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Fitch affirms Kuwait’s rating at ‘AA-‘ with stable outlook

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KUWAIT: The Central Bank of Kuwait announced Friday that Fitch Ratings- one of the big three credit rating agencies, affirmed Kuwait’s long-term foreign-currency issuer default rating (IDR) at ‘AA-‘ with a stable outlook.

A CBK statement, received by KUNA, carried the following highlights from Fitch report:

Kuwait’s ‘AA-‘ rating is supported by its exceptionally strong fiscal and external balance sheets, but is constrained by weaker governance than peers, heavy dependence on oil and its generous welfare system and large public sector, which could be a source of long-term fiscal pressure, despite spending rationalisation efforts. The prospects remain uncertain for meaningful structural reforms to reduce reliance on oil revenue, although legislation has been approved to allow debt issuance and improve fiscal financing flexibility.

According to the Fitch’s report, Kuwait’s external balance sheet remains the strongest of all Fitch-rated sovereign. “We forecast its sovereign net foreign assets will rise to 607 percent of GDP in 2025, from an estimated 576 percent in 2024, more than 10x the ‘AA’ median,” reads the report.

“The bulk of assets are held in the Future Generations Fund managed by the Kuwait Investment Authority (KIA), which also manages the assets of the General Reserve Fund (GRF), the government’s treasury account.”

On the reforms, the agency said that the Kuwaiti government has begun implementing reforms that had stalled under previous administrations due to legislative gridlock. The government has approved a financing and liquidity law, allowing debt issuance for the first time since the previous law expired in 2017. The new law outlines plans to raise KD 30 billion (about $100 billion), equal to about 60 percent of GDP over the next 50 years. This will help alleviate pressure on the General Reserve Fund (GRF), support the development of local capital markets, establish a benchmark yield curve and support development projects.

It projected a surplus of 10 percent of GDP in FY25, up from 8.9 percent in FY24. It also expected the budget deficit to widen to 5.6 percent of GDP in FY25 (from 2 percent in FY24), compared with the projected ‘AA’ median of 2.6 percent, despite spending rationalisation efforts.

“We expect expenditure to rise, largely reflecting the government’s drive to execute delayed capital projects, but to remain below 51 percent of GDP. Revenue will continue to decline due to a drop in oil revenue from lower prices, although the OPEC+ decision to unwind production quotas from 2Q25 should mitigate this loss,” it added. “We project a drop of about 3 percent of GDP over FY24, with non-oil revenue rising modestly. Our FY25 forecast assumes about 70 percent of the deficit will be financed through domestic and external borrowing, with the remainder covered by GRF assets.”

It expected the resumption of debt issuance, combined with projected fiscal deficits and lower oil prices, to increase government debt/GDP from 2.9 percent in FY24 to nearly 12 percent in FY27. “Nonetheless, we expect debt to remain well below the projected 2027 ‘AA’ median of 52.4 percent of GDP,” added the agency.

It projected that the real GDP to return to growth in 2025, expanding by 1.7 percent, after two consecutive years of contraction driven by OPEC+ oil production cuts. “We forecast annual inflation will remain below 3 percent in 2025-2027, although the central bank may be cautious about additional rate cuts given rising geopolitical risks,” it stated.

The agency noted that conflicts in the Middle East and disruptions to Red Sea shipping have had a minimal impact on Kuwait, which has large government assets that provide an important buffer to support the economy if tensions were to escalate.

However, hydrocarbon dependence weighs on Kuwait’s rating, rendering budgetary outcomes highly sensitive to oil prices.

The London-based agency noted that Kuwait has an ESG Relevance Score (RS) of ‘5[+]’ for Political Stability and Rights and the Rule of Law, Institutional and Regulatory Quality and Control of Corruption.

“These scores reflect the high weight that the World Bank Governance Indicators (WBGI) have in the country’s proprietary Sovereign Rating Model. As Kuwait has a percentile rank above 50 for the respective governance indicators, this has a positive impact on the credit profile,” it pointed out. – KUNA

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ZAHI joins talabat as the platform expands offering beyond food

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KUWAIT: Building on its commitment to supporting local brands and expanding its services to cater to the diverse needs of its customers, talabat, the leading on-demand online ordering and delivery platform in the MENA region, announced that all ZAHI home fragrance products are now on the platform. By strategically partnering with an ever-growing diverse range of emerging sectors, talabat is redefining the very essence of convenience, offering unparalleled and seamless access to an extensive ecosystem of products that enrich and simplify every facet of daily life.

