Kuwait’s crown passes to 83-year-old successor amid fiscal challenges
- Immediate succession is smooth but appointment of next Crown Prince requires...
- ...Balancing rival branches of the royal family and obtaining approval from obstructionist Parliament
- Ahead are high fiscal deficits, scheduled election and end of EM index upgrade inflows
The death of the Emir means that: the crown now passes to Crown Prince Nawaf Al-Ahmad Al-Jaber Al-Sabah (aged 83); the royal family will have to balance the interests of its two branches (Al-Ahmad and Al-Salem) to settle on a new Crown Prince; and the traditionally obstructionist, populist Parliament will have to approve that appointment.
At a time of high fiscal deficits, the absence of a debt law, an upcoming scheduled election and the end of inflows related to the MSCI EM index upgrade imply a difficult time ahead for the equity market.
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This report is independent investment research as contemplated by COBS 12.2 of the FCA Handbook and is a research recommendation under COBS 12.4 of the FCA Handbook. Where it is not technically a res...