prefer cash. Banks miss out on that, which is why they are working on different digital solutions and plans that favor the landlord and make them want to use the banking system instead of cash. ✖

What is the story behind Dabdoob’s success?

It all started spontaneously. While talking about children’s birthday parties, my wife brought up the fact that it was a hassle and time consuming to buy toys and there was no one centralized place that only sold toys and gifts. In addition, taking children to a toy store is a nightmare, so we discussed an online app: that is how Dabdoob was born. I spoke to a friend about the idea and simultaneously he told me he had planned to approach me with the same idea.

We met with our team to explain the idea and decided on the name Dabdoob, which means “teddy bear” in Arabic. Our soft launch was in December 2017, and we officially started marketing in 2018.

What made the company so successful over such a short period of time?

It was a fortuitous combination of a great idea,

the right moment, an excellent team, and plenty of effort. The efforts we put into perfecting our service gave us the edge in the market. We were the first to come up with this solution, which made all the difference. As Dabdoob is an app, we had to cooperate with someone who knows the technical side, which is where my friend came in as a partner and head the IT division. We did not wait to test the idea; once the app was ready, we simply released it and waited to see what would happen.

As you are already present in all GCC countries, where do you expect to take your business next? Our next target is Egypt, hopefully in 2023. We are still deciding whether it is the right moment to enter the market, but Egypt will be the next great growth and development destination. There is a huge customer base, and its purchasing power will increase with time, as the economy stabilizes. Moreover, Egypt will open the doors for us to the West. It is currently going through a transition of infrastructure, currency, and market development. In 10 years, this will be the market to participate in. Many GCC investors are already investing in Egypt, supporting the economy, and helping it develop further. ✖

Suleiman Al Anjeri CO-FOUNDER & COO, DABDOOB

Suleiman Al Anjeri graduated from the University of Colorado Denver and started his professional career in the National Bank of Kuwait as a corporate banker. He has started multiple small projects that were the steppingstones that helped him achieve success with Dabdoob.

BIO

Mohammed Al Munaikh was appointed CEO of Ajar in 2020. Prior to joining the company, he founded a B2C start-up in the music industry. Earlier, he held several positions in investments firms such as Kuwait Investment Authority and Al Ajial holding Co. He is a finance and accounting graduate of Kuwait University.

brewing SUCCESS

A unique lifestyle app for coffee lovers launched in Kuwait that later expanded to KSA, the UAE, and Egypt, COFE is now ready to take its success across the region and even beyond.

Ali Al-Ibrahim FOUNDER & CEO, COFE APP

What was the idea behind the COFE App?

For centuries, coffee has both been produced and consumed in the Middle East, and yet somehow, we often credit various our world regions for the growth and commercialization of this much-loved beverage. Now, with COFE we intend complete the coffee circle, by adding technology to the mix. We are trying to create a platform that serves every kind of coffee lover, from consumers to retailers and producers; everyone can find what they need on our platform. The idea for COFE is a result of passion, cultural heritage, and opportunity, all coming together.

What unique solution has the COFE App provided?

The COFE App is a lifestyle app; it is different from the run-of-mill delivery app in the way it is specialized in its approach. Instead of creating a super app that takes one service and then extends it into multiple sectors, we chose to focus on one specific thing. Coffee shops work differently from how an F&B outlet would; they serve a specific need, and therefore we tailor our solution to those business intentions. Similarly, for a person looking for a cup of coffee, the timing, need, and experience are extremely different. Our services revolve not only around delivery but also convenient pick up and anything that a home brewer might need (we feature over 5,000 SKUs of beans, capsules, machines, and accessories). People use our app to make their coffee lives smoother and better, and for this we are constantly trying to innovate with both technology and services. In the past year, we launched Siri and Amazon Alexa voice ordering, and now we have COFE Subscriptions, where

users can prepay for their monthly coffee, making grabbing their drinks even faster. We also introduced Express Delivery service, through which a customer can order from their neighborhood coffee shops and get their coffees in under 10 minutes. Our COFE Store is a crucial component.

Which markets are you currently focusing on? Each market that we opened came with its own strengths and opportunities. Kuwait was a fantastic market to launch in and test the feasibility. With high internet penetration and a willingness to try new concepts, with Kuwait we received a great deal of critical feedback that helped us improve before we went anywhere else. The move to UAE helped us attract more talent from across the world. The grant we received from the Abu Dhabi Investment Invest as part of their 2 billion Innovation fund, has also helped us move to the next phase of our growth. With Saudi Arabia now, we have opened doors to a large potential audience, not only in terms of vendors and users, but also in terms of investment opportunities and strategic partnerships. With Egypt currently in soft launch, and preparations on for opening the rest if the GCC market, namely Qatar, Bahrain and Oman, we intend to strengthen our presence in the region, before venturing out in the international market, which would most likely start with UK, and then expand to the rest of Europe.

In 2022, you received an award in the F&B category at the Middle East Technology Excellence Awards. What does this award mean to the company?

Two things happened for 2022. One was the Excellence award as one of the most

innovative businesses in the Middle East, and COFE earned the prize for start-up in the F&B industry. It was a great achievement for us because we have joined the ranks of previous winners including Du, Amazon MENA, The Entertainer, and BLOOVO. It is also a huge success for us as a tech and product team, especially since everything is developed with our in-house technology team. We are happy that the thoughtfulness and efforts of our tech and products teams are being noticed and recognized, motivating us to constantly keep innovating. ✖

BIO

Ali Al Ebrahim is the Founder & CEO, COFE App. His passion for coffee and technology inspired him to establish COFE App, an online coffee-centric marketplace that is changing the way coffee lovers access their daily cup. He is a graduate of UMKC Bloch School in the US and has pursued executive education in technology, operations, and value chain management from MIT - Sloan School of Management. Al Ebrahim also founded Tmkeen, an accelerator that aims bridging the gap between global business visionaries and local entrepreneurs. He is the recipient of the Kuwait Award of Entrepreneurial Excellence under the patronage of HH Sheikh Nawaf Al-Jaber Al-Sabah (2020) and the Arabian Business Entrepreneur of the Year Award (2019).

BIO

As Managing Director, SAP Kuwait, Badih Hakim is responsible for SAP’s in-country presence and growth strategy, including sales, marketing, and operations in Kuwait. He brings more than 25 years of professional experience within the ITC industry, having spent the last eight years working for SAP in Saudi Arabia, where he held several positions. He holds computer science master’s degree from the Lebanese American University and a master’s of science from Middlesex University in leading sales transformation.

Badih Hakim MANAGING DIRECTOR KUWAIT, SAP

What is SAP’s approach to creating intelligent and sustainable enterprises across the sectors?

We enable our customers to become intelligent, sustainable enterprises by bringing together our comprehensive portfolio of solutions and technology to meet customers’ business processes needs. It all starts with our platform technology that provides the foundation of app integration, extension to a robust ecosystem of solutions, data, and AI. Then, our business applications work together spanning front-end and backend systems that only SAP can provide. The result is an end-to-end, industry-specific system of business processes that companies need to run an intelligent, sustainable enterprise.

How is RISE with SAP helping business transformation?

By delegating the installation and maintenance of their digital solutions to SAP, companies can free themselves from the burden of managing complex on-premise software and hardware and instead focus on their core business. RISE with SAP provides a pathway to the cloud for

any customer anywhere in the Middle East, irrespective of starting point or complexity. The offering goes beyond a technical migration to the cloud, instead enabling adaptable and sustainable transformation of a company while realizing a faster time-to-market for new capabilities and applications.

What priorities and projects are SAP Kuwait currently focusing on?

SAP has been in the region for only 10 years but is already making great inroads into the market. The focus on Kuwait started five years ago, and our established customers in the private sector are now starting to embrace RISE with SAP. It is fair to say we are the leaders of digital solutions for this industry, and therefore we can expect significant growth in Kuwait in future. We have also started sustainability discussions with the oil and gas sector in Kuwait. We want to equip the market with expertise to be able to run and support the digital transformation of different entities in a sustainable way. This is one area of collaboration with the Kuwaiti government we are pursuing. In other areas, we are also investigating possible collaboration around the digitalization of municipalities, trade agreements, and licenses. ✖

Magd Donia GENERAL MANAGER, KASP – BOODAI GROUP OF COMPANIES

What is the scope of KASP’s operation in Kuwait?

BIO

Magd Donia has over 25 years of information technology and software development experience. Prior to KASP, he delivered software and services to major fortune 500 companies for 15 years in the US and another seven years in the GCC across multiple industries. His expertise includes software development, business process automation, analytics, and generative design systems. He received his PhD in computational design from Carnegie Mellon University in Pittsburgh, the US.

KASP has been around since 1985. We are a part of a large commercial group, which has interests in several industries, including airlines, public transportation, travel, media, and construction. KASP was founded with the idea of providing shared IT services across the group. Instead of each company having its own IT department and staff, we have centralized them in KASP. This is still the case today. We provide all of the group companies with extensive IT, manage their ERP services, and so on. Many of them utilize IT infrastructure support from our side as well. That gave us the opportunity to take some of the expertise and offer similar services to major organizations in Kuwait. We started building business intelligence and analytics systems for them and quickly gained new clients across the financial sector. We utilized reporting technology from SAP, with whom we partnered in 2007. From that, we started expanding into other areas, such as business intelligence, analytics, machine learning, predictions, identifying data retention strategies, and many other similar

activities. We also leveraged our expertise in implementing and managing ERP solutions. Currently, we offer this with SAP and Oracle. Finally, we have become the developers of apps and systems for businesses across the entire economy. That is why we are partnering with Mendix/Siemens. With their low code platform, we can quickly build any kind of system from scratch and greatly enhance the client’s ability in digitalization.

What is KASP’s role in the digital transformation progress of Kuwait?

Essentially, I see KASP as an enabler. We want to be able to handhold different companies and government organizations in Kuwait by taking the first steps in digitalization in the area where we have established a sense of expertise. And this is a key thing with KASP—we never offer anything to our customers unless we can fully support them and help them become successful. We have to maintain that expertise in-house because our customers rely on us. We understand the challenges, and we can devise the proper methodology to help them be successful in using that technology We want to prevent our clients from missing their target because of a lack of expertise. It is our mission to make sure they are successful with the technology they are implementing. ✖

Image: Philip Lange

Ahmadiah Contracting & Trading Co. is the leading name in the civil engineering and building construction industry in Kuwait. The company was established in 1954 by Abdul Latif F. Al Thuwainy and Najib Ibrahim Najjar, two ambitious entrepreneurs. Since then, Ahmadiah has never stopped growing, becoming a key contributor to Kuwait’s construction sector.

Trust, transparency, quality, and performance have characterized the company from its start. Flawless execution and swift completion of the most sophisticated, high-level, and challenging projects have prompted Kuwait’s biggest key players in the private sector to consistently trust and choose Ahmadiah to execute their prestigious projects. Their faith in Ahmadiah has always been well placed, as Ahmadiah has the highest number of return clients in the industry.

Construction & Real Estate KEEP BUILDING

uwait’s construction and real estate sector, mirroring trends across the Gulf, is one of the most significant sources of economic activity following oil and gas and, to a lesser extent, finance.

According to Verified Market Research, the sector is “growing at a rapid pace and is projected to be valued at USD9.19 billion by 2028.” The challenge for constructors, however, will be keeping up with demand. Kuwait, also in typical Gulf style, is fond of megaprojects, and the government is a prolific investor in infrastructure. Elsewhere, there is a country-wide housing crisis that developers are working closely with local authorities to resolve. By law, each Kuwaiti must receive a state-financed housing unit of 400sqm. This initiative includes assigning a plot of land to the applicant and has been a part of local tradition and policy for decades. Unfortunately, due to high demand and delays in project developament, the average citizen has to wait around 10 years for their dwelling, with the waiting list currently holding around 90,000 names. To alleviate this challenge and take the strain off the government’s back, the local private sector has been actively advocating for more private-public partnership (PPP) projects to be considered.

Even companies from the financial sector such as the Kuwait Financial Centre (Markaz) are involved in trying to find solutions. In its recent report titled Housing Problem in Kuwait and the Way Forward, the organization lists a number of potential solutions and urges the government to take action. Whatever the future may hold, there will, without a doubt, continue to be rich pickings for contractors of all types.

The pandemic had created severe delays in building work across the country, but the local construction sector has since taken off. Recently, three major hotels, two major sports complexes, and further infrastructure and entertainment developments in both the private and public domain added to the skyline.

Kuwait may seem like a small country, but its construction industry has big ambitions. Many of our interviewees for this chapter expect more megaprojects to be developed in the coming months, with visions for Failaka Island, Hessah District, and Messilah Beach Resort beginning to take off. Many contractors are hopeful about potential deals, and both local and international companies are taking part in lengthy bidding processes, organized by Central Agency for Public Tenders of Kuwait (CAPT).

Elsewhere, local players are looking beyond Kuwait’s borders. Firms from developers to facility managers are plying their trade across the region, even making inroads in Europe. And as the effects of economic turbulence squeeze household budgets, organizations like Kuwait Economic Society (KES) have been increasingly active in educating the public about the advantages of investing in real estate.

With both challenge and opportunity ahead, Bukhamseen Group Holding Co. Executive Manager Osama Jawad Ahmad Bukhamseen best reflected local sentiment when he told TBY: “With the new government, a strong and active Kuwait Chamber of Commerce, and plenty of hard work, Kuwait will pass through a great transformation soon.”

Image: Limak Holding

making A MARK

With extensive experience and ability in the market, Ahmadiah has become the best choice for megaprojects in the coming years.

Considering Ahmadiah’s expertise in megaprojects delivery, what is the company's strategy and expectation for the upcoming tenders of such projects?

The strength of Ahmadiah is knowing what we do not know. We know the challenges in different projects and how to overcome them. For example, Al-Hamra Tower has a complex structure with flaring walls that move three-dimensionally in space. They rise to 400m. When we started building the tower, we lacked the expertise in Kuwait for such a large tower, but we knew how to obtain it, study it, and make the project happen. We documented all the potential problems, challenges, and solutions. We had to optimize the concrete and make corrections to limit the tower's movement with the wind. It demands a great amount of expertise and a high level of construction fluency. We addressed this issue and made sure the tower was done to the highest of standards. We used the designs from the same company that built the Freedom Tower in New York and Burj Khalifa in Dubai. We worked with their structural department, which gave us feedback confirming that our execution of building construction was extremely precise. With such experience and ability, Ahmadiah is the best choice for any of the megaprojects over the upcoming years. Our strength is knowing how to get the experience, prepare for it, and address the challenges.

On another note, our motto “productivity through people” resonates throughout the scope of our operations. We work closely with our partners to ensure the best-in-class solutions are offered to our clients and provide our staff with the most efficient and highest-quality plans and tools to ensure their work delivers great results in a timely and secure manner. Each project demands a different set of strategies, which is why our team alongside independent consultants does its best to anticipate any challenges before these can occur. Our company has been a successful sector leader for past decades, and we are certain this trend will continue

over the coming years.

What sustainable solutions does Ahmadiah apply in its projects?

Our ability to deliver sustainable projects depends on the demands given to us by the client. We work by design, and our job is to execute the order to the best of our ability. This means that some of the projects do not involve sustainable solutions. We always ensure we adopt the most efficient and environmentally friendly solutions, such as concrete ready mix, which can be reused, as well as the utilization of aggregates to minimize waste. And occasionally, when the client’s wish aligns with sustainable goals, we are able to deliver great projects, such as the National Bank of Kuwait headquarters building. This project required LEED certification, which allowed us to really exercise our sustainable practices and include the best-in-class solutions at every level of the development. Ultimately, the degree to which we can improve our services depends on market demand and government guidance. More regulations will entice everyone to become better aligned. With an incentive for such solutions, we are likely to see more sustainable projects being developed over the coming years.

What major projects has Ahmadiah recently realized?

Over the past five years, we have had the opportunity to enhance the Avenues Mall, complete the Assima Mall project, and deliver the tennis complex for Rafa Nadal Academy. We also opened four major hotels: the Grand Hyatt, Waldorf Astoria, Marriott Residences, and Hilton Garden Inn. Our team finished the National Bank of Kuwait headquarters, and we are about to finish the Assima Tower, an office building above the mall. We are also invested in tourism-focused projects such as the Messila Beach complex, as well as the Hessah Al Mubarak District, which will be a great, unique space for both business and entertainment. These are expected to be finished within the coming year. ✖

Al Thuwaini VICE-CHAIRMAN, AHMADIAH CONTRACTING & TRADING CO.

BIO

Ayad Al Thuwainy is the Vice-Chairman of Ahmadiah Contracting & Trading Co., Kuwait. He holds a bachelor’s degree in business administration. Al Thuwainy is responsible for management and overseeing the operations of the company, providing insight and support to the CEO and the board of directors.

Elie Hani CEO, AHMADIAH CONTRACTING & TRADING CO.

BIO

Elie Hani holds a bachelor of science degree in civil engineering and a master of science degree in project management. He is the CEO of Ahmadiah Contracting & Trading Co., Kuwait and has been a part of the company since 1976.

Ayad

STEADY development

Osama Jawad Ahmad Bukhamseen MANAGING DIRECTOR & EXECUTIVE MANAGER, BUKHAMSEEN GROUP HOLDING CO.

What projects has Bukhamseen Group been lately

involved in?

BIO

Osama Jawad Ahmad Bukhamseen is a board member of the Chamber of Commerce and Industry, Executive Member & Managing Director of Bukhamseen Group Holding Co., Chairman of Tanmiya Real Estate Co., KIB for Takaful insurance, and Al-Emad Real Estate (Bukhamseen Square), Vice Chairman of Aswaq Kuwait Co., and Chairman of Dar Osama Bukhamseen for Engineering Consulting (OBD). He holds a bachelor’s degree in civil engineering from Kuwait University and an MBA from Maastricht University, the Netherlands. He is currently a researcher with the Aberystwyth University in the UK. He is an active member of various bodies in Kuwait including Kuwait Society of Engineers, Real Estate Owners Association, and many others.

Over the last three years, we have been busy with two major projects. It will be a huge project and is currently at the design stage. We have yet to publish the official designs though the goal is for the project to open its doors in 2027. It will be located in the heart of downtown Kuwait City, the perfect location for business and entertainment. The second project is a town-like shopping mall. It will comprise almost 100 small buildings, rather than one big indoor space. The pandemic and the rise of online shopping have changed the way people visit shopping malls, which is why we want to rethink the concept. We will create a small town with retail, restaurants, office space, and some nature. This will be our second major focus in the coming years. There is also the Failaka Island project, which was tendered over 15 years ago. This can be a great cooperative project for international engineering groups, designers, architects, and contractors. It is in a prime location, and there is a great opportunity to create a real value for visitors and locals; however, we have to push for its development. I hope to see it being announced again as a live project. There will definitely be many mega projects that our construction sector can participate in soon. With the new government and energy within the public sector, I expect there to be progress.

What are the priorities of the company for the coming months?

In real estate, we are working on acquiring and developing new properties across the region, including Egypt and Iraq. We are in fact planning to build the largest compound in Iraq aimed at religious tourism. It is located in Najaf City and will open in 2023. We have just signed an agreement to develop a new residential city in Cairo for a 200-300 villa project. These are the focus of our real estate department, and we have no

doubt we will develop more opportunities. Two of our biggest projects will keep us busy in Kuwait. However, we are also looking at the European, US, and Asian markets to expand. The next step will be to enter Europe.

What are your personal contributions to the development of the Kuwaiti market?

Currently, Kuwait is trying to catch up to the other GCC countries. We used to lead the region, but now we are chasing it. I became interested in this matter and have dedicated my time to not only working through the private sector, but also by being involved in the public one. I was elected as board member to the Kuwait Chamber of Commerce, which is dedicated to improving the business situation of Kuwait, both economically and geopolitically. The chamber is committed to studying and addressing the needs of the global market through our economic leadership and advice. We want to make projects in the country more approachable and foreign-friendly, to attract investors from abroad. I am also been involved in developing some new construction laws in closes coordination with Kuwait Engineering society. The future of Kuwait lies in a strong private sector, and to empower that sector, the Kuwait Chamber of Commerce must help it grow. Personally, I believe in academic studies and combining them with real-life business. I have been working closely with an investor in the UK, while researching the topic at the University of Aberystwyth in Wales, on how to address the fact of the non-office space working trend. What can we do when companies no longer need the office space you have built? These are questions related to our business that can be addressed and tackled with the use of research and analysis. Critical thinking is the key, and with the new government, a strong and active Kuwait Chamber of Commerce, and plenty of hard work, Kuwait will go through great transformation soon. ✖

With the changes in consumers and companies’ mindsets, Bukhamseen Group is also working on redesigning innovative retail and office spaces in line with future needs.

Image: Craitza

BIO

Sheikha Bibi Nasser Sabah Al-Ahmad AlSabah has been a board member of URC since 2006 and was recently appointed chair of the board of directors. She has more than 16 years of professional experience in the management field and served as a member on several board committees. She graduated from The New School University in New York City with a BA in liberal arts. She was the founding chair of the Social Work Society (SWS) and was named a Goodwill Ambassador by the International Organization for Migration. She was also awarded the Prestigious Chaillot Prize for her persistent promotion of human rights in the Arabian Gulf.

Sheikha Bibi Nasser Sabah Al-Ahmad Al-Sabah CHAIRPERSON, UNITED REAL ESTATE CO. (URC)

United Real Estate Company is one of the most prominent real estate developers in the country. What explains its success in the Kuwaiti market?

URC has been shaping the real estate market since 1973, having become synonymous with iconic projects and residential, commercial, and leisure properties across the region and setting new standards for design, craftsmanship, and inspired lifestyles. When developing projects, we always view them from a community perspective at a macro level and a human-centric perspective at the micro level. We strive to ensure that the social impact of these developments is positive and provides added value to the local communities. This makes each of our projects so inspiringly challenging and unique at the same time, especially because we have developed some of the most iconic buildings in Kuwait and the region. Today, URC enjoys a position of trust, established over years of uncompromising quality that has consistently paid attention to the small details that make a property special. The URC brand— home-grown in Kuwait—is now recognized in regional and international markets stretching from Oman to Morocco.

The Kuwaiti market is increasingly recognizing the importance of women in leadership positions. What is your perspective on this trend?

The value of gender diversity—particularly in the workplace—is widely acknowledged recently both locally and internationally as women bring different perspectives and approaches

to business, resulting in a more inclusive workplace and often better performance for the company. URC and KIPCO Group in general have had women in either executive leadership positions or board of director positions for years. As the chairperson of URC, I strongly believe in having more women in positions of leadership, providing the support and role models women need to advance in their careers and bringing much-needed changes in the workplace benefitting both genders. At URC, 31% of our team is made up of women, and in 2022 we successfully became one of the Women’s Empowerment Principles (WEPs) signatories and partners in Kuwait. We are committed always to provide an inclusive work environment underpinned by equal opportunity for all employees.

How did your prior corporate experiences determine your leadership style and way of shaping corporate culture?

My experiences and involvement such endeavors have greatly contributed to shaping my personality and outlook of life in general. Such exposure makes you more empathetic toward others, which has a bearing on every decision you make. My past experiences have helped me in furthering the human-centric business model at URC, where the feelings and wellbeing of everyone down to the last employee are duly respected, just as we care for the last customer who benefits from our services or products. And it doesn’t end there, because our humanistic outlook extends beyond our business boundaries, which is where our concern for how our projects impact the larger communities and environment stems from. On the whole, I look at my past philanthropic and creative experiences as a great wealth of wisdom that have taken me a long way in making me the person that I am today. ✖

50 YEARS OF BUILDING

BIO

Mazen Issam Hawwa is Vice-Chairman & Group CEO of URC. He joined URC as Group CEO in 2020. He was a member of the senior management team of KIPCO Group, where he has spent more than 19 years. He joined the finance and accounts team in 2001, and his last position was deputy group COO, leading finance and operations. He also serves on the board of several KIPCO operating subsidiaries. Hawwa holds an Executive MBA from HEC Paris and is a graduate of the Lebanese American University. He has attended several executive education programs, including the General Management Program at Harvard Business School, and holds several professional qualifications from prominent US-based institutions.

