Kuwait's Crown Prince Sheikh Meshal Al Ahmad receives Prime Minister Sheikh Ahmad Nawaf Al Ahmad. Kuna
Kuwait's Crown Prince Sheikh Meshal Al Ahmad receives Prime Minister Sheikh Ahmad Nawaf Al Ahmad. Kuna
Kuwait's Crown Prince Sheikh Meshal Al Ahmad receives Prime Minister Sheikh Ahmad Nawaf Al Ahmad. Kuna
Kuwait's Crown Prince Sheikh Meshal Al Ahmad receives Prime Minister Sheikh Ahmad Nawaf Al Ahmad. Kuna

Kuwait Crown Prince reappoints Sheikh Ahmad as Prime Minister following elections


Ismaeel Naar
  • English
  • Arabic

Kuwait's Crown Prince reappointed Sheikh Ahmad Nawaf Al Sabah as Prime Minister and tasked him with naming a new cabinet before the newly elected parliament's inaugural session next week.

The Prime Minister's previous government resigned following parliamentary elections earlier this month as part of customary protocol.

In the lead-up to the emiri decree reappointing Sheikh Ahmad, Crown Prince Sheikh Meshal Al Ahmad on Tuesday met former prime ministers as well as former speakers of parliament as part of customary consultations.

Sheikh Ahmad is expected to form a new cabinet on Wednesday or Thursday made up largely of the same ministers who held posts in his last government, according to sources.

The newly appointed cabinet is expected to include at least one of the elected members of parliament as a confidence-building measure with the National Assembly.

Parliament will hold its inaugural session on June 20 when MPs and the new government take the oath of office. Sheikh Meshal is expected to attend and give a speech.

The latest move comes after 47 MPs held their second informal meeting at the National Assembly on Tuesday and unanimously approved their road map for political and electoral reforms.

Two MPs who did not attend the meeting also declared their support for the plan.

A long-running standoff between the government and the elected parliament has hampered efforts by the wealthy Gulf Arab oil producer to push through fiscal reforms, including a debt law allowing Kuwait to tap international markets.

Kuwaitis voted on June 6 in their seventh general election in just over a decade, and their third in three years following tensions between the elected parliament and appointed government, when the Emir dissolved the assembly twice.

The September 2022 elections were nullified in March and parliament elected in 2020 was reinstated following a Constitutional Court order. In May, the Emir dissolved that parliament again to hold another election.

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

Updated: September 21, 2023, 4:37 AM