Kuwait’s ambitious ‘Vision 2035’ plan, complemented by an economic landscape that supports start-ups, has facilitated the country’s emergence as a hub for innovation and entrepreneurship.
The nation’s technology sector is undoubtedly experiencing a renaissance, with spending projected to exceed $5.5 billion before the end of the year.
Kuwait is committed to building a diverse and bulletproof economy, and their investment in the tech sector underscores the nation’s lofty ambitions.
From the rapidly growing e-Commerce sector to the disruptive force of financial technology, Kuwait’s tech industry is undoubtedly on the rise.
The country is desperate to reduce its reliance on the energy sector by establishing a thriving tech scene, and they are on the right path.
Investment Allows Start-ups to Thrive
Kuwait’s investment in tech has led to the emergence of several prominent start-ups that are leading innovation in their respective fields.
The KD 500 million National Fund was disbursed to support small and medium-sized enterprises (SMEs), while incubators such as Brilliant Lab help ambitious entrepreneurs realise their dreams.
Thanks to these investments, the number of start-ups in Kuwait has increased by 35 percent annually since 2015. Tech start-up investments reached $124m in 2021, and this unprecedented growth is further proof of the nation’s desire to become a recognised tech hub.
Despite the increasing popularity of start-ups across the country, there are questions regarding whether the nation’s strict stance on gambling is denying the tech sector further growth.
A quick glance at the Kuwaiti tech scene paints a picture of stability and growth, and the numbers speak for themselves. Start-up numbers have skyrocketed, investments are pouring in and success stories from tech companies are popping up at an impressive rate.
Boutiqaat, Floward and Talabat are indications of the enormous potential of entrepreneurs in Kuwaiti. The focus on new-age technologies such as artificial intelligence, machine learning and cybersecurity is also commendable.
These are areas that will undoubtedly shape the nation’s economy, and Kuwait establishing itself as a leader in these sectors is an ambitious move.
The potential economic and employment impacts of this tech renaissance are significant, with the industry poised to contribute to the nation’s gross domestic product (GDP).
Conservative Stance on iGaming is a Threat to Further Tech Growth
Amidst this optimism, observing the potential constraints under the microscope reveals several factors that are limiting the growth of the tech sector, especially the issue of gambling.
Many people argue that the absence of a regulated gambling industry in Kuwait deprives the tech sector of a lucrative and innovative space.
Many real money online casinos in Kuwait are often at the forefront of technological advancements, especially in areas such as data analytics, user experience and cybersecurity.
However, the betting firms that operate in Kuwait are licensed overseas, and their investments in tech development do not directly impact the local economy.
In countries where gambling is legal, the tech industry benefits from gambling firms that invest in cutting-edge technologies.
These tech advancements often spill over into other sectors, and the absence of such investments in Kuwait means local tech companies miss out on opportunities to benefit from these innovations.
Innovation Groups Remain Committed to Tech Growth
The National Fund for SMEs has invested over $350m into more than 800 start-ups since 2014.
Private sector investors such as Faith Capital Holding and Artan Ventures are betting on local talent, further fuelling the tech start-ups.
The Kuwait National Innovation Centre encourages the industry, academia and government to work together and increase tech innovation. This is to ensure that the country’s tech sector remains dynamic and forward-looking.
The tech industry in Kuwait is poised to make up over five percent of the total GDP by 2025, up from 3.2%. This growth is creating numerous job opportunities and attracting global talent, which will further cement Kuwait’s position as a leader in the tech industry.
Kuwait plans to launch at least 500 new tech start-ups by the end of the year, and this ambitious move is supported by significant investments in incubation programs, mentorship initiatives and funding avenues.
While the tech scene is experiencing a meteoric rise, the country should consider softening their stance on the gambling industry if they want to take that growth to the next level.
A regulated gambling industry could attract international investors who are always on the lookout for stable and well-regulated markets to invest in.
An influx of foreign capital could be a game-changer for Kuwait’s tech start-ups. The financial resources would be crucial in strengthening the nation’s tech reputation and allowing its companies to compete on a global stage.
