Overview

Kuwait’s telecommunication services are rapidly improving, with five operational Internet Service Providers (ISPs), three mobile telephone operators, and many sub-ISPs and authorized distributors covering the entire country. The market has in recent years vertically integrated with several telecoms acquiring ISPs to offer mobile and internet services as a packager to commercial and consumer customers.

Kuwait’s telecom industry is advanced with 5G service, fiber optic cabling, and satellite connectivity available through the country, IT service providers and application developers are well matured.

The Central Information Technology Regulatory Authority (CITRA), launched in 2016, governs all aspects of the telecommunication sectors including approvals and technology licensing of new companies, new services/products, and the upgrading of services. They also play a role in the adoption of new technology. CITRA manages and enforces Kuwait’s data privacy laws, including the requirement to store certain sensitive data inside of Kuwait.

According to CITRA, 99.4% of homes have an internet connection, and the 5G network reaches around 97% of Kuwaitis. Kuwait is rapidly adopting new digital technologies in artificial intelligence and machine learning, next generation internet, cloud computing, predictive analysis, and robotic process automation.

One of the main organizations within the government for purchasing tech equipment and providing technology training is the Central Agency for Information Technology (CAIT). CAIT rolls out e-government and technology projects across the government. The agency seeks high quality technology to improve the effectiveness and collaboration of the government workforce. As 80 percent of Kuwaitis work for the government opportunities abound.

During the global pandemic, Kuwait leaned into technology creating applications for digital IDs, vaccine cards, driving licenses, and even legal signatures for government forms. Fines traffic violations, and scheduling court dates can be done via mobile application.

The government’s stated IT goals within its Vision 2035 are to: create smart cities; enhance productivity in key sectors (including oil and gas, IT, financial services, healthcare, and transportation); and streamline the bureaucratic processes (particularly in government procurement).  

Cybersecurity  

The Government of Kuwait is developing a National Cybersecurity Center to protect government networks and critical infrastructure assets. Specific areas of focus include infrastructure protection; integrated risk management; network security equipment; and other information security software. 

The center will work with government agencies and private sector to monitor Kuwait’s networks for cyber security threats, collect and disseminate threat intelligence, and support the national cyber security response.  Other functions will include the release of a national cyber security evaluation and threat assessment.

Cloud Computing

Cloud computing is a rapidly growing sub-sector in the tech market in Kuwait. Cloud storage providers must receive a license from CITRA to operate and offer their services in Kuwait. To receive a license, a provider must be able to show that sensitive data does not leave the country. Some providers chose to open a local data center, while others created edge nodes at the ends of the national network. In 2023, Kuwait announced a strategic partnership with Google for an all-of-government digital transformation effort for cloud computing and storage. The intent is to modernize government services, moving national data onto the cloud, and make collaboration and service delivery easier. The plan also includes establishing a national training program to increase the number of civil servants with digital skills.

Financial Services

The financial services industry is rapidly transforming, focused on digital transformation in cyber security, cost reduction, regulatory compliance, and improving customer intelligence. In February 2022, the Central Bank of Kuwait (CBK) put into effect a digital banking law allowing for the operation of digital banks. The local ecosystem that should spring around these local banks creates opportunity for U.S tech firms.

Moreover, Kuwait’s e-commerce business is expanding quickly because of favorable demographics, high internet, smartphone, and bank penetration, and rising consumer demand for online payments. Online digital payments have grown nine times faster in value than point-of-sale over the past five years.  By early 2023, Apple Pay and Google Pay were adopted and widely used in businesses in Kuwait.

The global pandemic hastened the use of digital and e-commerce.  During lockdowns consumers were required to conduct most transactions online.  

The adoption of contact payments is anticipated to rise, but banking services will become more digitalized, infrastructure for fraud prevention will receive more attention, fintech, and payments-related regulations will develop, digital currencies will become more prevalent, and banks and fintech partnerships are expected to be encouraged.  

The telecom sector is expected to grow massively over the next 10 years. U.S. companies interested in exploring and pursuing opportunities in this market should identify suitable local partners. The procurement process with telecom operators and service providers is done through tenders, and international companies need local representation to participate and bid.  

Resources: for more information, please contact Commercial Specialist Rasha Al-Muhtaseb on rasha.al-muhtaseb@trade.gov