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Kuwait Flour Mills enters coffee game, sparking pricing debate

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KUWAIT: A few weeks after Kuwait Flour Mills and Bakeries Company (KFMBC) began serving coffee at select branches — priced between just 500 to 750 fils — the initiative has sparked a wave of public debate and drawn attention to Kuwait’s competitive coffee market. The stark contrast in prices has led many to question how KFMBC is able to offer quality coffee at such low rates, especially when most local cafés charge nearly double, or more. “Other cafés sell same drinks for KD 2 or more, and this is only 750 fils.

The quality and price are amazing, and it’s a national product. Why not support it?” said a 46-year-old Kuwaiti professor at Kuwait University. Another consumer in her mid-30s shared a similar sentiment, expressing frustration over the rising cost of coffee in other shops. “When you look at other brands, the actual cost of producing coffee is not that high, but they still charge us so much. That’s why I appreciate what Kuwait Flour Mills is doing,” she said.

The cost behind your cup

From the perspective of coffee shop operators, Abdulaziz Almousa, a marketing expert and marketing manager of a local specialty café, acknowledged that pricing is often inflated. “It’s true that some coffee shop owners exaggerate in the pricing,” he said. “However, while some products may be overpriced, no one is obligated to make that purchase. Similarly, coffee shop owners are free to set prices according to the value they believe their experience or product delivers.” He pointed out that the final price of a cup of coffee involves more than just the cost of ingredients. “Customers might miss the full picture,” he explained. “Packaging, rent, prime location, branding, marketing, operational costs — all of these play a role.” He added that in Kuwait, rent often takes up the largest share of expenses.

Almousa also commented on why many café owners feel disappointed by KFMBC’s move. “Kuwait Flour Mills holds a special place in our hearts, especially as a government-backed company,” he said. “That’s why business owners expected them to support local cafés, not compete with them. Instead of selling coffee in their own stores, they could have purchased it in bulk and offered it to small businesses at subsidized rates, still turning a profit while helping the local market.”

However, he does not believe KFMBC poses a major threat to the café market. “Most coffee shops today, especially specialty ones, are not just selling a drink; they’re selling an experience,” he said. “For their audience, the ambiance and the service often outweigh the importance of the coffee’s origin or quality.” This was echoed by a self-described coffee aficionado, who said, “It’s about the full experience for me. If a place has a reasonably priced, well-thought-out food menu with good quality ingredients, sandwiches or savory items are a must, and a nice quiet ambience, I’m more likely to go there even if it wasn’t the cheapest option out there.”

Long lines and limited options

One female customer spotted at the KFMBC Yarmouk branch said it was her first time visiting after hearing about the buzz. “I honestly don’t think other coffee shops should worry. Not everyone is going to come all the way to one of the few Kuwait Flour Mills branches,” she said. “Personally, I wouldn’t choose it over my favorite coffee brand — maybe only sometimes, like on a relaxed weekend when I have time.” From a market standpoint, Almousa noted that if specialty cafés were truly at risk, the real threat would’ve already come from larger international brands offering affordable coffee. He emphasized that different customers seek different experiences.

For Dhoha, a Kuwaiti working professional, her coffee habits revolve around speed and convenience. “I stick to one brand near my office because it’s fast, familiar, and delivers within ten minutes,” she said. When asked if she’d consider switching to KFMBC coffee if it matched her preferred quality, she replied, “Yes — if it’s cheaper and nearby. But I don’t think they deliver, and for me, that’s a deal breaker. I’m not the type to plan my day around coffee pickups or wait in line.”

Tamer Seleem, 42, a teacher at a school near the Yarmouk branch, has become a regular KFMBC coffee buyer. “I waited 30 minutes today, which is an improvement from before,” he said. He praised the coffee but pointed out some challenges. “There are only two staff handling the orders. I had to wait in three separate lines: One for the croissant, one for the cashier, one for coffee. It needs to be streamlined,” he said.

“I still think hard before coming because of the long lines.” He also believes it has very limited options. “They definitely need to include more varieties, as there are only three drinks — espresso, Americano and latte,” he said. Looking ahead, Almousa believes KFMBC is likely to succeed in the long run, though the hype and long queues may eventually fade. “I expect local coffee shops to adapt by offering more variety at different price points, introducing more affordable options,” he said.

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Kuwaiti Ambassador presents credentials to Saudi Crown Prince

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RIYADH: Kuwait’s Ambassador to Saudi Arabia Sheikh Sabah Nasser Sabah Al-Ahmad Al-Sabah, presented his credentials to Saudi Crown Prince Mohammed bin Salman on Tuesday, who received him on behalf of the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz.

The ceremony took place at the Royal Court in Riyadh’s Al-Yamamah Palace, where the Crown Prince received a number of ambassadors from brotherly and friendly countries, according to the Saudi Press Agency (SPA). During the reception, Crown Prince Mohammed welcomed the ambassadors, conveying the greetings of King Salman bin Abdulaziz and his own regards to the leaders of their respective countries.

