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Kuwait ruler to select new PM

Kuwait's ruler held consultations on Monday to select a new prime minister two days after a parliamentary election that analysts said was unlikely to improve the investment environment.

Women won four seats in Saturday's poll, a first in Kuwait's history and a blow to Sunni Islamists who lost half their seats - mainly to Shi'ite Muslim and liberal candidates.

Analysts said losses suffered by the Islamists, who had long dominated parliament, could signal a power shift but that the new assembly's willingness to go along with the government's economic policies also depends on the cabinet's composition.
The emir is expected to name a prime minister in the next two days and newspapers said he was likely to reappoint Sheikh Nasser al-Mohammad al-Sabah, which could anger some lawmakers.

"Creating a suitable environment for investment doesn't fall solely on parliament's shoulders, it also falls on the government's shoulders," said Amani Bouresli, a professor of finance at Kuwait University.

Kuwait's ruler, Sheikh Sabah al-Ahmad al-Sabah, called fresh elections after dissolving the assembly two months ago to avert a move by some lawmakers to question Sheikh Nasser, who is a senior member of the ruling family.

The pattern is one that has repeated itself in Kuwait, which has had five cabinets and two elections in the past three years. The ruler has reappointed Sheikh Nasser, who is his nephew, as prime minister every time.

State news agency KUNA said on Monday the ruler had met former parliament speakers for "traditional consultations over the formation of a new government".

Analysts have said that the appointment of a strong prime minister and cabinet able to push through economic reforms and policies aimed at encouraging foreign investment, is key to resolving Kuwait's political crisis.

If Sheikh Nasser is reappointed, lawmakers could renew demands to question the prime minister. But the slight shift in parliament towards more Shi'ite and liberal representation could mean that Sunni Islamists are not as well placed to pressure ministers as they were before.

Any MP has the right to question ministers, but it takes 10 lawmakers to file a request for a no-confidence vote and a majority of the elected members of the 50-seat assembly, not including ministers, to vote the minister out of office.

However, since political parties are banned in Kuwait, lawmakers tend to form only loose blocs and can easily shift alliances depending on the issue at stake, making it hard to predict how well the new assembly will work with the cabinet.

"I don't expect that it's going to make that much difference for the economic environment. I think there sill going to be a lot of opposition to government policies," said Monica Malik, regional economist at EFG-Hermes in Dubai.

One of the first tests of the new assembly's willingness to work with the government will be the $5 billion economic stimulus package, which had faced parliamentary opposition.

The ruler's decision to dissolve the house allowed him to push ahead with the package, which is intended to soften the impact of the global financial crisis on the OPEC member.

The new assembly must vote on the plan when it first convenes. Some analysts have said the assembly is likely to approve the stimulus plan as it will already be underway.

But others say it could face hurdles as many of the lawmakers who had opposed the plan have returned.

Aseel al-Awadhi, a liberal and one of Kuwait's first women lawmakers, said some MPs want to introduce amendments.

"The economic plan will be a reason for crises in the next assembly," said political analyst Shamlan al-Eissa. "They (MPs) could team up and oppose the law." (Reuters)

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