Kuwait's Emir Sheikh Meshal has approved a new cabinet days after dissolving parliament and suspending some articles of the constitution for up to four years.
Sheikh Meshal on Friday dissolved the National Assembly a month after it was elected. He suspended some articles of the constitution over "interference" from politicians, amid disputes that have lasted for several years.
The new government – Kuwait’s 46th since 1962 – is to be led by Prime Minister Sheikh Ahmad Al Abdullah Al Sabah and will be made up of 13 ministers, two of them women.
Sheikh Ahmad is a Kuwaiti economist and has served as head of the Crown Prince’s Court since 2021. In 2009, he was appointed minister of oil and minister of information, holding those portfolios for two years.
On Tuesday, Sheikh Mansour bin Zayed, Vice President, Deputy Prime Minister and Chairman of the Presidential Court, congratulated Sheikh Ahmad and wished him success in his new duties to serve Kuwait.
The previous prime minister, Sheikh Mohammed Sabah Al Salem, refused to take up the post again amid tension between the government and the 50-member National Assembly.
Disputes between appointed members of the government and elected MPs have often led to political paralysis. Elections were held in April, the fourth poll to be held since December 2020.
Kuwait's opposition won the most seats in the elections, maintaining their years-long hold over parliament. MPs have previously accused ministers of corruption, while the government has blamed parliament for hampering development plans.
Sheikh Meshal became Emir in December after the death of his predecessor and half-brother, Sheikh Nawaf.
Under Kuwait’s constitution, a new government must be formed within two weeks of an election. Since the vote on April 4, tension between the elected parliament and the appointed Prime Minister has caused that process to stall.
All aspects of the democratic process will be studied while the articles of the constitution are suspended, Sheikh Meshal said.
“Unfortunately, we have faced some unimaginable, unbearable difficulties and impediments,” the Emir said in an address to the country on Friday. “We were left with no option other than taking this hard decision to rescue the country and protect its higher national interests, and resources of the nation.”
Sheikh Meshal has not yet named a crown prince. The Emir would normally need parliament to endorse his nominee.
During the speech, Sheikh Meshal said some people interfered with his power to choose a crown prince, and warned he would not allow the political system to be exploited to “destroy” the country.
Who is in the new government?
1 - Fahad Al Sabah, First Deputy Prime Minister, Defence Minister and Interior Minister
2 - Shereeda Al Mousherji, Deputy Prime Minister and Minister of State for Cabinet Affairs
3 - Dr Imad Al Atiqi, Deputy Prime Minister and Oil Minister
4 - Abdulrahman Al Mutairi, Minister of Information and Culture
5 - Dr Ahmad Al Awadhi, Minister of Health
6 - Dr Anwar Al Mudhaf, Minister of Finance, and Minister of State for Economic and Investment Affairs
7 - Dr Adel Al Adwani, Minister of Education and Minister of Higher Education and Scientific Research
8 - Abdullah Al Yahya, Minister of Foreign Affairs
9 - Dr Noura Al Mashaan, Minister of Public Works and Minister of Municipality Affairs
10 - Dr Mohammad Al Wasmi, Minister of Justice and Minister of Awqaf and Islamic Affairs
11 - Omar Al Omar, Minister of Commerce and Industry, and Minister of State for Communication Affairs
12 - Dr Mohammad Bushehri, Minister of Electricity, Water and Renewable Energy, and Minister of State for Housing Affairs
13 - Dr Amthal Al Huwailah, Minister of Social Affairs, Labour, Family Affairs and Childhood and Minister of State for Youth Affairs
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
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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Your Guide to the Home
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