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He expressed his best wishes for their efforts to strengthen and develop bilateral relations with Saudi Arabia. The ambassadors, in turn, extended the greetings of their heads of state to the King and the Crown Prince, expressing gratitude for the warm and generous reception they received. — KUNA

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Deputy PM stresses cooperation amid Gaza crisis at summit

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AL-ULA, Saudi Arabia: Kuwait’s representative to the Munich Leaders Meeting, First Deputy Prime Minister Sheikh Fahad Al-Yousef Saud Al-Sabah, underlined the country’s commitment to regional dialogue and international cooperation during the high-level gathering in Al-Ula, Saudi Arabia.

The three-day meeting, held at the Maraya Theater and running through Thursday, brought together senior decision-makers and global experts to discuss pressing issues including international trade, regional crises, energy transition, maritime security and nuclear safety. The conference comes days after US President Donald Trump unveiled a 20-point peace proposal for Gaza, aimed at ending the Zionist entity’s war on the Palestinian territory — a plan that enjoys wide international backing, including from Kuwait.

Speaking to the Kuwait News Agency (KUNA) on the sidelines of the conference, Sheikh Fahad said Kuwait’s participation “confirms our keenness to support regional dialogue and strengthen international cooperation.” He highlighted discussions on urgent humanitarian issues in Gaza and the occupied Palestinian territories, noting that “participants agreed that sustainable regional security cannot be achieved amid ongoing (Zionist entity) aggression.” He also warned of the consequences of escalating military conflicts, describing the attacks on Qatar and Gaza as “a blatant violation of international law and a direct threat to collective Gulf and regional security.”

Sheikh Fahad added that sessions addressed maritime security, energy safety, the elimination of weapons of mass destruction, as well as food and water security, economic challenges and shared security threats. He reaffirmed Kuwait’s commitment, as the current chair of the Gulf Cooperation Council, to collective security, unifying Gulf positions, and enhancing regional and international partnerships.

Secretary-General of the Gulf Cooperation Council Jasem Al-Budaiwi praised Saudi Arabia for hosting the meeting, describing it as “an indication of the Kingdom’s pivotal role in promoting international security and supporting multilateral dialogue to address regional and global challenges.” He also thanked Saudi leadership and Foreign Minister Prince Faisal bin Farhan for their “distinguished preparation and organization” of the event, which drew senior officials from across the globe.

The meeting aimed to provide a platform for exchanging perspectives on current regional and international security challenges, emphasizing the importance of dialogue and peaceful solutions in achieving just peace and sustainable development. Sheikh Fahad and the accompanying Kuwaiti delegation, including Ambassador Najeeb Al-Bader, Assistant Foreign Minister for GCC Affairs, departed Al-Ula on Wednesday after concluding their participation in the conference. — Agencies

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Kuwait issues $11.25bn bonds | Kuwait Times Newspaper

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KUWAIT: Kuwait announced the issuance of sovereign bonds worth $11.25 billion, divided into three tranches, marking its first successful return to global debt markets since 2017. The issuance attracted overwhelming investor demand and was priced at “one of the tightest spreads ever for a sovereign issuer in emerging markets”.

Kuwait passed a new public debt law in March, after the previous one expired years ago. That raised the borrowing ceiling to KD 30 billion ($98.24bn) from KD 10 billion previously and allowed for the possibility of longer borrowing terms.

In a press statement on Wednesday, the ministry of finance said the issuance comprised a $3.25 billion tranche with a three-year maturity at (+40) basis points over US Treasuries, a $3 billion tranche with a five-year maturity at (+40) basis points, and a $5 billion tranche with a 10-year maturity at (+50) basis points. The ministry noted that “these spreads are significantly lower than Kuwait’s inaugural sovereign issuance in 2017”.

The ministry added that the offering was oversubscribed by 2.5 times, with the order book reaching $28 billion. More than 66 percent of allocations went to investors outside the Middle East and

North Africa region, including 26 percent from the United States, 30 percent from Europe and the United Kingdom and 10 percent from Asia.

Acting Minister of Finance, Minister of Electricity, Water and Renewable Energy, and Minister of State for Economic Affairs and Investment Dr Subaih Al-Mukhaizeem said the historic issuance reflects global market confidence in Kuwait’s financial strength, prudent policies and solid reserves. He added that the strong demand and competitive pricing reaffirm Kuwait’s position as a distinguished sovereign issuer, stressing that the issuance not only meets financing needs but also strengthens Kuwait’s presence in global markets and supports its partnerships with international investors in line with the New Kuwait 2035 vision.

Kuwait’s issuance is considered one of the largest sovereign bond offerings globally in 2025, generating one of the biggest order books this year — underscoring investor confidence in the fundamentals of Kuwait’s economy and its long-term reform program. The issuance was jointly led by Citi, Goldman Sachs International, HSBC, JPMorgan and Mizuho as global coordinators, with the participation of Bank of China and Industrial and Commercial Bank of China as passive joint bookrunners. — Agencies

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