KUWAIT CITY, Sept 14: The Organization of Petroleum Exporting Countries (OPEC) marked its 65th anniversary Sunday, emphasizing the importance of stable markets and multilateral dialogue for the future.

OPEC was established between September 10-14, 1960, following intensive meetings in Baghdad, Iraq. The founding members included Kuwait, Saudi Arabia, Iraq, Iran, and Venezuela. Kuwait’s delegation was represented by Ahmad Sayed Omar, alongside Saudi Arabia’s Abdullah Al-Tariki, Iran’s Fuad Rouhani, Iraq’s Tala’at Al-Shaibani, and Venezuela’s Juan Pablo Perez Alfonzo.

According to OPEC, the organization was founded during a period of significant international economic and political transition, characterized by widespread decolonization and the emergence of many new independent states in the developing world.

At the time, the international oil market was dominated by the “Seven Sisters” multinational oil companies, which OPEC states deliberately spiked prices twice in 1959 and 1960, causing severe harm to oil-exporting countries. This manipulation was a catalyst for OPEC’s creation.

The founding meeting established a system to ensure price stability and guaranteed production, addressing the needs of both producers and consumers. It also aimed to enhance cooperation among member countries and unify policies as necessary, while allowing new members to join with approval from the original five founding states.

The OPEC agreement was officially registered with the United Nations Secretariat on November 6, 1962, in accordance with Article 102 of the UN Charter, which requires international agreements to be registered.

Initially, OPEC set up its headquarters in Geneva, Switzerland, in 1960 before moving to Vienna, Austria, in 1965. Qatar joined the organization in 1961, followed by Libya and Indonesia in 1962. Today, OPEC consists of 12 member countries.

Over seven decades, OPEC has maintained its principles and values, ensuring the stability of oil and energy markets. The organization is governed by a Board of Governors and an Economic Council—the former being the main executive body and the latter responsible for economic studies. Several committees oversee production monitoring, internal audits, and other functions.

In 1976, OPEC established the OPEC Fund for International Development, headquartered in Vienna, aimed at fostering cooperation between OPEC members and developing countries through financial assistance and loans.

Kuwait has played an integral role in OPEC activities, both within the organization and through agreements outside of it, such as the OPEC+ framework. In January 2022, OPEC members nominated Kuwaiti Dr. Haitham Al-Ghais as Secretary General for a three-year term beginning in August 2022. His mandate was renewed for an additional three years in August 2025, highlighting Kuwait’s prominent leadership within OPEC.

On Sunday, Kuwait’s Minister of Oil Tareq Al-Roumi said OPEC’s founding marked a historic turning point in the global energy sector. He noted Kuwait’s pivotal role from the outset in supporting OPEC’s policies and achieving its strategic objectives.

In a statement to Kuwait News Agency (KUNA), Al-Roumi described OPEC’s establishment as the start of a new phase for producing countries that affirmed sovereignty over natural resources and fostered a collective vision for national and economic development.

He said Kuwait was not only a founding member but also an active partner in establishing cooperation among producing countries and consolidating the principle of national sovereignty over resources to serve sustainable development.

Al-Roumi emphasized OPEC’s decades-long contributions to supporting member states’ local petroleum industries, maintaining oil market stability, and participating in international dialogue to enhance global energy security. He added that the organization continues to support the global economy and balance the interests of both producers and consumers through enlightened policies.

He highlighted the creation of the OPEC Fund for International Development in 1976 as a key step in expanding OPEC’s impact, aiding ambitious social and economic development programs in many countries. Kuwait has invested in this cooperation to bolster national projects and development initiatives, reflecting its leadership in sustainable development inside and outside the organization.

Al-Roumi noted OPEC’s major role in coordinating international negotiations related to the United Nations Framework Convention on Climate Change (UNFCCC), helping create a favorable environment through long-term forecasts and strategies promoting a comprehensive approach. This includes investing in various energy types and modern technologies while ensuring balance, gradualism, and social, economic, and environmental well-being.

Despite facing numerous challenges and geopolitical fluctuations throughout its history, OPEC’s well-planned strategies have maintained supply security and global market stability. The organization encourages investment across all energy types and adopts modern technologies, balancing economic, social, and environmental dimensions.

Al-Roumi pointed to the formation of the OPEC Plus alliance at the end of 2016 as a pivotal milestone, which helped stabilize oil supplies during the COVID-19 pandemic. Kuwait played an active role in supporting collective coordination policies that led to the largest and longest voluntary production adjustments in oil market history. These efforts received international acclaim and strengthened confidence in OPEC’s policies.

He affirmed Kuwait’s continued support for OPEC’s strategic role in the global energy system, stressing that the organization remains a cornerstone in balancing growing energy demand, environmental sustainability, and social and economic well-being. This reflects the responsibility of producing countries toward their peoples and the world.

“Today we celebrate the 65th anniversary of OPEC’s founding,” Al-Roumi said. “We are confident that Kuwait, with its continued leadership role, will remain, under the guidance of His Highness the Amir Sheikh Meshal Al-Ahmad Al-Jaber Al-Sabah, His Highness the Crown Prince Sheikh Sabah Khaled Al-Hamad Al-Sabah, may God protect and preserve them, and His Highness the Prime Minister Sheikh Ahmad Abdullah Al-Ahmad Al-Sabah, may God protect him, an effective partner in strengthening cooperation between producing countries and providing a model to be emulated in adhering to responsible oil policies that ensure market stability and energy sustainability for future generations.”

