Kuwaits Amir Approves New Cabinet As Shaikh 'Ali Takes Over Energy Ministry

Kuwaits Amir Shaikh Sabah al-Ahmad al-Sabah on 10 July approved a new cabinet presented by Prime Minister Shaikh Nasir Muhammad al-Sabah, with former Labor and Social Affairs Minister Shaikh 'Ali al-Jarrah al-Sabah taking over as Energy Minister. Outgoing energy minister Shaikh Ahmad al-Fahd al-Sabah was one of two ministers dropped from the cabinet as expected (MEES , 10 July) after becoming the focus of attacks by opposition MPs in the previous parliament. Both he and the former state minister for cabinet affairs Muhammad Daif Allah Sharar denied allegations of corruption and blocking electoral reforms. Shaikh Ahmad has been appointed head of the National Security Council, with the rank of minister, while Mr Sharar has been named as an adviser to the amir.

Fifty-six year old Shaikh 'Ali, a graduate in politics and economics from Kuwait University, worked for Burgan Bank and has held a senior diplomatic post in Tehran. Although he has no direct experience in the oil and gas sector, he was a member of Kuwaits Supreme Planning Council in the mid-1990s. The 16-member cabinet contains three new ministers: Shaikh Sabah al-Khalid al-Sabah who takes up the labor and social affairs portfolio; Falah al-Hajiri (Commerce and Industry) and 'Abd al-Hadi al-Salih (National Assembly Affairs see full cabinet list below).

Opposition MPs, a loose grouping of Islamists, nationalists and liberals who now occupy 33 seats in the 50-seat chamber, gave a wary response to the new cabinet with most insisting that the government should be judged on its performance. It is positive that the controversial ministers were axed. This is a good sign of cooperation but we hope the new government will have a vision and its decision-making process is changed, said Shi?a MP Ahmad Lari. Islamist Nasir al-Sani? also welcomed the departure of the two ministers but warned that the other appointments fell far below the expectations of the Kuwaiti people. In a gesture of goodwill to the National Assembly, the new cabinet on 11 July approved an electoral reform bill cutting the number of constituencies in Kuwait from 25 to five as opposition MPs had demanded. A last-minute decision by the previous government to set the number of constituencies at 10 rather than the five recommended by a parliamentary committee caused a political crisis, resulting in the dissolution of parliament (MEES , 29 May). The new cabinet also bowed to MPs wishes by approving a bill relating to interest payments on loans taken by retired Kuwaitis. Deputies are to vote on the two issues in a special session on 17 July.

Oil Policy To Continue

According to MEES soundings, the appointment of Shaikh 'Ali to the Energy Ministry is unlikely to produce any major change in direction for Kuwaiti oil policy in terms of OPEC or production levels. But the minister will be under pressure to quickly resolve two major issues that Shaikh Ahmad left unresolved: the precise extent of Kuwaiti oil reserves and Kuwaits urgent need for gas development and imports. MEES understands that the new minister is likely to face opposition on Project Kuwait and other major upstream investments from MPs until a definitive statement on oil reserves is made (MEES , 30 January). MPs will argue that with some reports suggesting that proven reserves are less than half official estimates, an accurate assessment is essential if Kuwait is to establish an appropriate strategic investment and production plan. In terms of gas, KOC is due to report at the end of the year on development options for a major gas discovery in the north of the country (MEES , 1 May 2006). The development of these reserves and progress on gas imports from Iran will also be at the top of the new ministers to-do list.

The following is a full list of the Kuwait cabinet formed on 10 July 2006 by Amiri Decree No 195/2006:

Prime Minister Shaikh Nasir al-Muhammad al-Sabah

First Deputy Premier, Minister of the Interior, Minister of Defense Shaikh Jabir Mubarak al-Sabah

Deputy Premier, Foreign Minister Shaikh Muhammad al-Sabah

Deputy Premier, Minister of State for Cabinet Affairs Isma?il al-Shatti

Minister of Health Shaikh Ahmad ?Abd Allah al-Sabah

Minister of Finance Badr Mishari al-Humaidhi

Minister of Public Works, Minister of State for Housing Badr Nasir al-Humaidhi

Minister for Labor and Social Affairs Shaikh Sabah al-Khalid al-Sabah

Minister of Education, Minister of Higher Education ?Adil al-Tabatabai

Minister of Justice, Minister of Awqaf and Islamic Affairs ?Abd Allah al-Ma?tuq

Minister of State for Municipal Affairs ?Abd Allah al-Muhailabi