Kuwait's foreign minister to be acting oil minister

CABINET OVERHAUL: Kuwait's new cabinet is it's fourth since March 2007. (Getty Images)

Kuwait's foreign minister has been appointed acting oil minister in a new cabinet as the Gulf Arab state tries to end a political standoff which has delayed reforms in the OPEC producer, state media reported on Monday.

Sheikh Mohammad al-Salem al-Sabah, a key member of the ruling family, will stay foreign minister and also take over from the outgoing oil minister, Mohammad al-Olaim, the news agency KUNA said.

Changes in the oil ministry usually have little impact on Kuwait's energy policy which is decided by a council including industry experts.

Prime Minister Sheikh Nasser al-Mohammad al-Sabah had resigned along with his cabinet in November after three parliamentarians moved to question him. But Kuwait's ruler, who has the last say in politics, reappointed his nephew.

The political impasse is threatening economic reforms to attract more investment and soften the impact of a global credit crunch which is increasingly hitting Kuwait despite its enormous oil wealth.

The new cabinet is the small country's fourth since March 2007 after previous line-ups resigned, or the ruler, Sheikh Sabah al-Ahmad al-Sabah, reshuffled cabinets to resolve similar standoffs. KUNA said it took the oath of office on Monday.

With only the oil, water and electricity, health and transport portfolios being changed in the new government, Mustapha al-Shamali will be left in charge of the key finance ministry which is in charge of measures to tackle the impact of the global financial crisis on Kuwait.

Local media said many candidates had declined offers to join the OPEC producer's new government, worried the political standoff between the cabinet and parliament may drag on.

The ruler dissolved parliament in March to end a protracted row with MPs. With a new government in place, deputies cannot question Sheikh Nasser on the same grounds again but could do so on different issues. Parliament has a history of challenging the government.

Even before the official announcement on state media, some MPs immediately criticised the new line-up.

"We were expecting a better formation of the government ... the return of some ministers will lead to conflicts. We hope the performance of ministers will be different," Islamist deputy Saleh Ashour told reporters in parliament.

Nabil Bin Salama was named electricity, water and transport minister while the deputy Rawdan al-Rawdan is the new health minister, KUNA said. Key portfolios such as defence, interior or information remain in the hands of the ruling family.

The acting oil minister's main task will be to restore confidence among investors after Kuwait cancelled a $17 billion project with Dow Chemical <DOW.N> after opposition from MPs, just weeks after signing the deal.

He will also have to decide on the fate of a $15 billion refinery which has been put on hold after parliament launched an investigation, and a multi-billion tender to upgrade two refineries which has also been delayed.

Kuwait is the world's seventh-largest oil exporter and sits on 10 percent of global crude reserves. (Reuters)

Print | Email | Discuss this article

| Share |

READERS' COMMENTS

Click here to post a comment

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic. Arabian Business would like to point out that only comments relevant to the story will be published. Any containing personal insults or inappropriate language will not be approved.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Enter the words above *
Please click post only once - your comment will not be published immediately.

MORE FROM ARABIANBUSINESS.COM