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Food, services drive February inflation to 2.49% in Kuwait

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Food, services drive February inflation to 2.49% in Kuwait

Kuwait’s February CPI shows stability at 2.49%, with notable price hikes in food and goods.

KUWAIT CITY, March 26: Kuwait’s inflation rate remained steady at 2.49% in February, with notable year-on-year increases in food and service prices, according to the latest data from the Central Statistical Bureau. This figure was in line with the 2.5% inflation seen in both January and December.

In February, the consumer price index (CPI) reached 135.7, reflecting continued price increases across several major expenditure categories. While the overall inflation rate remained moderate, certain sectors experienced significant annual cost hikes.

The food and beverage sector recorded a 5.23% year-on-year increase, while the clothing and footwear sector saw a 4.63% surge. Prices in the miscellaneous goods and services sector rose by 5.46%, driven largely by higher costs for personal goods and services. Healthcare costs also saw a notable increase of 4.08%, and the furnishing and household maintenance sector rose by 3.04%.

Kuwait’s inflation trends align closely with those of other Gulf Cooperation Council (GCC) countries. Saudi Arabia’s inflation remained steady at 2% year-on-year in February, mainly driven by an 8.5% rise in housing rents. In contrast, Oman recorded a milder 1% annual inflation increase in February, with a 6.3% rise in the personal goods and miscellaneous services sector.

The Central Statistical Bureau’s report highlighted price trends across various expenditure groups, providing insight into the movement of key categories within the CPI. Despite overall inflation remaining relatively stable, Kuwait’s housing services sector showed minimal movement, rising just 0.90% annually and remaining unchanged month-on-month.

Transportation prices declined by 1.19% year-on-year but saw a slight monthly uptick of 0.07%. The communication sector experienced a slight annual increase of 0.88%, while the recreation and culture sector rose by 2.48%. Education costs saw a modest 0.71% increase, and the restaurants and hotels sector recorded a 2.03% rise compared to February 2024.

The report also revealed that the total index, excluding food, rose by 1.93% annually, while the total index, excluding housing, increased by 3.13%. These figures suggest that inflationary pressures are mainly driven by non-housing-related expenses.

Kuwait’s economy continues to recover in its non-oil sector, supported by easing inflation. The country’s non-oil exports rose to 23.2 million dinars ($74.9 million) in December, marking a 12.08% month-on-month increase, according to the Ministry of Commerce and Industry.

In its latest consultation with Kuwait in December, the International Monetary Fund (IMF) highlighted the recovery of the non-oil sector amid easing inflation. However, the IMF also noted a 1.5% contraction in GDP for the second quarter of 2024, driven by a 6.8% drop in the oil sector.

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Second phase of merging Kuwait oil companies underway

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KUWAIT CITY, June 30: In preparation for the second phase of merging the subsidiaries of the Kuwait Petroleum Corporation (KPC), informed sources revealed that the executive phase of merging Gulf Oil Company with Kuwait Oil Company (KOC) has begun through the transfer of the corporation’s shares in the capital of the Gulf Oil Company to KOC. They highlighted a meeting held recently between the two companies’ CEOs to start making administrative decisions regarding this matter. The sources explained that the second phase, following the initial merger of KIPIC with the Kuwait National Petroleum Company, is part of KPC’s strategy to restructure the oil sector. This phase commenced with a meeting between KOC’s CEO Ahmed Al-Eidan, acting CEO of Gulf Oil Company Bader Al-Munaifi, and representatives from the oil sector’s leadership and workforce. The meeting also discussed the implications of Decision No. 60/2024, issued on May 5, 2024, concerning the transfer of KPC’s ownership of shares. ‘

Al-Eidan affirmed the importance of job stability and preserving all benefits of Gulf Oil employees. It was decided that the legal and administrative status of Gulf Oil Company will remain unchanged at this stage, including the company’s name, logo, and operational sites at its headquarters and joint operations in Khafji and Al-Wafra. The sources clarified that Al-Eidan indicated the change is limited solely to the transfer of share ownership, with KOC becoming the owning entity instead of KPC. Consequently, the highest authority will be the Board of Directors of KOC, without affecting daily operations or the current institutional structure.

