Kuwait has been locked in a political tug-of-war for the better part of a decade, with the issue primarily centring around the nation’s economy.
Some leaders are eager to diversify the economy. However, others prefer the comfort of remaining a nation sustained by their oil wealth, which is a long-standing tradition.
Despite this, the winds of change may finally be blowing across the Kuwaiti desert as new Prime Minister Mohammad Sabah Al-Salem leads the charge for a diversified economy.
Al-Salem wants to implement an actionable plan to overhaul Kuwait’s fiscal and economic market amid fears that the nation’s natural wealth is too depleted to solely sustain the welfare state.
He recognises the need to unlock Kuwait’s full economic potential, which extends far beyond oil and gas. He has proposed measures that would allow Kuwait to take out loans on the international markets.
The nation would also allow commercial banks to enter the market for property loans, ending a monopoly long enjoyed by Kuwait Credit Bank.
Spreading wealth is another key theme of Al-Salem’s economic overhaul. He wants to implement a broader tax base by introducing new corporate taxes on local companies. This move would reduce the nation’s reliance on oil revenue and create a more sustainable financial future.
While most of the Gulf region is actively diversifying their economies, over 90% of Kuwait’s exports and revenue still come from oil and gas.
Their reliance on a single asset is both a blessing and a curse. While the nation boasts well-stocked coffers for now, it’s a situation which may not last forever.
Intriguingly, the call for reform is not coming from the government alone. The Central Bank of Kuwait (CBK) is a vocal advocate for change.
Kuwait’s economic strength is well documented, but the CBK understands the limitations of relying solely on reserves. They recognise the need for structural reforms to mitigate the risks associated with fluctuating oil prices, decreasing future demand and rising production costs.
The call for reform in Kuwait is gaining momentum. It is driven by a desire to diversify the economy and modernise the country’s legal and regulatory framework.
While the focus has largely been on economic and political reforms, there is growing interest in how these changes might extend to the iGaming sector.
Many of the real money online casinos in Kuwait currently operate in a legal grey area. They are generally licensed and regulated in overseas jurisdictions to circumvent local gambling restrictions.
These platforms provide Kuwaiti players access to various online gambling options, including slots, table games and sports betting.
However, with online gambling still illegal in Kuwait, some of these platforms are often unregulated and may not offer the necessary protection from fraud or responsible gambling measures.
Diversification, Tech Boom & the Future of iGaming
Kuwait’s efforts towards diversifying its economy by leveraging technological advancements could influence the future of iGaming in the country.
Recognising the potential of the digital economy, the Kuwaiti government has been investing in technology to drive growth and create new job opportunities.
The Kuwait National Development Plan (NDP), also known as Vision 2035, is at the heart of this shift.
The NDP outlines the government’s ambition to establish Kuwait as a leading financial and commercial hub. Unsurprisingly, technology will be crucial in making their vision a reality.
Vision 2035 prioritises tech investments that translate into noteworthy infrastructural upgrades, including expanding high-speed internet and developing smart cities.
Technology parks are also part of the long-term plan. The goal is to build fertile ground that attracts tech giants and potentially bolsters the growth of online industries.
Whether iGaming will be part of these industries is anyone’s guess. However, Kuwait’s robust digital infrastructure and growing tech-savvy population are poised to establish the nation as a leading tech hub capable of supporting online sectors.
Will the Kuwaiti Reform Extend to the iGaming sector?
Gambling is still a touchy subject in the Middle East. While some nations have embraced the industry, some are still reluctant to hop on the bandwagon.
Developments in the United Arab Emirates (UAE) and Saudi Arabia have highlighted how the attitude towards iGaming is shifting across the Gulf region.
The UAE has been liberal with its policies. It has shown more inclination toward adopting new technologies and embracing the potential of the iGaming industry.
Gambling is still largely illegal in the Middle East, but the UAE has taken a bold step toward diversification by creating a regulated iGaming market that caters to a growing demand and opens up a new revenue stream.
Saudi Arabia has also shown a willingness to explore the potential of the gaming industry, especially eSports, a sector with significant overlap with the iGaming industry.
Whether Kuwait will embrace iGaming reform remains to be seen, especially with Islamic principles strongly against any form of gambling.
Religious leaders are likely to rally against integrating iGaming in Kuwait, but the potential tax revenue generated from a regulated market could also tempt them to reconsider their stance.
