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.

OPEC+ appears to be taking relentless action to push more oil into the market, regardless of the consequences. The organization is clearly focused on regaining its lost market share and is determined to sideline less competitive producers in the process. The message is clear – control of the oil market rests with it. The group seems unconcerned about weakening oil prices or whether its member states can meet their budget targets. Many are now being forced to resort to borrowing just to finance their annual budgets. Oil prices are still below $70 per barrel, yet OPEC+ continues to flood the market with more supply.

Today, the organization appears more interested in boosting oil volumes to generate higher overall revenues, rather than aiming for higher prices with limited output. As a result, the group has agreed to increase production again next month, marking six consecutive months of output hikes. This indicates a clear change in strategy – volume and revenue have become the new policy. Eight OPEC+ members, including Saudi Arabia, Iraq, the United Arab Emirates, and Kuwait, have decided to increase crude oil output, collectively adding around 137,000 barrels per day to the market. However, the actual increase may end up being significantly lower, possibly closer to 60,000 barrels per day.

This time, OPEC seems less concerned about the potential for further price declines and more focused on boosting overall revenues. The strategy may also be aimed at pressuring less competitive producers and discouraging further output increases from non-OPEC countries. The priority has clearly shifted to higher production, and most importantly, higher revenues. OPEC appears to believe that now is the right moment to reclaim lost ground and maximize its earnings after years of sacrificing market share in pursuit of higher prices. So far, OPEC+ has increased its oil production by more than 2.5 million barrels per day, with additional volumes expected to be approved for November as well. The group appears firmly committed to prioritizing production volumes and generating more cash.

It is clear that a shift in policy has taken place. OPEC+ is now discussing ramping up output and reclaiming lost market share. Since April 2023, OPEC+ has been aiming to recover its lost volume of 1.7 million barrels per day. The question on everyone’s mind is whether OPEC+’s earlier decision to cut production to raise oil prices has failed. Over time, it has become increasingly clear that the policy did not deliver the desired results. This is evident in the cartel’s recent shift to set aside production quotas and allow member states more freedom to produce, seemingly waiting to see how the market responds. The big uncertainty now is whether the market still needs more oil or not. Today, the market is closely observing to see how long OPEC+ will remain patient, and at what price level the group might be prompted to intervene once again.

Is this a test by OPEC+ to determine the market’s tolerance for increased crude oil volumes? Or perhaps a way to identify its own price floor? There are also growing questions about leadership within the group. Has OPEC+ lost its central guiding force? Why, for example, should Saudi Arabia continue to bear the burden of production cuts alone, especially when other members reap the benefits while contributing little or nothing to the collective effort? Saudi Arabia’s sacrifices have been limited and short-term, and without proportional reward.

By Kamel Al-Harami
Independent Oil Analyst
 Email: naftikuwaiti@yahoo. com