(Bloomberg) -- Kuwait's Prime Minister Sheikh Sabah Al-Khaled Al-Sabah has resigned to avert a new push by opposition lawmakers to remove him from office, deepening a long-running political standoff that's held back the economy.
The premier, first appointed in December 2019, was questioned in parliament last week, with a vote of non-cooperation to follow on Wednesday. Opposition lawmakers, who have repeatedly pushed for Sheikh Sabah's ouster, looked set to have the required support to force him out.
The prime minister's resignation letter was received by Crown Prince Sheikh Mishaal Al-Ahmed Al-Jaber Al-Sabah, the state-run KUNA news agency said.
Political dysfunction in the OPEC member has for years plagued its development, deterring foreign investment, thwarting fiscal reform and hindering efforts to diversify the oil-reliant economy.
The resignation “is an expected outcome,” said Kuwait University professor Bader Al-Saif. “Only reforms that tackle root issues can pull Kuwait out of its cyclical crisis.”
Sheikh Sabah has led four governments in little more than two years. The current lineup has been in office for just over three months. He took over a month to form his last cabinet as he sought to appease all political groupings.
Kuwait Names New Interior, Defense Ministers From Ruling Family
Kuwaitis had expected a national dialog held last year with members of the loosely aligned political opposition to help overcome years of tensions between a parliament that is elected and a prime minister who is named by the ruling Al Sabah family. Kuwait has had 18 governments and eight elections since 2006.
The political standoff, which has delayed the passage of laws, including a bill that would allow the government to borrow or dip into its sovereign wealth fund in times of need, puts Kuwait's political system under growing strain.
Kuwait Seeks to Remake $700 Billion Wealth Fund for ESG Era
Home to about 8.5% of the world's oil reserves, Kuwait posted a record deficit in the 2020/21 fiscal year as a cash crisis exacerbated by the pandemic and plunge in oil prices left the government scrambling to pay state salaries. The recovery in crude prices has since relieved pressure on the treasury.
The opposition, which made gains in the last elections, has been building momentum. This is the second time lawmakers have succeeded in driving out a premier since Sheikh Nasser Al-Mohammed Al-Sabah was forced to resign in 2011 following months of street protests. They are also currently seeking to remove Parliament Speaker Marzouq Alghanim.
The crown prince in November temporarily took over some responsibilities of the country's ruler, Emir Sheikh Nawaf Al-Ahmed Al-Jaber Al-Sabah, who has periodically traveled abroad on private trips that are widely known to have involved medical treatment.
©2022 Bloomberg L.P.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