Mazen Issam Hawwa VICE-CHAIRMAN & GROUP CEO, UNITED REAL ESTATE CO. (URC)

The company’s financials attest to your success. Could you share the financial performance of URC over the past year?

Throughout 2022, URC continued to demonstrate agility, with a client-centric approach while maintaining innovation efforts. We delivered strong organic growth, which enabled us to achieve an increase in net profit to KWD6.58 million for the first half of 2022 compared to a net profit of KWD1.27 million for the same period of 2021. URC’s growth continued into 3Q, recording a net profit increase of 231% at KWD8.18 million in the first nine months of the year compared to KWD2.47 million the previous year. In December, URC successfully completed its merger by amalgamation with United Towers Holding Company (UTHC) and Al Dhiyafa Holding Company (DHC) to enhance the company’s asset portfolio and strengthen our ability to fundamentally increase revenues, which will lead to added value for our shareholders. The merger enhances the group’s operational performance, which goes in line with its strategic vision and increases its financial competitiveness.

URC is currently working on Assoufid Phase II development in Marrakech. What could you tell us about this project?

The second phase of the Assoufid development will introduce the iconic five-star hotel brand, The St. Regis Marrakech Resort, operated by Marriott International, Inc. The ho-

BUILDING COMMUNITIES

tel will have 80 keys equipped with exclusive amenities such as a world-class spa, a stateof-the-art fitness center, as well as three specialty restaurants for a world-class culinary experience. Our goal is to position Assoufid as the first exclusive St. Regis branded residence in Marrakech to provide a variety of premium standards for luxury living, with exclusive amenities and personalized services as the second phase. The third phase will introduce additional premium villas and apartments. Assoufid also consists of a multiple award-winning 18-hole high-end golf club. With infrastructure works completed, the award winning five-star hotel, St. Regis Marrakech alongside branded villas, premium residences, and a retail hub, is expected to commence construction in mid2023 and will be completed in mid-2025. In addition to our world-class golf course, these high-end components will be part of our success story in creating valuable experiences.

What priorities and developments do you anticipate for the upcoming year?

Our priorities remain constant on creating value for our shareholders, building sustainable communities, delivering high-quality projects, and building trust. URC’s commitment to continuous development ensures timely delivery in Kuwait, Egypt, and Morocco. When it comes to Kuwait, we are continuing with the development of our residential components Hessah Towers and Byout Hessah in the Hessah District. We also aim to finalize the development of the commercial district and are locked in negotiations with several retailers of all kinds. In Kuwait, we have been creating unique customer experience and a pleasant journey with Marina World, a landmark mixed-use development located on the Arabian Gulf Road and considered to be one of the country’s most bustling areas and most visited malls. ✖

LEBANON

KEY success

Increased

returns by

As a real estate investment and development company working since 2001, what unique quality does REH offer the Kuwaiti market?

BIO

Ali Al Kulaib joined REH, a subsidiary of Beyout Investment Group (BIG) Holding, in 2014 and serves as the Chief Executive Officer. Prior to REH, Al Kulaib was CEO of Commercial Real Estate Company (Al Tijaria) from 2002-2013. He also held the position of the chairman of the board of the Real Estate Trading Company, a member of the advisory committee for the Real Estate Center Fund, the chairman of the board of directors of the Commercial Market Complex Company, and a member of the board of directors of Majan Real Estate Development Company. He started his career at United Real Estate Company in 1995, starting as a real estate manager before becoming a director until 2000.

Our main area of expertise is the development and management of buildings. We provide a wide range of support services to our tenants. Our success is measured by the satisfaction and retention of our tenants. We regularly conduct surveys and check the feedback, which leads to improvement of services and tools. Second, through tracking of the length of stay or contract turnover rate, we are able to know whether our services and offer are attractive and successful. In Kuwait, by law, you can only increase rent every five years. If, for example, we increase rent every five years against new services or refurbishments, and the tenant is still willing to stay with us, that means that they are satisfied with our service. For us, a lifetime of the tenant is extremely important. Anyone can offer a great location or a well-designed building. However, services also matter. That is the key thing.

Have you experienced any unique developments or successes in terms of your assets?

The achievement that I am most proud of is the 50% increase in returns over the last eight years. Many of our developments, commercial and residential, have loyal tenants who feel comfortable dealing with us and are happy with the long-term relationship that we have established with them.

COVID-19 had an impact on the real estate and construction market. What was REH’s experience of that time, and what changes did it adopt because of it? There were two main changes: managerial and financial. We had to update the way we managed

the company, including data flow and workflow, and reorganize the financial aspect; for example, rent. It was an unprecedented situation. Instead of making tenants leave, if they could not pay their rents, we waived some of their payments, and also gave additional discount to commercial tenants. This way, from the moment things started to improve, we had full tenancy rates. In fact, we took this initiative before many other companies and saved plenty of capital in the long run. It also increased the loyalty of our tenants because they felt how much we care for them in the time of crisis. Overall, it all worked out well in the end.

One of the properties REH manages is Souk Al Mubarakiya. How did the company come into the management of this historic building?

Mubarakiya is a BOT project that we bid for and won. It is an 11-year term, which started from 2017. The footfall of Souk Al-Mubarakiya is approximately around 1 million a week. We are extremely proud of this property, due to its historic and cultural value. It is always rewarding to manage any location that represents the culture of Kuwait, where it is visited by Kuwaitis, residents, and tourists. For that reason, we make sure that Al Mubarakiya is well managed so that it portrays a beautiful image of the country and its people.

Are you currently working on any new projects?

Buoyed by its successes in real estate in Kuwait, REH is now looking to take its expertise into different sectors and other countries.

Ali Al Kulaib CEO, REAL ESTATE HOUSE (REH)

new areas OF INTEREST

ALARGAN has grown from a family-owned business established in 1994 to a publicly listed company on the Kuwait Stock Exchange.

What is your perspective on the current developments in the construction and real estate sector of Kuwait?

Currently, there are many megaprojects on paper, but not that many in the making. One example is the Jaber Al Ahmad Causeway, which is extremely risky to be handled by one developer, and we had previously suggested that the government should divide it into smaller, more digestible projects to be handled by multiple developers each covering a specific area. Spreading the project into smaller parts will not only help it be built quicker but will also allow it to be less risky by distributing the implementation/ costs risk factor. Instead of one company bearing the entire costs, they can be split into four or five for a more sustainable approach. Diversification is the way with such developments. There are many other projects that are in the pipeline but there is no clarity as of yet from the government regarding the same. We would be able to participate in the construction of the new projects that we have heard about such as the Silk City, the new airport, and the uplift of Failaka Island; however, with no clear direction, we are not able to participate. The government should lead the way with a clear roadmap in order for the construction sector to support with their capabilities.

What have been the recent developments and changes for Alargan?

The typical classes of real estate include, retail, logistics, housing, and so on, and we have decided to look beyond and include health and education in our portfolio to address our society needs. We have created two major projects: the ARGAN Riaya Medical Rehabilitation Center and the ARGAN Bedaya Center.

ARGAN Riaya is one of the largest rehabilitation centers in the GCC and has already been recognized as the center of excellence in Kuwait for all the different types of rehabilitation. We have partnered with VAMED to ensure the standards remain of the highest; VAMED is a world-class operator for rehabilitation centers all around Europe and the world. In terms of ARGAN Bedaya, we aim to provide an all-in-one education and sports center aiming to provide complementary services for families and schools where children and adults are able to learn and explore their passions through extracurricular activities. This provides individuals and their children with activities to enrich our lives and provide a sustainable life beyond school and work. ARGAN Bedaya features a wide range of activities that facilitate the potential of children and their parents; we offer music, art, culinary, sports programs, and STEM learning. We have partnered with multiple international organizations to provide the excellence needed for our programs such as our collaboration with the PSG Academy for football, and we are working on similar collaborations for tennis, paddle, squash, and basketball. This truly reflects our motto “Life As You Love It,” and we will continue to implement the same in all that we do.

In terms of infrastructure development, what can be done to improve the situation in Kuwait?

Housing is a major issue that needs to be handled and recognized. We were pre-qualified for a project with the Public Authority for Housing Welfare a few years ago but unfortunately the project has yet to see the light. There are about 90,000 people on the Public Authority

for Housing’s waiting list, and the Public Authority for Housing Welfare could accelerate the process of delivering these houses through PPPs. ALARGAN has specialized in affordable housing since it launched in Kuwait and is at the frontier of the local affordable housing developments; however, once land costs started to rise, the affordability factor was not applicable anymore. Thereafter, we started with the same initiative in Saudi Arabia and at one point, we were building around 2,000 units per year. We know the housing market well and are keen for ALARGAN can support the initiative with the appropriate direction and initiative from the government. ✖

BIO

Khaled Al-Mashaan has over three decades of substantial experience in civil engineering and real estate development. He is the founder of ALARGAN. AlMashaan completed his bachelor’s of science in civil engineering from California State University. In addition, he attained the financial management program and the advanced management development program in real estate at Harvard University Graduate School of Design. He is the chairman of the Kuwait Green Building Council (KGBC), a director on the board of the Kuwait Foundation for the Advancement of Science, and a member of the Advisory Board to the College of Business Administration at Kuwait University.

Khaled Al-Mashaan CEO, AL ARGAN INTERNATIONAL REAL ESTATE COMPANY (ALARGAN)

Large-scale infrastructure works, like the Sheikh Jaber Al-Ahmad Al-Sabah Causeway, are a regular source of business for local constructors

Ubed Arain CEO & MANAGING DIRECTOR, DAR GULF CONSULT FOR ENGINEERING AND CONSULTANCY

What makes Gulf Consult so successful in its field of expertise?

We are a Kuwaiti A&E Consultancy firm established in 1967 that knows very well the needs of society and how to fulfil these in the best possible way for Kuwait. Also, we aim for our projects to be as sustainable as we can. Gulf Consult was the first Kuwaiti consulting firm to join USGBC in 2009. All the projects we have designed so far are as sustainable as possible considering available capital. We also have many partner A&E firms worldwide that help us provide our clients with the best possible product within their budget that meets their expectations. That is why we have so many repeat clients.

What makes the new project of the T2 Airport Terminal so environmentally sustainable?

T2 will be one of the most sustainable projects in Kuwait. About 12% of energy will be produced by the building itself, and 100% of the water will be recycled. It is a closed circuit of water recycling. The area around the building will gather rainwater, and it will be stored for use in irrigation. Moreover, we have made the building more energy efficient by reducing the amount of direct sun reaching the inside making the air conditioning load much lower. We are doing what we can to reduce the energy, water usage and recycling as much waste as we can.

Faiz Ahmad GENERAL MANAGER, PERI KUWAIT

What innovative solutions and projects has PERI introduced to the region in recent years?

Innovation is in our DNA, and a core aspect of our 2025 strategy. Innovation is also how we have managed to remain a market leader globally and certainly in the region, especially in Kuwait. Over the years, we have had the pleasure of introducing cutting-edge technologies to the market. For example, our lightweight polymer formwork system called DUO is highly innovative, safe, and lightweight, which makes it particularly attractive for the local industry. Many of our customers from various sectors have benefited tremendously from such products, which give them a greater return on investment, as well as productivity going forward.

PERI entered Kuwait 10 years ago. What are the plans for celebrating this milestone?

We are planning to celebrate this major milestone with our customers and also with our employees who have been responsible for this success over the years. Our business is built on trust from our customers and this remains our strength. It is what makes PERI so successful and prominent worldwide. It all comes down to hard work and the right attitude, which makes us proud and satisfied when our customers are successful in their projects. So, while it has now been 10 years, this is just the beginning.

Faleh Al-Ajmi CEO, INTELLIGENT MANAGEMENT (IMS)

What unique solutions and strategies does IMS offer to its potential clients?

IMS provides a range of solutions to its customers to achieve the desired level of service and to ease their business processes. We are the ideal partner for the digital transformation of integrated facilities management services, and the transformation of business operations into a zero-paper model, as we provide comprehensive services in a unique, modern way to add value and high quality to projects. The specialized technologies and computer programs in our systems create an effective work environment of high productivity and continual development, adding a distinctive footprint by integrating and interconnecting facilities and real estate management programs with enterprise resource planning programs (PMS, ERP). The solutions we offer are IMS CAFM system, IMS ERP System for Facilities Management, and IMS Property Management System.

What is IMS’ business strategy in the Kuwaiti market?

Our strategy is to maintain our clients by applying the following four values. Quality is our main concern, and the focus on comfort and customer satisfaction are pivotal in our operations. Collaboration and transparency are key to achieve our common goals. Confidentiality is a basic principle we care about in all our business interactions. And finally, integrity, where the company adheres to a solid ethical code with all customers and partners. Progress is automatically achieved when customers, partners, and the overall marketplace realize the obvious benefits of using intelligent management solutions.

ONE-STOP shop

A construction company specializing in super projects, Limak has been a prominent contractor in Kuwait and the Middle East.

One of the largest Turkish business groups in the region

Empowering women through various programs and initiatives

Limak has taken on the large project of the Kuwait International Airport Terminal 2. What has been the experience of this project so far?

BIO

Ebru Özdemir completed her BS degree in civil engineering at Boğaziçi University and an MBA in international business and finance from Fordham University. She serves as member of the board at DEİK and chairwoman of the DEİK/ Turkey-Kuwait Business Council. She is also a member of the board of Endeavor Turkey and the Turkish-American Business Council and DEİK/ Turkey-Korea Business Council as well as a member of TÜSİAD and WEF. Özdemir is also a member of the Young Society Leaders of the American Turkish Society. She was named as a member of the MD Anderson Cancer Center Board of Visitors since 2016. Özdemir also acts as Limak Foundation’s chairwoman.

The airport project is important for Limak as we consider Kuwait to be our second home. When completed, Kuwait International Airport Terminal 2 will be one of the most advanced and environmentally responsible airports in the world. Limak Group is now active in 15 countries around the world and one of the largest business groups, not just in Türkiye but in the region. After Türkiye, Kuwait is our second-largest construction market due to the value of the airport, which alone attests to the sheer value of the project. Limak began contributing toward Kuwait’s development in 2009 with our first project, the Infectious Diseases Hospital, as a regular contractor through an agent. After the hospital, a West Abdullah Al-Mubarak Infrastructure Works project, we won the contract for Terminal 2, before signing our fourth contract for the South Abdullah Al-Mubarak’s Infrastructure Works project. Through the Kuwait Direct investment Promotion Authority (KDIPA), we were the first construction to be set-up as a local company in Kuwait and one of the first 12 established under the law. Kuwait is a long term and permanent location for our operations, which is why I refer to it as a “second home” for Limak.

What is your perspective on Kuwait Vision 2035 developments, and how is Limak Group contributing to this initiative?

The Kuwait International Airport development is a key component of the Kuwait National Development Plan and Vision 2035. As an iconic gateway to the rest of the world, it will help Kuwait move one step closer to achieving its vision of becoming a financial and trade hub, and more attractive to investors. The structural design of Terminal 2 is extremely complex, but unlike other tenderers, we were confident in our ability to find the engi-

neering solution. For Kuwait, our contribution is not limited to the airport's construction. We work to help prepare the next generation of Kuwaitis who will soon undertake large and highly complex projects. We want to empower them, inspire them, and give them the chance to inspire others. If Vision 2035 wants to transform Kuwait into a business and cultural hub, this must be done with Kuwaiti youth and Kuwaiti women. This is the reason why we have specifically concentrated on two projects - Engineer Girls of Kuwait and the Women’s Economic Empowerment Platform. We are confident in the country's significant potential and honored to play a significant role in the development of this great country through projects that support its vision.

What advice would you give to other women in the region in terms of achieving professional goals?

In different sectors from finance and engineering, to business, social affairs, and the arts and sports, I have always believed in ‘role models.’ Kuwait certainly has inspirational women role models who can motivate other women in the country, region, and wider world. I always say that it is not enough to sit at the table. Their voices must be heard, and their perspectives shared. This can help shape policies and change the future. Women need to be role models for future generations. In terms of advice, I would stress diligence and hard work. Second, I would have to recommend resilience and agility of thought. In business, we inevitably encounter obstacles and challenges along the way that sometimes force us to take a new course of action. Resilience and an agility of thought prove critical in maintaining the right course. Third would be determination and enthusiasm. To achieve your dreams, you must be determined and enthusiastic about what you do. This determination is what will get you past the finish line. ✖

Ebru Özdemir CHAIRPERSON, LIMAK HOLDING

GOING UP

Kuwait sees the launching of more publicly funded megaprojects in 20222023, promising a high level of activity in the construction sector for a decade.

THE CONSTRUCTION MARKET IN KUWAIT is currently valued at over USD10 billion. Although residential projects financed by the private sector can be seen here and there, public mega-projects sponsored by the government continue to drive the sector. Many such projects that were put on hold since 2020 were resumed in 2022. And it is thanks to the multitude of these megaprojects that the construction sector in Kuwait is set to grow by 6% each year, between 2022 and 2025.

“Kuwait has approved more than USD60 billion for infrastructure, health, environment, and energy projects, with 5% of partnerships with the private sector,” according to Zawya. The sum will be spent on 14 major public projects. The most high-profile of the lot is, of course, Kuwait International Airport’s expansion. Some USD3.2 billion was set aside for the construction of Terminal 2, though more funding may be allotted to that project in 2023.

The Ministry of Public Works is the main player in the public construction sector. And the ministry is currently contemplating an ambitious railway project. Kuwait does not have a nationwide railway network, but it will soon have one. The procurement committee at the Ministry of Public Works has finished the detailed study of Kuwait’s railway network, and a tender will soon be held for the construction of its first phase. The beginning of construction work on Kuwait’s railway network has also reignited the idea of the Gulf Railway—a proposed railway, over 2,170km in length, which will connect the national railways of all GCC nations.

If you think building a nationwide railway system almost from scratch is ambitious, you have to read about the Silk City (locally known as Madinat al-Hareer) project. The billion-dollar project involves the construction of a new city in the Jahra Governorate, complete with its own seaport, airport, and housing for 700,000 people. Although the project is partly founded by China’s Belt and Road Initiative, Kuwait will also direct funds toward its infrastructure over the next couple of years.

Health-related development projects form another group of major public construction works. The New Maternity Hospital (NMH), under construction in Al-Sabah medical zone, is the most notable example. Built at a cost of nearly USD750 million by the Ministry of Public Works in cooperation with the Ministry of Health, the hospital will be ready to admit patients in 2023. “The NMH project is one of the projects registered in the five-year development plan. It is considered one

of the basic components of the 2035 vision in the development of the healthcare infrastructure sector,” told the project’s chief engineer, Meshaal Al-Enezi, to Kuwait Times.

Beside the Ministry of Public Works, there are more organizations contributing to public construction. Kuwait Ministry of Housing is among the government bodies in a position to commission public projects. The First Group, part of Emeel Abdallah Group, is currently building a major villa project in Sabah Al Ahmad Sea City. The Ministry of Housing has extended KWD68 million (USD222 million) to the project, which is scheduled for completion in 2024.

In another housing program, USD6.9 billion has been authorized for the residential development to the south of Saad Al- Abdullah City. The government has given the green light to the “funding of South Saad Al-Abdullah Town and the rehabilitation of Souq Al-Mubarakiya in FY 2022-2023,” according to Zawya citing Abdulwahab Al-Rasheed, Kuwait’s Minister of Economy. The billion-dollar megaproject involves the development of over 11,400 plots of land in the area.

The urban development plans do not all involve the construction of new houses. The protection of old landmarks with a cultural significance is also part of the plan. Some USD20 million is set aside for the rehabilitation of Al-Mubarakiya Market, locally known as Souq Al-Mubarakiya. The historic bazaar used to be the heart of Kuwait City’s economy since around two centuries ago. Considered to be a cultural heritage site, the market was damaged by a fire in March 2022. Al-Mubarakiya Market’s quick rehabilitation is therefore considered of great importance. The maintenance of landmarks such as Al-Mubarakiya will help Kuwait keep alive symbols of its identity and way of life in the midst of a wave of construction and urban development.

The government’s focus on sustainable energy infrastructure is expected to be yet another contributor to the sector. “In 2021, the Kuwaiti government has increased investment in energy and climate infrastructure projects,” reported Zawya in December 2022, adding that the government “has planned to invest USD20 billion in upgrading the renewable energy industry by 2030.” This tallies with Kuwait’s ambitions for becoming largely reliant on clean energy by 2035. The cash injected by the government into energy infrastructure projects, meanwhile, will keep the construction sector active over the next couple of years—and hopefully the next decade. ✖

Image: Anson Fernandez Dionisio

Industry

MADE IN KUWAIT?

With the goal of diversifying its economic output, Kuwait is looking to increase its industrial production by developing alternative energy projects and bringing more producers into the country.

Rich in sand, the State of Kuwait has become a local hub for glass manufacturing and distribution, which may just become the most important line of non-oil production for the local economy in the coming years. Acclaimed as one of the most sustainable and developed industries available, glass production offers a fully recyclable, widely used material with no expiration date. Sheikh Ali Fawaz Al Sabah, CEO of Gulf Glass Manufacturing Company, is sure of the industry’s advantages and overlooked benefits, telling The Business Year; “If we look at this from the perspective of diversification and consider the ways in which Kuwait’s economy could diversify, I believe glass manufacturing can be one of the strongest points to rely upon,” adding that, “without a doubt, thanks to the fully recyclable material and progressing improvements, we will play a major part in creating a greener future for the local economy.”

With multiple megaprojects underway, industrial production focused on construction materials is thriving. Specialized producers of scaffolding solutions, elevator shafts, concrete mixes, and various building-dedicated products are clamouring for lucrative contracts. Although it is difficult to pinpoint the decisive factor in acquiring

clients, with the rising awareness of the need for sustainability, many companies are putting effort into producing in an environmentally friendly manner. Ziad Atik, Managing Director for the Kuwaiti branch of KIMMCO-ISOVER, underlined this fact, telling us that, “The objective is to help customers reduce their CO2 emissions. We work toward the decarbonization of construction and industry by minimizing our footprint and maximizing our contribution.”

In terms of production within the industrial sector, the circular economy model is worth taking note of. As sustainability becomes more widely considered, companies across the sector are looking for ways to improve their operations and address the growing need for reusing and recycling materials, as well as the tools available. Many “general trading” companies, such as ASLAA General Trading & Contracting Company, are taking advantage of these needs and applying their expertise to serve the demands of the market. With Kuwait’s production and export output weighing heavily on the glass and steel industry, the many products and leftover materials used across the market are left untouched and unused. To address this challenge, sector leaders such as HE Sheikh Mubarak Al Sabah are pointing out the need for a “port on the coast, to be accessible and economically more viable to the recycling endeavour.” He concluded that, “We need such a hub in Kuwait to either export or import recycled goods." ✖

enhancing INDUSTRY

PAI has worked to develop Kuwait’s National Industrial Strategy 2035 to help the country revitalize its economy and improve efficiencies across all sectors.

Mohammed Eid Ali Aladwany ACTING GENERAL MANAGER, PUBLIC AUTHORITY FOR INDUSTRY (PAI)

Looking at the present state of the Kuwaiti economy, what is PAI’s perspective on the industry’s participation and impact on the country’s market?

The Kuwaiti economy, like other Gulf Arab oil-exporting countries, is characterized by a dominant oil sector. This is apparent from many relevant economic indicators such as the petroleum sector’s contribution to GDP, the contribution of oil exports in total exports, and the value of oil revenues that accounts for an overwhelming proportion of the Kuwaiti government’s total revenues. Thus, Kuwait is trying to diversify its economy through a plethora of new ventures. An important example lies in the country’s efforts toward improving its manufacturing industry, which currently constitutes 7% of its GDP.

What changes are currently worked to enhance the country’s industrial and economic output, allowing more production and increased levels of efficiency across the sectors?

