US embassy cable - 05KUWAIT4517

UNCLAS KUWAIT 004517 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
STATE FOR NEA/ARPI SWALKER, LONDON FOR LTSOU 
 
E.O. 12958: N/A 
TAGS: PGOV, PREL, KU 
SUBJECT: KUWAIT CHAMBER OF COMMERCE ON PARLIAMENTARY 
INFIGHTING AND ECONOMIC/POLITICAL REFORM IN KUWAIT 
 
 
1. (SBU) Summary.  In an October 19 meeting with Econ 
Counselor, the Deputy Director General of the Kuwait Chamber 
of Commerce and Industry (KCCI) lamented the political 
infighting among parliamentarians resulting in the election 
of a new and less pro-business chairman of the National 
Assembly's Finance and Economy committee.  Al-Rabah was 
enthusiastic about the new law granting women full political 
rights and noted that Kuwaiti society was in a historic 
transition despite political quarreling among politicians 
that continued to hamper economic reform.  End Summary 
 
2. (SBU) On October 19, Econcouns, accompanied by Econoff, 
met with Rabah Al-Rabah, Deputy Director General of the KCCI 
a non-government entity with close ties to the GOK, to 
discuss political developments in the National Assembly (NA) 
impacting economic developments, in particular the leadership 
shuffle in the NA's influential Finance and Economy 
Committee.  Al-Rabah expressed his personal disappointment 
with the unexpected defeat of Abdulwahab Al-Haroun as 
chairman of the Committee, noting that Al-Haroun's defeat was 
"a political game being played out" at the expense of 
economic reform and private sector development.  While 
Al-Rabah was complimentary of the newly-elected chairman, Dr. 
Yusuf Al-Zalzala, he was skeptical about the degree of 
Al-Zalzala's support for the private sector.  (Note: 
Abdulwahab Al-Haroun served for nine years and was a strong 
proponent of developing Kuwait's northern oilfields and 
greater private sector participation in the economy.)  As an 
aside, Al-Rabah noted that the establishment of the NA's 
"Halliburton Committee" was prompted by similar internal 
political disputes resulting from allegations of impropriety 
in fuel contracts against Minister of Energy Shaykh Ahmad 
Fahd Al-Ahmad Al-Sabah. 
 
3. (SBU) Al-Rabah commented that economic reform in Kuwait is 
hampered by political disputes being played out in the 
parliament.  However, he expressed optimism about long-term 
economic and political reform with the with the entry of 
women into the country's political elections in 2007. 
Al-Rabah added that the participation and election of women 
in the upcoming elections would be "a very positive 
development" for the country and one that could help reshape 
parliamentary representation in conjunction with proposed 
districting reforms.  He noted that Kuwait was entering "a 
very encouraging era" that would result in significant social 
and political changes over the next 20 years. 
LEBARON