12 November 2026
Kuwait’s Smart Economy Surge

BCG: 6 Factors Boost Kuwait's Position Among Smart Economies

Gamal Khattab

21 Aug 2025

462

 A study by the Boston Consulting Group (BCG) has classified Kuwait among the global economies that are applying artificial intelligence (AI) technologies, placing it in the AI Practitioners category alongside 30 other countries, including Qatar, Oman, and Bahrain.

1. Study Background

The study, titled "GCC's AI Pulse: Readiness for an AI-powered Future," used an advanced analytical model to measure global AI development. It categorized world economies into four groups:

  • Emerging Economies
  • AI Practitioners Economies (including Kuwait)
  • Competitive/Promising Economies
  • AI Leaders (such as the United States, United Kingdom, and China)

2. Kuwait's Position

Kuwait is ranked in the second category, the AI Practitioners. The study notes that no GCC country has yet reached the "AI Leaders" category. However, it emphasizes that there are promising opportunities for the region to enhance its readiness and achieve regional and global leadership.

3. Kuwait's Strategic Vision

Kuwait has committed to adopting AI in vital sectors. The National AI Strategy aims to:

  • Transform Kuwait into a regional AI powerhouse.
  • Strengthen digital transformation in state institutions.

4. Factors Boosting National Ambition

The following six factors can accelerate Kuwait's AI development:

  • Developing national skills in AI.
  • Implementing innovative policies to support innovation.
  • Increasing investments in AI and scientific research.
  • Establishing a center of excellence for AI.
  • Creating comprehensive governance frameworks for the sector.
  • Nurturing the startup ecosystem.

5. Key Challenges

The study highlights a gap between national ambitions and reality in several areas:

  • The scale of investments.
  • Research and development.
  • Skills development.

It stresses the need to transition from the planning stage to actual implementation and achieve measurable results through clear initiatives.

6. Kuwait's Potential for Leadership

Kuwait has the foundational pillars to develop its AI sector. It has the potential to become a regional and international leader by:

  • Investing in national talent.
  • Supporting the startup ecosystem.
  • Establishing principles for the responsible use of AI.

The study concludes that Kuwait's classification is a strategic step toward the future. Success requires decisive action to turn vision into tangible achievements. Realizing leadership depends on integrating planning, investment, and innovation to build a sustainable digital economy.


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