PAI is currently working on developing Kuwait’s National Industrial Strategy

BIO

Mohammed Eid Ali Aladwany holds a bachelor of electrical engineering degree from Kuwait University. He has been with PAI since 1999 and is currently its Acting General Manager. His previous positions there include deputy general manager for standards and industrial services, deputy general manager for the administrative and financial affairs sector, manager of cooling water plants department, head of sections electrical maintenance department, and head of the electrical maintenance department. Aladwany is also a member of several international organizations such as ISO, OIML, and AIDMO, among others.

2035, which will include many initiatives targeted towards the following: increasing the country’s manufacturing sector contribution to the GDP; increasing Kuwait’s local exports; increasing the percentage of private-sector investments, as well as national Kuwaiti employment; and supporting priority sector initiatives. These initiatives will eventually serve as a catalyst for sustaining economic growth.

Looking at the past few years and the present situation in the country, what have been some of the major achievements of PAI?

In recent years, PAI has been implementing its own development programs within the framework of the state’s development plan, foremost of which are the new construction projects through which industrial plots will be provided by projects, such as infrastructure development for Al Shadadya Industrial Area, Al Naayem Economic City and Technological industrial park. This is only a small part of the ambition that the Authority seeks to achieve in the coming years. Therefore, the expansion in the distribution of industrial plots is considered the main incentive for many industrialists to invest capital in setting up industrial projects, which enables the industrial sector to play the role assigned to it. PAI is keen to enhance the production capacity of industrial facilities by benefiting from the expertise of regional and international institutions in the field of industrial development to achieve the strategic objectives of the economic development plan in raising the industrial sector’s contribution to the country’s gross domestic product.

PAI has also contracted with international organizations to provide technical data and information on the nature of

export markets to help develop national products in quantity and quality and to enhance their competitiveness. PAI has also developed IT systems to simplify the procedures of industrial investor transactions and form an information base that provides the planning and executive agencies of the authority with industrial information and data that helps advance the industrialization process and enhance industrial development opportunities. In the environmental field as well, PAI is making great efforts to protect the environment in all areas under its control, as the submission of environmental studies is a prerequisite for establishing an industrial project in new industrial zones. Also, PAI is working to revitalize the economic movement in the country, revive the movement of capital, and restore Kuwait to its economic leadership in the region by managing its operational activities with high efficiency and simplifying procedures to meet the needs of investors.

What changes should be implemented to improve the country’s industrial output?

Kuwait is heavily reliant on the oil sector and the petrochemical industries through utilizing its crude oil. In addition, the country has future plans of establishing a petrochemical industrial park with a total area of 7sqkm located in the southern regions and designated as a petrochemical production hub, which will thereby increase Kuwait’s petrochemical added value. Furthermore, Kuwait supports local and international export industries due to its strategic location, which serves as a gateway to its northern, western, and southern neighboring countries, as well as its shared eastern maritime borders with Iran. ✖

A SECOND LIFE

The recycling market remains more-or-less untapped in Kuwait, creating businesses opportunities for companies specializing in the recycling of household and industrial waste.

IT IS ESTIMATED that Kuwaitis generate more household and industrial waste than almost any other nation in the region. Each resident leaves behind roughly 1.5kg of waste every day—which is two times greater than the global average of 0.7kg. The high volume of waste generation is most likely due to the nation’s economic growth and high consumption rates.

“The Atlas of Waste Management in Kuwait, issued by the Environment Public Authority recently, revealed that Kuwait spends on waste collection and disposal about KWD285 million annually, within a ceiling of 7,500 tons of waste collected daily, and that 50% of the country’s waste is disposed of in landfills, not ergonomically designed,” according to Arab Times.

Although there is a waste management system in place in Kuwait, the rate of recycling is between 1 and 14% depending on the type of waste. The remaining 86-99% of the 2 million tons of solid waste is burned or buried each year. There are some 18 registered landfills around Kuwait City, of which four are still operational. These dump sites are run in a traditional way and without following modern eco-friendly practices. As a result, toxins such as methane are known to leak from landfills—at times even causing “spontaneous fires,” according to BioEnergy Consult.

This is costly and harmful for the environment in several ways. Methane is a well-known greenhouse gas, estimated to be 80 times more potent than carbon dioxide. What is more, hazardous substances released from traditional dump sites can make their way to the country’s ecosystem, throwing it off balance. Nitrous oxide and methane have a tendency to supersaturate rivers, lagoons, and coastal environments and wreak havoc on the marine environment through acidification. Kuwait’s famous coral reefs are particularly vulnerable to acidic environments.

Humans are not immune to the dangers posed by landfills either. Due to rapid urban development over the last couple of decades, many of Kuwait’s dump sites, which were once far from any residential areas, are now dangerously close to the outskirts of Kuwait City. Al-Qurain and Jleeb Al-Shuyoukh sites, for instance, are now regarded as potential health hazards. The threats include groundwater contamination, air pollution, and microbial bio-aerosols.

The good news is that this can be prevented with timely intervention, and some of the damages are still reversible. The majority of dry household waste in Kuwait consists of recyclable organic and mineral materials such as paper, cardboard, plastic, and similar packaging materials. Industrial waste, meanwhile, includes significant volumes of glass and metals. All of these items are potentially recyclable as

long as dry and wet waste are kept separate from the origin.

Since the 2010s, many individuals and groups have voiced the necessity of bringing recycling to Kuwait, and some have done something about it. Fatemah Alzelzela, an electrical engineer, founded a non-profit group in 2019, focusing on the recycling of household waste. Eco Star, her company, offers eco-friendly rewards such as trees and plants to those who participate in initiative by sorting and delivering their garbage.

Eco Star has made a name for itself in the media, thus raising awareness among Kuwaitis about the missed opportunity of recycling. “The company has since formed partnerships with schools, teaching children about recycling, threats to the environment and how young people can act for nature,” notes the UN Environment Program (UNEP). Moreover, Eco Star has been keeping track of the waste it collects, thus building a database of the materials that makes up the country’s household waste. Such data can be very helpful in developing a recycling policy for Kuwait in the future.

The private sector has taken an interest in the recycling of industrial waste. Aslaa General Trading & Contracting Company, for instance, has ventured into recycling of scrap metals, according to the company’s CEO who recently sat down with TBY. “We demolish scrap materials and sell them to the recycling shredders and bailers in Kuwait. Once they are shredded and processed, they take care of them in accordance to the International Scrap Recycling Institution’s (ISRI) regulations,” explained Aslaa’s CEO, Sheikh Mubarak Al Sabah.

Shredded metals are often taken to smelting plants for recycling, but the story is rather different in Kuwait. “Generally, Kuwait does not have a strong recycling system, and there are only two steel mints available. There are no copper or aluminum smelters in Kuwait, so everything to do with copper, aluminum, or nonferrous materials is exported,” according to Sheikh Mubarak Al Sabah. The recycling of industrial waste can be more profitable than household waste due to its high recovery rate. Evidently, there is a niche market for the smelting of non-ferrous metals in Kuwait, which should be filled soon by the public or private sector.

The government has takes a more proactive approach by supporting the recycling businesses. Kuwait’s Environment Public Authority has listed the names of dozens of companies which specialize in the recycling of industrial and household materials from polypropylene to fiberboard and from motor oil to batteries. Since there is already a market for each of these recycled products, raising awareness across society will encourage more private companies to venture into the recycling business. ✖

SUCCESSFUL delivery

With 15 years of expertise in general contracting in the Kuwaiti market, ASLAA was established with a vision to differentiate itself by serving its clients with a comprehensive portfolio to achieve projects within time and quality.

What makes ASLAA so successful in the market, and what are the main areas of the company’s operation?

ASLAA’s leadership model was developed to satisfy our clients. Our thorough understanding of the local market drives impact and delivers meaningful milestones, and the group thinking fosters an internal collaborative environment that leads to developing internal capabilities and talents to sustain our innovative vision. Kuwait’s needs are different from other Gulf countries, and the government’s approach to transforming Kuwait is based on Vision 2035, which aims to transfer the country into a financial and trade hub regionally and internationally to become more attractive to investors. In accordance with that, we set strategic plans to create an opportunity to provide our services and products. ASLAA is divided into two divisions, from which each has subunits. These are the associated service division and the product division. In the service wing of our operation, we have several units: general contracting, high-voltage contracting, logistics, demolition, and scrap. The product division has the engineering product sales unit and the corporate sponsoring unit. The selection of these units is specifically set for the added value we can provide during the phases in parallel to the demand and development of the state of Kuwait to support the government with its plans and to develop its buildings, structures, and infrastructure to meet the Kuwait 2035 vision. The power requirements and the infrastructure related to the state vision are in high demand, and, accordingly, we plan to provide our services to add value with the help of our international partners. Lastly but not finally, thanks

to our understanding of Vision 2035, we can determine the right strategies and deliver successful projects under solid services four successful divisions.

Which phases of Vision 2035 are you most interested in, and how will you contribute?

ASLAA is focusing on redeveloping the existing infrastructure and investment in infrastructure projects focused on power sector, which lead to the access to affordable, reliable, sustainable, and modern energy. Currently, the focus is on developing the country physically, with master planning efforts continuing. The next phases will be determined by the government in terms of privatization according to the laws, which will allow us to continue to improve our expertise and build on our experience, which achieve building resilient infrastructure, promotes inclusive and sustainable local industrialization, and our company innovation.

What major projects is the company actively engaged in, and how do you continue to be successful in your niche?

ASLAA’s high voltage contracting unit is actively involved in supply and installation of cables up to 400kV, which is approved by Kuwait’s Ministry of Electricity & Water (MEW) to carry out civil works related to laying of underground cables up to 400kV along with other high-voltage works pertaining to construction and commissioning of substations and overhead transmission lines, ranges from engineering and execution to testing and commissioning. This dedicated unit also offers turnkey solutions for engineering and construction of high-voltage substations and overhead transmission lines from concept to completion through

its associated EPC companies that are approved by MEW-Kuwait. It positions itself uniquely in this field by utilizing its in-house experience and expertise in providing equipment such as transformers, cables, and switchgears from its principal manufactures who are approved by MEW-Kuwait, recycling and demolition. One of the biggest projects successfully accomplished by ASLAA’s contracting unit is the Al-Sawaber complex downtown. It consists of 33 buildings that were demolished so the government could redevelop the area. One of the biggest projects in Kuwait, it took us approximately nine months to hand over the 33 eight-floor buildings. It was successfully handed over ahead of schedule, on budget, with a zero-accident safety record, exceeding our delivery goal while focused on safety as a paramount requirement. We continue being successful by being the lowest unique bidder, and so we have been winning continuous tenders, extending our duration from two years to nearly 10 years, with ongoing contracts. ✖

BIO

Mubarak Mohammad Sabah Al Sabah is the founder of ASLAA General Trading and Contracting Company and has held the position of General Manager since 2007. He has over 15 years’ experience in general trading and contracting in the core business areas of corporate sponsorship and representation services, logistics and supply chain management services, engineering procurement and construction services, demolition, and recycling services. Al Sabah holds a bachelor’s degree in business administration/accounting from Gulf University for Science &TechnologyKuwait.

Mubarak Mohammad Sabah Al Sabah GENERAL MANAGER, ASLAA GENERAL TRADING AND CONTRACTING COMPANY

Image: RachenStocker

MARK of success

Having been in the region for a long time, with solid know-how and experience in every GCC country, FAWAZ Group has made a name for itself in terms of trust and reliability.

What are the major achievements and strengths of the company?

We are one of the few companies in Kuwait, which successfully penetrated the Gulf region into Qatar, Oman, the UAE, Saudi Arabia and Bahrain. We have nearly 50 years of presence in some of those countries. FAWAZ Group was established before the GCC market experienced its true growth. One of our strengths is that we have solid knowledge of the whole region. We had to overcome many challenges and setbacks along the way; however, we have the great advantage of being established within each of these markets now, when entering these spaces is difficult for new players. When FAWAZ was established, there was no trading, and we were focused on projects. There was no bidding process in place at that time. As we were one of the first engineering companies in the country, many engineers in big organizations in the region are actually our former employees. Our expertise spans from electromechanical engineering services to plumbing and electrical works. We provide services such as firefighting, engineering, and many more, which is why we recently changed our company’s description and licenses to make sure the market truly understands us.

What makes the company a popular choice as a facilities manager provider?

As we have been on the market for a long time, we have had many opportunities to deal with our customers’ needs and address any challenges. In this way, we have established a solid base of trust and reliability across the region. Clients know us, and they know they can trust us. Kuwait is a small market, and it is all about relationships and the quality of service a company can provide. Moreover, our employees are always important to us, and we have made sure to help them become as successful and satisfied as possible. This way, even after leaving the company, many of them ensure our name is mentioned whenever our ser-

vices are required. Now, it is hard for someone else to enter this market successfully. It is also useful to have the client base and experience with many major players on the market, because from time to time you need to take care of the things in a more delicate way. That is when our contacts and reliable relationships are extremely helpful and give FAWAZ that additional advantage.

Looking at the scope of FAWAZ’s operations, what projects are being currently developed in the country and the GCC region?

We are currently working heavily in Saudi Arabia and the UAE. Our projects there are booming, and we hope to see great achievements. In Kuwait, we are currently working with the hospital sector (the Ministry of Health); oil and gas (KOC, KIPIC, KNPC, KOTC, JO); power plants (the Ministry of Electricity & Water); education (Kuwait University, KISR, KFAS); the military and security sector (the Ministry of Defense and Ministry of Interior); the general government sector (Council of Ministries General Secretariat, the Civil Service Commission, the Public Authority for Sports); and the commercial sector (The Avenues, 360 Mall, al Kout, Souq Sharq), all of which give us a significant amount of work with guaranteed success. We are working on them in collaboration with other contractors. In Saudi Arabia, we are growing rapidly and recently acquired a new factory. The Kingdom has massive potential, and I believe it will truly flourish in the coming years. We are also actively working in Qatar and Oman, which is one of the most financially stable markets in the area. Although the pandemic negatively impacted the UAE, it has been working to stabilize and strengthen its economy again. Each of these countries has a unique set of opportunities and challenges when it comes to business, but by having experience in every one of them, FAWAZ Group is assured of sustained success in the years to come. ✖

Experience in every GCC country ensures FAWAZ Group will succeed in the years to come

One of the 1st engineering companies in the country; many engineers in MENA are its former employees

Abdulkarim Al-Saleh GROUP CEO, FAWAZ GROUP

BIO

Abdul Karim Al Saleh holds a bachelor’s degree in science and mechanical engineering from the USA and a master’s in business administration from Maastricht Business School, Kuwait. He brings to FAWAZ some 20 years of industry experience in MEP and trading industry, of which he has spent 11 years in the general management position.

Since 1973

50 Years of strong and trusted reputation in Electrical & Mechanical Services, Refrigeration & Air-Conditioning, Firefighting, Fire & Security Alarms, Ventilation Systems & Water Supply Systems, and HVAC installation operations.

We provide innovative solutions through our electromechanical engineering services, contracting and installation operations in four business lines:

Trading HVAC Contracting Manufacturing Facility Management

SUCCESS story

More than just banking on success alone, Gulf Glass Manufacturing Company also works hard to make its processes increasingly sustainable with every passing year to do its part for the environment.

Sheikh Ali Fawaz Al Sabah CEO, GULF GLASS MANUFACTURING COMPANY

BIO

Sheikh Ali Fawaz Al Sabah

is the CEO of Gulf Glass Manufacturing Company & Chairman of Jassim Transport and Stevedoring Company. He also holds the position of Chairman of the Basel Club. He is a member of the board of directors of Nafais Company and used to work as the general manager for Rihana Company. He is a professional executive with experience in entrepreneurship, investments, and industrial production. He is a member of the Kuwaiti royal family.

What is the story behind the Gulf Glass Manufacturing Company?

Initially, this was a government-owned company that was privatized in the 1980s. Our expertise lies in manufacturing and exporting food and beverage packaging. Thanks to the strategic geographical location of Kuwait, great access to ports, and efficient logistics network, we have been very successful in the region. We are a net exporter, exporting over 87% of our production all around the GCC and the MENA region, North Africa, Southern and Eastern Europe, and even to Singapore. I believe we are currently one of the biggest and definitely one of the most prominent glass producers in the region.

Considering the efforts to diversify the economic strength of the country, how can a net exporter such as Gulf Glass contribute to Kuwait Vision 2035? Sometimes people do not realize that finding a solution to a problem may be much easier than expected. If we take a look at the calculation of the GDP, we have to take into account our income, budget, consumption rate, and exported value. If you import more than you produce, your GDP goes down, whereas if you produce more than you consume and export the excess, your GDP will grow. Therefore, net exporters are essential to empowering economic production. If we look at this from the perspective of diversification and consider the ways in which Kuwait’s economy could diversify, I believe glass manufacturing can be one of the strongest points to rely upon. Our geographical localization is made for export and trade. Kuwait lies at the crossroads between the three major continents, which is why logistically we have an advantage. Not only can we leverage this to facilitate trade for other countries, but we can also greatly enhance our GDP by exporting more and empowering companies like Gulf Glass Manufacturing Co. to increase production. Pre-oil Kuwait was an economic giant in the region relying on trading and logistics. I believe it could re-establish itself again as such if our leaders would decide to invest back in Kuwait’s true eco-

nomic prowess and become a trading and logistics hub it used to be.

What is the company’s strategy in terms of sustainable solutions and efficiency?

Glass is one of the few materials in the world that can be fully and infinitely recycled. Our ratio of recycling is literally 1:1. This, in itself, is a huge sustainability advantage. Moreover, our company has been following the directives within the glass industry regarding lowering our carbon footprint and mitigating the environmental impact of our furnaces and forehearths. Gulf Glass is the first in the country, and maybe the only factory currently using fully electric forehearths and hybrid furnaces, which work on natural gas boosted by electricity. If we look at the UN’s directives, the glass industry is highlighted as the most environmentally friendly out of the heavy industries. Without a doubt, thanks to the fully recyclable material and progressing improvements, we will play a major part in creating a greener future for the local economy.

What strategies and technological tools is the company using to improve its operations?

We are progressively introducing more automation into our processes. We call it Industry 4.0, and by implementing highly automated equipment and streamlining processes, we are able to increase production and minimize energy consumption and raw material use. We intend for our process to be fully automated from start to finish. So far, automating the machines has allowed us to save 35% of our energy and raw material consumption on a yearly basis. And that’s just the beginning. Our work is regulated by local, regional, and international organizations, so we really put a lot of effort into making our processes increasingly sustainable with each passing year. In Kuwait alone, the emphasis placed on environmental responsibility is significant. We are constantly reminded and empowered to improve our work and reduce our company’s impact on the local climate. ✖

A net exporter, exporting over 87% of production

Glass is one of the few materials in the world that can be fully and infinitely recycled

Continually growing presence in the region and the country

CONSTRUCTION MATERIALS

In line with growing trends, these construction materials companies continue to develop innovative and environmentally friendly solutions without compromising on safety or comfort.

What gives KIMMCO-ISOVER the competitive edge, and how does it reinforce its position in the market?

ZIAD ATIK With a 45-year track record in manufacturing, technology, and supply of insulating materials and solutions in the Gulf region, Levant countries, Africa, and Asia, KIMMCO-ISOVER brings global experience in manufacturing and serving humanity. We bring the best to the industry by being part of Saint-Gobain Group, the 350-year-old world leader in the sustainable habitat and construction market, and Al Ghanim Industries Group, one of the largest conglomerates in the region with 100 years of ongoing success. When it comes to our priorities, safety comes first. We never compromise on the safety of our products and strive to be ahead regulatory stipulations. Aside from their best-in-class thermal and acoustic performance, our products and systems made of mineral wools are incombustible, do not fuel fire, or propagate flames. Moreover, our new technologies contribute to better indoor air quality, as they do not emit volatile organic compounds for the wellness of our end customers. Moreover, as the global leader in insulation solutions, KIMMCO-ISOVER can rely on a strong network of 10,000 people in over

30 countries supported by 50 production sites and competence centers to benefit from the last innovations in insulation.

What is the nature of Sika’s presence in Kuwait?

ESLAM BISAR Sika is a Swiss brand founded in 1910 and headquartered in Zurich, Switzerland, Sika has subsidiaries in 101 countries around the world and manufactures in over 300 factories. Its more than 27,000 employees generated annual sales of CHF9.3 billion in 2021. Sika is the largest construction chemical company in the world. Sika is a specialty chemicals company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing, and protecting in the building sector and motor vehicle industry.

We officially started business in Kuwait in 2014. Our aim for the coming five years is to become the market leader. We have factories in most of the Gulf countries to serve Kuwait market. When it comes to our involvement in Kuwait, we had been part of the top mega and infrastructure projects. As our products cover the majority of needs in terms of the construction and infrastructure sector,

we are here to stay and will only grow our presence over the years to come.

What is the company doing to leverage its growth in the region?

ZA The R&D teams of KIMMCO-ISOVER are tasked with anticipating the skills necessary for the future and exploring new technological fields. Thanks to these skills and programs, the R&D teams actively support the digital strategy of KIMMCO-ISOVER through, for example, Industry 4.0 initiatives in order to improve industrial performance or data analysis topics to offer the best quality service to our clients. We are involved in digital design in construction, which is a major trend in the industry. Players now have an integrated vision of the building at all stages of its lifecycle, which makes it possible to detect potential design flaws and deliver more sustainable construction. As these aspects matter deeply for KIMMCO-ISOVER, we continue to promote awareness and training teams in R&D and the importance of eco-innovation. During the entire course of the project, we consider the development of new sustainable solutions and improvements to existing solutions in areas such as health and wellbeing, energy and climate, water, resources, and the circular economy.

What sustainable strategies are you employing?

ES Sustainability has been a key factor in Sika’s corporate strategy for over a decade. With its powerful capacity for innovation, Sika develops a range of sustainable solutions for the construction industry, as well as industrial applications for the automotive and other industries. The company is focused on innovating in a targeted manner in order to achieve its net zero objectives. Innovation is key to the success of our company. It stems from the creativity, curiosity, and the drive within each of us. Sustainable development is a crucial growth driver for our company. When we talk about net zero, this involves decarbonization and a dramatic reduction of the carbon footprint of construction, particularly the emissions associated with concrete. In 2021, we had 99 new patents and 150 new innovations. We continue our growth strategy and engage our innovative developments to decouple growth from greenhouse gas emissions, and we enable our customers on their journeys to net zero ✖

Eslam Bisar GENERAL MANAGER, SIKA KUWAIT

Ziad Atik MANAGING DIRECTOR, KIMMCO-ISOVER

above THE REST

IKEA Kuwait has become one of the country’s most well-loved brands via its focus on delivering extraordinary services and innovative campaigns.

What has been the company's experience in Kuwait since 1984?

IKEA Kuwait was one of the first IKEA stores outside of Scandinavia. It was here and in Saudi Arabia where the expansion began for IKEA at the early stages. We started with a small store of around 4,000sqm. Since then, we have been growing and developing, arriving at where we are in today. Closer than ever to where people live and shop, with the IKEA “Blue Box” Store in the Avenues, IKEA 360 and Assima Mall. IKEA is one of the most loved brands in the country. Our presence here since 1984 has played a part on the local development, and many customers relate IKEA to their childhood. We have been an active part in their lives, especially the generation of Kuwaitis that grew up with IKEA, and who are now having children of their own. They want them to experience the same magic.

What is IKEA’s approach to diverse markets across the globe?

