KUWAIT: Emir has died - a loss for the region but likely credit positive for Kuwait

GULF COUNTRIES - In Brief 29 Sep 2020 by Justin Alexander

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State media just announced the death of the emir (KUNA). He was being treated in the Mayo Clinic in Minnesota following bladder surgery in July. Despite frequent claims by state figures that he was "stable" or "improving", we had been consistently skeptical given the lack of disclosure about his condition and argued that the award of the Legion of Merit by the US last week was an indication that his death was imminent.Social media had been aflutter today with rumours following the departure of the prime minister and speaker of parliament from a session of the National Assembly, with the two men going to the Bayan Palace to meet Crown Prince Nawaf. The stock market dropped sharply, with the Premier Index down by -4% mid-day, before recovering about half of the losses. This was an important penultimate session of parliament before it holds a non-cooperation vote on the prime minister tomorrow (which he will easily survive) and then dissolves ahead of elections in November.Sheikh Sabah al-Ahmed al-Sabah was one of the most respected figures in the Gulf, having served as Emir for 14 years and as foreign minister since 1963. He played a key role in marshalling international support following the Iraqi invasion and has acted as a regional mediator, including with Iran and, in recent years, between Qatar and the Quartet. There is no other figure who can easily fill these shoes.However, as we discussed in our recent reports on 23 Sep and 19 Jul, uncertainty and intrigue over the line of succession after Sheikh Nawaf - who will now become Emir but is 84 and has long had serious health concerns - is one of the factors that has undermined governance and policy making in Kuwait. A...