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Kuwait’s Payment Revolution: From Cash to Tap-to-Pay in 15 Years

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Walk into any café in Kuwait City today, and you are more likely to hear the beep of a phone than the rustle of dinars.

According to the Central Bank of Kuwait’s Payment Cards Statistics (2010-2024), card spending has increased from KD 569 million in 2010 to KD 4.64 billion in 2024, representing a 716 per cent rise, one of the fastest payment transformations in the Gulf.

The digital awakening

CBK data points to four forces converging at just the right moment:

Youth demographics drive change With more than 70 percent of Kuwaitis under forty, and smartphone penetration above 90 percent, finance has shifted from branch counters to mobile apps.

A rewards culture takes hold Cashback, airline miles, and instant discounts have coaxed even cash-comfortable consumers to first use plastic, then digital wallets.

Travel and e-commerce boom Prolific travel and online shopping made card acceptance abroad and on global platforms frictionless; suddenly, the world felt smaller.

Smart regulation paves the way Open-API frameworks and robust tokenisation from the Central Bank delivered secure, seamless payments. Tap-to-pay became ubiquitous almost overnight.


A predictable rhythm

Seasonality is now almost clockwork:

  • Summer surge abroad (Q3): overseas card spend rises 54 per cent above the Q1-Q2 average as families decamp for Europe and the Far East.
  • Winter shopping frenzy (Q4): domestic card use climbs 19 per cent, fuelled by Black-Friday-style promotions and year-end gifting

Retailers are increasingly aligning their inventory and marketing calendars with these rhythm


The great digital crossover

‘One in every three dinars is now spent online.’

Traditional point-of-sale spending still leads, at KD 1.78 billion in 2024; yet, the real revolution is online, as payment gateways handled KD 1.55 billion, accounting for 34 per cent of all card spending.

  • Local gateways posted a 75 per cent compound annual growth rate between 2020 and 2024.
  • Cross-border gateways grew at a rate of 44 per cent per year.
  • ATM withdrawals, at KD 590 million in 2024, now account for roughly one-eighth of total card activity.


What does this mean for Kuwait

Businesses should time campaigns to coincide with Q4’s local surge while capturing Q3’s traveler wallet. Banks must pivot from card issuance to lifestyle ecosystems, including embedded finance, app-based instalments, and seamless cross-border services. Government agencies gain anonymised transaction data that supports everything from inflation tracking to urban planning, while furthering financial inclusion.


Looking ahead

After 2020, quarterly card spend surpassed KD 1 billion and has maintained that level. Cash will not disappear, yet its share continues to slip.

Winners will treat payments not as a cost centre but as a customer-experience advantage, whether through QR-code payments at a corner grocery or friction-free instalments at a national retailer.

Kuwait’s payment revolution illustrates how rapidly consumer behavior can evolve when technology, demographics, and regulation align. The challenge now is for the broader economy to keep pace.

Ali Bahbahani is the founder of Ali Bahbahani & Partners, a Kuwait-based consultancy specialising in customer experience and digital transformation across the GCC. Further insights at www.alibahbahani.com.

Source: Central Bank of Kuwait, Payment Cards Statistics, 2010-2024

By Ali Bahbahani, Founder, Ali Bahbahani & Partners

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CMA launches regulatory framework for emerging companies on KSE

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CMA launches regulatory framework for emerging companies on KSE

Kuwait enhances Stock Exchange access for emerging firms with amendments to listing rules.

KUWAIT CITY, July 1: Kuwait’s Capital Markets Authority (CMA) has officially launched a new regulatory environment to support the listing and trading of emerging companies on the Kuwait Stock Exchange (KSE), in cooperation with Boursa Kuwait. The initiative includes the creation of a dedicated platform for these companies, alongside key amendments to existing listing rules.

In a statement released on Tuesday, the CMA confirmed that the move is part of broader efforts to adopt international best practices, promote capital market development, diversify investment tools, and enhance both market competitiveness and transparency — all aimed at bolstering investor protection.

The approved amendments focus on strengthening listing standards by requiring companies to maintain certain conditions, including minimum thresholds for free float shares and their market value. These measures are designed to improve liquidity and ensure sustained compliance with regulatory obligations.

The Authority emphasized that supporting emerging companies is crucial to driving economic growth and aligns with Kuwait’s broader strategic vision. The newly launched market will offer an attractive financing environment for smaller and growing enterprises while providing investors with fresh opportunities governed by high transparency standards.

The regulatory framework is the result of a comprehensive study conducted by the CMA, which formed the basis for drafting specific rules to govern the emerging companies market. The platform is intended to serve as both a support system for these businesses and a dynamic investment space in line with global benchmarks.

The CMA also underscored the importance of continuously evolving the rules that govern listing conditions. This includes safeguarding investor interests by removing companies that fail to meet their obligations and ensuring adequate liquidity by enforcing minimum requirements for free float shares in both the primary and secondary market segments.

Additionally, the Authority reaffirmed its commitment to enhancing executive regulations that protect investors and empower small shareholders to actively participate in corporate decision-making processes.

This latest move is seen as a significant step toward further modernizing Kuwait’s financial sector and creating a more inclusive and diversified capital market landscape.

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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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