I believe that all markets are different, and that we should never fall into the trap of globalizing our approach. The beauty lies in finding the unique, whether it is the local value ladder, way of living, or specific behaviors, and understanding the essence of that specific market. In Kuwait, what we find is that it is home to a well-traveled population. The consumer in Kuwait is very demanding, specially from a service perspective, which has forced us to think beyond the usual standards. In Kuwait, for example, we have services that are unique. We have what we call IKEA on Wheels. This is a service that we exclusively provide in Kuwait, where a team of people goes to your home, and plans, give you advice

and propose complete solutions to suit your needs, on the spot in your house. We have a van filled with samples, materials, and all types of equipment. You book an appointment online, and we come to you. We bring a designer, a salesperson, and do everything there. We take the measurements and show you the samples. We do this, to save you time and support your choices in a setting you feel comfortable in. We were also very successful in introducing virtual shopping and store tours, throughout the pandemic, which we plan to roll out again soon. Finally, due to the high level of entrepreneurial activity in the country, we are launching our IKEA for Business strategy (B2B), which will focus on providing entrepreneurs and small businesses the support they need. We want to be part of society, of people’s daily lives, and of the development of the community and the country. Instead of being considered a retailer, we aim to be a partner in creating better lives for people.

What is IKEA’s sustainable strategy approach?

We have what we call People and Planet Positive Strategy. This is a long-term sustainability initiative broken down into the three key components of circularity, healthy and sustainable living, and equality. When it comes to Kuwait, we apply these three from different perspectives. We place emphasis on creating a sustainable building from the construction stage. All the stores we operate today have LED lighting to reduce consumption, and we have internally implemented policies and awareness. We also provide healthy meals for free for all of our co-workers. In 2021, instead of

making meals free, we made the healthy option free. We have already implemented meat-free meals in our restaurant. Basically, we want to help with healthier living. We launched a magazine at the start of 2022 that gives tips and ideas on how to live a better life. We talk about ergonomics, and the home office, for example. Many of these initiatives have nothing to do with our sales, but rather, have everything to do with our mission of supporting the people around us to have a better life. ✖

BIO

Marino Maganto is the CEO of IKEA Kuwait, Jordan and Morocco. He joined IKEA in 1996 in the IKEA food and beverage department of the Madrid store. During the years he has assumed different responsibilities within IKEA, from store sales manager and store manager to deputy managing director for IKEA Germany, the biggest IKEA market with more than 40 stores. In 2013, he joined Al-Homaizi Group as CEO for SYH Retail, with responsibility for IKEA operations in Kuwait, Jordan, and Morocco.

Marino Maganto CEO, IKEA KUWAIT

LET’S TALK BUSINESS

Taking care of business wherever you are

Already started your dream business, or is it time to revamp it and make it even more attractive to customers? No matter the size of your business, no matter if it is a consulting company with a big office, a café or a salon or even a fashion shop. Whatever you need, whenever you need it, we are by your side with inspiration, advice, tips and ideas and of course, our smart, practical, and affordable solutions. You don’t have to look around, we’ve got you covered!

Let us meet and start an extraordinary journey together

Whether you are ready to make the changes to have your dream business, or if you need some advice on what to do, we are here to listen to your needs and dreams.

A specialized project leader will take care of everything from A to Z.

A project leader will take care of your business. From understanding your needs to coordinating with our experts in planning and design, arranging the visits and handling all the details including invoicing to give you that peace of mind.

Our designers ready to make it real

Our expert designers are ready to provide you with advice and propose the best layouts and solutions for your project in 3D and make all the necessary changes until you are happy with the tiniest detail.

All the services you need, tailored to your business

Our specialized teams will take care of the measurements and once you are satisfied with the plan, we will make sure that the delivery, assembly, and everything in between are done to exceed your expectations.

Making sure you are happy... all the way!

We are confident about the quality of our solutions. With our guarantees and warranties you can shop comfortably. And if something doesn’t meet your expectations you can trust we will find the solutions that suit you.

NUMBER OF PASSENGERS AT KUWAIT INTERNATIONAL AIRPORT (IN MN)

SOURCE: STATISTA, DIRECTORATE

KUWAIT METROPOLITAN RAPID TRANSIT SYSTEM PROJECT (PLANNED HIGHLIGHTS)

SOURCE: TBY RESEARCH

Total length 160km

No. of stations 69

Type Underground and elevated

No. of lines 4

Image: Philip Lange

Transport

TOP LOCATION

Kuwait sits at the perfect location for the trade, transport, and transfer of resources and people across the globe. At the crossroads of Europe, Asia, and Africa, the country can greatly benefit from becoming a logistics hub for both international and regional operations. It is not a question of whether the elevation of Kuwait’s status in this regard is possible, but rather when its full potential will be realized.

On this topic, our interviewees were quick to point out the advantages of the location, as well as the latest developments. One such development is taking place on Boubyan Island, where the new Mubarak Al Kabeer port is set to take shape. By creating a hub able to handle the heavy load of international transport, Kuwait hopes to become an attractive destination for logistics companies, intercontinental traders, and agencies wanting to connect businesses across the globe. Al-Rashed International Shipping Company CEO Ravi Varrier pointed out that it would not only improve local economic output, but also “create jobs for the community, and empower Kuwait on the international stage.” A part of China’s Belt and Road Initiative, the first phase of the Mubarak Al Kabeer port was completed in 2021, with three more

phases planned.

Kuwait’s aviation industry is similarly part of the changes taking place in the country. With the post-pandemic relaxing of travel restrictions around the world, people are increasingly heading abroad to visit loved ones, work, or explore. This was highlighted by Kuwait Airways CEO Maen Razouqi, who told The Business Year: “From a macro perspective, the industry post-COVID is in recovery mode. 2022 is what I call a transition year, and in 2023 we expect a full recovery of the industry.” The company has already taken significant steps to restructure its fleet and open new travel corridors to facilitate growing passenger numbers.

“This industry will grow positively with an annual CAGR of 4%. According to an IATA study, the estimate is that the number of air passengers will double by 2035 to 8 billion. Asia Pacific will account for half of that growth, mainly China and India. These two countries are set to grow faster than any other country in the world. Being present in the location of Kuwait presents a big opportunity because we are at the heart of connecting east to west, and that is how we are also building our growth strategy and network planning,” Razouqi added. ✖

flying HIGH

Established in 1954, Kuwait Airways has grown over the years to become a regional aviation industry leader.

40% increase in passengers in 2022

25 new destinations

What is the present situation of Kuwait Airways?

Maen Mahmoud Razouqi CEO, KUWAIT AIRWAYS

BIO

Maen Mahmoud Razouqi is is one of the founders and a director of AFKAR Ventures. Before, he was president & GM for Schlumberger northern Middle East region, located in Kuwait. Prior to that role, he held various senior management positions, including vice president & GM for Schlumberger Southeast Asia based in Kuala Lumpur and global marketing and technology vice president for the Reservoir Characterization Group. He started his career with Schlumberger as a field engineer based in Texas, and since then has worked internationally in North America, Africa, the Middle East, and Europe in over 23 years of global experiences. Razouqi holds a civil engineering degree from Arizona State University and a diploma of strategic finance from IMD in Lausanne.

Kuwait Airways was established in 1954. Currently, we operate 34 aircraft and manage 11 aircraft from the Amiri fleet. To meet changing market demands, we recently restructured our Airbus contract and aim to have a total of around 50 aircraft by 2030. We are not only growing our fleet but also our partnerships network. We aim to follow an efficient model of being asset light and well-connected; therefore, we will also be expanding our network through strategic partnerships with other airlines. In 2022, we announced our first major partnership with Air Europa. This partnership now gives our customers the ability to fly with us to Madrid, and from there Air Europa flies them South America. Additionally, we are pleased to have inked a partnership with Etihad Airways that will connect us to Africa, Australia, Southeast Asia, and other places. Hopefully, by the end of this year, another partnership will take us to North America and Southeast Asia. With this strategy, we can offer our customer base more than 60 point-to-point direct destinations on our fleet and a further 100 through partner airlines.

What other changes have been introduced by the company over recent months?

One of the first things we did in 2022 was focus on the internal restructuring of the company. We streamlined and integrated our management directorates by 20%. It was an extensive exercise, but a healthy one, and it has reduced overall structural costs and added efficiency due to the merging of departments and business units. It was inspired by lessons learned from the pandemic to introduce greater efficiencies in the workforce. Additionally, we have restructured ourselves internationally. This is the first time in Kuwait Airways’ history where we have 16 Kuwaiti nationals, female, and male, managing the business units and international markets. Today, a large percentage of our client base comes from Europe, as they have recognized the quality and connectivity of our service. The objective is to sell and promote

Kuwait Airways from outbound stations. The other major part of our restructuring concerned the standardization of our fleet. When there are many different types of planes, the costs of fuel and maintenance increase because we have to order different spare parts or employ different staff. Today, we now have a mix of three types of planes: A320, A330, and B777 families. With all these factors, we also committed to a major transformation program that we named Beyond Excellence (BE). One priority is transforming the way we run our business internally before we consider our external competition. The transformation program is designed to engage both external and internal stakeholders to focus on commercial matrices while operating, targeting zero asset incidents, and enhancing efficient on-time performance. All of this should bring growth, sustainability, and returns. The BE program is the DNA of what we want to do as Kuwait Airways going forward, while keeping the customer experience and convince at the heart of all our decisions

What are the major accomplishments recently achieved by Kuwait Airways?

We have accomplished many things, including a five-star Apex award in 2021. We also received certifications from IATA in 2022 for being a leading safe airline in our culture. Our commitment to our customers is always safety first, and we take zero shortcuts when it comes to safety. We have seen considerable growth, and as we measure operation by block hours, we have grown this metric by 181%, while the number of flights grew by 155%. Our performance speaks for itself; we have outperformed our expectations and goals. We have achieved growth of 48% and marginal growth of 127% in 2022. The number of passengers has risen by almost 40%, and we have also introduced 25 new destinations this year. Moreover, in 2022, in a world-renowned survey Kuwait Airways has ranked amongst the Top 100 airlines in customer service, ranking 100 points higher than the previous year. ✖

Image: Abdul N QuraishiAbs

GET MYSELF CONNECTED

Kuwait International Airport will soon be upgraded with a brand-new terminal.

FOR YEARS, THERE HAS BEEN A NEED for the expansion of Kuwait International Airport, as Kuwait City’s primary gateway and the home airport of the country’s two airlines: Kuwait Airways and Jazeera Airways. While the airport was already able to handle some 10 million passengers a year by 2011, a larger capacity was needed if the objectives laid out in Vision 2035 were to be realized in terms of tourism, connectivity, and international business.

The Department of Civil Aviation voiced its intention to expand Kuwait International Airport in 2011. Six years later, construction work for Terminal 2 began based on an expansion plan designed by British architectural firm, Foster and Partners. The contract was awarded to the Istanbul-based Limak Holding, which completed the main segment of the project in just four years instead of the six-and-a-half years specified in the contract. Around KWD900 million (USD3.2 billion) was initially earmarked for the expansion project, though the actual costs may have exceeded that mark. The billion-dollar contract awarded to the Turkish company is also a milestone in the history of economic relations with Ankara.

Terminal 2’s huge capacity of at least 13 million passengers a year (in Phase I) will significantly increase Kuwait City’s connectivity to the world. By the end of the second and third phases, handling capacity will be raised to 25 million and subsequently 50 million passengers per year, respectively. Terminal 2 is intended to run largely by the private sector, proving that privatization in key sectors is reaching new proportions in the country. Kuwait International Airport has now become “arguably the most privatized airport in the Middle East,” according to the Center for Aviation.

The Directorate General for Civil Aviation (DGCA) will announce the private operator at a later date. DGCA has been sizing up interested international operators since 2021 by holding a preliminary tender and expects the future operator to spend two years on training Terminal 2’s staff, ensuring the highest standards of practices in the aviation sector.

It is hoped that Phase I will be fully completed by 2024, along with all its amenities, including an air-side hotel. By the end of Phase I, Terminal 2 will boast 120 check-in desks as well as over 6km of highspeed baggage conveyers capable of processing 2,900 bags per hour. In order to make the terminal more user-friendly for people of all ages, the walking distance from the entrance gates to the boarding lounges has been minimized, while the terminal’s intuitive design spares people from losing their way inside the colossal building.

Terminal 2’s design exhibits a high degree of environmental awareness, in keeping with the ecological policies of Vision 2035. In addition, the terminal’s design draws on Kuwait’s cultural heritage. “The new terminal’s design is inspired by local art and architecture, while the construction materials will be responsive to the climate, as the airport is located in one of the hottest climate zones on the Earth,” according to Airport Technology. The project, therefore, may become the first airport terminal in the world to receive top ratings from sustainability monitoring institutions, including LEED’s Gold Certification.

Terminal 2 is not the only addition to Kuwait’s primary airport. In 2018, the nation’s two airlines decided to open their own dedicated terminals, taking the airport’s expansion project to a new level. While the flag carrier, Kuwait Airways, launched Terminal 4, the country’s budget airline, Jazeera Airways, introduced Terminal 5 as its dedicated terminal.

These two additions further eased passenger load at Terminal 1. Terminal 4 alone is capable of handling 4-5 million passengers annually. It is now fully operational and serves as the exclusive hub for all flights operated by Kuwait Airways. This terminal, too, was built partly by Turkish construction company Cengiz Insaat. The local construction giant, First Kuwait Contractor, also contributed to the project. The designs came out of the studios of the multinational engineering consulting firm, AECOM. The operating rights were awarded to South Korea’s Incheon International Airport Company (IIAC). Although Incheon’s management of Terminal 4 has not been free of challenges, the operator has been training over 100 airport staff every year, who may also by put to work in Terminal 2. Terminal 5 was a comparatively smaller project, as it was technically an extension of Terminal 1. Nevertheless, it employs a modern, youthful, and optimal design and operation model, adding to the diversity of travel experiences that Kuwait City can offer.

The addition of Terminal 2, Terminal 4, and Terminal 5 has not only raised the handling capacity of the Kuwait International Airport but has also made the addition of new direct routes possible. The nation’s flag carrier and its budget airline both continue to introduce new routes, especially with tourism and aviation’s post-pandemic recovery. Kuwait Airwaves announced eight new routes in the summer of 2022, including to the Maldives, Kuala Lumpur, and Hyderabad. International airlines and flag carriers of other countries, meanwhile, are counting on Terminal 2’s growing capacity to soon launch direct flights to Kuwait City. ✖

consistent QUALITY

ALAFCO is successfully leveraging positive developments in Kuwait's aviation sector.

Adel Ahmed Albanwan CEO, AVIATION LEASE AND FINANCE COMPANY (ALAFCO)

What qualities and strategies explain the success of ALAFCO over the past 30 years?

A key quality overriding all others that has enabled ALAFCO’s success is consistency. We have a strong nucleus of employees who have remained with the company for a long time, in doing so better understanding our values and expectations. In a highly competitive industry, it is often difficult to achieve competitive advantage, although we have consistently adapted our business model, reach, and presence to diversify our customer base. Our engagement and alignment with customer expectations, as well as our ability to remain flexible and agile in structuring deals have been key strategic drivers of our success.

What is your persepctive on recent developments in Kuwait's aviation sector? Does Kuwait have what it takes to become a logistics and tourist hub?

I feel that recent and ongoing developments in the aviation sector are important for Kuwait and its people. Naturally, such developments in the aviation sector will serve to deliver long-term economic growth and enhance trade. Geographically, Kuwait occupies a central location globally, which enhances opportunities for both logistics and tourism.

As Kuwait Airways works to increase its reach through partnerships and restructuring processes, how will the company leverage these factors for growth?

A strong and successful Kuwait Airways will only serve to contribute to improved economic growth, whether that be trade,

employment, or tourism. Second, the new terminal is a huge milestone for Kuwait, which will increase the capacity and deliver more opportunities. As a lessor, we are continually reviewing global market trends and demand. Naturally, as Kuwait Airways continues its expansion and growth, we will be more than happy to support and work with others to help them achieve their strategic objective. Our strategy is not tailored to a single airline, as we often develop our strategy with growth and expansion in mind, and as such focus on the global picture.

What does ALAFCO do to ensure its operations are as efficient as possible with the minimal environment impact?

There are industry-wide efforts to ensure that the aviation sector delivers on reducing its carbon emissions through environmental sustainability. ALAFCO fully supports this global initiative to leave the world a better place for future generations. Our commitment to procuring and maintaining a fleet of new generation aircraft is critical to this. We have one of the youngest fleets across the industry that are considered more environmentally efficient. Our strategy incorporates and is committed to the divestment of older aircraft and procurement of new generation aircraft (A320Neo and B737Max).

What is the aviation industry outlook for 2023?

Considering the past three years, I guess anything is possible in 2023. The process of emerging from the pandemic, and subsequent supply issues, have clearly created inflationary pressure globally,

eroding growth. As such, we may expect to witness a prolonged period of high financing costs as governments seek to drive down inflation. This will create headwinds and challenges to every industry, and not just aviation. I do expect a pullback in growth, but depth and longevity will depend on how governments tackle inflation. We are still seeing good demand for travel, and it appears that the price being passed on by airlines is not deterring passengers from traveling. In fact, international and domestic travel appears to be closing in on pre-pandemic levels, which remains positive for us, as we feel this will drive demand for aircraft, especially newer models as fuel costs remain high. ✖

BIO

Adel Ahmed Albanwan has over 20 years of experience across investment banking, aircraft leasing, financial restructuring, and turnaround experience. Additionally, he is a board member across several reputable companies in the region. Prior to joining ALAFCO, he was head of direct investments at Kuwait Finance House. He holds an MBA from the University of San Diego in the US.

new CHALLENGES

In line with Kuwait’s advantageous location and its Vision 2035 to transform its economy, Al-Rashed International Shipping Company is working on improving its operations and strengthening its influence.

Ravi Varrier CEO, AL-RASHED INTERNATIONAL SHIPPING COMPANY

With the pandemic disrupting the logistics sector, how did Al-Rashed International Shipping overcome such challenges? Kuwait was as affected by the pandemic as the rest of the world. Yet, Al-Rashed and my team of 185 staff managed to continue our business with the support of the Kuwaiti government. We received almost 70 curfew passes, which helped us continue our operations at the ports, handling ships, and logistical movements without much trouble. There were some delays with the authorities due to the limited staffing, but they had little impact on our performance. Quite frankly, our business was soon running as if nothing had happened. The company’s policy is “the sun rises, and the sun sets.” The pandemic did affect the revenue and the quality of business, but not the flow of it. Personally, I have always been interested in the shipping industry and have worked for many years in the sector. Al-Rashed has many long-lasting and reliable relationships with numerous companies. We handled projects for Hyundai, Tecnicas Reunidas (TRK), Siemens, Saipem, Flour, Halliburton, COSL and many others. Our diligent approach ensured that even during the pandemic we were successful.

What technologies and solutions have been implemented in Al-Rashed International Shipping to improve operations?

One major area where we digitized our processes was the in-office transactions. Most of the current activities are digital nowadays, including bank transfers, customs, port and other authorities. While some approvals and documentation with the authorities need a physical

embodiment, things are moving digital in Kuwait, which is a sign of technical evolution in this part of the world. The majority of Kuwaiti organizations do not accept digital signatures unless they are officially signed by the authorities and companies. Thus, for now, digital documentation is still not accepted in Kuwait but the trend has started changing here too. At Al-Rashed, we are actively implementing several solutions to improve our service, although there is a limit when it comes to official agencies, which can only be changed through the organs of the state.

What is Kuwait’s strategic position in terms of logistics?

Kuwait is a country strategically located on an intersection of three major continents. It is a great location to take advantage of, but the changes are not happening quickly enough. Kuwait has great access to be a transit hub toward the West—be it to Syria, Iraq, Jordan, and so on—and has easy proximity to Saudi Arabia. While Kuwait is still traditional in terms of execution of projects, we are seeing paradigm shift in terms of Vision 2035. Kuwait’s 2035 vision aims to transform Kuwait into a financial and trade hub regionally and internationally and becoming more attractive to investors. There is a lot of potential in Kuwait, and we can take advantage of our location to set up ports and create greater logistical strength, but this has to be done as PPP or FDI. It would not only improve local economic output, but also create jobs for the community, and empower Kuwait on the international stage. We need to go the extra mile and develop ports and fa-

cilities to get Kuwait harness its strategic advantages.

What is Al-Rashed’s priority for the coming months?

We are focused on developing our services further and increasing the business rate. The pandemic was a challenge and now, coming out of it, we want to get back on track and strengthen our influence in the region. We are open for business with companies worldwide and operate extensively in the MENA and GCC region. We will work more with oil and gas sector companies and likely explore providing assistance to companies transporting goods into Kuwait, as the world’s economy comes back to life. ✖

BIO

Ravi Varrier has an illustrious 40-year career in Al-Rashed International Shipping Co. and is its CEO. The company has grown from leaps and bounds under his tenure. His vision is to grow the company and ensure all shareholders and stakeholders are kept happy at all times.

WECONNECT THEMIDDLEEASTTOTHEWORLD

staying STRONG

DHL Global Forwarding Kuwait remains focused on harnessing globalization, e-commerce, digitalization, and sustainability to ensure the profitable long-term growth of its business.

Firas Sukkar

COUNTRY MANAGER, DHL GLOBAL FORWARDING, KUWAIT

What

tools and technologies is DHL

Global Forwarding taking advantage of to ensure the highest quality of service?

Technology has tremendous potential to improve operations for shippers and freight forwarders; more so during unpredictable times such as the pandemic and its subsequent recovery period. It can simplify daily business, giving logistics customers greater control over shipments. It is against this challenging climate that we are convinced that our group’s strategy 2025 to focus on digitalization as one of its pillars is the right one. In early 2020, we launched myDHLi—the only fully integrated online platform for freight forwarding customers, to access online services for full shipment visibility and control on a single platform. myDHLi provides complete visibility in the management of freight rates, offers, transport modes, carbon emissions, and all other relevant shipment data. The highly intuitive interface makes it easy to use and ensures that customers have all relevant information at hand. It also features common social media functions like follow and share, and relevant information can be easily accessed across organizations and shared with trading partners. We have also fully rolled out Saloodo! our digital road freight solution platform, in the region, to inject greater transparency, real time visibility, and efficiency to the regional road network. Saloodo! enables shippers to identify trusted and reliable freight carriers, and in turn, help carriers manage existing fleets and optimize capacity with full-truckload shipments.

How does the organization strive to create such a positive employee experience?

With our broad geographic set-up and comprehensive portfolio of logistics

solutions, DHL Global Forwarding’s business model is resilient, especially in the face of adversity. Our top priority has been the health and safety of our employees, ensuring that they maintain their livelihoods and continue to meet our customers’ needs. Gaining new perspectives in terms of team collaboration, communication, trust, and adaptability are key. Recognizing an often-unexpressed need for emotional support, we adopted virtual engagement tools and platforms to continue connecting and communicating internally and externally. Newsletters and a Connect app on the intranet, where the DHL team can post messages, share pictures and videos, and keep in touch with coworkers, keeps morale high. These open lines of communication with our staff have proven to show higher engagement levels. Moreover, to adapt to the flexible work environment, we leveraged existing technology to maintain close contact with employees and continue to promote effective flexible work arrangements.

What is DHL Global Forwarding’s perspective on Kuwait’s aspirations to become a stronger logistics hub in the region?

Kuwait has set forth several initiatives such as the New Kuwait 2035 reform program, which will help in the development of the country’s logistics sector. One area would be the improvement of custom procedures, rules, and regulations that would reduce the transit time of goods and, in turn, raise the efficiency of customs. The program also seeks to improve logistics coordination and will involve the building of a single electronic platform for interaction among the various government bodies, which is in step with DHL’s push for digitalization as part of its Strategy 2025. Additionally, the

Kuwait Port Authorities ‘Logistics Cities’ Project, one of the country’s largest national development projects within the logistics sector, has the potential to enhance Kuwait’s connectivity, further consolidate its position as an increasingly important hub in the region and facilitate trade and investment flows. This project will invigorate job creation in Kuwait’s logistics sector, a crucial pillar in Kuwait’s economic diversification efforts. Kuwait’s position as an attractive investment destination is being enhanced by recent investments in infrastructure, aligned with the government’s New Kuwait 2035 agenda. It is for these reasons that we strongly believe in the potential of Kuwait’s economy. Moving forward, DHL aims to support the government’s efforts, by helping companies navigate complex border procedures, customs clearance processes, and transportation infrastructure to facilitate international trade and fuel Kuwait’s economic growth. ✖

BIO

Firas Sukkar is the Country Manager of DHL Global Forwarding of Kuwait, having assumed leadership for DGF, MISNAK, AGILITY, and UPS-SCS in the MEA region. He has over 25 years of experience running multi-functional tasks that support freight forwarding, transportation, and project logistics as well as extensive experience related to operating government contracts, having worked with Kuwait customs to modernize and automate operations and procedures under multinational (WTO, WCO, and GATT) bilateral trade agreements. Sukkar has worked for over five years in Iraq from 2014-2019 as country manager of Misnak International Heavy Lifting & Move Services. Sukkar holds an MSCM from Robert Kennedy College, University of Salford.

