KUWAIT CITY (BLOOMBERG) - Kuwait's Prime Minister on Wednesday (Dec 29) appointed his fourth Cabinet in two years, naming a new finance minister and including four lawmakers in the line-up in an effort to break a political impasse that has held back economic reforms in the oil-rich Gulf nation.
Mr Abdulwahab Al-Rushaid, a known critic of the government's fiscal policies, becomes finance minister, replacing Mr Khalifa Hamada, state media reported. Mr Al-Rushaid was head of the Kuwait Economics Society, which represents the views of private sector business people.
Mr Hamada, like his predecessors, had struggled to change Kuwait's spending habits due in large part to a lack of support from senior policy circles.
Political dysfunction has led to a revolving door at the critical ministry, with ministers rarely lasting long in office. Mr Al-Rushaid is the sixth person to hold the portfolio in just under eight years.
Mr Mohammed Al-Fares retained his position as oil minister in the Cabinet that took five weeks to form.
As prime minister, Sheikh Sabah Al-Khaled Al-Sabah sought to appease all political groupings, many declined posts due to persistent parliamentary pressure on ministers and a lack of support for the changes required to help the government balance its books.
Other new appointments include Defence Minister and Deputy PM Sheikh Hamad Jaber Al-Ali Al-Sabah, Interior Minister and Deputy PM Sheikh Ahmad Al-Mansour Al-Sabah and Foreign Minister Sheikh Ahmad Nasser Al-Mohammed Al-Sabah.
The Opec member, home to about 8.5 per cent of the world's oil reserves, posted a record budget deficit in the last fiscal year due to a cash crisis exacerbated by a plunge in oil prices and the coronavirus pandemic.
Years of political tensions have stymied efforts to diversify the oil-reliant economy and promote foreign investment, leaving Kuwait particularly vulnerable.
The previous Cabinet resigned as the country's ruler pardoned several opponents as part of a national dialogue with members of the loosely aligned opposition.
Hopes have run high that some degree of reconciliation would help ease the passage of delayed laws, but it is unclear how many hurdles have been removed.
While appointing three ministers from among opposition lawmakers is symbolically significant - the first time in 30 years the opposition has had such Cabinet representation - they are unlikely to have any real influence in making key decisions. They do not hold key portfolios either.
As finance minister, Mr Al-Rushaid now heads the Kuwait Investment Authority, which manages the country's US$700 billion (S$946 billion) sovereign wealth fund, designed to reduce dependence on oil-related investments.
Efforts to strengthen the economy have been hindered by long running disputes between the country's elected legislature, currently dominated by the opposition, and an executive appointed by the ruling family.
Kuwaiti Crown Prince Sheikh Mishaal Al-Ahmed Al-Jaber Al-Sabah last month temporarily took over some responsibilities of ruler, Emir Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, who has periodically travelled abroad on private trips that are widely known to have involved medical treatment.