By Najeh Bilal
Al-Seyassah/Arab Times Staff 

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Kuwait enhances laws to combat money laundering and terror funding

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Kuwait enhances laws to combat money laundering and terror funding

The Kuwait government approves tougher measures to tackle financial crimes.

KUWAIT CITY, June 30: Kuwait is intensifying efforts to combat money laundering and terrorist financing by enhancing its legislative framework, announced Minister of Finance and Minister of State for Economic Affairs and Investment Noura Al-Fassam on Monday.

The minister spoke in a statement issued by the Ministry of Finance following the publication of Decree Law No. (76) of 2025 in the official gazette, Kuwait Today. This decree introduces important amendments to Law No. (106) of 2013, reflecting Kuwait’s integrated government efforts to strengthen measures against financial crimes.

During the Cabinet meeting on June 17, the draft of the amended decree law was approved, underlining Kuwait’s commitment to raising the effectiveness of the national response to money laundering and terrorism financing. The amendments align with the requirements of the Financial Action Task Force (FATF) and relevant international standards.

The new decree law includes two significant amendments:

  • Article One replaces Article (25) of Law No. (106) of 2013, empowering the Council of Ministers, upon the recommendation of the Minister of Foreign Affairs, to issue necessary decisions to implement United Nations Security Council resolutions related to terrorism, terrorism financing, and the proliferation of weapons of mass destruction under Chapter VII of the UN Charter. These decisions will take effect immediately upon issuance, consistent with Security Council Resolution No. 1373 of 2001. The executive regulations will define the rules for publishing these decisions, appealing them, authorizing the release of frozen funds for essential living expenses, and managing such assets.n
  • Article Two adds a new Article (33 bis) to Law No. (106) of 2013, stating that any violation of decisions issued under Article (25) will result in fines ranging from 10,000 to 500,000 Kuwaiti dinars per violation. This penalty complements any additional sanctions imposed by regulatory authorities on financial institutions or designated non-financial businesses.n

The Ministry emphasized that these amendments support the National Committee for Combating Money Laundering and Terrorism Financing by broadening its powers to apply targeted financial sanctions in compliance with FATF standards. This includes the mandatory freezing of assets belonging to individuals and entities listed locally as terrorists, effective immediately upon decision issuance.

Furthermore, the amendments enable the Committee to impose fines on violators and require publishing the national list of designated terrorists on the Committee’s official website, enhancing transparency and meeting international obligations.

Minister Al-Fassam concluded that the updated legislative measures reaffirm Kuwait’s strong commitment to fighting financial crimes, safeguarding national security and stability, and fulfilling its global responsibilities.

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Kuwait updates regulations for public properties and service fees

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Kuwait updates regulations for public properties and service fees

Updated regulations aim to boost fair use and revenue from state properties.

KUWAIT CITY, June 30: The Ministry of Finance announced on Sunday the issuance of a new ministerial decision amending the regulations governing the use of state-owned real estate and service fees, in a move aimed at achieving a fair balance between public interest and the needs of individuals and institutions.

In a press statement, the Ministry said the decision comes as part of its broader efforts to regulate the use of government-owned properties and protect national resources. Ministerial Resolution No. 54 of 2025 introduces amendments to the regulations first outlined in Resolution No. 40 of 2016.

Minister of Finance and Minister of State for Economic Affairs and Investment, Eng. Noura Al-Fassam, stated that the amendments are intended to ensure fairness, clarify procedures, and improve transparency in the utilization of state assets.

“These changes aim to establish a fair balance in how state-owned properties are used by citizens and entities, while safeguarding public interests,” Al-Fassam said.

She added that the updated regulations were the result of a comprehensive pricing study comparing Gulf and international markets. The amended prices remain below average rates in Gulf Cooperation Council (GCC) countries, and were developed with Kuwait’s economic and social conditions in mind. The goal, Al-Fassam noted, is to promote equal opportunities and secure sustainable revenue streams for the state.

The amendments cover a wide range of activities involving the use of state-owned property, including chalets, rest houses, commercial complexes, cooperative societies, banks, and warehouses. They also apply to educational institutions, sports clubs, and hospitals.

In support of national food security and the promotion of local production, the Ministry also announced the stabilization of agricultural coupon prices under the new regulations.

The revised framework reflects Kuwait’s continued efforts to modernize its public asset management policies while maintaining a strong emphasis on economic fairness, efficiency, and sustainability.

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