Kuwait’s Emir Meshal al-Ahmed al-Jaber al-Sabah’s decision on May 11 to dissolve Parliament is anticipated to usher in a more efficient decision-making process, potentially unlocking economic diversification plans and energy projects that have long been stalled by political impasse. Over the past 18 months, Kuwait has undergone three parliamentary elections, with the latest occurring on April 4. In the span of four years, the nation has witnessed eight governments under three prime ministers, alongside leadership transitions following the demise of two emirs – Sabah al-Ahmed al-Sabah in 2020 and Nawaf al-Ahmed al-Sabah in 2023.
On April 15, Meshal appointed Ahmed al-Abdullah al-Sabah as prime minister, succeeding Mohammed Sabah al-Salem al-Sabah, who declined reappointment. The dissolution of Parliament appears to have cleared a crucial hurdle for the formation of a new Cabinet under Ahmed. A subsequent emiri decree on May 12 unveiled the composition of the new government, retaining key portfolios in oil and finance from the previous administration while introducing fresh faces.
Kuwait, holding approximately 6% of global oil reserves, heavily relies on oil exports, constituting around 90% of government revenue, rendering it highly susceptible to oil price fluctuations. While other Gulf Arab oil-producing nations have progressed with diversification initiatives to mitigate reliance on petroleum revenue and bolstered renewable energy investments, Kuwait has lagged behind.
Before the emir’s move to dissolve Parliament, Kuwait had devised a new strategy aimed at integrating renewables into its energy matrix. On March 7, the then Minister of Electricity, Water, and Renewable Energy, Salem al-Hajraf, unveiled the 2030-50 renewable energy strategy, outlining plans to deploy 22 gigawatts of renewable energy by the end of the decade. Alongside large-scale projects, the strategy enables Kuwaiti citizens to install rooftop solar panels and sell surplus energy to the state. The recent Cabinet reshuffle saw Mahmoud Bushehri appointed as the new minister, succeeding Hajraf.
However, the implementation of this ambitious renewables target remains uncertain, with Kuwait facing pressing challenges in diversifying its energy sources to alleviate strain on the national electricity grid. The nation has resorted to importing liquefied natural gas and electricity to avert blackouts, particularly during peak summer demand periods.
Despite hurdles, Kuwait’s renewable energy aspirations are poised for progress. According to Hajraf, the first large-scale contract for a 1.1 gigawatt solar photovoltaic project is expected to be awarded before year-end, marking a significant milestone in Kuwait’s renewable energy journey.
The dissolution of Parliament aims to address prolonged political stalemate that has impeded major projects and reforms, as well as combat corruption and undue interference in governmental affairs, as stated by the emir. While the move holds promise for expediting project execution, challenges such as entrenched corruption persist.
As Kuwait endeavors to diversify its economy and enhance competitiveness, political stability remains paramount. The International Monetary Fund has cautioned against prolonged political gridlock, emphasizing the urgent need for fiscal and structural reforms to bolster investor confidence and economic resilience.
In the face of economic uncertainties, Kuwait’s long-term plans to expand oil production capacity and develop offshore gas resources underscore its commitment to ensuring energy security and economic stability. However, the nation’s reliance on hydrocarbons underscores the imperative of transitioning towards sustainable and diversified economic pathways.