Having traditionally relied heavily on oil revenue, Kuwait has been forced to think outside of the box as the world moves towards more sustainable energy sources.
The Middle Eastern nation has turned to technology in a bid to diversify the economy, modernise key sectors and create a knowledge-based future.
Under the New Kuwait Vision 2035 plan, the country is quietly being transformed into an economy that can stand effectively on its technological advantages.
Digitising Oil and Gas
Even though Kuwait wants to diversify its economy, it cannot completely abandon the oil industry. They plan to digitise the sector.
Kuwait Petroleum Corporation (KPC) is leading the new wave of smart oilfields using artificial intelligence (AI), the Internet of Things (IoT) and cloud technologies.
The Kuwait Integrated Digital Field (KwIDF) initiative is popular. It is a unified, real-time data platform that links almost half of the upstream oil assets in Kuwait.
Over 93 percent of domestic oilfields started using the digital system, and it has improved efficiency and output, transforming oil from a monolith to a digital enterprise.
Kuwait has signed agreements with Google Cloud and Huawei over the past two years, and these deals will help transform the private and public sectors.
Local companies such as Zain Kuwait have also helped to accentuate this development by building private 5G networks and drone surveillance systems to bolster refinery security.
Technology in the Service of Public Transformation
Kuwait is pushing for Zero Trust security protocols, launching the Cloud Centre of Excellence to transform public service in conjunction with Microsoft.
The aim is to leverage technology to deliver better public services to Kuwaiti nationals. It also supports plans to build smart cities run on AI, cloud computing and big data analytics.
Kuwait’s information and communications technology (ICT) sector was valued at over $22 billion, but it is expected to grow to $40bn by 2028 as technology continues to sweep through the nation.
The tech revolution is seeping into every domain, from personalised education systems built on AI to healthcare services that reduce the cost of treatment and increase life expectancy.
The Kuwaiti government also plans to increase research and development by securing partnerships with renowned universities to improve the quality of local education and support tech-savvy talents.
Legal Tech and the Gambling Sector are a Missed Opportunity
While Kuwait has made progress in diversification, they have missed an opportunity by refusing to tap into potential tech applications, particularly in the regulated gambling industry.
Legalised gambling is a tech-powered financial engine that bolsters tourism and entertainment revenue while running on innovative data analytics.
Some Middle East countries have reconsidered their position on gambling over the past few years. However, Kuwait refuses to budge, and there are no signs that things will change.
Their reluctance stems from cultural and religious beliefs, but comes at considerable economic costs. Experts believe the global gambling market will exceed $150bn by 2030.
Kuwait has the infrastructure, internet penetration numbers and youthful population to tap into this sector, especially the digital eSports betting and predictive analytics angles.
Many Arab players already love playing online slots in Kuwait via platforms which are regulated by authorities located in other major gambling jurisdictions.
Despite the popularity of gambling, Kuwait continues to do nothing to create a regulated framework. The conversation remains closed, at least for now.
Start-ups, Innovation and the Private Sector Ecosystem
Kuwait has vehemently promoted start-up culture. For instance, AI start-up investments have quadrupled since 2000.
The government established initiatives such as the Kuwait Tech Start-up to design sandboxes for new enterprises and simplify license laws and procedures to get companies to scale faster.
Almost 70% of multinationals in Kuwait believe AI is crucial for staying competitive, and 62% of local firms agreed it is critical for operations.
Kuwait has been trying to support these companies with capital and world-class digital infrastructure, including 5G coverage for 97% of the population and top-notch cybersecurity protocols.
However, it is not smooth sailing. Cybercrime is a problem that the industry is struggling to eradicate, and small businesses are especially at risk.
Microsoft is working with the government to implement behaviour-based AI threat detection and a zero-trust architecture – a solid first step. The country must protect the non-oil space it wants to foster.
Technology can also play a massive role in renewable energy by aiding efforts to integrate solar and wind power at scale.
