Developments in Kuwait’s business landscape

Kuwait

Ali Al Wazzan, managing partner of Deloitte in Kuwait, talks to The Energy Year about privatisation trends in the country and emerging opportunities for energy-sector companies. Deloitte is an international professional services network that offers audit, consulting, financial advisory and risk advisory services, among others.

Which sectors and business segments do you see as the most promising for both the country’s development and your activities?
Kuwait is poised to revamp its tax system through the introduction of the Business Profits Tax Law. The initiative is part of a comprehensive plan to modernise the nation’s tax framework and align it with international standards. Currently, corporate tax is 15% for foreign companies, but zero for local ones, and this is going to change as of the beginning of 2026. So the tax consulting segment might be an interesting one to look at in the future.
The assurance business, which consists of delivering accounting services for non-audit clients, is also a growing one for us.
Finally, the cybersecurity and digital consulting business is skyrocketing in Kuwait, in both the public and private sectors, from K-companies to banks to telecommunications. We believe that the digital and cyber agendas are going to be key pillars in Kuwait Vision 2035, and at Deloitte we are putting in the required investments to match the anticipated demand. There is also of course interest in ESG, but the appetites for cyber and digital solutions are simply moving at a different pace, with big corporations being ravenous for them.

How would you assess Kuwait’s privatisation and sustainability efforts?
Privatisation is a must in Kuwait and, although slowly, it is moving forward. In energy generation, fewer projects and less electricity output will come from the government and more from private players, under 25-year agreements.
It is a fact that the Ministry of Electricity & Water & Renewable Energy (MEW) has emphasised the need to promptly address proposals for independent supplier projects, which are crucial for providing a buffer to the electrical network over the next two years. These projects aim to enhance their production capabilities through the independent supplier system, with the goal of strengthening the network and preventing potential shortages in 2025 and 2026.
Deloitte has a team of about 4,000 people just in the GCC region working on multiple projects. As of today, Kuwait is lagging behind some of its neighbours when it comes to the implementation of more ESG-oriented undertakings. Nonetheless, we are getting there and we are here to play a major role in helping the country combine its privatisation and sustainability efforts with our expertise and international presence.

Can you discuss the footprint that Deloitte has in the region and in Kuwait?
Deloitte started operating in the Middle East in 1949, and in 2010 the company underwent a major change when it merged with a well-known entity in Kuwait who had an important portfolio in auditing and other consulting services, leading Deloitte to become one of the largest audit and advisory firms in the country and increasing its market share significantly.
Since 2010, the firm has been the financial auditor of nine banks out of the 10 currently in Kuwait. We also have an ongoing professional services and advisory relationship with all K-companies, as we serve them on multiple professional services requirements such as tax, risk advisory, cybersecurity and strategic technology consulting.

What is the company’s involvement in the domestic oil and gas sector?
Energy is a major industry in Kuwait for all our service lines. In March 2023, we won a consulting contract to advise the government on the privatisation of the Shuaiba North Cogeneration Power Plant, which falls under the plan to sell some public enterprises to the private sector.
Our role as the financial advisor will entail advising on the assets selected for Shuaiba North’s privatisation process, which is expected to be completed within three years.
We also have ongoing projects with the Ministry of Electricity & Water & Renewable Energy (MEW), besides having a strategic relationship with K-companies. KPC is one of Deloitte’s global strategic accounts; we assist in operational and corporate advisory projects. Deloitte has invested in the oil and gas sector in Kuwait and we have more than 10 Kuwait-based resources focusing on this critical industry.
Our portfolio features several private companies, too. Equate Petrochemical has been a client for the past 10 years. They are a very sophisticated company and we greatly enjoy working with them.

What is your vision for the future of the company?
In five years, we see ourselves as the number one audit and advisory professional services firm in terms of revenues and clients. We have a clear plan and a well-defined strategy to achieve that. The way forward for us is to observe and be ready to seize any new market opportunity that will spring up in a small but still high-potential business landscape like Kuwait.
In Deloitte, we take into the highest consideration the quality of the relationships we have with our clients, always being on their side and showing how tied we are to them.

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