The new partnership was announced in a signing ceremony held at Grand Hyatt Kuwait on September 8, underscoring talabat’s commitment to supporting homegrown businesses and enabling entrepreneurs to flourish in Kuwait’s vigorous digital economy through its wide network of logistics partners, advanced digital infrastructure and fast, reliable delivery services.

In line with its expansion strategy, talabat is moving beyond food and everyday essentials by introducing a wider selection of lifestyle products that reflect the evolving needs of today’s modern consumer. This move demonstrates talabat’s commitment to meeting evolving expectations for fast, seamless and convenient access to an increasingly diverse range of offerings.

On this occasion, Bader Al-Ghanim, Vice President and Managing Director of talabat Kuwait, said: “Our partnership with ZAHI comes as part of our ongoing efforts to expand the range of services we offer on our platform, aligned with the growing needs of our customers and the evolving nature of their lifestyles. We remain dedicated to supporting promising local brands, and through this collaboration, we seek to strengthen the presence of Kuwaiti ventures in the e-commerce space, enabling them to grow and scale. This stems from our strong belief that their success is inherently an extension of our own.”

On his part, Khaled Alajeel, Managing Partner of ZAHI, said: “With the help of an end-to-end logistics and tech-enabled delivery partner like talabat, we are delighted to increase accessibility to ZAHI products across Kuwait and reach customers wherever they are, while preserving the quality and craftsmanship that define our brand. Our artisan diffusers and home perfumes are thoughtfully designed to capture the unique experience Kuwait offers those who call it home, giving customers a wide range of scents that add an air of welcome, warmth and character to their spaces.”

It serves to note that talabat has been strategically expanding its partner portfolio beyond traditional food and FMCG categories, tapping into emerging sectors to serve a broader and more diverse customer base. From food to fragrance, talabat is redefining convenience and ease to keep pace with today’s fast-moving lifestyle, while remaining committed to connecting customers with their favorite every day, right away.

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Namaa Charity launches ‘Humanitarian Hub’ to boost non-profit sector

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KUWAIT: Namaa Charity, an affiliate of the Social Reform Society, on Tuesday launched the Humanitarian Hub platform (https://humanitarian-hub.org), designed to equip charitable institutions with modern tools that enhance efficiency and enable a shift from short-term relief to long-term sustainable impact. Speaking at the launch ceremony, Namaa Charity CEO Saad Al-Otaibi said the initiative coincides with the anniversary of Kuwait being designated by the United Nations as a “Humanitarian Hub.”

He described the platform as “a bridge between thought and practice,” offering advanced cognitive and applied tools to strengthen transparency, governance, innovation and financial sustainability across the non-profit sector. Al-Otaibi noted that the platform will feature a range of projects and resources, including Humanitarian Hub Magazine as a regular publication on emerging trends, practical guides such as the “AI in Charitable Work” manual, and digital tools like an impact analysis mechanism and a performance dashboard to track operational and financial indicators in real time.

KUWAIT: Namaa Charity on Tuesday launched the Humanitarian Hub platform (https://humanitarian-hub.org), designed to equip charitable institutions with modern tools that enhance efficiency and enable a shift from short-term relief to long-term sustainable impact. - KUNA photos

KUWAIT: Namaa Charity on Tuesday launched the Humanitarian Hub platform (https://humanitarian-hub.org), designed to equip charitable institutions with modern tools that enhance efficiency and enable a shift from short-term relief to long-term sustainable impact. – KUNA photos

The platform will also host events, specialized seminars and an annual conference. Deputy CEO Abdulaziz Al-Kandari said the project reflects Namaa’s commitment to building a modern knowledge ecosystem for the non-profit field. He explained that the platform will provide charities with advanced analytical tools to measure the impact of their initiatives and design sustainable funding strategies. — KUNA

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Committee reviews efforts to counter cyber threats

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KUWAIT: The meeting of the Gulf Cooperation Council (GCC) Ministerial Committee for Cybersecurity Bodies and Centers kicked off in Kuwait with the participation of heads of national cybersecurity authorities from across the Gulf. Chaired by Kuwait, the meeting will address a range of issues aimed at strengthening the region’s cybersecurity system, including executive action plans, cooperation mechanisms, exchange of expertise and joint initiatives to boost digital protection and ensure the continuity of vital services.

Participants will also review ongoing Gulf efforts to counter growing cyber threats, while discussing ways to develop digital infrastructure, enhance national capacities and follow up on the implementation of previous resolutions and future plans. The gathering marks an important step toward unifying Gulf efforts and enhancing integration in the field of cybersecurity, thereby supporting the protection of shared national interests and safeguarding the stability of cyberspace across GCC countries. — KUNA

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