Kuwait Formally Dissolves Parliament, Delays Budget Approval until after Elections

A view shows the first parliament session held after elections, in Kuwait City, Kuwait December 15, 2020. (Reuters)
A view shows the first parliament session held after elections, in Kuwait City, Kuwait December 15, 2020. (Reuters)
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Kuwait Formally Dissolves Parliament, Delays Budget Approval until after Elections

A view shows the first parliament session held after elections, in Kuwait City, Kuwait December 15, 2020. (Reuters)
A view shows the first parliament session held after elections, in Kuwait City, Kuwait December 15, 2020. (Reuters)

Kuwait formally dissolved parliament in a decree issued on Tuesday, state news agency KUNA said, as the Gulf Arab state's crown prince moved to resolve a standoff between the government and elected parliament that has hindered fiscal reform.

Last month Crown Prince Sheikh Meshal al-Ahmad al-Sabah, who took over most of the ruling emir's duties, said he was dissolving parliament and would call for early elections. On Monday he approved a cabinet headed by a new prime minister.

"To rectify the political scene, the lack of harmony and cooperation ... and behavior that undermines national unity, it was necessary to resort to the people...to rectify the path," Sheikh Meshal said in the decree dissolving parliament.

Parliament had not yet approved the state budget. Finance Minister Abdul Wahab al-Rasheed said on Tuesday the budget for fiscal year 2022/2023 would be approved after the elections, for which no date has been set yet, and that the government would continue to work according to the 2021/2022 budget.

Al-Rasheed said in a statement the next budget, which had to be approved before November, had set spending at 23.65 billion dinars ($77.24 billion) compared with 23.48 billion in the 2021/2022 budget.

The previous government resigned in April ahead of a non-cooperation motion in parliament against Prime Minister Sheikh Sabah al-Khalid, who late last month was replaced as premier by the current emir's son Sheikh Ahmad Nawaf al-Sabah.

Stalemates between Kuwait's government and parliament have often led to cabinet reshuffles and dissolutions of the legislature over the decades, hampering investment and reforms. The last time parliament was dissolved was in 2016.



GCC Denounces Iranian Attacks on UAE as Dangerous Regional Escalation

Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi. SPA
Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi. SPA
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GCC Denounces Iranian Attacks on UAE as Dangerous Regional Escalation

Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi. SPA
Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi. SPA

Secretary-General of the Gulf Cooperation Council (GCC) Jasem Albudaiwi expressed the council's strongest condemnation of the flagrant Iranian attacks targeting the United Arab Emirates.

He emphasized that this act of aggression constitutes a blatant violation of the sovereignty of a GCC member state and represents a dangerous escalation that threatens the security and stability of the region, reported the Saudi Press Agency on Tuesday.

He stressed that targeting the UAE is unacceptable and reprehensible behavior by all standards, reflecting an escalatory approach that disregards the rules of international law and the principles of good neighborliness.

Furthermore, he called upon the international community to assume its responsibilities to halt these repeated Iranian attacks and put an immediate end to irresponsible actions that undermine regional and international peace and security.

Albudaiwi underlined the GCC’s full and steadfast solidarity with the UAE, standing as a united front in support of all measures taken to protect its security, safeguard its sovereignty, and preserve the safety of its vital facilities.


MWL Condemns Iranian Aggression against the UAE

The Muslim World League (MWL) logo
The Muslim World League (MWL) logo
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MWL Condemns Iranian Aggression against the UAE

The Muslim World League (MWL) logo
The Muslim World League (MWL) logo

The Muslim World League (MWL) condemned Iran’s targeting of civilian and economic facilities in the United Arab Emirates, the Saudi Press Agency reported on Tuesday.

In a statement issued by the MWL General Secretariat, Secretary-General and Chairman of the Organization of Muslim Scholars Dr. Mohammed Al-Issa condemned Iran's attacks, describing them as criminal acts that violate all religious principles as well as international humanitarian law.

He stressed the league’s full solidarity with the UAE in all measures it takes to safeguard its security, sovereignty, and the safety of its citizens and residents.

On Monday, the United Arab Emirates said it came under attack by Iran for the first time since a fragile ceasefire took hold in early April.


Kuwait Renews Egypt Deposit, Reinforcing Bilateral Ties

The Central Bank of Egypt. (Reuters)
The Central Bank of Egypt. (Reuters)
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Kuwait Renews Egypt Deposit, Reinforcing Bilateral Ties

The Central Bank of Egypt. (Reuters)
The Central Bank of Egypt. (Reuters)

Kuwait has renewed its deposit at the Central Bank of Egypt, a move that reinforces ties between the two countries.

Kuwait’s ambassador to Egypt Ghanem Saqr Al-Ghanem told Asharq Al-Awsat the extension followed “a thorough study” and reflects Kuwait’s commitment to supporting Egypt’s economy as “a fundamental pillar of Arab and regional security.”

He added that relations between the two countries are “at their best.”

Al-Ghanem described the decision as “a new step reflecting the strength of the special and strategic relations between the two brotherly countries,” adding it confirms continued Kuwaiti support for Egypt amid regional and international challenges.

He noted that the renewal highlights Kuwait’s commitment to Egypt’s economic stability and reflects “deep-rooted ties, shared interests and solidarity in facing regional challenges.”

An Egyptian banking expert told Asharq Al-Awsat the extension will bolster foreign currency reserves, support the economy and “shut down rumors” that the deposit would not be renewed.

The step underscores strong relations and is likely to enhance future partnership and investment between the two countries, he added.

A report by the Central Bank of Egypt on the country’s external position said Kuwait renewed a $2 billion deposit that had been due to mature in September 2025, extending it to September 2026.

The report, cited by Egyptian media on Sunday, said Kuwaiti deposits consist of two tranches of $2 billion each. One has been extended to next September, while the other matured in April. The report, which covers the first quarter of the current fiscal year, did not specify whether the April tranche was also renewed.

It added that long-term Arab deposits at the central bank stood at $9.3 billion at the end of September 2025, including $5.3 billion from Saudi Arabia and $4 billion from Kuwait, split across two deposits renewed annually in April and September.

In December 2025, Kuwait renewed a separate $2 billion deposit for another year through April 2026 to support Egypt’s foreign currency reserves, according to the same report.

Banking expert Mohamed Abdel Aal said the latest extension will support Egypt’s economy across key indicators, particularly reserves, and could pave the way for deeper cooperation, whether through continued deposits or converting them into investments that strengthen bilateral partnership.