STRIKING the best balance

Agility continues to invests in sustainable technology to offer the best digital logistics services in line with changes in global trends.

Henadi Al-Saleh CHAIRPERSON, AGILITY PUBLIC WAREHOUSING COMPANY K.S.C.P

What are the biggest advantages of employing ESG practices across the business?

BIO

Henadi Al-Saleh is the chairperson of Agility’s board of directors and has been recognized as one the most powerful businesswomen in the Middle East by Forbes Magazine. Al-Saleh oversees the company’s corporate governance program, leads its digital transformation, and also oversees the company’s innovation arm and technology ventures team. Before joining Agility, she was the head of debt/equity capital markets at NBK Capital in Kuwait. Al-Saleh earned a bachelor of economics from Tufts University. She sits on the board of the Gulf Warehousing Company in Qatar.

ESG has taken on several forms, notably corporate social responsibility and enterprise sustainability program. We are pioneers in the logistics sector, having started the initiative more than 16 years ago. We are strongly dedicated to fair labor practices, the environment, women’s empowerment, and education. Each of our businesses has its own priorities and we make sure to govern them respectively, while implementing changes that bring our ESG initiatives to light. Our aviation business has targets that include carbon neutral by 2030. Moreover, it is working closely with airports to introduce more sustainable aviation fuel services across the operations. In addition, in terms of our industrial logistics business, our warehouse in Saudi Arabia was recently EDGE Advanced certified, confirming that we are 40% more efficient in energy usage than our peers. We are keen on working with various stakeholders to spread the use and availability of ESG-related technologies. We have a venture capital arm that has invested over USD170 million in smart and renewable solutions. We have also invested in electric and hybrid trucking businesses in the US and Europe, as well as in the thermal solar panel business. Basically, we are keen to invest in startups and technologies that we know can be deployable in a cost-effective way at some point. We not only support them financially but are committed to testing their solutions within our own business and providing them with the ecosystem to adapt and develop their ideas further. With the country moving forward, we aim to strike the right balance and are considering the adoption of a greener environmental business model on a regional basis.

What qualities and skills would you pinpoint as the most supportive on your journey as a woman in a leadership position?

Whether you are a woman or a man, you need to be clear about your personal and professional goals and aims. Balancing work and everyday life make you

multi-task different priorities; therefore, you must know what to focus on. I personally believe in an “ecosystem” approach. Anyone with a family and works must have an ecosystem and a network to support them, especially if they have children. You need to work out a system that allows all your family members to thrive, while allowing yourself the time to pursue your goals. COVID-19 offered a chance to see how well we can manage our work-life balance. There is no way you can work, take care of children, and study unless you have a supportive system around you that help achieve what you want. Specifically for women, I would encourage them to speak up. It is important to make yourself heard and understood.

What digital tools are you currently developing?

Digitalization is rapidly changing the business models worldwide, and by developing our own tools and upgrading our operations, the businesses of Agility can truly thrive in the years to come. We set up a digital logistics platform called Shipa. Its three businesses are largely focused on logistics of the future, enabling SMEs to focus on global freight, parcel cross-border and last-mile delivery. Moreover, through our network, we have been operating a multitude of online tools that enable the easier administration of our customers and partners. One aspect of digital outreach is setting up these businesses, expanding our core service offering, and thinking about going digital. Agility strives to continuously improve its models and operating procedures. As I have mentioned earlier, a part of our group’s activity empowers start-ups and technological products by investing in their development and growth. We have a dedicated team that tests these solutions and works with the partners to implement valuable changes. Whatever business model one may have, there is always plenty of space to improve and introduce digitalization into the mix. It can enhance the company’s capabilities and make the team’s work much easier in the process. ✖

voice OF EXPERIENCE

As a leading human resources provider in the region, KRH specializes in high-complexity solutions project development.

What makes the company’s operation so unique?

KRH has been in business for the past 30-plus years. We started our journey by providing services for the defense industry. In 1991, during the liberation of Kuwait, we collaborated with the US Army and started adopting its standards in the process. This significantly accelerated our growth and enhanced our recognition in the market. We are the best at what we do, and we continue to achieve excellence. Over time, we have grown and expanded our services into other sectors, especially in the highly qualified industries. One of them being the oil and gas industry, because Kuwait’s economy depends heavily on oil. Business-wise, it is the most sophisticated sector when it comes to standards and requirements, which aligns with what KRH represents. We began to focus more on providing specific requirements for the oil and gas industry. We also worked on supporting the Ahmadi Hospital, which is owned by KOC, by providing the ancillary services. It required a great deal of work from our side to be qualified. Recently, we became the main provider of nurses for the hospital, thus making us the largest human capital provider for that facility. At a later stage, we also participated in a few contracts on providing certain engineering, admin, IT, and linguistic employees.

What is the scope of the services provided by KRH?

We call ourselves a one-stop shop for resources and logistics. We have services that are integrated with each other between HR services and life support. Recently, we add a new service—engineering—that is also integrated with other services we provide. As a sponsorship package we provide normalization and legalization. We also deliver complete payroll and recruitment services including skilled labor such as engineers, medical technical staff, and IT professionals. Then, we also specialize in mass mobilization. We handle medical and life insurance for all the staff depending on the requirements. Moreover, we provide travel management services as well. In fact, we have our own subsidiary called Bon Voyage, which serves

Mohammad E. Al-Muaili CEO, KUWAIT RESOURCES HOUSE (KRH)

our clients. With a large amount of manpower, it makes sense to have a complementary product to support our travel needs. We have many services to complement our HR services including accommodation, catering, laundry services, project management services, camp supervision, and transportation. Our services are highly tailored to fit the client’s needs.

As a human capital-heavy company, how did KRH deal with the challenges of the pandemic?

During the pandemic we had to enhance our capabilities and cope with the challenges at the highest level. We sought to become a resilient organization in order to overcome the difficult period. We started by creating a local task force and moved the majority of our processes online. Additionally, we provided psychological support for our project employees. It was not an easy task, but through the collaboration with our customers, we came up with an agile set of solutions that were beneficial to both our team and counterparts.

What opportunities do you see for international companies coming to Kuwait?

This region can be an attractive location for all international companies. Most of the expansion plans happening right now come from the Middle East, so there is an expectation of growth here. The government is serious about amending the laws and regulations to attract international companies. With greater collaboration between the Kuwaiti private sector and international companies, Kuwait will see greater progress in the upcoming projects announced by the government. These projects will definitely need international companies to participate. One of the sectors that should be looked at is logistics, as Kuwait has been blessed with a geographic location in the middle of the region close to the countries that could use its support. Kuwait will be a great connector between these different parts of the continent, as well as the stopover between the East and West. ✖

BIO

Mohammad E. Al-Muaili brings over 20 years of experience focused on logistics, operation due diligence, and investment.

Prior to his current role, he was the CEO of Resal Holding company based in Saudi Arabia. Before that, Al-Muaili established a private equity boutique called Business Gate Holding. He is currently Vice Chairman of Real Estate House Company (REH) and a member of the college of business industrial advisory board at the Australian University. He was also vice chairman & CEO of Mubarrad Transport Company Kuwait. Al-Muaili holds a bachelor’s degree in industrial engineering from California State University and an MBA from University of Manchester and is an alumnus of London Business School.

Most recent addition to services is focused on engineering

30+ years of experience

BIO

Prior to founding The Bridge Co., Fouad Rouh was a metal artist, specializing in brass and copper repoussage and gold craftsmanship. He also has a passion for entrepreneurship, problem solving, growth, and commitment to excellence in business ethics.

Fouad Rouh FOUNDER & CEO, THE BRIDGE CO.

What is the company’s experience in supporting foreign entities engaging in the Kuwait economy?

Our company was established in 2004, and today we are present in 12 countries worldwide.

The Bridge Co. provides logistics services to foreign companies coming to Kuwait to do business, with the majority of them being from the defense and military sectors. We work extensively with the US government, European agencies, and international companies in the oil and gas sector. With our expertise, we are able to facilitate any business, especially in Kuwait. Our customer base benefits from logistics services such as logistic support (sponsorship/visas, housing, cars leasing, and so on), business registration and sponsorship, manpower supply, transportation (personnel, equipment, fuel), heavy handling/construction equipment lease, construction development within the client’s facilities, and more.

Thanks to our presence and knowledge of the region, we are also the first point of contact for the companies wishing to enter Kuwait, Saudi Arabia, UAE, Qatar, Bahrain, Jordan, and many others. Our services often come as a package, from manpower to equipment transportation. We are a one-stop shop for anyone wishing to explore and expand into the market.

How does your extensive experience with governmental entities and clients impact your ability to provide services for the oil and gas sector of Kuwait? We consider government business at the same level as oil and gas, so our services for both these sectors are almost identical. The standard and quality of the services have to be the same to meet demand, and so we provide them at the highest level. The oil and gas sector in Kuwait is extremely complex and sensitive, which is why the companies in this sector are perfect clients for The Bridge Co. We are the experts in delivering premium services to clients that require highest quality of work and a sensitive approach. ✖

Ahmad Jaafar GENERAL MANAGER, AUTO CAPITAL CO.

What strategies and innovations have allowed you to achieve growth since entering the market in 2019?

The keys to our success were the right team, a great business plan, and thinking outside of the box. The company’s approach is completely new to the market. Auto Capital Co. offered a solution to both car dealers in the country and customers themselves. We solve dealers’ problems by financing their fleet, which secures them in terms of their KPIs. Then, we store the vehicles at their facilities, promote them through our sales channels, and use many attractive options to make sure our clients on the other end get the best deal possible.

What is the greatest strength and competitive characteristic of the company?

Our strength lies in the quality of work, which our team excels in daily. We are able to deliver these high-quality services to our clients through our dedication, efficiency, and agility. It also helps to have the right cash flow with

the appropriate strategy perfected at every step. Transparency and reliability are the most impactful factors in our niche, especially when it comes to providing services to organizations such as the US Army. It recently sent us a letter of appraisal for the work we have done over the past year, which is testament to our diligence and its importance. It is a rewarding and important aspect of such a collaboration.

What is Auto Capital Co. doing to promote the global transition toward a more sustainable future?

When it comes to sustainability, we are one of the first companies to have introduced electric and hybrid cars into the market. We are also working on the infrastructure, introducing electric chargers in malls and strategic locations around the city. Due to our oil-heavy economy, it will not be an easy transition. However, we hope to push this change forward by financing infrastructural improvements. We hope to see Kuwait becoming more diverse and energy efficient over the coming years. There are many customers ready to explore these solutions; the challenge lies in making electric vehicles convenient by providing a suitable infrastructure to support them. ✖

BIO

Ahmad Jaafar has extensive experience in the investment banking industry. He holds a master’s degree focused on international/global studies from Thunderbird School of Global Management. Jaafar is the General Manager of Autocapital Co. as well as the CEO of Exotic Snax Kuwait.

Education & Culture

READYING FOR THE FUTURE

With the vision that today’s youth are tomorrow’s leaders in mind, the Kuwaiti authorities deftly guided the education sector through the pandemic. The stresses of COVID-19 meant leaders from across the sector had to think outside the box to allow the transfer of knowledge to continue unabated, and our interviewees spoke passionately about the various digitalization efforts undertaken.

Looking beyond still, and in light of efforts to diversify the economy, the next great challenge is developing the right skills to allow Kuwait to thrive post oil. Under the leadership of the Youth Public Authority and the many organizations committed to creating agile leaders for the future, the country’s education sector is in the midst of widespread transformation. Former Youth Public Authority Director General Mishaal Alrubaie told The Business Year: “Having a degree is not enough to land a job. You need to develop a certain skill set. We have a job creation program where we are focusing on skills and career paths instead of a university degree.” Understanding the importance of extracurricular activities and transferable skills improvement, the many organizations across the sector are doing their best to ready their students for the future.

It is no surprise that by enabling entrepreneurship and fostering creativity the economy of Kuwait can greatly improve its diversity. SMEs,

start-ups, and artists have the potential to generate GDP, raise the international interest in Kuwaiti culture, and expand the job market. As Al Sadu Society Chairperson Sheikha Bibi Al Sabah told The Business Year: “If we want to diversify, we need to find ways of improving our economy’s variety. Increasing the culture and arts sector can help to achieve this goal.” As many disruptive and innovative ideas coming out of Kuwaiti creators find their way into regional and international markets, there is a growing sense of recognition and understanding that fostering culture and entrepreneurship can greatly enhance the country’s economic clout.

Moreover, as the many universities across the country adjust their curricula and strategies to address the needs of the dynamically changing market, students are offered more and more opportunities to develop and perfect their skills both in specialized and broad areas of expertise. Today, almost all universities have active partnerships with local and global organizations, offering hands-on education and the chance for real-world experiences at companies that may become their employers after graduation. American University of Kuwait President Rawda Awwad summarized the evolving approach of the country’s educational institutions, telling The Business Year, “We educate them for their last jobs and not for the first.” ✖

CLEAR direction

Working to provide Kuwaiti youth with more direction, assistance, and support in their endeavors, YPA focuses on up-and-coming sectors, the new skills that are required, and ways to overcome potential challenges.

Mishaal AlShaheen Alrubaie FORMER DIRECTOR GENERAL, YOUTH PUBLIC AUTHORITY (YPA)

What have been the milestones, and what is the mandate of the Youth Public Authority?

Our major objective is to enable youth— anyone between 14 and 34—to meet their potential in the many sectors of development, such as skills, psychological and physical wellbeing, financial literacy, and education. Our job is to be a few steps ahead of the new trends and issues. It is a challenging task to provide our stakeholders with the appropriate information, education, and support. We do considerable amount of planning and do our best to predict what these young people will need from us to help them on their journeys.

What can be done to improve the likelihood of success of young Kuwaitis in the marketplace?

What is your perspective on the progressive global, and how can the Kuwaiti market take advantage of digitalization?

BIO

Mishaal AlShaheen AlRubaie was appointed Director General for YPA in 2021. In this role, he also served on its board of directors. In 2021, GCC Ministers of Youth and Sports appointed AlRubaie as chairman of the GCC Youth Strategy Governance Committee. He is also a member of several boards and high-level committees. He was the recipient of the Youth Empowerment Leader of the Year 2022 award. AlRubaie holds a PhD in English literature from University of Calgary Alberta in Canada and has over 20 years of experience in academia and the public sector. Prior to his current post, he was undersecretary of the Office of Minister of State for Youth Affairs and served as assistant professor at the department of English language and literature at Kuwait University. He also served as the president of Kuwait Football Association appointed by FIFA.

This is an issue closely connected to SMEs and entrepreneurship. The situation in Kuwait is unique. Young entrepreneurs here do not pay taxes and barely pay any utilities, and almost all services are provided for free. Through the SME Fund, the government lends these young individuals, male and female, up to KWD400,000, tax free, with a one-time cost fee up to 2% and three-year grace period. Moreover, the government pays 60% of their Kuwaiti employees’ salaries, provides utilities discounts, and offers tax exemptions. Therefore, the only thing the young entrepreneur must pay is the rent for an address, if they have one. It is a huge opportunity for those who develop entrepreneurial skills, but they do face a different challenge here: a monopoly. If you invest in SMEs and push them in the market where their sector is saturated with major investors, they will struggle to stay in business. The first thing we need to do is define the non-saturated sectors and point our youth in that direction. Based on research, we determined that the least volatile sector in Kuwait is IT and the technology sphere. This is where we need to start enabling the youth to explore.

The Kuwaiti government is doing a great job in this regard. Understanding digital transformation is not as simple as it may seem. One of the unique things that the Council of Ministers is doing is offering its senior employees high-level training programs to educate them on the subjects essential for this day and age. When it comes to our youth, we need to expose them to the idea of creative work and entrepreneurship. We need to marry technology with the art of creating and defining what the public needs. Through this, we will enable our youth to get ahead of the wave and ride it, rather than being overwhelmed by it. This is where things work in terms of technology and differentiation. AI is tasked with understanding our requirements and tastes, which is hugely challenging. To make AI useful, we need to develop a hybrid-like work that facilitates a collaboration of human desires, sensitivity, and emotions with AI coding. That is where the opportunities for our young brilliant minds are available.

Looking forward, what are YPA’s priorities and projects?

Our number-one priority is the job market. We have a job creation program where we focus on skills and career paths instead of a university degree. We are trying to redirect more of our Kuwaiti youth from the governmental to the private sector. One of the biggest problems in Kuwait is latent unemployment, where you go to work with nothing to do. We need to invest in our youth to give them a skill set after their college degrees. For example, we have a facility program certification, where we convert people’s education levels into a more market-appropriate positions. Kuwait needs more coders, cloud architects, web developers, risk managers, and auditors, and this is the direction in which we will push our young stakeholders toward to explore their skills development. ✖

CHILDREN ARE THE FUTURE

As the young generation is trying to find its place in Kuwait’s job market, more young professionals are gravitating toward IT-related businesses.

KUWAIT SOUNDS LIKE AN EXCELLENT PLACE to be born and grow up, and indeed it is. A high-income country with reasonably good standards of living, Kuwait is in a position to think about more important issues, such as the future of its young generation. The country’s Public Authority for Youth is one of the organizations in charge of this. The authority has an inclusive definition of “youth,” considering anyone between 14 and 34 young enough to benefit from its initiatives. The Youth Public Authority (YPA) is particularly keen to make a difference in three areas: the psychological health of young individuals, their physical well-being, and the improvement of their skills.

Good employment opportunities can contribute to the betterment of all the aforementioned factors. Psychological well-being, in particular, has been linked to work. A 2020 scholarly paper by Drake and Wallach published in the journal Epidemiology and Psychiatric Sciences noted that “unemployment worsens mental health and gaining employment can improve mental health.” It is estimated that while unemployment is generally low in Kuwait, it is higher among young individuals—at 12-25% according to various sources.

YPA is aware of the challenges faced by the younger generation in the job market. And, therefore, it is lobbying with various sectors across the economy to persuade them to set aside employment opportunities for the youth. Former YPA director general Mishaal Alrubaie had a meeting with the Kuwaiti Union of Banks to discuss “mechanisms of joint cooperation to support the banking sector with trained nationals and enhance its contribution to raising the degree of youth employment in the private sector,” according to Arab Times. The Union of Banks has announced 100 special job opportunities for the country’s youth following the negotiations.

At the same time, various businesses are being encouraged to admit young talents to their midst, entrepreneurship is encouraged among the youth, so that the youth will learn to be in charge and proactively create job opportunities for themselves. Kuwait’s business ecosystem is famously conducive to SMEs and start-ups, especially thanks to the country’s wide-ranging tax exemptions. “Young entrepreneurs do not pay taxes, barely pay any utilities, and almost all services are provided them for free,” Alrubaie told to TBY. There are also easy-access loans for the country’s youth with entrepreneurial ambitions. Such loans often come with a grace period of five years, which is more than enough for an SME to take off. The loans

are up to KWD400,000 (USD1 million), which are sufficient to implement start-up ideas in many sectors, if not all.

The only problem, however, is that Kuwait’s prosperous economy is already dominated by long-established corporations. Competing in saturated markets is not easy, especially for young SMEs. The youth are, therefore, encouraged to focus on emerging sectors, where there are no traditional market players. YPA is guiding young entrepreneurs to try their luck in a business with a high chance of success. “We found based on research that the least volatile sector in Kuwait is the IT and technology sphere,” Alrubaie told TBY. There is no wonder that most Kuwaiti start-ups launched after 2020 are IT related.

The IT sector has been changing enormously recently. While new developments such as remote work and AI have changed the skill set required for success in the sector, in many cases traditional university courses have failed to catch up with the new realities. It seems, therefore, essential for the youth of Kuwait to be equipped with the right skill set to succeed. “We have a job creation program where we are focusing on skills and career paths instead of a university degree. Having a degree is not enough to land a job. You need a certain skill set with it,” noted Alrubaie in his interview with TBY.

This brings us to the importance of skill development in youth— and IT literacy in particular. YPA is currently running a “re-education” program, helping young people to adjust their skills and education to the real needs of the job market. Courses in cloud computing, coding, and web development are currently in vogue. Other government departments are running similar programs. The country’s Public Authority for Manpower recently launched an initiative called “My Trail to Professionalism.” In-depth career advice has been given to young graduates, while “offering an entire rationalization of the non-public sector and its advantages,” according to Kuwait News.

There are talks that the country may start a career-orientation programs targeting students at an earlier age, so as to enlighten the Kuwaiti youth about the realities of the job market while they are still at university or even high-school. This will hopefully prepare the future workforce of the country for more ambitious careers in the private sector, where the young generation can show off its entrepreneurial skills and business acumen to build Kuwait’s future economy. ✖

Jacqueline Shaw CEO, AMERICAN INTERNATIONAL UNIVERSITY (AIU)

What makes American education so prominent in Kuwait, and what does AIU offer its students?

GLOBAL quality

The American institution of choice for students, American International University plans to provide more targeted programs based on the needs and requirements of the country in order to boost quality education in Kuwait.

BIO

Drawing from over 20 years of experience in the education industry in the region, Jacqueline Shaw leads the administration of American International University and directs all executive leadership teams. Having founded the American Baccalaureate School in Kuwait, and operating the Oxford Learning Centre franchise in various locations across the GCC, she drives the vision for AIU to be a regional hub for academic excellence. She obtained her MBA from Arizona State University, her MIM from Thunderbird School of Global Management, and has a BBA from the University of Washington.

When it comes to private education preference, since most Kuwaitis study in the US, it is common for them to choose American education for their own children. Moreover, as the majority of popular worldwide products and services come from American inventors and companies, there may be something special about American education that facilitates this. From my point of view, success in life depends on being self-sufficient, creative, and resilient. This is what we aim to teach our students. American International University, as well as our pre-K to 12 school The American Baccalaureate School, were the vision of Faiza Al-Kharafi and her husband Ali Al-Ghanim in order to improve the quality of education provided to the students of Kuwait. Their vision is to have top private-sector organizations say, “We want to hire an AIU graduate.” When it comes to our degree programs, we do all we can to facilitate teaching on another level. We want it to be practical and professional. For each of the majors, we bring in practicing professionals to teach and present their insights to our students. We provide our students with insight and experience that will support them beyond education. Upon graduation, they need to be fully prepared for entry and successful participation into both the local and international job arenas, and most importantly they need to be ready to live a rewarding and successful life. Finally, I am very proud of the fact that we are the first, and only university in the GCC to offer a dual enrollment program. High school students can opt to go to a local college and enroll in classes that will satisfy their high school credits requirement while simultaneously earning university credits. These students in our K-12 school get the chance to fast track their university education by attending classes at our university. This exposes them to many courses that they would not have access to at the high school level.

How does AIU support its students in entering the job market?

Most of our degrees require students to participate in an internship with a private sector company. This is a part of their career-enhancement plan. We also have dedicated career center staff members who organize career fairs which allow our students to identify the different organizations and job opportunities in Kuwait and discuss potential employment opportunities. We work with many organizations to ensure our students get the chance to complete internships with the best-inclass companies on the market. Additionally, no student is permitted to graduate from our university before they participate in mock job interviews. We use a popular software called Big Interview to facilitate this. Students get to practice interviewing and therefore know what to expect and how to respond professionally and successfully once they enter the employment market. We coach them how to write their resume and what kind of approach should they adopt during the interview. I believe this is especially important, as without such core skills, they might not get the chance to showcase their worth.

