2005
Post War Relations – Unwelcome Democratic and Economic Reforms – al-Qaeda Links – Fiercely Independent Majlis al-Umma – Kuwaiti Dinar Pegged to US Dollar – Saudi-Kuwaiti Neutral Zone – Oil Price Windfall – Record Budget Surplus
The downfall of Saddam Hussein in April 2003 was greeted with satisfaction in Kuwait. The Iraqi occupation of the emirate during 1990–91 had inflicted deep psychological scars on Kuwaiti society and most of the population were glad to see the back of Iraq’s dictator. The 2003 Iraq War had seen Kuwait take a front-line role, with thousands of coalition troops based in the emirate. The end of the Saddam Hussein regime enabled Kuwait to focus on more pressing affairs, particularly economic and political reforms and preparations for the in- troduction of the Gulf Co-operation Council (GCC) single currency.
Post War Relations Following the refusal of Saudi Arabia and Turkey to allow the use of their terri- tory to invade Iraq, Kuwait became home to almost the entire invasion force. Even before the 2003 Iraq War, there were over 10,000 coalition troops based in Kuwait as a deterrent to a renewed Iraqi invasion. Appreciative of the US’s help during the 1991 Gulf War (that evicted Iraq from Kuwait), the Kuwaiti government has been keen to maintain good relations with the US, despite sporadic local opposition. A number of Islamic militants with alleged links to the al-Qaeda terrorist network tried to derail the US mili- tary presence in Kuwait. In October 2002, two suspected Islamic militants had killed one US Marine and injured another involved in a military exercise on Failaka Island. Not long afterwards, in November 2002, the authorities arrested a Kuwaiti national, known only as ‘Mohsen F’, alleged to be the most senior member of al-Qaeda in the region. The authorities also arrested five more sus- pected Islamic militants in March 2003.
Family Rule While the fall of Saddam Hussein’s regime improved the external security situ- ation for Kuwait, internally it was of potential concern to the ruling al-Sabah family, which continues to have firm control over the country. There exists the possibility that the introduction of a democratic government in Iraq could force the al-Sabah family to introduce unwelcome democratic and economic
© KONINKLIJKE BRILL NV, LEIDEN, 2020 | DOI:10.1163/9789004423817_026 248 2005 reforms. Kuwait’s last attempt at introducing political reforms came with the restoration of the Majlis al-Umma (National Assembly) in 1992 and a decision in 1999 to grant women the vote, although the latter was later overturned by the National Assembly. The National Assembly, comprising Islamists, liberals, government support- ers and independents, has proven to be fiercely independent when passing leg- islation. One of the major barriers to reform remains the presence of Islamists in the National Assembly. On numerous occasions, they have opposed govern- ment reforms, including plans to introduce welfare cuts and allow foreign in- vestment in the Kuwaiti oil industry. In January 2003, the finance minister, Yousef Hamad al-Ibrahim, resigned from the government after Islamists ac- cused him of corruption. The Islamists had been pressurising the minister over his alleged mishandling of public funds and the operations of the Kuwait In- vestment Authority (KIA). Minister al-Ibrahim had already narrowly survived a vote of no confidence in the National Assembly in July 2002, thus averting the collapse of the government. The parliamentary elections held in July 2003 saw the Islamists strengthen their position in the National Assembly, increasing their number of seats by one to 21. The reformist liberals saw their share of seats fall from 14 to three. While independents and pro-government supporters have 26 seats altogether, the strength of the Islamists could give them fresh impetus to oppose the gov- ernment’s economic and political reforms. Prior to the National Assembly’s restoration in 1992, it had been dissolved three times by the al-Sabah family. However, most observers expected that the new National Assembly to be more subdued, due to the increase in seats for government supporters. It was also ex- pected that the liberals, with only three seats, would also be more reserved in their calls for political reforms, which included the introduction of a democrat- ically-elected government and the re-introduction of political representation for women. Doubts surround the question of how long the 77-year-old Emir will remain as head of state. In 2001, he suffered a cerebral haemorrhage, lead- ing to lengthy medical treatment abroad. The Emir’s natural successor would be the prime minister, Crown Prince Sheikh Saad al-Abdullah al-Salam al-Sabah. There is concern that if the Emir is forced to stand down on health grounds without a natural successor, the Islamists could take advantage of any subsequent political vacuum.
Converging Economies By 2010 Kuwait will see its economy aligned more closely with the other GCC countries of Bahrain, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE). A customs union between the GCC countries was introduced in January