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> TOP NEWS HEADLINE: Kuwait government resignation could delay projects
> KUWAIT SPECIAL REPORT: Structural weakness catches up with Kuwait

Kuwait’s Emir Sheikh Nawaf al-Ahmad al-Jaber al-Sabah has accepted the resignation of Prime Minister Sheikh Sabah al-Khalid al-Sabah and his cabinet.

Sheikh Sabah’s cabinet will continue in a caretaker capacity until the formation of a new government, according to a report published by the state news agency on 18 January.

International contractors in Kuwait are expecting the resignation of the cabinet to have significant negative consequences for contractors that are bidding on government tenders.

It is unknown how much disruption the resignations will have, but delays to numerous contract tenders are anticipated.

Kuwaiti Prime Minister Sheikh Sabah Khaled al-Hamad al-Sabah received the resignation of the country’s cabinet on 12 January.

Deputy Prime Minister and Defence Minister Sheikh Hamad Jaber al-Ali al-Sabah tendered the resignation of all the cabinet members.

The resignation came a month after cabinet ministers took office, following the conclusion of parliamentary elections last month.

It also came days before the premier was due to be questioned in parliament over his choice of ministers and other issues.

The motion to question Sheikh Sabah, prime minister since late 2019, was submitted by three lawmakers on 5 January 2021, and was supported by more than 30 other MPs in the 50-seat assembly.

The motion referred to a cabinet that did not reflect the poll result and to government “interference” in electing the speaker and members of parliamentary committees.

This was the second cabinet Sheikh Sabah has headed in less than a year.

On 14 November 2020, Sheikh Sabah tendered the resignation of the previous cabinet members.

It is unclear when a new cabinet will be appointed.

The latest cabinet resignation complicates the government’s efforts to tackle the economic crisis in the wealthy Gulf state, which is facing a large budget deficit in the absence of a debt law that has long-caused political deadlocks.

Kuwait’s parliament has some power to pass, and block, legislation and question ministers.

Senior government posts are typically occupied by members of Kuwait’s ruling family, and the emir has the final say in matters of state.

Frequent rows and deadlocks between cabinet and parliament have led to successive government reshuffles and dissolutions of parliament over decades, hampering investment and economic and fiscal reform.

MEED's January 2021 Kuwait special report includes: 

> Comment: Structural weakness catches up with Kuwait
> Economy: Kuwait faces weak outlook for 2021
> Government: New Kuwait cabinet faces huge challenges
> Banks: Kuwaiti banking proves stable under pressure
> Oil and gas: Kuwait’s oil and gas sector rallies
> Construction: Kuwait construction shows early signs of promise
> Power and water: Kuwait prepares to move utilities projects forward