Kuwait Appoints New Oil Minister

Kuwait Appoints New Oil Minister

Kuwait’s emir sheikh sabah al-Ahmad al-Sabah has appointed a new oil minister for the country, following early elections command in late november within which the opposition won quite half of the 50 seats in Parliament.

The incoming oil minister is Essam Abdulmohsen Al-Marzouq, who has previously command many high-level positions, as well as head of the Kuwait stock exchange and board member of state-run Kuwait petroleum corp (KPC).

The emir didn't reveal to the public any specific plans for the new oil minister. Anas al-Saleh, who served as acting oil minister, retained his alternative role as finance minister.

In October, the emir ordered the dissolution of Parliament, citing security concerns and “the circumstances within the region”, which includes the oil price crunch and alternative economic and security worries.

In last month’s elections, the opposition was ready to acquire more than 50 % of the seats in parliament as a result of some terribly unpopular austerity measures announced by the government. Despite this clear referendum on the austerity measures, the Emir, speaking at the inauguration of the newly elected parliament yesterday, said that cuts in public spending were inevitable and a necessary step in reducing a growing budget deficit.

In Sept, once the government attempted to impose a series of fuel price hikes, strong opposition from legislators led to the unexpected dissolution of parliament. The opposition, which has the Muslim Brotherhood, liberals and pan Arabists, had boycotted the election in 2012.

The post of Oil Minister is exceedingly important for Kuwait, that is home to around 7 % of the world’s proven crude oil reserves and almost entirely dependent on oil revenues.

Prior to 2014, Kuwait generated regarding 95 % of its income from oil. however since then, its oil revenues dropped from a massive $97 billion within the 2013-2014 fiscal year to just $40 billion within the last fiscal year (ending March 31, 2016), with predictions that it's going to dip to $35 billion this fiscal year. the ongoing oil price slump saw inflation in the country hit 3.3 percent last year.