What is the focus of AIU for the near future?

Apart from steady growth and expansion of our program offerings and provision of a first-tier university education to our undergraduate students, we have been seeing a significant rise in the number of requests for specialized education offered by us to both the private sector and the government sector. We have already had the opportunity to work with the Ministry of Defense on a drone training project. We also have a new university division, the Institute for Private Training (IPT), which focuses specifically on training professionals in lifelong learning programs. We want to work more in the new year on determining the specific training needs and requirements of the private and governmental sectors in order to improve access to local relevant and quality education in the country. We also anticipate many additional courses and training programs being added to our offer. ✖

Yousef Al-Husaini CO-FOUNDER & CEO, BAIMS

What makes Baims so successful and unique?

We started Baims in 2017 with the goal of creating online IT-focused courses in Arabic. It took us some time before we pivoted and addressed the challenge of tutoring at universities. There is heavy demand and only so many hours in a day for a professor to tutor everyone who needs their support. Baims partners with teachers, records a professional set of classes with them, and then offers these classes to students, who can watch and learn at their chosen pace. It is also much cheaper than an average hour with a tutor. This way, through producing university-aligned courses and recording them, we can support students in their studies. We have recreated this process in the five countries where we currently operate, and it has been a success. It is a great way of tackling the demand issue, through an affordable solution. Moreover, we have had great feedback so far, with many students relying on Baims for their academic

success. Baims may just be the biggest videos producer in the country, currently producing over 500 videos of courses a day, and we expect to double or even quadruple this figure in the coming months.

Where do you currently see the potential for entrepreneurial success in the country?

In terms of the opportunities within the technological SMEs market, the F&B sector is still ripe for exploring. You can do a great deal with the use of technology in this field. From cloud kitchens, AI learning, and e-commerce—there are still many options to choose from and develop. In addition, there is barely anything being done in the health sector, where one could easily come up with some new solutions to address the problems of daily life. There is still plenty of room for new start-ups to develop and thrive, though we need to make the environment more friendly for them. I hope to see more on the agricultural side, fashion industry, and B2B services space. Great ideas are everywhere, and I have no doubt many young entrepreneurs will take them forward and make them a reality. ✖

BIO

Yousef Al-Husaini is the Co-Founder & CEO of Baims, an online educational platform that makes educational tailored content accessible to students in the GCC. He holds industrial engineering degree from Kuwait University and has been building mobile apps since he was 12.

Image: AIU

UNIVERSITIES

Higher educational institutions in Kuwait are currently focused on improving, reshaping, and diversifying their offerings to meet Vision 2035 and contribute to building a strong economy based on science, technology, and entrepreneurship.

Isam Zabalawi PRESIDENT, AUSTRALIAN UNIVERSITY OF KUWAIT (AU)

BUILDING a sustainable environment that fosters teaching, learning, and research requires us to go the extra mile. This is what our strategy is built on. It takes into consideration Kuwait’s Vision 2035, which identifies investment in human capital and economic diversification as crucial elements for the country’s development. The vision seeks to reform the education system and better prepare the youth. We play a critical role in building and advancing the knowledge-based society through our graduates, innovation, research with impact and contribution to society. Our teaching and learning are built on the highest academic standards. We have developed state-of-the-art facilities to meet the changing teaching and learning needs of our students. Our programs are designed in collaboration with industry and enjoy accreditation by esteemed professional bodies. Over the next few years, the market will be looking for agile, adaptable, and resilient graduates. In uncertain times, these are the most important skills we can give our students. Companies are re-skilling due to the impact of technology and robotics. Therefore, the needs of the market are centered around adaptation to change. That is why our pedagogy ensures our students are learning to think, adapt, find solutions to problems, conceive, design, implement and operate. We are focusing on the importance of learning to learn.

Bassam Alammedine ACTING PRESIDENT & VICE PRESIDENT FOR ACADEMIC AFFAIRS, GULF UNIVERSITY FOR SCIENCE & TECHNOLOGY (GUST)

NUMEROUS FACTORS make GUST unique, including the quality of education and extra-curricular involvement. We make sure to support our students by first improving their knowledge and skill set in the major they chose by delivering the latest topics in the subject matter, then training them to fit the job market, and ensuring they receive personalized support during their learning journey. The high education quality is proven by the accreditations of our programs by the most prestigious academic bodies. For example, our college of business administration is accredited by the Association to Advanced Collegiate Schools of Business (AACSB), and the computer science major is accredited by the Accreditation Board for Engineering and Technology (ABET). The mass communication and media program is accredited by the American Communication Association (ACA). Even our English and Mathematics Foundation Units are accredited to ensure our students are getting the best. These ensure that we follow the highest international quality standards of higher education. In addition to in-class teaching activities, we prepare our students through internship programs in sectors like education or mass communication besides preparing those who choose any business major to become entrepreneurs via a practicum course. We are the first university to build and offer such a program in Kuwait. We already have several success stories.

Rawda H. Awwad PRESIDENT, AMERICAN UNIVERSITY OF KUWAIT (AUK)

WE BELIEVE education demands a holistic approach. Students should be engaged in education both in class and during their extracurricular activities. Such engagement on an extracurricular level has always been important. It addresses their emotional and psychological abilities, as well as enhances their passion to things beyond the classroom. But what truly makes us unique is the fact that this entire extracurricular enterprise comes under our liberal arts foundation. Liberal arts education demands engaging students on many levels in and outside of the classroom and providing them with a myriad of opportunities from studying abroad to competing with others. Our goal is to prepare our students for the world “out there.” We like to say we educate them for the last job and not for the first. The ability to maintain that level of flexibility, energy, determined intellectual mindset, and scale on multiple levels is what we can teach our students. We continue to organize sport competitions and events that allow our students to develop their transferable skills and the so called “soft skills,” which are the hardest, and most vital, to obtain. Public speaking, leadership and teamwork are essential. With a global mindset, international sensibility and sensitivity, no matter what happens with the economy, they will be able to survive and thrive.

the place TO BE

Kuwait University is the country’s only state university and guarantees excellent employment for its graduates.

Prof. Suad M. AlFadhli FORMER ACTING PRESIDENT, KUWAIT UNIVERSITY

What are the major advantages for students choosing to attend Kuwait University?

Kuwait University was established in 1966 and has been present for 56 years in the educational environment. For more than five decades, it has been the only state University in Kuwait, providing education to nearly 43,000 students annually. Kuwait University provides students an allowance that rises if they get a high GPA. Graduates from Kuwait University will likely have more job opportunities than those graduating from private universities due to the versatilities of the specialties offered by Kuwait University. Employment is guaranteed for most because they graduate with high competencies. We work to provide more programs every year from different colleges and potentially with new colleges every few years, matching the global rhythm for different disciplines, such as healthcare, social care, or the law. In Kuwait, most Kuwait University graduates go on to hold high-ranking positions. In addition, we send our top students for a scholarship to pursue their master's and PhD education, whereby we carefully select prestigious schools worldwide to send them. On top of this, we trace our student's progress and outcome. When they return, they hold faculty member positions with tenure. Our promotion system is strict but competitive; only those doing excellent work merit promotion. Kuwait University enjoys a solid reputation locally and internationally, proven by our graduates being accepted for postgraduate studies at prestigious high schools worldwide.

What explains the success of students of the scientific research faculty in the field?

Kuwait University facilitates a suitable climate for a researcher. In medical care, for example, we have good agreements with the Ministry of Health to promote medical research after passing ethical approval. We have an ethical approval committee to review grants or projects, even if not fund-

ed by the medical school medical campus and the Ministry of Health. If approved, the approval is circulated at all medical centers in Kuwait to facilitate the researcher with their proposal. You can receive ethical approval even before you receive funding. Funding can be obtained from the Kuwait University Research Administration, which is generous if they believe in you, perceive research productivity, and encourage newcomers. Once newly joined, you automatically receive a RIG grant of KWD2,000, which will set the base, and you can later expand your budget and reapply for a larger project from Kuwait University. The procedure will always include sending proposals that exceed KWD10,000 for evaluation by three experts outside Kuwait. Once the research project gets accepted and funded, the researcher must submit an annual report. If your yearly reports are excellent with proof of high research productivity, you can request further funding once you conclude the project, and you will be entitled to incentive rewards. Kuwait University encourages researchers to include undergraduate and postgraduate students in research. We have a solid School of Graduate Studies offering123 postgraduate programs from various colleges around Kuwait University. They also have a system for funding grants for masters and PhD students. The researchers can appoint research assistants to their research, and professors are also allowed to appoint postdocs. This fosters the exchange of knowledge and scientific research. We encourage research for the faculty of newly joined members and professors. I proposed investing in a significant national project led by one of the leaders in research, a well-known and internationally recognized researcher. Then, researchers from different colleges tackle the research problem with their approach. We have started researching non-communicable diseases, wherein I will be the leader, having previously worked in this

area. The project involves screening the university population, students, and faculty staff for cavity and kidney profiles and a glucose profile. I will approach the project from the social science perspective. I have an individual from the social sciences, and a statistician, Dr. Noria AlKanderi, on my team. I have a public health professor and three master's students. I will have a physician from the Ministry of Health. If we gather the data, we can help with a vision or a health plan for Kuwait for the next decade. There are certain hidden diseases we don't recognize, such as kidney failure. This could be because of COVID or the vaccine's side effects. This could have affected our internal organs, such as the kidneys. Some of us might not have a 100% functional renal system capable of preventing illness. This is a national project, and I am encouraging faculty members to have a mega national project sponsored by the major companies in Kuwait that we can divide into sectors. For example, engineers can have one related to the oil industry. We are changing the mentality of handling research. Instead of small, narrow projects, we want to increase the intensity and participation within the national mega projects. ✖

BIO

Prof. Suad M. AlFadhli has a bachelor of science degree from Kuwait University, a master’s from Boston Medical School, and a doctorate in philosophy from the Catholic University of America. She became a professor at Kuwait University in 1999.

from THE INSIDE OUT

Alnowair is working to promote positive behavior and social change within the school system, community, and workplace through the techniques of positive psychology.

Sheikha Intisar AlSabah FOUNDER, ALNOWAIR, INTISARS, EBBARRA, BAREEC, AND INTISAR FOUNDATION

Can you give us an overview of Alnowair’s operations and activities?

Alnowair has been promoting positive social and behavioral change since 2013, and we have many different programs, which are recognized and supported by numerous authorities in the country. One of the programs, Bareec, focuses on supporting governmental schools across Kuwait. We are supported by the Higher Authority for Planning and Development and the Ministry of Education. Through the techniques of positive psychology, we promote positive behavior and social change within the school system. Boomerang—a program supported by private organizations and the Ministry of Education—works toward kinder school cultures and reducing all forms of bullying through applied theater and kindness strategies. The program systematically helps in promoting tolerance, inclusivity, respect, and celebrating diversity. As a result of Boomerang Applied Theatre workshops teachers have reported: 90% reduction of bullying incidents among students programs participants; 80% of the trained educators felt more equipped to resolve bullying through kindness by the unconventional method of applied theatre; a higher level of trust, respect, and kindness in the school environment; better teamwork and unity among students; increased respect for cultural diversity and individual differences; and improved social and emotional learning skills (SEL). Since 2017, the Boomerang program has positively impacted 15,100 students, of which 6,308 were girls; empowered 264 victims, bullies, and bystanders; conducted 70 transformative plays in 33 private schools; and conducted 435 hours of applied theater workshops. Before the pandemic, our initiatives impacted about 11,000 students in 54 high

schools. Recently, we have also created a theater-based initiative that helps to promote leadership in young girls.

Could you elaborate on this new program focused on leadership among girls?

The participants are performing theater plays, which enables them to learn how to engage with the audience, speak in public, act, and gain confidence. Through theater, they can develop their soft skills and gain valuable experience of performing under pressure. It is a great self-development tool. We have noticed the transformation that happens within these young girls once they complete the program. Through questionnaires, we have measured the impact and we hope to have the report later in the year. We are also committed to a quantitative study on their behavior change based on their parents’ observations. So far, the Youth Public Authority is eager to continue this initiative, and we are planning to review the project in the near future.

What is the Corporate Wellbeing Program, and what is its purpose and impact on local workforce?

Alnowair’s Corporate Wellbeing Program engages employees through positivity exercises to generate positive behavior change which in turn, increase employee wellbeing, productivity, and organizational profitability. It is designed based on scientific studies which show that there is a positive correlation between positivity, productivity, and profitability. Since 2016, Alnowair has trained 550 employees/trainees at Zain Kuwait, Commercial Bank of Kuwait (CBK), Al Hamra Business Tower & Luxury Center, and EQUATE Petrochemical Company. Not only have participants demonstrated a significant 33.8%

increase in positive outlook toward life, within two weeks of the program they have also benefited from practicing positivity at the workplace.

What leadership initiatives do you do in the education sector, beside the positive psychology programs for children?

We have a project with the Ministry of Education in collaboration with Columbia School for Teachers, which is the number one training university for teachers in America. The project is titled Certified Learners Practitioner. We are set to work with the Ministry of Education to train new or onboarding teachers in positive psychology. We want them to be ready to lead their classes in a positive way. This is another first-of-its-kind program in the Arab world, so we are looking forward to seeing the positive impact the initiative will have on Kuwait and the wider MENA region. Consequently, building a positive community is our goal. ✖

BIO

Sheikha Intisar AlSabah is an entrepreneur, philanthropist, author, film producer, columnist, and a princess of the AlSabah family, the ruling family of Kuwait. Her social enterprises (Intisars and Ebbarra) spearhead a new movement of women’s selfempowerment, while her non-profits (Alnowair, Bareec) supplement the formal education system and improve organizational cultures with programs in socio-emotional skills based upon positive psychology. Her contribution to peace is embodied in the Intisar Foundation. Her vision of fostering peace in the Arab world and beyond, regularly advocated during her many international and regional board engagements, advisory roles, media appearances, and UN General Assembly keynotes has won her global acclaim.

intangible HERITAGE

Founded with the goal of preserving, promoting, and reviving Kuwait’s traditional textile arts, Al Sadu Society has played a major role in raising the prominence of Sadu weaving and leading to its rebirth in the country.

What is the mandate and origin of the Al Sadu Society?

The Al Sadu Society started as a project in 1978 by a group of concerned Kuwaitis with a unified goal of preserving the traditional Sadu weaving of Kuwait. Each member came in with their own expertise that helped to solidify the cause. One example is my mother Sheikha Altaf Al Sabah, an anthropologist by study, who addressed this project academically with a drive to make it a sustainable one. Her passion led to the formation of the Sadu project in 1991, which soon became a weaving cooperative of the name Al Sadu Weaving Craft Cooperative Society. The mission of the society was to preserve, promote, and revive Kuwait’s traditional textile arts and related skills with the contemporary milieu. It is supported by the founding master artisan shareholders and run by a board of members of which I am the Chairperson. As a weaving craft cooperative, Al Sadu Society shares are owned by the master weavers and artisans themselves. Sadu weaving is one of the oldest and most prominent traditional crafts in Kuwait and on the Arabian Peninsula. It has been an integral part of Bedouin nomadic life and goes back thousands of years. It is not only one of the oldest of crafts but also a highly developed one.

What activities and initiatives have you explored through Al Sadu Society’s work?

Currently, we consider ourselves a cultural center for crafts and creativity of passionate artisans, artists, art teachers, and textile enthusiasts. We have been active in promoting and enhancing the public’s awareness and interaction with the craft by organizing workshops, exhibitions, artists, and attracting international bodies such as UNESCO, WIPO, and UNHCR, to name a few. Among the initiatives that we have been working on, the most prominent ones focus on knowledge and skill transfer related to the tradition of Al Sadu weaving. The program has changed the way the craft has been taught and relies on modern methodologies

to transfer the kills. Traditionally, Sadu weaving was practiced by women only, but as our initiative continues to grow, we are doing our best in giving opportunities for men to participate in this traditional craft. Over the course of our activity, we have addressed the issue of safeguarding intellectual property for traditional knowledge and folklore by registering Al Sadu Weaving as a collective mark in accordance with guidance from the World Intellectual Property Organization (WIPO). We have also created a Sadu Art & Design Initiative (SADI) program that encourages creativity and innovation. Every year, emerging artists from various creative backgrounds are invited to take part in the program and immerse themselves in the beauty and intricacies of Sadu weaving and design repertoire, researching its past, present, and future through workshops and seminars. Based on our 40-year worth of research, we have established art modules for schools, pushing for the craft to become a part of the national educational curriculum, as it is undoubtedly a part of Kuwaiti heritage. We have been collaborating with UNESCO as an accredited advisory member to the committee and have just had “Train the Trainers” program accepted as best practices for safeguarding intangible cultural heritage UNESCO offering our community’s skills and knowledge to the wider audience. We have been asked to advise similar centers across the GCC in creating their own societies and fostering their traditional crafts. We have a MoU with UNHCR on empowering displaced families through training. They are trained in the skills of the craft so they can produce, showcase, and sell their works through our platform ultimately financially empowering themselves. Finally, we have recently started exploring the idea of “Practicing Craft as Therapy” and are in the process of researching how becoming present, while weaving and concentrating, can allow our participants to alleviate anxiety and reduce stress. We are extremely hopeful about these findings and want to develop them further. ✖

BIO

From teaching accounting at university to the philanthropic work of heading Al Sadu Society, Sheikha Bibi Al Sabah is involved in empowering the culture and business of Kuwait. She focuses on innovation and education through both the professional and voluntary work. Among her international achievements, she became an accredited NGO advisory for UNESCO. Her efforts led to securing the art of AlSadu weaving on the representative list of UNESCO’s intangible cultural heritage. She also played the major part in developing and implementation of the art of weaving within the National Curriculum at the Ministry of Education. She was also granted AD HOC observer status by WIPO.

Sheikha Bibi Al Sabah CHAIRPERSON, AL SADU SOCIETY

Culture and arts are platform to diversify Kuwaiti economy

Preserves, promotes, and innovates the art of weaving

Alanoud Al Sharekh ACTIVIST & TEACHER, IBTKAR STRATEGIC CONSULTANCY

fingertips, women and youth suddenly gained a space to express themselves and connect without this control from another.

As a woman in a leadership position, how have you seen the participation of women in leadership positions enhance and empower the company itself?

What changes have you noticed over the past decade in terms of women’s rights and participation in the structures of society?

The biggest and most obvious change has been the access to a platform. Social media has been revolutionary in this sense. Before that, you had to be a person of a certain stature to have access to media outlets, and they had to be established to be credible. But with the advent of citizen journalism and the rise of accessible platforms many women gained a voice. I believe it is the same for young people and for all underrepresented groups with limited access to the establishment. Technology has democratized the entire process, and it was exciting especially for women in so-called conservative contexts, where men were used to speaking on their behalf. With the technology at their

I took a gamble on this idea of women’s and youth empowerment by opening a consultancy oriented toward the topic. There have been numerous studies done on groupthink and its pitfalls, and many others done on the benefits of group diversity, especially regarding gender. It is often the case that unless the survey within a corporation is anonymous, women feel unsure about voicing their opinions, which makes the company miss out on great feedback and progressive thinking. More often than not, the management is surprised by the kind of insight those who rarely speak up can provide. I believe this type of education to be an essential part of the process. We put plenty of emphasis on cultural sensitivities and how to translate those best practices in a way that respects the sensitivities of Kuwaiti people and their comfort zones. You want to nudge people out of their comfort zones, rather than completely overwhelming them. ✖

Can you tell us about your experience as a businesswoman and the founder of Sirdab 6? When I was younger, I used to wear ready made caftans, which in their traditional form have long sleeves and are quite basic. I decided to cut the sleeves off and instead add some fabric to make it look like a day dress. Even though the older people did not like it back then, the younger generation appreciated my idea and wanted to wear it like I did. This led to me starting a small, very exclusive business. My first collection was launched in 2002 and since then, I have been creating one collection a year to sell during the time of Ramadan. My love for vintage culture made me add the ethnicity of this culture into my designs, making them even more unique and exclusive. I travel down and up the length of the Silk Road collecting materials mostly vintage garments and finding out new inspiration for my creative process. When it comes to sales, I usually do a

pop-up somewhere in the city once a year, or else gather orders privately and get them delivered to the clients. Although my work has become a business, my focus lies on creating and enjoying the process.

What would you say to the young creatives out there? Creativity is not a competition. Everyone is different and we all have something beautiful to give to the world. I think creativity is a natural way of expressing ourselves. I would encourage any young individual out there to create and try their best, because as long as they are enjoying the process, it is worth it. They should try what they think they are good at and keep trying new things until they find what they like. Then they should stick to it, stay consistent, and grow in that art or discipline. There is no point in copying others. Instead of following the trend, create your own. That is what has worked for me, and that is how I started. ✖

Sheikha Souad Jaber Al Sabah OWNER & FOUNDER, SIRDAB 6

BIO

Sheikha Souad Jaber Al Sabah is an award-winning Kuwaiti fashion designer who prides herself on cutting-edge, fashion-forward dresses, also known as caftans. She is an artist and a member of the jury at the Arab Women Awards. Souad is a women empowerment enthusiast and a strong voice of the movement in Kuwait. Sheikha Souad Jaber Al Sabah is a member of the Royal Family of Kuwait.

BIO

Alanoud Al Sharekh directs Ibtkar Strategic Consultancy, leading youth and gender leadership training programs and is an associate fellow at the Chatham House MENA program and a non-resident fellow at the Arab Gulf States Institute in Washington. She is a founder of the EU Chaillot prize-winning Abolish153 campaign and of Mudhawi’s List. Her research won the Arab Prize for best publication in a foreign journal in 2014 and she has published several books. She was awarded the knighthood of the National Order of Merit by the French Government in 2016 and was chosen as one of the BBC’s 100 most influential and inspiring women in the world in 2019.

KUWAITI SUSTAINABLE VISION

THE STATE OF KUWAIT has gone a long way toward integrating digital technology in business and in various public and private sectors through the development of a unified infrastructure, which allowed ensuring various services through multiple channels based on promoting skills and developing innovations in the field of technology and communications.

The biggest challenge has been the government’s ability to bring together all public agencies through a single window that provides digital services. Indeed, the government was up to its responsibility by elaborating Sahel application that has been a quantum leap on the path to achieving the New Kuwait 2035 vision.

Kuwait has developed an Accredited Digital Civil ID and making it available on My Identity application throughout the pandemic and thereafter, that has become one of the milestone governmental applications. While digitalization had the lion’s share of the public sector’s modernization roadmap, the private sector was a pioneer by developing innovative applications and digital platforms that are constantly evolving to meet business needs. It is worth pointing to the digital transformation journey of Al-Qabas newspaper through its advanced platforms

and accounts on social media platforms. Such platforms with other media platforms have become an integral part of our daily lives.

The business sector has undergone certain changes, and companies operating in Kuwait and the region have come to believe that integrating environmental, social, and institutional sustainability issues (ESG) into their operational processes enhances their business environment and financial performance. This is what made many economic sectors in the local market, role models among its peers in this regard through its keenness on social responsibility in parallel with its core business activity.

As long as one of the goals of sustainable development is gender equality and the empowerment of women, Kuwait has been precedent in increasing the number of women in various jobs and leadership positions in both public and private sectors, which constitute—according to the latest statistics—approximately 21%. For example, media reports showed that the General Investment Authority has one of the highest percentages of female employees compared to other world sovereign wealth funds, with about 53%. Central Bank of Kuwait has also revealed 59% of its staff are women, with

40% of the leadership positions assigned to women. The Labor Market System report reported that 57.1% of the total owners of small and medium businesses in Kuwait are women.

The election of two women in the National Assembly, the appointment of two female ministers in the government, is an encouraging incentive for other public institutions and private companies to increase the representation of women leaders to add bright ideas and insightful visions to the management structures, and to give women more opportunities to participate in decision-making. This contributes to creating a fertile environment for business growth that promotes sustainable development and creates a significant positive impact on our society at the long term.

