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Kuwait's mobile penetration rates are among the highest in the world, and the government is working to establish a tech start-up ecosystem.
Kuwait has seen mobile and internet penetration rates increase as the population has become one of the world's wealthiest. High levels of investment in telecommunications infrastructure have given the Kuwaiti population connectivity rates on par with OECD countries, and government leaders are looking to take the next step by integrating this increased technological literacy into the larger economy. Increasing knowledge-based economic output has long been central to the country's diversification plans, and new initiatives aimed at increasing the ease of establishing IT-based businesses and building connectivity with international firms hold the potential to transform the sector in the years to come.
Kuwait's mobile penetration rate is upward of 90%, well ahead of the average of 76% within the GCC and among the highest rates in the world. The overwhelming majority of these are up to par with the fastest global standards; broadband connections accounted for 87% of mobile connections in 2017, and this number is expected to hit 95% by 2020. Kuwait was one of the first GCC countries to install a LTE network in 2011, and it expects to see over 40% of total connections reach 4G speeds by 2020. The mobile market is fairly mature, with three well-established telecom operators. Ooredoo, Viva, and Zain all hold market shares of more than 30%, making the market remarkably competitive. Viva is the newest and fastest growing of the three; since its arrival in December 2008 the Saudi Telecom-owned provider has used an all-IP network to offer speeds of over 100Mbps. As of 2016, it was the second-most popular network, with a 31% market share and 34.5% market revenue.
Spurred on by competition and the high demands of Kuwaiti consumers, Kuwait's mobile providers have been at the forefront of pushing new network upgrades and adapting to new technologies. Zain, the market leader at 38% of customers and 41% of revenue, announced in September 2017 that it had successfully tested 5G technology capable of achieving speeds of more than 70Gbs. According to Viva, Kuwait's mobile usage demand is the highest per capita rate in the world—the average Kuwaiti uses five times as much data as users in South Korea and Hong Kong. Industry leaders believe that boosting the strength of the mobile network will do more than just give consumers faster data speeds; the goal is to leverage Kuwait's connectivity to develop more efficient management systems. Government leaders have discussed the prospect of smart cities powered by Internet of Things initiatives and better data tracking of traffic and waste management flows to improve quality of life and offer new options for Kuwaiti industry. The speed and utility of 5G mobile networks are at the core of these ambitious plans.
Kuwait's regulatory environment has undergone improvements in recent years, but a lack of clear structure and inconsistent government direction remains a frequently cited obstacle to growth. In 2014, a governmental decree established the Communication and Information Technology Regulatory Authority (CITRA), which replaced the Ministry of Communications as the oversight body for the telecommunications sector. CITRA issues licenses, manages spectrum allocations, and mediates disputes between providers and consumers. Its position as a recently formed regulatory body and its wide-ranging powers in what has become one of Kuwait's most important sectors has made it a lightning rod for criticism at times; providers have urged it to focus on further liberalizing the telecoms market by giving private operators more ability to invest in infrastructure. Work on establishing a stable regulatory framework is underway, however, and private industry leaders have expressed confidence that CITRA will help bring about new growth once it has found its footing.
With the needed infrastructure in place and improving rapidly, Kuwait is focusing on using technology to bring about new economic opportunities. The country's technology industry, though still small, has seen strong growth in recent years thanks to government and mobile provider-funded accelerator programs that have worked to use international knowledge transfers to solve Kuwait-specific problems. Kuwaiti start-ups are eligible from funding from the Kuwait National Fund, which uses its KWD2 billion of capital to help finance SMEs. Mobile provider Zain recently launched a tech entrepreneur program that brought young Kuwaitis to London and San Francisco to make connections in some of the world's most vibrant technology hubs. The impact of these initiatives will not be felt immediately, but by laying the foundation for a knowledge-based economy, Kuwait is working to turn its well-connected population into an economic driver.
