Technology
Kuwait City's Tech Boom Faces Skills Gaps, Ethical Development Questions
Rapid growth in the local innovation sector brings clear opportunities alongside questions over skills gaps and responsible development.
How we reported this
Kuwait City's tech sector continues to expand with new retail anchors such as Assima Mall providing spaces that could host future innovation activities, yet observers note the need to address skills shortages and ethical considerations in parallel.
Why the timing matters now
The city's position as the leading hub for technology events, with over 78 upcoming events scheduled for 2026, coincides with government-backed efforts under Kuwait Vision 2035. These initiatives aim to strengthen the startup ecosystem, which ranks as the GCC's third-largest.
Local anchors and infrastructure details
Assima Mall recently welcomed the fourth JYSK store along with three new Alghanim Industries outlets including Safat Home, X-cite's largest store, and two Costa Coffee branches. Such developments sit within a broader landscape that also includes the IDC CIO Summit Kuwait 2026 set for September 14 at the Jumeirah Messilah Beach Hotel & Spa, where discussions will focus on agentic AI and digital innovation.
Evidence from recent figures
Startups in the city raised approximately $200 million in 2024, with e-commerce accounting for 40 percent of that funding. The overall tech market reached $20.4 billion in 2025 while home internet penetration stands at 99.4 percent and 5G covers 97 percent of the population. At the same time, the ICT sector faces demand for 7,000 additional professionals by 2025, particularly software developers and managers.
Support mechanisms include the $200 million Al-Dharra Innovation Fund and the National Fund for SME Development deploying $2 billion. These resources target sectors such as fintech, healthtech, AI and telemedicine, building on earlier exits including Talabat at $2 billion and Carriage at $100 million.
Looking ahead
Community groups such as Azure Kuwait and the OWASP Kuwait City Chapter continue to meet regularly, offering venues for skill-building and discussion of issues like web vulnerabilities. Continued attention to both infrastructure and workforce development will determine how the sector manages its next phase of growth.