OPEC marks 65th anniversary, highlights commitment to market stability and multilateral dialogue.

Moroccan Ambassador to Kuwait Ali Ben Issa is delivering the opening speech at the forum.

KUWAIT CITY, Sept 14: Moroccan Ambassador to Kuwait Ali Ben Issa on Sunday expressed his country’s ambition to double trade exchange with Kuwait and elevate it to advanced levels, reflecting the strong ties between the two brotherly nations.

Ambassador Ben Issa made the remarks during his opening speech at the Kuwaiti-Moroccan Trade Forum, held over two days in Kuwait. The event is organized by the Moroccan Agency for Investment and Export Development and the Moroccan Confederation of Exporters in cooperation with the Kuwait Chamber of Commerce and Industry, with broad participation from Kuwaiti businessmen.

The ambassador described the forum as a valuable platform to strengthen trade relations and broaden cooperation between Moroccan and Kuwaiti companies. He noted a significant rise in Kuwaiti investments in Morocco over the past three years, totaling approximately USD 1.5 billion.

Trade exchange between the two countries has also seen remarkable growth since 2018. Moroccan exports to Kuwait exceeded 216 million Moroccan dirhams (about USD 24 million), while Kuwaiti exports to Morocco reached 1.3 billion dirhams (around USD 140 million).

Ben Issa highlighted promising commercial and investment opportunities, citing Morocco’s ongoing development projects and its upcoming role as co-host of the 2030 FIFA World Cup with Spain and Portugal, which is expected to spur extensive infrastructure investments.

The ambassador affirmed Morocco’s commitment to improving the business environment by implementing a new investment charter, simplifying administrative procedures, and offering financial and tax incentives to attract investors and enhance competitiveness.

He praised the deep historical and bilateral relations between Morocco and Kuwait, especially the strong focus on economic and trade cooperation supported by Kuwaiti institutions, companies, and individuals, taking advantage of Morocco’s diverse investment opportunities across various sectors.

The forum aims to explore investment prospects in Morocco, foster economic partnerships, and expand trade relations through bilateral meetings between Kuwaiti businessmen and representatives of Moroccan companies and institutions.

Representatives of the Kuwait Chamber of Commerce and Industry and the Ambassador of the Kingdom of Morocco to Kuwait during the forum.

Exchange companies in Kuwait must report all transfers under the new banking rules.

KUWAIT CITY, Sept. 14: Banks in Kuwait have recently requested that exchange companies provide detailed daily reports on all financial transfers executed for their clients, according to informed sources. This new directive requires these companies to submit expanded data within their existing databases, including comprehensive statements of all transaction invoices—whether above or below 3,000 Kuwaiti dinars — specifically for dollar purchases funded through their open lines with banks. However, this requirement does not apply if the companies cover their dollar needs via the interbank market.

This heightened scrutiny stems from a directive by the Central Bank of Kuwait, which has instructed banks to ensure that dollars supplied to exchange companies through bank facilities are used strictly for their intended commercial purpose, specifically for money transfer operations. The Central Bank emphasized it will not support dollar purchases used for speculative or investment purposes.

Regulatory compliance measures

Sources explained that while banks can continue to purchase dollars from the Central Bank to meet their clients’ needs—including those of exchange companies—these funds must be allocated solely for legitimate business activities. This covers the transactions of exchange companies and their clients, including institutions and companies, as long as they fall within the scope of commercial activity. Any other dollar requirements must be sourced independently by banks or companies through the interbank market, which often carries higher rates influenced by supply and demand.

Since the Central Bank did not prescribe a fixed method for banks to monitor dollar disbursements, some banks have independently expanded the reporting requirements to include detailed daily transaction data. This step acts as a safeguard against potential audits by the Central Bank on dollar liquidity accounts issued to customers.

Non-compliance with these directives may result in banks suspending the open dollar purchasing lines granted to customers.

Increased oversight and due diligence

Sources noted that regulatory action could intensify, with the Central Bank potentially requesting additional customer information from banks and exchange companies. This includes reviewing due diligence procedures related to customer identification and risk assessment, as well as reinforcing compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) laws.

The Central Bank confirmed its ability to supply all legitimate local dollar requirements to entities and individuals, but underscored that purchases for investment, commercial, or speculative purposes must be funded from the institution’s own resources—either through existing currency reserves or purchases in the open market.

Exchange rate policy

The Central Bank’s supervisory measures align with its dinar exchange rate policy, which aims to maintain stability against other currencies. The dinar’s rate is determined by a weighted basket of currencies from countries with significant trade and financial ties to Kuwait.

International compliance efforts

The increased information demands and stricter monitoring reflect Kuwait’s broader commitment to international regulatory standards. The Central Bank and related authorities are enhancing compliance frameworks in preparation for Kuwait’s upcoming Financial Action Task Force (FATF) mutual evaluation. This evaluation, scheduled for February 2026, will assess the country’s adherence to AML and CTF regulations.

Reform and institutional strengthening

As Kuwait approaches the deadline to submit its reform report to the FATF in November, the Central Bank and regulatory bodies are expediting procedural and institutional reforms. These efforts aim to close regulatory gaps and strengthen safeguards against illicit financial activities, with a particular focus on accurately identifying beneficiaries in financial transfers, thereby protecting Kuwait’s economic integrity.