The new Kuwaiti Crown Prince Sheikh Meshal Al Ahmad Al Jaber Al Sabah, right, gestures next to Parliament speaker Marzouq Al Ghanem as he takes the oath at parliament, in October 2020. AFP
The new Kuwaiti Crown Prince Sheikh Meshal Al Ahmad Al Jaber Al Sabah, right, gestures next to Parliament speaker Marzouq Al Ghanem as he takes the oath at parliament, in October 2020. AFP
The new Kuwaiti Crown Prince Sheikh Meshal Al Ahmad Al Jaber Al Sabah, right, gestures next to Parliament speaker Marzouq Al Ghanem as he takes the oath at parliament, in October 2020. AFP
The new Kuwaiti Crown Prince Sheikh Meshal Al Ahmad Al Jaber Al Sabah, right, gestures next to Parliament speaker Marzouq Al Ghanem as he takes the oath at parliament, in October 2020. AFP

Kuwait’s Crown Prince officially dissolves parliament by decree


Ismaeel Naar
  • English
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Kuwait’s Crown Prince Sheikh Meshal officially dissolved parliament on Tuesday, paving the way for general elections in the next two months, according to a royal decree.

The decree was expected as the new government led by newly-appointed Prime Minister Sheikh Ahmad Nawaf Al Sabah took the oath of office also on Tuesday.

The Crown Prince said it was in the interest of national security to dissolve parliament after months of political infighting between the National Assembly and the government.

“To rectify the political scene involving a lack of harmony and co-operation, in addition to differences, conflicts, personal interests, failure to accept others, practices and behaviours that undermine national unity, it was a must to resort to the people who represent the destiny, extension, survival and existence so that they could rectify the path in a way that serves their supreme interests,” Sheikh Meshal said in the decree.

Constitutionally, general elections must be held within two months from the date of the decree dissolving the country's National Assembly.

Prime Minister Sheikh Ahmad, a son of ruling Emir Sheikh Nawaf, announced a new cabinet of 12 ministers on Monday, made up of the same ministers, apart from one, who had served under the embattled government of former prime minister Sheikh Sabah Khaled Al Sabah.

The previous government under the former prime minister faced several months of political feuding and tension with the country's national assembly. Several members of the cabinet, including the ministers of defence and foreign affairs, survived no-confidence votes in parliament.

Kuwaiti MPs attending a parliament session at the national assembly in Kuwait City in February. AFP
Kuwaiti MPs attending a parliament session at the national assembly in Kuwait City in February. AFP

Sheikh Sabah was expected to face a vote of non co-operation in April 6 after members of parliament filed a motion following a grilling session but he resigned shortly before the vote could take place.

In late June, Kuwait’s Emir Sheikh Nawaf and Crown Prince Sheikh Meshal announced plans to dissolve the parliament and called for early general elections, warning that “there are dangers and crises surrounding the country from every side”.

“We need to be careful and take lessons because dangers surround us from all sides. There's overlap between the legislative and executive powers, resulting in practices that threaten national unity,” Sheikh Meshal said in a televised address to the nation.

Kuwait differs from its Gulf Cooperation Council sister countries in that its political system constitutes both a royal family and an elected parliamentary body named the National Assembly. Unlike other elected parliaments in the GCC, Kuwait’s National Assembly has a significant degree of power and its members can remove ministers and override a veto by the emir with a two-thirds vote. The emir, on the other hand, has the power to dissolve parliament and has used that power on several occasions.

Crown Prince Sheikh Meshal was granted key constitutional powers late last year, including the ability to issue decrees like the one on Tuesday on behalf of the emir.

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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Classification of skills

A worker is categorised as skilled by the MOHRE based on nine levels given in the International Standard Classification of Occupations (ISCO) issued by the International Labour Organisation. 

A skilled worker would be someone at a professional level (levels 1 – 5) which includes managers, professionals, technicians and associate professionals, clerical support workers, and service and sales workers.

The worker must also have an attested educational certificate higher than secondary or an equivalent certification, and earn a monthly salary of at least Dh4,000. 

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Yemen's Bahais and the charges they often face

The Baha'i faith was made known in Yemen in the 19th century, first introduced by an Iranian man named Ali Muhammad Al Shirazi, considered the Herald of the Baha'i faith in 1844.

The Baha'i faith has had a growing number of followers in recent years despite persecution in Yemen and Iran. 

Today, some 2,000 Baha'is reside in Yemen, according to Insaf. 

"The 24 defendants represented by the House of Justice, which has intelligence outfits from the uS and the UK working to carry out an espionage scheme in Yemen under the guise of religion.. aimed to impant and found the Bahai sect on Yemeni soil by bringing foreign Bahais from abroad and homing them in Yemen," the charge sheet said. 

Baha'Ullah, the founder of the Bahai faith, was exiled by the Ottoman Empire in 1868 from Iran to what is now Israel. Now, the Bahai faith's highest governing body, known as the Universal House of Justice, is based in the Israeli city of Haifa, which the Bahais turn towards during prayer. 

The Houthis cite this as collective "evidence" of Bahai "links" to Israel - which the Houthis consider their enemy. 

 

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Updated: August 02, 2022, 1:10 PM