Finally, we can say that Vision 2035 has begun to bear fruit, due to the serious efforts of Kuwait to achieve comprehensive and sustainable development. This includes keeping pace with the world of the internet and modern technology, in addition to serious endeavor to apply the rules of governance in various sectors, address the existing gender job gap, secure sustained prosperity for future generations, and fulfilling all aspirations of the development plan. ✖

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Waleed Al Nisf, the Editor In Chief of Al Qabas Newspaper, outlines the digitalization transformation process of the State of Kuwait and its various achievements in the emerging areas of environmental, social, and sustainability issues.

Waleed Al Nisf EDITOR IN CHIEF, AL QABAS

behind THE SCENES

A widely circulated weekly printed news magazine and daily online news content portal, The Times Kuwait has been able to reach out to the country’s highly diverse English-speaking population language.

Reaven D’Souza MANAGING EDITOR, THE TIMES KUWAIT

What is the story behind The Times Kuwait?

We started the publication in 1996, obtaining our licenses based on our understanding that there was a market for a weekly news magazine, because while there were daily papers, there were few English-language titles that explored and explained the week’s daily news in more detail. In 2012 we embarked upon a rebranding process, as the potential of the Internet and social media became apparent. By then, our magazine was well-known and established. We saw that other English-language publications were not reflecting the totality of local news and often failed to cover different segments of the population. So, we restructured the editorial team to reflect a much more diverse point of view. We had to cater to an audience of over 100 nationalities. Kuwait’s population is highly diverse and as an English-language publication we have the responsibility of reaching them all. That change immediately reflected in our website’s success. By providing daily and weekly news, we were able to address the topics the public cares about on a regular and timely basis. With the increasing incidence of fake news and the pandemic shaking the world, we have been effective in adopting strategies that allow us to sustain reliable and fact-checked content, with our audience, even at the worst of times. As a news portal, we are responsible for providing our readers with useful information that could impact their decision-making.

How can we ensure that the media presents Kuwait in a truthful and beneficial way?

It is important to recognize that the media is never the message, rather the messenger. The moment you become a part

of the message; your impartiality ends and you lose credibility. Unfortunately, many media outlets in Kuwait are taking advantage of the people’s curiosity and creating news that is assumptions driven. Instead of reporting the now, they report about the potential future, which is never a surety. Such a process creates unnecessary negativity among the public. We need more positive stories and stories about the here and now. We should focus on what is happening and what it means, and not on what could happen and what that could mean. Kuwaiti media can play a significant role in empowering the changes driven by the government and really enhance the image of the country internationally. On another note, our media needs more fresh and well-prepared journalists. Experience of worldwide travel and qualifications are essential to becoming a great journalist and we should try to emphasize that to our students. We should help them develop their voice and recognize the qualities of a good media person.

How is digital transformation influencing the media, and The Times Kuwait?

Thanks to technology and analytical systems, we are becoming better at understanding our readers. We are more familiar with our readership base and can tell what articles, themes, and news they want to read. Then, a question appears— what is more important? Should we write what the audience wants to read or what is, in our view, important to report on? It is a conflict of interest. That is why digitalization on one hand is practical and useful, while on the other potentially leading to the demise of news outlets. And you can see this around the world already. Based on algorithms, people are

being fed the news they are looking for, not the news they should be aware of. As a respected newspaper, we need to strike a balance. Ultimately, I believe that technology can be used for both good and bad, and that it is up to us, the users, to make that choice. However different the message form may be in the future, journalism will never die, as information is the most valuable commodity of the world. We may take some time to change and adopt more appropriate strategies, but the change will come. ✖

BIO

Reaven D’Souza is the founding Managing Editor of The Times Kuwait. With more than 30 years of experience in journalism, he has exceptional knowledge of the changing developments in the region. Widely traveled, he has attended and covered numerous international seminars and conferences on journalism, investment, peace and security, health, education, tourism, and climate change. He has had the privilege to interview heads of state, ministers, and high-ranking diplomats.

Healthcare & Lifestyle

CURTAILING THE EXCESS

Kuwait is a small country with a small population, the majority of which are expatriates. Its vast mineral wealth has made it one of the richest countries in the world by per capita income, allowing the state to provide free healthcare to the local population, among other benefits, such as high public-sector wages, although the country struggles with high obesity rates and other lifestyle diseases associated with excess. Yet, despite the challenges, including strict lockdowns associated with COVID-19, there is growing enthusiasm for preventative medicine and physical fitness.

On obesity, Kuwait sits in the top10 worldwide, as noted by Dasman Diabetes Institute Director General Qais Al Duwairi in an interview with TBY. And Kuwaiti’s love of dining out is perhaps one factor in keeping average waistlines above global norms. Either way, the government has taken note and, with one eye on tackling lifestyle disease, has pioneered PPPs in the sector in order to alleviate strain on public system. These initiatives form a part of the wider Vision 2035 economic plan and, so far, have included the establishment of the Health Assurance Hospitals Company (DHAMAN), which, with its multiple hospitals and clinics, aims to take care of 50% of the local population. And beyond the local population, establishments also have their eye on the lucrative medical tourism sector.

On the prevention front, local entities are also springing up to get Kuwaitis moving, from martial arts training facilities to tennis courts. Indeed, firms such as Alargan International Real Estate Company embody the spirit of progress in the areas of health and well-being. “We have created two major projects: the ARGAN Riaya Medical Rehabilitation Center and the ARGAN Bedaya Center. “Riaya is one of the biggest rehabilitation centers in the GCC,” said CEO Khaled Al-Mashaan, adding that Bedaya “features a wide range of activities that facilitate the potential of children and their parents; we offer music, art, culinary, sports programs, and STEM learning.”

But with digitalization comes new challenges and opportunities. According to Deliveroo Kuwait CEO Seham Alhusaini, “customers in Kuwait order anywhere from 30-40% more on a weekly or monthly basis than their counterparts in other countries.” And as a nascent space, there is all to play for for potential entrants into the space.

As of publication, Kuwait was gearing up to open three new hospitals. It is symbolic of the commitment of the state to local healthcare provision. And with the World Cup having recently ended close by in Qatar, Kuwait’s government will be keen to capitalize on the region’s first major FIFA tournament to inspire similar sporting ambitions at home. ✖

VALUABLE efforts

Focused on the welfare of Kuwait’s public, PIFSS has made great efforts to digitalize and simplify its processes for users.

Ahmad H. Al Thunayan ACTING DIRECTOR GENERAL, PUBLIC INSTITUTION FOR SOCIAL SECURITY (PIFSS)

What is the idea behind Kuwait’s PIFSS?

Naturally, PIFSS’ main objective is sustainability that allows the institution to support Kuwaiti citizens’ pensions and secure their long-term wellbeing. We have previously set 19 targets for achieving this, some of which have already been accomplished. According to our strategic plan, we will accomplish the remainder by 2024. We support many areas, the most important being the social care of the citizens, which encompasses old age, disability, sicknesses, and death. Additional goals have been set lately such as bonuses for non-pensioners. In short, that is the mandate of PIFSS.

How did the institution manage its operations during the pandemic?

What was the origin of the Sahel App initiative, and what other technological solutions have been worked on since?

BIO

Ahmad H. Al Thunayan is the Acting Director General at PIFSS in Kuwait. He started his career as an accountant at the Kuwait Fund for Arab Economic Development and then joined Zain Group to become the accounts payable manager, treasury acting manager, procurement manager, and, finally, accounts payable and assets management manager. He later returned to KFAED to serve as assistant deputy director in investment accounting. His experience exceeds 29 years in operations, finance, and accounting. He holds a bachelor’s degree in accounting from Kuwait University. He was a member of the board of directors in both Agility and Kuwait Stock Exchange. He is currently a member of the board of directors in both EPIC and Al Ahli Bank of Kuwait.

First, PIFSS managed to continue the delivery of its services through the pandemic. It was not an easy time for us, especially because of the lengthy full national lockdown. Despite the difficulties we managed to adapt to this situation and replaced our regular procedures, where some of our employees worked from the office, running the business, and authorizing other departments to work from home. Conducting effective online business was essential, and we saw every major problem as an opportunity to develop our operations. Looking at the figures, we managed to transfer over KWD1 billion to our pensioners. It was a challenge to manage this internally, yet we conducted over 224,000 transactions throughout the pandemic. We also dealt with over 50,000 queries from our citizens on our social media platforms. I know that throughout the pandemic, it was not easy for the self-employed to manage their expenses; therefore, we postponed their installments, in addition to deferring amounts due to the Institution for up to 1 year. As well as PIFSS’ local role, our employees demonstrated a significant contribution by donating the pay of a combined 1,217 working days, totaling more than KWD82,500 to the Kuwait Fund to support COVID-19 prevention efforts. We are incredibly proud of this accomplishment as it highlights our staff’s dedication to both their work and country. Finally, we gave our stakeholders all the support we could, and thanks to our team effort and a great organization, we emerged successful.

For years, PIFSS has been working to convert their transactions and application processes from paper forms to the current computerized services. The distinguished Council of Ministers took the initiative to create the Sahel App, which aims to bring together government services in a single, easily accessible location with transparency about data and transaction status. Additionally, we aim to add new services on a continuous basis to better serve the public. As a result, we participated in the Sahel App’s initial phase of unified electronic governmental services so that the public could have access to these services without having to visit the institution’s headquarters or its branches. Today we offer a range of services through the app, including issuing electronic certificates, requesting an advance pension payment, updating personal data, changing bank accounts on which the pension is disbursed, and others. The Institution also introduced its own application “Thukher,” which offers all services electronically, and was awarded the best technical project in the government sector in 2020.

What are you set to focus on in the new year?

We will focus on giving the best service and investing more in technological advancements. Technology is the starting point where we can support our pensioners at a higher standard. We may refine our policies to maintain and best address the needs of our stakeholders. Meanwhile, we are hosting weekly meetings with the people, including pensioners and the self-employed to hear their perspective. And, of course, digital transformation will play a major part in our work going forward, which involves hiring talented staff. We nurture our staff for optimum performance for the long-term pursuit of our goal. ✖

“Throughout the pandemic we also dealt with over 50,000 queries from our citizens on our social media platforms.”

a new era IN HEALTH

Through strategic partnerships, the Dasman Diabetes Institute aims to foster greater awareness of the importance of diabetes prevention, early detection, and treatment to further reduce the onset of diabetes.

Qais Al Duwairi DIRECTOR GENERAL, DASMAN DIABETES INSTITUTE

What have been the major developments and achievements of the institute over the past few years?

In any academic or scientific entity, you will inevitably observe change over time, especially regarding research. We are active in basic research, and now, we aim to translate that research to improve our patient’s health and community-based initiative. Our research initiatives include epidemiology, etiology, genetics, and pathophysiology of diabetes. We are currently performing a considerable number of genetic studies, as both genetics and lifestyle choices have shown to play a major role in developing diabetes. In 2021, we have published 103 research papers, with 57 original publications. We also aim to understand the public habits that lead to diabetes and learn how to better prevent this disease. Obesity in Kuwait is at a high rate, perhaps ranking the nation among the top five worldwide. More than 40% of Kuwaitis are obese, and as a modifiable risk factor to developing diabetes, we focus our efforts on public awareness. Although we treat diabetes, our goal is to prevent it all together by tailoring our awareness initiatives. We introduced our DasmanSwitch App that launched in 2022. The app uses the FoodSwitch platform, but we have modified its filters to accommodate the needs of persons with diabetes. We also created several filter options that make it easier for users with diabetes to “filter” products based on the nutritional information of their choice. This information will empower users to make better food choices and ultimately improve the existing food environment. It aims to support anyone, with all kinds of conditions, because the wider the reach of our

health support, the better the state of the Kuwaiti population.

What is the institute’s current focus? Currently, we are furthering our research and increasing the number of collaborations and partnerships at the international level. We are working on biomarkers with the Harvard Medical School and attempting to use these tools to diagnose diverse complications. We are also conducting a considerable volume of research in collaboration with The University of Toronto, McGill University, and Montreal Diabetes Research Centre. Such partnerships allow us to secure additional support, be more helpful to other establishments, and gain greater international recognition. We want the knowledge to flow and expand. In 2016, we established a strategy for Dasman. We decided to become a training and education facility as well as a high-end health services provider. We are focused on a holistic approach to diabetes care, with the emphasis on education and prevention. Our strategy is to identify disease at its earliest stage and start the treatment as early as possible. Our nutrition clinic also works closely with medical professionals from around the world, devising new strategies and approaches to help our patients change their diet. The challenge is to help the patient in their pre-diabetic state, which is often not diagnosed. Indeed, this is why we are running many activities to raise awareness and conduct medical checks early on. We want to help the Kuwaiti population be healthy and free of diabetes. We also work closely with the Ministry of Health in Kuwait on several projects, including the National Diabetes Registry.

Dasman Diabetes Institute has received the Center of Excellence award from the International Diabetes Federation. What does this achievement mean to the organization?

It means that the IDF, a major healthcare entity, recognizes our ability to treat diabetes and our approach to conducting research at the highest level. It recognizes Dasman’s capabilities and potential to deliver numerous educational and training programs and contribute to international efforts in tackling diabetes. It emphasized the importance of education and awareness raising within the community, which lies at the core of our activities. It is always better to prevent than to treat. Preventing the disease will minimize the country’s economic burden and promote better use of the health budget, which is why the IDF highlighted Dasman’s activities, research portfolio, and training capabilities. ✖

BIO

Qais Al-Duwairi, former assistant undersecretary of technical affairs at the Ministry of Health, joined Dasman Diabetes Institute (DDI) in 2016. He attained a Bachelor’s of Medicine & Surgery from Cairo University and a Master’s of Hospital Management from Leeds University. His multifaceted approach to diabetes management allows him to lead DDI’s multidisciplinary team of researchers and medical professionals, combining their knowledge and experience to provide quality diabetes care.

PATIENTS first

A key part of the Vision 2035 pillar for healthcare, DHAMAN is working to increase digitalization in the healthcare sector and improve awareness and education amongst the population.

Thamer Ibrahim Arab CEO, HEALTH ASSURANCE HOSPITALS COMPANY (DHAMAN)

1st-ever PPP in local healthcare

DHAMAN is the first PPP healthcare organization in the region. How did the company come to exist?

Goal to look over after around 50% of the population

DHAMAN is part of the government’s vision. In 2010, the Ministry of Health predicted that an increase in the population would cause pressure on the public healthcare sector and came up with a health maintenance organization (HMO), inspired by similar systems in the US and Europe. It is a system never employed before in our region and is the reverse of the private healthcare system. In an HMO, physicians benefit from a reduced number of patients coming in and focus on healthcare awareness and a healthy population. This is the whole vision of DHAMAN as part of Kuwait’s Vision 2035 pillar for healthcare. As the first-ever PPP in our local healthcare, it is tasked with looking over around 50% of the population.

How will the use of electronic medical records (EMR) empower DHAMAN’s operations?

Yes, they are integral part of our agenda. Currently, we have a local company doing research on the subject. Based on the feedback gathered, we will conduct mobilization campaigns whereby we go out to the communities to do health checks. The pandemic has taught us that prevention is the key to treatment. In addition, our operator will add value by going out to communities and giving lectures and seminars. The challenge is that Kuwait has many different nationalities, cultures, and communities to address. We want to gather as much data about communities’ needs as possible and share our insights with them, so they can make healthier choices about their lifestyles. Our approach will be personalized and will accommodate the patient’s needs in the best way possible.

What is the company’s biggest goal for the coming months?

BIO

Thamer Ibrahim Arab has been the CEO of DHAMAN since October 2021. He has held a number of leadership executive positions and board memberships in major institutions with a career that exceeds 25 years. His career includes accomplishing tangible achievements in major institutions within the banking, insurance and aviation sectors. He holds a bachelor’s degree in computer science from California State University, in addition to a number of specialized training programs in many areas, such as leadership, strategy, economics, and operations.

Technology is an enabler and is a part of any organization today. DHAMAN made sure from its inception to adapt and utilize technology in every possible field. EMR allows DHAMAN to have complete unified electronic files that follow patients wherever they go. It is accessible to all DHAMAN affiliates with access to its platform. We made sure it works with the ICT 11, an international coding system used worldwide with 16,000 different codes linked to medication to help us get to know our patients. The treating doctor will know a patient’s medical history with one search of the database. This is in addition to a patient portal that will be accessible on mobile devices. We want to extend a population health management system where we will monitor and categorize patients from low to high risk. We aim to focus on the highest-risk patients and ensure a category 2 patient does not move to category 3. The best way to cure people is to help them stay healthy.

Is education and prevention a part of DHAMAN’s plan and agenda?

Our biggest goal is to complete the medical network, which has five primary healthcare centers (PHCs) and two hospitals with a 330-bed capacity each. My priority is to make sure the hospitals are ready, with around 1,900 medical staff for each hospital. There has been a large nurses’ migration from this region to Germany and UK, as nurses are going there by the thousands, which has become a part of our challenge. DHAMAN seeks to establish a training academy for the medical sector, in cooperation with a number of educational authorities in the country, such as Kuwait Institute for Medical Specialties (KIMS), Kuwait University and the Public Authority for Applied Education & Training (PAAET), in order to provide practical education and training to students of these institutions in the company’s hospitals. I want to make sure we get the best-in-class medical support to serve our community. When it comes to patient health and safety standards, we have been certified by the Joint Commissioning Institute (JCI), the equivalent of the ISO for the medical field. We are the first medical platform in Kuwait to get the JCI for PHCs. ✖

MEDICAL FACILITIES

New medical facilities in Kuwait offer not only the best equipment and treatments but also some of the best medical professionals trained around the world.

What were the major factors behind the opening of the facility?

YOUSSEF ABUZAHER Because of the division between the public and private sector of healthcare in Kuwait, many private companies are finding a way to enhance public healthcare provision. And even though the public sector is rapidly expanding, there will always be the need for private care. It is important to note that 15 or 20 years ago, the scarcity of insurance for private customers was proportionally stalling the growth of private healthcare. This has changed dramatically over the past few decades. Now, almost everyone can afford coverage, whether via their company or privately, which means many more people can attend private hospitals. When it comes to our healthcare provision, we specialize in secondary care. As trauma and tertiary care is mostly done by the government and is heavily subsidized due to its extreme costs, not many people are looking for these services within the private sector. It simply would be too expensive to pay from your own pocket for a transplant, for example. That is why, we are focused mostly on secondary care, in-

cluding plastic surgery, recovery care, and so on, while tertiary care remains in the domain of the public sector.

ESSA AL-ESSA In creating Asnan Tower, we wanted to bring an all-American team of specialists and dental professionals from every field of dentistry, and we have seen significant success in a short amount of time. We created a website asnan.com, which has become extremely popular in the country, especially in the medical and dental community. Then, we developed a magazine to help people understand dental issues, emergencies, post-operative treatments, and, most importantly, better oral hygiene habits. Dentistry starts and ends with taking proper care of your teeth. At the time, in 2003, Arabic content on the internet was negligible, and our website became popular. We took the lead and provided the “Asnan-pedia” or dental encyclopedia. We worked hard on the brand and our names, so when the actual opening of the clinic took place, we received a high number of patients. Our intention was to get recognized and be special; however, the main goal was always to educate the public about how

they should take care of their teeth.

What potential does Kuwait have to become a destination for medical tourism?

YA The local business sector offers several opportunities, especially for customers from the region. With our outstanding, highly certified doctors, who operate in the private sector, Kuwait could indeed become the space for medical tourism. We are already seeing the demand, primarily for cosmetic and bariatric surgery, which is why we want to expand our provision in these areas. Client retention is a key consideration in our field and knowing that people trust us is a great achievement. It is extremely important for us to employ the highest quality practitioners. As many of our patients are expats, we take pride in hiring professionals taught and experienced in Western countries. This plays a huge role, especially when the stakes are high and the care complex. If the government manages to match these huge projects with a highly specialized staff at all levels, there is a great chance that soon enough no Kuwaiti citizens will no longer go abroad for any kind of healthcare provision. Time will tell, but I am optimistic about the progress the local healthcare sector has been making.

Are you currently expanding vertically or horizontally?

EAE We are doing both vertical and horizontal integration. We are opening another clinic, the biggest dental center in the world, with 103 dental chairs. In addition, we can grow our presence in the market with higher quality, more robust equipment, and technologies. We had two options when we succeeded, either open several branches or grow in one big place. We decided on the latter because it provides many advantages. Being based in one place attracts the best doctors, which brings in more patients because they seek excellence. The best marketing is word of mouth, and quality is the essence of such marketing. Furthermore, as we keep doctors in one place, they become united. Also, we are able to buy the best equipment. Additionally, we focus on giving comfort to patients. The first dental visit is an important part of this equation, which is why we have Asnan Kids. ✖

Essa Al-Essa CO-FOUNDER & CEO, ASNAN TOWER

Youssef Abuzaher VICE CHAIRMAN OF EXECUTIVE COMMITTEE, INTERNATIONAL HOSPITAL

Aysha

Aysha Yousef Al-Kandari OWNER REPRESENTATIVE, WARBA NATIONAL MEDICAL & SCIENTIFIC PRODUCT CENTER

What have been the major milestones and developments for the company?

I joined Warba in 2013 and changed the way it was operating. Previously, it was like any other medical company in the country; it would choose one line of products and focus on them. We decided to change that because the local market is tiny, and the medical sector is extremely competitive, which forced us to think outside the box. We focused on specialized and patented equipment, and this made all the difference. We became a representative and agent for products, equipment, and devices that no one else could provide the market. We specialize in lab equipment and work closely with most of the centers in the country. This also includes electricity, agriculture, and academic research centers, not only medical.

We have established ourselves as the provider of all the things medical and research a facility may need. Apart from Kuwait, we also work in Qatar, Saudi Arabia, and the UAE.

What is your perspective on the present state of the healthcare sector in Kuwait?

It has a great potential but feels frozen at the moment. There has to be more development done and progress made to improve it. Public healthcare is dependent on the Ministry of Health, and public facilities are much better equipped than the private ones. The private sector is more focused on the quality of comfort, rather than specialized equipment. For us, the major client is the ministry. We provide it with all kinds of equipment, though since 2016, when politics started interrupting the healthy progress of the economy, the whole medical sector stalled. There has to be a vision and an action plan that will take the country forward. It would be great to see the government working toward a national vision. ✖

HAIROLOGY Hairology, a luxurious beauty salon where you can feel your best self, offers nourishing hair treatments, manicures and pedicures, haircuts, relaxing oil massages, a selection of your choice from their free beverages, and many more commodities. They use only the finest products for their clients. If you would like to purchase any of the items, they are available at the front desk. Every woman deserves to be pampered.

BIO

Yousef Al-Kandari holds a diploma, high diploma in banking, bachelor’s degree in finance management, Mini Executive MBA from AUK, a master’s degree in international business from MSM Kuwait, and a healthcare management degree from the Netherlands. She has 13 years of banking experience and 10 years of experience in the medical field.

With hairology, you can be your best self.

growing IN STRENGTH

UFC GYM is working to open its largest operation in the Middle East in Kuwait as part of its ambitious expansion plans around the world.

You are about to open the biggest UFC GYM in the region. What are your expectations?

It is a truly exciting time for UFC GYM and the Ultimate Fighting Championship (UFC) globally. Today, UFC is one of the world’s most popular sports and fastest growing. As far as gyms are concerned, UFC is present in around 21 countries globally. We are extremely driven at UFC GYM, which is why we aim to open one gym per week worldwide going forward. It is in the company’s DNA to excel and succeed. Regarding Kuwait, we are certain the operation will become the flagship UFC GYM in the Middle East. It will be the second-largest UFC facility in the world and certainly the most luxurious.

