Kuwait City, Kuwait — Kuwait Sunday announced the appointment of Fahd Abdulaziz al-Jarallah as the new Finance Minister.
This decision comes on the heels of the resignation of Manaf Abdulaziz al-Hajri, who held the position since April this year. Following al-Hajri’s departure, the responsibilities were temporarily shouldered by Oil Minister Saad al-Barrak.
Kuwait, known for its vast oil reserves and robust fiscal stance, has been grappling with political disputes and bureaucratic hurdles. These challenges have stymied crucial investments and reforms, particularly those aimed at diminishing the nation’s dependency on oil revenues.
A notable reform facing delays is the public debt law, which would empower Kuwait to seek loans from global markets. However, this proposal has met with resistance from several parliamentarians. It’s worth noting that any such reforms necessitate the endorsement of the parliament.
The economic forecast for Kuwait appears challenging. With declining oil prices and a reduction in oil production, the nation anticipates a significant deceleration in growth. The approved budget for the fiscal year 2023/24 predicts a staggering deficit of $22 billion.
Adding to the concerns, the International Monetary Fund (IMF) last month highlighted considerable risks to Kuwait’s economic outlook. A primary reason cited was the lack of essential fiscal reforms. The IMF projects a mere 0.1 percent GDP growth for Kuwait this year, a sharp decline from the 8.2 percent growth witnessed in 2022.