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TABLE OF CONTENTS
Guest Speaker
Mevlüt Çavuşoğlu,, Minister of Foreign Affairs, Republic of Turkey
TBY talks to Mevlüt Çavuşoğlu, Minister of Foreign Affairs of the Republic of Turkey, on further developing relations in a variety of fields, strengthening economic cooperation with Kuwait, and working together on the refugee crisis.
read articleInterview
Sheikh Dr. Meshaal Jaber Al-Ahmed Al-Sabah, Director General, Kuwait Direct Investment Promotion Authority (KDIPA)
TBY talks to Sheikh Dr. Meshaal Jaber Al-Ahmed Al-Sabah, Director General of Kuwait Direct Investment Promotion Authority (KDIPA), on progress thus far, as well as continuing efforts for the year ahead.
read articleInterview
Dr. Khaled A. Mahdi, Secretary General , Supreme Council for Planning and Development
TBY talks to Dr. Khaled A. Mahdi, Secretary General of the Supreme Council for Planning and Development, on progress in Kuwait's National Development Plan, investing in human capital, and supporting SMEs.
read articleFocus: New Kuwait 2035 Development Plan
Potential for Revolution
The "New Kuwait" 2035 Development Plan was announced in January 2017 with the goal of revolutionizing Kuwait's economy in the next 20 years, diversifying it and making it competitive on the world stage. But revolutions do not come easy.
read articleInterview
Abdullah Hamad Al-Jouan, Chairman & President, The National Fund for Small & Medium Enterprise Development (National Fund)
TBY talks to Abdullah Hamad Al-Jouan, Chairman & President of The National Fund for Small & Medium Enterprise Development (National Fund), on increasing support for SMEs, technology overhaul, and sectors with potential.
read articleInterview
Dr. Osamah A. Alsayegh, Executive Director , Energy and Building Research Center (EBRC)
TBY talks to Dr. Osamah A. Alsayegh, Executive Director of the Energy and Building Research Center (EBRC), Kuwait Institute for Scientific Research (KISR), on increasing renewable energy generation capacity, improving energy security, and striving to align KISR with national development plans.
read articleInterview
Bakheet Al-Rashid, former President & CEO , Kuwait Petroleum International (KPI)
TBY talks to Bakheet Al-Rashidi, former President & CEO of Kuwait Petroleum International (KPI), on the company's successful operations in the past year, its investment plans, and opportunities in the sector.
read articleInterview
Ibrahim Al-Musaiteer, Deputy CEO, Administration and Finance at Petrochemical Industries Company (PIC)
TBY talks to Ibrahim Al-Musaiteer, Deputy CEO of Administration and Finance at Petrochemical Industries Company (PIC), on its contributions to add value to Kuwait's hydrocarbons.
read articleInterview
Qusai Al Shatti, Deputy Director General, Central Agency for Information Technology (CAIT)
TBY talks to Qusai Al Shatti, Deputy Director General of the Central Agency for Information Technology (CAIT), on implementing e-government initiatives, measuring progress, maintaining security.
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Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General, Kuwait Ports Authority (KPA)
TBY talks to Sheikh Yousef Abdullah Sabah Al-Nasser Al-Sabah, Director General of the Kuwait Ports Authority (KPA), on the Kuwait Logistics City Project, plans to increase capacity, and digitalization.
read articleFocus: Healthcare Costs
The Costs of Living
Kuwait's health infrastructure and workforce is relatively small, while major health problems have arisen over the past decades. The state is still the dominant force in health expenditure, but private-sector participation is the key to expanding the healthcare sector.
read articleInterview
Ahmad Yousef Al Kandari, Vice Chairman & CEO , United Facilities Management (UFM)
TBY talks to Ahmad Yousef Al Kandari, Vice Chairman & CEO of United Facilities Management (UFM), on weathering the storm, freeing up client potential, and laying the groundwork for successful organizational structure.
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Ali Hussein Al-Yoha, Secretary General, National Council for Culture, Arts, and Letters (NCCAL)
TBY talks to Ali Hussein Al-Yoha, Secretary General of National Council for Culture, Arts, and Letters (NCCAL), on protecting Kuwaiti folklore, encouraging investment in cultural tourism, and bringing the benefits of culture to every Kuwaiti's doorstep.
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Rana A. Al Nibari, General Manager, The Scientific Center Kuwait (TSCK)
TBY talks to Rana A. Al Nibari, General Manager of The Scientific Center Kuwait (TSCK), on rousing people's curiosity for science and technology, connecting with students and their families, and encouraging sustainability.
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