Kuwait signs landmark deal to upgrade national telecom

KUWAIT CITY, May 21: Minister of State for Communications and Information Technology and acting Minister of Information and Culture Omar Al-Omar revealed that the commitment document for the fixed-line telecommunications network development project is one of the largest strategic partnership agreements in the telecommunications and digital infrastructure sector in the country, with project investments exceeding KD 825 million. Al-Omar made the statement at the ceremony for signing the commitment document between the Ministry of Communications, Kuwait Authority for Partnership Projects (KAPP), and the Bahraini company, Beyon, which was selected as the winning investor for the project. He emphasized that signing the commitment document, a long-term partnership for 50 years, reflects the dedication of the country to build a sustainable digital infrastructure managed according to modern operating models and to keep pace with the rapidly evolving demands of the digital economy and future services. He pointed out that this is not just a traditional technological project, as it is a long-term national investment in the digital future of the country and its ability to keep up with the fast growth in digital services and cloud computing.

He stated “today, we are not only signing an agreement to develop the telecommunications network, but also establishing a digital infrastructure that will form the backbone of future government services, economic sectors, and upcoming technology investments, aligning with the objectives of Kuwait Vision 2035 for a more diversified and competitive economy.” He said the project has significant economic and developmental dimensions by creating quality job opportunities for Kuwaiti talent and enabling citizens to participate in the ownership of the project company in the future through a public offering, thus, strengthening the concept of community partnership in major national projects.

He expressed his gratitude to the Ministry of Finance, KAPP, and the technical, legal and advisory teams for their efforts in preparing and evaluating the project, while welcoming Beyon as a strategic partner with advanced regional expertise in developing and managing telecommunication networks and digital infrastructure. On the other hand, Asma Al-Mousa, acting Director General of KAPP, underscored the importance of the project as it signals a qualitative leap in the digital transformation process and a means of strengthening the digital infrastructure of Kuwait according to the highest international standards and specifications.

Al-Mousa added that the project is a new and successful model for partnership projects in Kuwait, given its close connection to the digital economy and technological development. She indicated that the project has national and social dimensions, as it focuses on qualifying and training national talent in the communications and information technology sector.

“It also allocates at least 65 percent of the jobs in the project company to Kuwaiti citizens, as stipulated in the partnership agreement. It includes allocating 50 percent of the shares for public subscription to citizens, thus, enhancing their participation in development projects and supporting the culture of saving and investment,” she elaborated. Sheikh Abdullah bin Khalifa Al Khalifa, Chairman of the Board of Directors of Beyon Group, affirmed that this is a long-term strategic project and the pillar for achieving the goals of the New Kuwait 2035 vision. He explained this is accomplished through building a modern digital infrastructure that contributes to accelerating the pace of digital transformation.

“Kuwait is witnessing today the path of growth and prosperity, thanks to the wise guidance of the leaders of both countries and their contribution to driving development and progress in various vital sectors. The project raises the readiness of Kuwait to keep pace with technological advancements and future digital services, and supports the transition towards a knowledge-based and innovation-driven economy. Beyon Group has vast experience in implementing fiber optic network expansion projects in several markets, including Bahrain, Jordan and the Maldives,” he disclosed. Also present at the signing ceremony were Minister of Finance Yaqoub Al-Rifai, Chairman of the Communications and Information Technology Regulatory Authority Khaled Al-Zamil, acting Undersecretary of the Ministry of Communications Eng. Meshaal Al-Zaid, and Ambassador of the Kingdom of Bahrain to the State of Kuwait Salah Al-Maliki.

By Mohammad Ghanem Al-Seyassah/Arab Times Staff