Political Turmoil Amidst Financial Crisis

October 2008 | Political Risk Alert

The Kuwaiti government is divided at the best of times, but the constant onslaught directed by parliamentarians towards the cabinet could start to become really damaging in the current economic climate. Kuwait has seen liquidity and credit dry up, its stock market fall by 31% ytd and now it has the dubious honour of being the first Gulf state to see a run on one of its banks (Gulf Bank). The government's decision to guarantee all deposits with the lender (subject to parliamentary approval, which is almost certain) may provide a very short-term boost to the market sentiment, but

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