What is your perspective on the sporting industry in Kuwait, and what is UFC’s strategy to leverage its success? Sport has always played an important role in the Kuwaiti society. Kuwaiti athletes have been successful in many fields, and the sports industry in Kuwait has been popular and highly appreciated for a long time. Martial arts, in particular, have been a popular discipline, with many Kuwaitis having had a chance to try it at some point in their life. UFC’s goal in Kuwait is to bring these disciplines to the surface and normalize them. The benefits of martial arts training are vast and can certainly help people take care of their bodies and minds more efficiently than a regular gym session. Besides, we believe in raising people’s self-esteem and confidence, as martial arts enable individuals to feel safer and protect themselves.

What are UFC GYM’s developments and achievements on the digital front?

UFC has its own app. In Kuwait, we are currently working on an application called ALLUP that will bring together the entire fitness industry in the region. The project has been in the works for over two years. We are close to a launch date and expect to include 3,000 gyms. It is a project that I have been working on it alongside my team and

the gym’s owner.

Abdullah Alaskari CDO, UFC GYM

What are your expectations and plans for the coming years?

At present, we have 15 facilities in operation throughout the region which includes UAE, Qatar, Bahrain, Oman, and Egypt. We also have eight that are currently under development and are expected to open by the end of 2022 or early 2023. Our short-term goal is to have 25 fully functional facilities by the beginning of 2023, with the medium-term goal of having more than 65 facilities in the region by 2028. We also have plans to expand into Turkey and Iraq. In addition, one of our main goals is to see mixed martial arts in the Olympic Games in Los Angeles in 2028. The president of the UFC has been lobbying for this with the Olympic committee in the US, and we are eagerly awaiting the result.

You recently partnered with the Ministry of Youth. What is the scope of this collaboration?

UFC GYM has partnered with the Ministry of Youth to create a training program through which we provide opportunities for young Kuwaitis to become certified trainers with the UFC. They will do an eight-12-week certification program and, once certified, we will either hire them or help find them a job in the sector. Many people approach us wishing to set up their own gyms, and our company looks to help them achieve their dreams of business ownership. Our team is supportive throughout the initial stages of their careers. It is a program that the Ministry of Youth has delivered in partnership with international brands before— Google, Boeing, and Amazon have already taken part. This is the first year of the program for the UFC, and we will continue in this direction for as long as we can. Moreover, we recently signed an agreement with the armed forces, the police, and the fire department to train their staff in self-defense, replicating similar UFC initiatives in other countries. ✖

Working on a training program with the Ministry of Youth

UFC GYM in Kuwait set to be a flagship branch in the Middle East

BIO

Abdullah Alaskari has been involved in the fitness industry since 1998, and has studied business marketing at Virginia Commonwealth University and sports management at the Cruyff Institute of Sports in Barcelona. He has a PhD in sport business from the Paris School of Business. He established Clubfit Gym Co. in 2009, Evolve Supplements Co. in 2012, and was the managing partner of C Club Kuwait. He also established Life Beam for Gym Establishment and Management in 2015, and the 70/30 meal delivery service in 2018. Throughout the years, he has initiated numerous health and wellness facilities, such as Bidaya Athletic Academy for Children, Riaya Physiotherapy Clinic, Albidea Health Club Resort, and many more. In May 2021 he was appointed as Director of Business Development for UFC Gym Middle East.

PREMIUM LIFESTYLE destination

Building on its success and customer loyalty of C Club, ARGAN has developed the premium wellness and family-based destination in Kuwait—Albida’a Club.

Pedro Ferreira GENERAL MANAGER, C CLUB & ARGAN ALBIDA’A CLUB, KUWAIT

What is C Club’s mission, and what does if offer to the fitness market in Kuwait?

C Club lives up to its creation by Engineer Khalid Al Mashaan, CEO of ALARGAN International Real Estate Company, as a premium lifestyle club that yields a quiet, secluded family retreat, away from the city and yet, in the heart of Kuwait. We introduce a holistic approach to wellbeing with a luxurious state-of-theart facility and equipment designed to integrate any type of training. In parallel, our members can relax by our infinity pool facing the beautiful Gulf Sea or rejuvenate at our spa amenities that all result in the perfect hideaway that protects the privacy of our dignitaries, celebrities, and C-suite members. Our core values are Vitality | Energy | Serenity, and they reflect the fundamental beliefs that guide our team and our members daily.

What competitive edge does the C Club offer the market in Kuwait?

Nowadays, with the increasing access to information through technology, anybody can replicate exercises, download programs and workout recipes, or invest in large amounts in machines and infrastructure; however, at C Club, our main competitive edge stands on the value of our team’s human capital that displays a tremendous amount of talent and leads daily by example with authenticity. It is the inimitable value of each one of our team members that has enabled us to build not just trust but also a high level of commitment with our members that see C Club as their second home. At C

Club, we offer an uncontested space in Kuwait’s market. To develop the quality of our success, we need to constantly reflect and learn from what we did that generated a positive difference so that we can then repeat those actions with a systematic approach and define our own benchmarks without losing track of what happens locally and internationally in the industry.

And where does ARGAN Albida’a Club fit in the market in Kuwait?

Kuwait is a family-based country, and ARGAN Albida’a Club is designed to answer to the needs of families that want to find a place where they can enjoy their time to the fullest. Our core experience stands on a club that offers families the opportunity to enjoy a health club and, at the same time, have their children in a safe environment that contributes to their development not just with physical activities but also with educational STEM-based activities. After that, they are able to enjoy a nice meal in one of our three restaurants facing our three swimming pools or by our magnificent beach area. Albida’a Club is the perfect family destination in Kuwait and adds to our company portfolio a family-based solution that does not exist in Kuwait.

Can you tell us more about the current projects in the works?

With the launch of ARGAN Albida’a Club we enlarged our Club’s portfolio to cater to families in Kuwait. Until the end of 2022, we will launch C Studio as a part

of our exciting boutique concept with four different workout matrixes including an amazing cycling studio. We are currently developing a member’s app that we will launch until the end of the year with CRM tools to be able to take informed decisions and focus on what we believe in: providing the best service to our members. For that, we need to follow the old saying “You need to measure what you manage” and be able to gather qualitative and quantitative data. We are in the final stage of closing our partnership with Nike, and we just launched an amazing new F&B concept at C Club called Backyard. We are also enhancing the group exercise portfolio of our clubs, and we will continue to work with official entities on sports and cultural events that can be supported by our clubs’ strengths. ✖

BIO

Pedro Ferreira is General Manager of the health clubs of the ARGAN Group in Kuwait. He is a board member of the Portuguese Business Council of Kuwait and has been a university professor since 2019. He is working on his PhD in corporate governance at University Institute of Lisbon and holds a master's degree in business management with a published thesis on negotiation and cultural frameworks.

Life... As you love it

EXPERIENCE to remember

Martin Kipping

GENERAL MANAGER, FOUR SEASONS HOTEL

What makes Four Seasons Hotel so successful and highly regarded among the Kuwaiti business community?

The Four Seasons Hotel Kuwait seeks to provide its guests with cultural, artistic, and culinary experiences alongside service excellence.

We believe this is down to a multitude of factors, beginning with our seasoned staffing, providing visitors familiar, friendly faces with vast knowledge of the business and its services. Our team is fully focused on service excellence, and we are proud to host a diverse team of professionals of over 45 nationalities. Another key reason for our success is our in-house catering facilities, where we offer five dining options, a mix of local and global cuisine, hosted by a fantastic, internationally trained team.

How did the team of the Four Seasons Hotel overcome the challenges during the pandemic?

The pandemic taught everyone valuable lessons in business, and we were no different. We were fortunate to have been able to utilize our company-wide ‘Lead with Care’ initiative, which we incorporated into the Kuwaiti operation for both our guests and the wellbeing of our employees; this had always been a core focus for us and as a result of the extra attention needed during the pandemic, it became an even stronger part of our DNA, in addition to following strict corporate and government mandated guidelines. As a company, we consulted with John Hopkins International Medicine for advice and direction during those challenging times, and we took that advice, as well as the best practices learned through the pandemic to set new standards and adapt to the new norm.

our strengths, our people, and our products and services. We are always looking to identify new opportunities through creative and innovative out-of-the-box thinking. We are proud of the trust we have built in the local community and the standards we have set in our service capabilities, so naturally we wish to continue and excel in this area. Our service is genuinely delivered from the heart and consistent in execution.

What is your perspective on Kuwait’s potential to become a tourist destination, and what changes would you like to see taking place for such shift to happen?

Kuwait certainly has room to grow its tourism sector and become a sought-after touristic destination; but quite clearly, the groundwork is being set and the potential is there. The entire region has been witnessing some positive changes in recent years, with huge achievements in attracting visitors from around the world. Major events, such as the World Cup, have been fantastic catalysts in showing the world what the Middle East has to offer. I firmly believe that with Kuwait’s Vision 2035, the country is heading toward in the right direction, a new chapter in the country’s history and economic growth, it is simply a matter of time.

Looking to the future, what are your plans for the coming year?

BIO

Martin Kipping is General Manager of the Four Seasons Hotel in Kuwait. He holds a diploma in hotel management from SHA Hotel Management School Les Roches, Switzerland. He joined the Four Seasons team in 1997 and has been its General Manager since August 2022. He has worked in hotels all over the world, including Costa Rica, Tokyo, Washington DC, Switzerland, Germany, Mexico, and others. Kipping has extensive experience in hospitality sector and has worked in different environments across various cultures.

What is the Four Seasons Hotel’s strategy and competitive edge that will ensure a consistent lead within the local market?

Our strategy has not and will not change; we believe that market competition is both positive and healthy. It keeps us focused and helps us deliver a consistently premium experience. Our short and longterm focus is to advance our offering and establish ourselves as the leader of the luxury segmentation of the Kuwait hotel sector. As always, we continue to focus on

Post COVID-19, we began 2022 with enhancements to our resort, such as additional outdoor seating capabilities at our two new Elements restaurant terraces, overlooking Al Shaheed Park. As we head toward 2023, we are focused on further enhancing our offerings with the modern traveler in mind, with improvements to our fitness and spa facilities, along with exciting changes to our outdoor lounge at Al Bandar. Additionally, we aim to drive and develop activations such as our sense of place initiative, while we also wish to present a more family-friendly approach with appealing amenities and programming to satisfy our guests of all ages. ✖

clear IDEAS

Adel Al Bader CEO, AL RAWDATAIN WATER BOTTLING CO.

What is the story behind Al Rawdatain Water Bottling Co.?

We are the only mineral water brand of Kuwait. The organization has been through many changes over the past few years. And supported by the strategies developed, we have enhanced our portfolio, improved many areas of the business, and introduced multiple ESG-focused policies and initiatives. The company has also been through a rebranding phase, turning its focus more to supporting the local community of Kuwait, especially its youth. Throughout the pandemic Al-Rawdatain was instrumental in supporting the country with the delivery of drinkable water to organizations nationwide.

To what extent is the company able to provide water security for Kuwait?

In terms of water security, for the people of Kuwait, right now we can cover 50% of the population. It is a part of our strategy to increase our abilities in this area. We are acquiring distributors and plants across Kuwait and working on new partnerships that will strengthen the organization’s ability to provide water nationwide. Moreover, on the sustainability front, we have established a plan for rendering our production lines more environmentally friendly by increasing the volume of PET recycled plastic in place of the regular plastic. Recycling is still in its infancy in Kuwait, but we are working with the government and interested parties on improving the country’s capabilities to foster recycling processes and sustainable solutions.

What is your focus for the coming months?

Part of the 2026 strategy is to grow the company and expand the business beyond the water industry. We aim to become fully sustainable by 2026, with the introduction of a fleet of electric cars and solar power to support that goal. Currently, we want to explore the organic food sector, improve our core business operations, and expand our product offer. We are already developing a number of products connected to the F&B sector. We will also export energy drinks, organic drinks, and sparkling flavored water to the region and introduce a greater number of such products, while strengthening our footing in the market. We have great plans, a key one being to become a fully sustainable and organic, local producer. This is where we aim to take Al-Rawdatain in the years to come.

What makes Al-Rawdatain attractive for investors?

Al-Rawdatain is a growth company and has seen rising sales for the past three years. Since 2019, we have posted a YoY increase in sales of 23%, 21%, and 21%, respectively. This is thanks to the changes made and the team efforts that followed. Right now, we are up from last year’s sales by 23%, which I am certain we can beat. Our company is growing rapidly, and many improvements have been put in place, which is why we believe we are a good fit for the investor. We are certain that, in the years to come, there will only be growth and success, and look forward to proving that. Moreover, as a Kuwaiti company, and the sole water producer in the country, we feel obliged to represent the country well and develop into the market leader. ✖

BIO

Adel Al Bader is an honors graduate from Kuwait University, majoring in economics and finance. He has been CEO of Al Rawdatain Water Bottling Co. since June 2019. Prior to that, he was the manager of the real estate department at the Public Institution for Social Security (PIFSS), responsible for international and local real estate investments. He was also a member of the investment committee of PIFSS. He joined PIFSS in 1985. Other positions held include chairman of Wafra Real Estate Company, chairman of ISKAN Oman Investment Company, vice chairman of Kuwait Medical City Company, and vice chairman of Agility.

Kuwait’s sole mineral water producer seeks to increase capacity and become the market leader.

The sole mineral water producer in Kuwait

CONSISTENT support

The Union of Consumer Cooperative Societies in Kuwait plays a significant role in the country’s food security policy, helping to link cooperatives and various state institutions.

food

What is the role of the Union of Consumer Cooperative Societies?

We are tasked with achieving strategic food security for citizens and residents and preserving the strategic stock. The Union of Consumer Cooperative Societies plays a major role in linking cooperative societies and various state institutions. Our union was founded to serve all the shareholders. The union has adopted an open-door policy to solve any shareholder issues. As the Kuwaiti cooperative movement, it had undergone notable stages of development to date. During the movement’s development, it has played a key role in social development, whether in training or education, as well as working to achieve the goals of cooperation by raising the level of debate. We have worked to solve social dilemmas and played a prominent and creative role in the economic arena, developing and pursuing the goal of food security for both citizens and expatriates.

What is the function of the union?

Ali Fahad Al-Fahad CHAIRMAN, UNION OF CONSUMER COOPERATIVE SOCIETIES

What are the most effective government agencies supporting the union?

There is no doubt that all government agencies are supportive of the cooperative sector, especially the Ministry of Social Affairs, which plays an important role in leading the cooperative movement in Kuwait. With the blessing from the Ministry, we are able to conduct our work in to the highest degree of professionalism and sustainability.

How does the Union of Consumer Cooperative Societies support youth and small business owners?

There is plenty of support for the owners of small and medium-sized projects and Kuwaiti products, as the priority is to offer an appropriate space within the associations to provide food items and consumer goods. The association makes payments to these companies on a regular basis and helps them overcome all the obstacles they may face. One of the provisions is aimed at dealing with the owners of the small projects.

Ali Fahad Al-Fahad holds a bachelor of business administration degree. He is the Chairman of the Union of Consumer Cooperative Societies and a member of the Red Crescent Society.

Thanks to our activity consumers are assured that there is a responsible party, namely the Union of Consumer Cooperative Societies, that investigates accuracy in the prices of commodities, ensuring that any increase in prices is to a large extent not an artificial local increase, but rather, in line with the international prices influenced by the natural movement of the economies worldwide. We, therefore, aim to ensure stability in consumer goods pricing and standardize sales prices in all cooperative societies subject to this policy. We provide alternatives with brands and prices below those of similar products on the market. This way, we make sure that our stakeholders can receive the best quality of produce for a competitive price.

What role can cooperative societies play in the event of the food market disruption?

Based on the state’s tendency to render associations as a balancing tool in adjusting prices and fighting monopoly practices, the concerned authorities have addressed the global markets to open new ones and expand the commercial and investment map. This gives them the ability to overcome any commercial crisis and provide alternatives in the event of interruption of any specific strategic material, especially after its opening to export markets in Africa and Europe. We are here to offer a stable provision of food and consumer goods to our shareholders, no matter the circumstances. ✖

BIO

Khadija Oubala is the CEO of Sultan Center Group and serves on its board of directors. She joined The Sultan Group in 2016 and has a combined experience of more than 20 years in retail, real estate, investments, and strategy. Prior to joining The Sultan Center Group, Oubala served as VP of strategy and investments at NREC, principal at Arcapita Bank, and portfolio manager at Assiya Investments. She holds an MSc in real estate development from the Massachusetts Institute of Technology and an MBA from the Stern School of Business, New York University. She is a Fulbright scholar, a recipient of MIT Memorial Fellowship, and a member of Young Presidents Organization.

Mustafa Boushahri GENERAL MANAGER, BOUSHAHRI GROUP

What strategies and qualities ensure the sustainable growth of your organization?

Our strategy is about believing more in the team than the brands. Brands come and go, but our team stays and grows together. Employees are the real asset of our investment—I learned this from my father. He treated all the employees like family. When I joined the company, I first learned as much as possible about all the aspects of the business and then continued with the leadership my father had established. Our employees know they can always come and discuss things with me because my door is always open. At the end of the day, they know more about the market and provide me with their experience. By listening to their feedback and opinions, I can make more informed and market-appropriate deci-

sions. Boushahri takes great care and pride in the partnerships it fosters and the brands it offers to its customers. We know the market well, and we work diligently to succeed.

What projects or developments do you have in the pipeline for the Boushahri Group?

It is important to prepare yourself for upcoming development. We are living in one world, and everything will eventually affect us. With the events happening around the world such as the Russian invasion of Ukraine and China’s influence in Taiwan, raw materials and products are becoming more expensive. We are fortunate to have a positive cash flow with the government in the Gulf states; however, the government will not go to the private sector and give money to support their losses. Some will fail or eventually close. The slowdown will reach our region. For us, 2023 will be about focusing and securing our market share in the country, as we are not sure what the future may hold. ✖

Khadija Oubala CEO, THE SULTAN CENTRE

Sultan Centre in 2018 introduced a plastic use reduction initiative. What has been the outcome of this initiative?

This is a hot topic and one on the agenda globally. Sultan fully embraces the role it will play in becoming a sustainable business and was one of the early adopters of recyclable shopping bags as early as 2016. The practices that we have built are the first key steps that will hopefully catapult us in the right direction. We have actively trained our staff because anything that deals with sustainability should be understood at the individual level. We digitalized and streamlined our processes and have moved towards becoming a paperless organization. When it comes to our regional initiatives and major projects, in Jordan we signed a solar project that covers about 40% of our energy consumption. In agriculture, we signed an off-take agreement with the company Pure Harvest to set up a smart farming facility in Kuwait. The reason for that is two-fold, one is food security. Second, we will be more sustainable by avoiding pollution caused by

shipping of essential products. In these times of challenges in supply chains and worrying geopolitics, as a country that relies heavily on imports, Kuwait should have other options regarding food security.

Regarding digitization, what system and tools are you using to leverage your success?

We are a firm believer of data driving the business. Luckily for us, we have been in the market for over 40 years already, which gives us plenty of data to work with. We have one of the oldest loyalty programs in the region and with that we have accumulated a rich database of customers; what they like and how they shop. This allowed us to re-imagine and re-launch our loyalty program called Kanzee that speaks to our customers’ individual shopping behaviors by offering them customized offers and promotions. The other ways we have endeavored to leverage that data is to create a system powered by AI that allows us to control what we buy to replenish products at a specific store. Thus, we have a dynamic replenishment system instead of buying and storing. Finally, we utilize social media for promotions and marketing to attract customers to the store. E-commerce is also one of the business areas we have recently dedicated considerable focus to. ✖

BIO Mustafa Boushahri is a Kuwaiti entrepreneur and the Managing Director of Boushahri Group, founded by his father Jawad Boushahri in 1969. Prior to joining Boushahri Group in 1999, he acquired a post-graduate degree in accounting. He has always valued the powerful role of employees reflected by a corporate culture that is shaped by increased job engagement and timid employee turnover.

BIO

A University of Miami alumni with a bachelor’s double major in film and photography, Faisal Al Nashmi also holds a Le Grande Diplome in culinary arts from Le Cordon Bleu London. He is Director of Culinary Development & Co-Owner of Almakan United Company with restaurants operating locally and regionally. He was selected as the only representative of Kuwait in the worldwide gastronomy event Goute de France hosted by renowned French chef Alain Ducasse. Alnashmi is also the face of Kuwait Airways’ youth campaign. He is President of Kuwait Chefs and director of development of Chef Cuts Consulting, a locally based F&B/restaurant consultancy.

Faisal Al Nashmi FOUNDER, ALMAKAN GROUP

What is the idea behind Almakan Group?

We opened the first premises in the city in 2014 after looking for the right location for three years. We wanted customers to feel a sense of surprise, as if embarking on a journey, as they entered. We have combined a restaurant, an art studio, and an art gallery, all in one space. Our vision was to support the creative culture of Kuwait. We promoted their combined output in the restaurant through a standalone gallery space available for free to artists to showcase their work for two to four days. We have hosted a great number of artists from Kuwait and the wider GCC. The studio space behind the gallery has been dedicated to workshops, gatherings, lectures, and the overall promotion of art. We operated that space for around seven years, and today we are in the process of reinventing ourselves. We still want to have the chef-oriented, art-connected approach and are in the process of preparing

our next location. For the time being, we have three chef-based restaurants around the GCC.

What are your plans for the further expansion of the Almakan’s concept?

We closed the initial location last year. When we did that, we lost a big part of our brand recognition; however, we knew we were going to make a bigger impact and in different markets. Now, in the UAE we have opened our branches under alternative names. We developed a new brand called Table Otto, which was one of our brands that we opened in 2015. Table Otto was the first to enter the UAE market, and of course it made sense for us to move it because the style of the restaurant works well there. It is a lavish, upscale, fresh approach to dining. But, as Almakan, with our artistic approach, we knew that there would come a time where we would be entering a certain market such as UAE, and we would be taking over a warehouse to implement the idea of Almakan all over again. We know that the UAE market has a much bigger number of artists, creatives, and overall appreciation of art and dining, where we offer all technically under one roof. We are also considering Riyadh, which is most likely to be our next location. ✖

as General Manager, managing the operation with a team of professionals. He has been working in the FMCG sector for the past 27 years, moving around the region and traveling worldwide. His primary objective is the setting up distribution channels and fresh-cut facilities. His passion for fresh produce, distribution, and retail has taken him around the world, working with many teams and improving his managerial skills.

What have been Del Monte’s milestones since entering Kuwait, and how did the company overcome the pandemic?

We opened our sales office in 2017 and leased the storage facility in 2018. We had our freshcut facility constructed and ready to operate in October 2019. Our business, however, does not solely depend on fresh cut. During the pandemic, when restaurants were closed, we could not operate the fresh-cut line, which is why we focused on our fresh produce business instead. We reopened as soon as the opportunity to operate arose, and we could bring our team to the facility while ensuring their safety. When focusing on our fresh produce business, we encountered numerous glitches but were able to supply retailers and wholesalers alike. Certain team members were requested to work from home. In such circumstances, we used

Zoom and Teams to communicate with our corporate, main, and regional offices.

What is the reason for opening your fresh-cut facility in Kuwait?

Del Monte’s strategy is to expand the fresh-cut business worldwide. This trend started in the US, North America, and Europe. People often depend on ready-to-eat food, healthy meals, salads, low-calorie sandwiches, and fresh juices, and Kuwait was one of the markets in the region that we were planning to expand into. Earlier, we had opened in Dubai in 2007 and Saudi Arabia in 2009. We were already planning to open in Kuwait in 2008, but the economic slowdown that year delayed the move, and we opened in Kuwait a decade later. We have two such fresh-cut facilities in Saudi Arabia in Riyadh and Jeddah and another facility in Dubai that supplies the UAE. We have an up-and-coming facility in Qatar and another in Jordan. Hopefully, in 2023 we will be present in Oman as well. We are expanding this line of business in the region and are the only international company that operates without an agent in Kuwait. ✖

Akram Kamal GENERAL MANAGER, DEL MONTE

BIO Akram Kamal works for Del Monte Kuwait