The State of Kuwait

IT Diffusion: e-Commerce, e-Business

& e-Government

With the advent of the digital age spreading to the far reaches of the globe, the Gulf, in general, has been quite conscious of diverting resources towards IT and making efforts to no be left behind in the internet age. Trailing after first-mover the UAE and their birth-child Dubai and the Internet City, Kuwait has been quite mindful of the justifications to move forward, and has recently looked past bureaucracies and towards full blown realizations.  Individuals and Businesses alike, have long adopted the new medium of communication and have stepped up the use from communication ends to more appropriately, informational ends as well. 

 

e-Commerce/e-Business:

Almost all households enjoy internet exposure in one form or another.  Business and Organizations have swiftly adopted LAN-itivity as western products became readily available, and with that the added advantage of global connectivity. Such companies as Petrochemical Industries Company (PIC) and Kuwait's Refrigeration Industries and Storage Co.S.A.K. (RISCO) are great examples of companies embracing e-business with their adoption of Oracle E-Business Suites which is not yet common in the Kuwait Business environment. All major banks in Kuwait have already been offering customers e-services initially led by NBK (National Bank of Kuwait). The links shown underneath

will display the extent of such services.  The banking industry has really taken responsibility for shaping attitudes and expectations of this early on, ever since the primitive days of telephone banking it introduced.  In all respects, NBK is regarded as an innovator.  All the other banks did not waste too much time with following suit.

 

“In spite of the relatively high penetration rates of IT and Internet services in Kuwait, E-Commerce in Kuwait has not made significant inroads, and traditional patterns of retailing, wholesaling and government services persist. Reflecting this resistance to change, all forms of E-Commerce accounted for only USD 8 million in transactions in 2000.  However, major private and public E-Commerce initiatives currently being  implemented in Kuwait could lead to revolutionary changes in the way Kuwaitis do                    business and receive government services. Reflecting this change, E-Commerce                    transactions are expected to exceed USD15 million by 2003. The Kuwait market                    for E-Commerce related hardware, software and services for 2000 was estimated                    at USD13.5 million, and is expected to grow at 25 percent per year. This                    anticipated growth should lead to exceptional opportunities in Kuwait for                    American suppliers of virtually all types of IT hardware/software and E-Commerce  services, especially those related to: Internet Service Provider (ISP) Services;  Transaction Security Systems/Services; Networking & Communications Systems/ Services; Outsourcing; and B2C/B2B/G2C Services. “ [1]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Analysis:

National IT

Strengths &

Weaknesses

National ICT

Policies

Domestic IT

Market Size

IT Diffusion:

 e-Commerce

 e-Business

 e-Government

Kuwait Chamber of Commerce & Industry (KCCI)

e-Government:

Apart from private sector drivers, "Nepotism and political patronage are said to be presenting a barrier to e-government in Kuwait. Kuwait is struggling with its e-government program, as it faces political and bureaucratic obstacles, according to reports on 26 August 2003..." (Kablenet). However, there are realizations it has to come as consciousness of the global peer pressure sets in.  As such, Kuwait hosted an international e-Government conference just last year with Microsoft. Most importantly, this past September 2004, Kuwait has signed an MOU with Singapore in an e-Government cooperation to assess e-Government needs, requirements and collaborations and planning.  Institutionally and as such “…created the Secretariat for the Central Technical System…” within the

Ministry of Planning.  It will be quite interesting to monitor the progress at such a virgin stage of this historical time.

As far as current progress is concerned, many ministries and departments are publishing their budgets and statistics online and providing forms and applications (purely for printout).  Processing still needs to occur physically still but it is a step in the right direction.  You can see the recent e-Government presence using the links provided below for this purpose.

 

Kuwait has really embraced the Internet from a consumer and general public level.  Internet Cafés in the city are widespread where adolescents, adults and children often enjoy them for recreational and social fillers.  Most of the younger crowd has become quite familiar and fond of the many network gaming titles US children enjoy.  Qualitynet ISP has even setup game servers to suit interests.   I am also aware of a leading café connecting all of its locations via fiber optic cable to enhance domestic gaming competitions and response times.

 

It is also worth mentioning the various “Hotspots” Kuwait has at some cafés and shopping centers.

 

 

Summary of Kuwait Internet Use:

 

567,000* users estimated as of Dec 2003,

23.3%* penetration, per ITU.

    * Extensive internet account sharing in use has not helped an accurate estimate.

 

e-Commerce/e-Banking Links:

National Bank of Kuwait               http://www.nbk.com

Burgan Bank                                http://www.beeebank.com

Commercial Bank of Kuwait        http://www.banktijari.com

Gulf Bank                                     http://www.gulfbank-online.com

 

e-Government Links:

Central Bank of Kuwait                http://www.cbk.gov.kw

Ministry of Communications        http://www.moc.kw/

Chamber of Commerce                http://www.kcci.org.kw

Ministry of Planning                     http://www.mop.gov.kw

Ministry of Information                  http://media.gov.kw

 

 

[1] strategis.ic.gc.ca